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27 Aug 2008 07:00
FOR IMMEDIATE RELEASE
Safestore Holdings plc
Third quarter trading update for the period ended 31 July 2008
Safestore Holdings plc ("Safestore"or "the Company"), the largest self storage retailer in the UK and Paris, is pleased to report on itstrading progress for the three monthsended 31 July2008.
Financial Highlights*
|
|
Third quarter to
31 July 2008
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Thirdquarter to
31July 2007
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Change
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|
Revenue
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£21.3m
|
£19.3m
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10.3%
|
|
Like-for-like revenue
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£20.3m
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£19.0m
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7.0%
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Average rate persquare foot (‘sq ft’)
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£24.01
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£21.66
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12.8%
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Closing occupancy(sq ft)
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2,882,078
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2,897,541
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(0.5)%
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* 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 the UK we have seen a decline in enquiries and new lets from customers movinghome during the third quarter. However, those home movers taking space stay longerdue to protracted house moving chains ortheir decision to sell before they buy. Enquiries and new lets from other types ofcustomers requiring space haveremained consistent with previous trading years. While we saw good levels of enquiries and new letsin May and June, we experienced lowerlevels in July, a trend that is broadly consistent with previous years.
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.
In Paris we saw a strong performance in both occupancy growth and rates duringthe quarter.
Overall revenue and cash flow was broadly in linewith the Board's expectations during the quarter, which is traditionally our busiest.
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:
"Whilst we believe the results for the thirdquarter demonstrate the resilience of the business model the wider economic environmentremains uncertain. The fourth quarter is likely to be more challenging for the sector,but we believe Safestore is well positioned to tackle this given our highquality asset base and our focus on optimizing rates per square foot by 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.
The Board of Safestore believes that the Companyremains well positioned and on course to meet our expectations for the full year."
Ends
For further information, please contact:
Safestore Holdings plc T: 020 87321500
Steve Williams, Chief Executive
Richard Hodsden, Chief Financial Officer
Cardew Group T: 020 7930 0777
Nadja Vetter / 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
The UK is the largest and most established self storage market in Europe. The UK and French marketsshow lower penetration rates than the US or Australia and, according to the UK Self Storage Association the UK 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 workforce mobility,social factors such as high divorce rates and an ageing population, housing stock pressure in the UK and lifestyle trends such as the growth in the home improvement market.
The Group's business model is supported by a substantial asset base, strong cashflowand a solid record of earningswhich are continuing to grow.
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