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11 Feb 2010 07:00
FOR IMMEDIATE RELEASE
11 February 2010
Safestore Holdings plc
First quarter trading update for the period ended 31 January 2010
"Improving occupancy and rental rate trends and new increased bank facility"
Safestore Holdings plc ("Safestore" or "the Group"), the largest self storage retailer in the UK and Paris, is pleased to report on its trading progress for the three months ended 31 January 2010 ("Q1 2010").
·; Revenue for Q1 2010 increased by 2.7% to £21.5 million compared to the same period last year (Q1 2009: £20.9 million).
·; Like for like revenue rose by 2.0% to £20.1 million (Q1 2009: £19.7 million).
·; Average rate per square foot ("sq ft") was £25.73, an increase of 0.1% compared to Q1 2009, and an increase of 1.8% compared to Q4 2009.
·; Closing occupancy (excluding offices) as at 31 January 2010 was 2,747,000, an increase of 3.2% (Q1 2009: 2,661,000).
·; Improved seasonal occupancy loss of 26,000 sq ft in Q1 2010 (Q1 2009: loss of 55,000 sq ft).
·; Credit approval for new increased bank facility, subject to documentation.
Revenue for Q1 2010 increased by 2.7% compared to the three months ended 31 January 2009 ("Q1 2009") with like for like revenue up 2.0% for the same period.
Average rental rate has continued to improve since the year end. The average rental rate was particularly strong in Q1 2009 given the very low levels of discount Safestore were running through most of the period. It is perhaps more pertinent to report that the average rate for Q1 2010 is 1.9% up on the average rate for the last financial year and 1.8% up on the rate for Q4 2009.
Closing occupancy at the end of January was up 3.2% compared to last year and the seasonal occupancy loss in Q1 2010 was a considerable improvement on Q1 2009. This is reflective of the improving enquiry, new let and occupancy trend compared to the same period last year as highlighted at the time of our preliminary results. We would look for a continuation of this trend into Q2, traditionally a much better quarter for the Group than Q1.
As noted in the preliminary results announcement, towards the end of 2009 the Group initiated discussions with its banking syndicate on its existing banking facilities for the United Kingdom and France. The Group now has credit approval, subject to documentation, for a new, larger syndicated facility with an extended maturity date of 31 August 2013. The Group anticipates successfully completing the documentation process and entering into this new facility over the next few weeks. Further information will be provided once the refinancing exercise is completed.
Steve Williams, Chief Executive Officer, commented:
"Trading during the first quarter has been encouraging. Average rate per sq ft continued to increase during the period and we are particularly encouraged by the improved occupancy movement compared to the first quarter of 2009, despite Q1 traditionally being the quietest trading period for the self storage sector. This performance reflects the positive trend in enquiries and new lets.
"I am pleased to report that the Group has now secured credit approval, subject to documentation, for replacement credit facilities with an extended maturity date of 31 August 2013. These new and larger facilities will replace the existing debt facilities which are due to expire in July 2011. In addition to refinancing the Group's existing debt funding, the increased facilities will be available to assist with the fundingof the Group's store opening programme over the coming years and will provide it with additional flexibility and a sound financial structure for the medium term."
"Although it is difficult to predict trading patterns in these uncertain markets, our strong balance sheet, the generation of strong cashflows from our operations and organic growth opportunities give us confidence of making further progress in 2010."
Ends
For further information, please contact:
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Safestore Holdings plc |
Tel:020 8732 1500 |
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Steve Williams, Chief Executive |
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Richard Hodsden, Chief Financial Officer |
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www.safestore.com |
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Hudson Sandler |
Tel: 020 7796 4133 |
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Nick Lyon / Wendy Baker |
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Notes to editors:
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Safestore Holdings is the UK's largest self storage group with 95 stores throughout the UK, including 42 within the M25. In addition, it is the largest operator in central Paris with 22 stores.
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The Company provides storage facilities to more than 39,000 domestic and business customers.
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Safestore has a maximum lettable area ("MLA") of 5.4 million sq ft (including the 6 expansion pipeline stores) of which 2.75 million sq ft is currently occupied.
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As the UK's only national self storage provider, Safestore is uniquely positioned to meet the needs of companies requiring a national service.
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A strong balance sheet and operational cash flow allow Safestore to invest in continual improvements in the operational performance of its stores, in new store development and acquisitions where appropriate.
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Safestore employs around 500 people in the UK and Paris.
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Any statements made in this announcement that are not based on current or historical facts are forward-looking in nature. Such forward-looking statements are based on current expectations and by their nature are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. These forward-looking statements are made only as at the date of this announcement. Except as required by law, Safestore has no responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein.
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