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27 Aug 2008 07:00
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Safestore Holdings plc
Third quarterΒ trading updateΒ for theΒ periodΒ endedΒ 31 July 2008
Safestore Holdings plcΒ ("Safestore"or "the Company"), theΒ largest self storage retailer in theΒ UKΒ andΒ Paris, isΒ pleased to report on itstrading progress for theΒ threeΒ monthsendedΒ 31 July2008.
Financial Highlights*
Β
|
Β
|
Third quarter to
31 July 2008
Β
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Thirdquarter to
31July 2007
|
Β
Change
|
|
Revenue
|
Β£21.3m
Β
|
Β£19.3m
Β
|
10.3%
Β
|
|
Like-for-like revenue
|
Β£20.3m
Β
|
Β£19.0m
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7.0%
|
|
Average rate persquare foot (Γ’β¬Λsq ftΓ’β¬β’)
|
Β£24.01
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Β£21.66
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12.8%
Β
|
|
Closing occupancy(sq ft)
Β
|
2,882,078
|
2,897,541
|
(0.5)%
|
Β
* Unaudited figures
Revenue for the third quarter of the financialyear increased by 10.3% compared to the same period last year and is up 7.0% overQ2 2008. Trading in the quarter was in line with historical trading patterns. Averagerental rate has remained strong and has increased by 12.8% compared to last yearand rose by 3.1% over Q2 2008. However, occupancy declined marginally by 0.5% comparedto the same period last year but has increased by 1.5% over Q2 2008.
In theΒ UKΒ we have seen a decline in enquiries and new lets from customers movinghome during the third quarter. However, those home movers takingΒ spaceΒ stay longerdue to protracted house moving chainsΒ ortheir decision to sell before they buy. Enquiries and new lets from other types ofcustomersΒ requiring space haveremained consistent with previous tradingΒ years.Β While weΒ sawΒ good levels of enquiries and new letsin May and June, weΒ experiencedΒ lowerlevels in July, aΒ trendΒ thatΒ is broadly consistent with previous years.Β
The average room size let has dropped marginallyleading to a slight softening of occupancy but a strong rate per square foot dueto the higher yield per square foot on smaller sized rooms.Β
InΒ ParisΒ we saw a strong performance in both occupancy growth and rates duringthe quarter.Β
Overall revenue and cash flow was broadly in linewith the Board's expectations during the quarter, which is traditionally our busiest.Β
Safestore has a pipeline of 12 expansion stores,all of which are expected to open by the end of 2010. Since the half year the Companyhas successfully opened three further stores in Hanworth, Chingford and Lafayette(Paris). We now have 112 stores trading (91 UK and 21 Paris) which together withthe pipeline stores will deliver approximately 5.5 million square feet of storagespace across the UK and Paris.
Steve Williams, Chief Executive Officer, commented:
"WhilstΒ we believe the results for the thirdquarter demonstrate the resilience of the business model the wider economic environmentremainsΒ uncertain. The fourth quarter is likely to be more challenging for the sector,but we believeΒ Safestore isΒ wellΒ positioned to tackle this given our highquality asset base and our focus on optimizing rates per square footΒ byΒ managing our space more effectively. Thesetogether with the resilience of self storage, the Safestore brand and increasingawareness of self storage will, we believe, continue to underpin our performance.
Β
The Board of Safestore believes that the Companyremains well positioned and on course to meet our expectations for the full year."
Β
Ends
For further information, please contact:
Β
Safestore HoldingsΒ plcΒ T: 020 87321500
Steve Williams, Chief Executive
Richard Hodsden, Chief Financial Officer
Cardew GroupΒ T: 020 7930 0777
Nadja VetterΒ / SofiaRehman / David Roach
Notes to editors:
Safestore is the largest self storage providerin the UK and the central Paris region and the second largest in the EU, in terms of number of stores, providing individual,secure self storage space andrelated services. Over the pastfour years, the number of stores increased from 24 to 112, 91 of which operate under the 'Safestore' brand in the UK and 21 of which operate under the 'Une Pi¨ce en Plus' brand in France
TheΒ UKΒ is the largest and most established self storage market inΒ Europe. TheΒ UKΒ and FrenchΒ marketsshow lower penetration rates than theΒ USΒ orΒ AustraliaΒ and, according to the UK SelfΒ Storage Association theΒ UKΒ market is expected to grow with a CAGR of 10 to 15 per cent.
This growth is supported by a number of markettrends including: increased workforceΒ mobility,social factors such as high divorce rates and an ageing population, housing stockΒ pressure in theΒ UKΒ and lifestyle trends such as the growth in the home improvement market.
The Group'sΒ business model is supported by a substantial asset base, strong cashflowand a solid recordΒ of earningswhich are continuing to grow.
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