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12 Nov 2009 07:00
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12 November 2009
Safestore Holdings Plc
("Safestore" or "the Company")
Pre-close trading update for the year ended 31 October 2009Β
'Continued strong trading'
Safestore Holdings plc ('Safestore' or 'the Company'), the largest self storageΒ companyΒ in the UK and Paris is pleased to report on its trading progress (unaudited) for theΒ yearΒ ended 31 October 2009.
Revenue for the year to 31 October 2009 increased byΒ 1.9% to Β£84.4 million compared to Β£82.9 million last year
Occupancy growth for the year to 31 October 2009 wasΒ 57,000Β square feetΒ ("sq ft")Β compared to a loss ofΒ 195,000Β sq ftΒ last year
Average rental rateΒ per sq ftΒ for the year to 31 October 2009 increased byΒ 4.9%Β toΒ Β£25.24Β comparedΒ toΒ Β£24.05 last year
Closing occupancy for the year as at 31 October 2009 wasΒ 2,773,000 sq ft
Revenues forΒ Q4Β 2009Β were 3.0% up on Q4Β 2008Β at Β£22.1 million.Β The average rental rateΒ of Β£25.49Β for Q4Β 2009Β is 1.5% up on Q4Β 2008Β andΒ 3.9%Β ahead of Q3 2009.Β Occupancy performance in theΒ fourth quarter,Β which is historically the poorest performing quarter for new lets,Β was substantially better than theΒ sameΒ quarterΒ last yearΒ withΒ a decrease ofΒ 53,000 sq ftΒ compared to a decrease ofΒ 166,000 sq ft in 2008.Β The majority of the occupancy decrease in Q4 this year is related to the seasonal loss of students who store with us over the summer.
We continue to see an increasing level of enquiries and new lets. In particular, we have noted a significant increase in domestic enquiries duringΒ Q4. Demand from the business sector remains robust. Enquiries via the internet continue to grow with Q4 being particularly strong and nowΒ representsΒ the largest proportion of total enquires and new lets.Β OurΒ FrenchΒ businessΒ has continued to perform strongly with good growth in both new lets andΒ rentalΒ rates.Β
The Board of Safestore is confident that the full year results will be in line with market expectations.
During the year we opened five new stores. The initial performance of these stores has been encouraging. We currently have a pipeline of six expansion storesΒ allΒ of which have planning permission. Of these stores four are freehold and two long leaseholdsΒ (more thanΒ 50Β years).
Steve Williams, Chief Executive Officer commented:
"Despite the challengingΒ economic environmentΒ it has been pleasing to see an improved year on year performanceΒ in occupancy growth and rental rateΒ andΒ Safestore continues toΒ benefit from its operationalΒ strengths. The business has the capacity and operating expertise to take advantage of any increase in levels of activity and its position as theΒ UKΒ market leader provides further opportunities forΒ growth."
Ends
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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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HudsonΒ Sandler |
Tel: 020 7796 4133 |
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Nick LyonΒ /Β Wendy Baker |
Notes to editors:Β
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Safestore Holdings is the UK's largest self storage group withΒ 95Β stores throughout the UK, including 42 within the M25. In addition, it is the largest operator in centralΒ ParisΒ with 22Β stores. |
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The Company provides storage facilities toΒ more thanΒ 39,000Β domestic and business customers. |
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Safestore has a maximum lettable area ("MLA") of 5.4 million sq ft (including theΒ 6Β expansion pipeline stores) of which 2.8Β million sq ft is currently occupied. |
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As theΒ 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 employsΒ aroundΒ 500Β peopleΒ in the UK and Paris. |
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