Last checked at 17 Feb 2011 07:00
FOR IMMEDIATE RELEASE
17 February 2011
Safestore Holdings plc
First quarter trading update for the period ended 31 January 20111
"Significantly improved revenue from the No 1 self storage provider in the UK and Paris"
Safestore Holdings plc ("Safestore" or "the Group"), the largest self storage retailer across the UK and in Paris, is pleased to report on its trading progress for the three months ended 31 January 2011 ("Q1 2011").
·; Revenue for Q1 2011 increased by 7.6% to £23.1 million compared to the same period last year (Q1 2010: £21.5 million).
·; Closing occupancy2 as at 31 January 2011 was 2,864,000 square foot ("sq ft"), an increase of 4.3% over Q1 2010 (Q1 2010: 2,747,000 sq ft).
·; Average self storage rate per sq ft was £26.28, an increase of 2.1% compared to Q1 2010, and an increase of 1.3% compared to Q4 2010.
·; Ancillary sales increased by 10.9% to £3.1 million compared to Q1 2010 (Q1 2010: £2.8 million)
Q1 is traditionally a weak quarter for occupancy and, as expected, we did see a decline in overall occupancy during the period, which is a natural result of the stronger new lets trend last year.Enquiries and new lets have remained strong during the quarter with positive occupancy growth in January.
The unadjusted occupancy loss in Q1 2011 was 77,000 sq ft which includes the impact of the previously announced relocation of two stores to new, purpose built facilities in the UK and the closure of a store due to fire at one of our stores in Paris. The occupancy loss, adjusted for these items, is 40,000 sq ft compared to a loss of 26,000 sq ft for the comparable period last year. This higher level of occupancy loss is in line with expectations given the significantly higher levels of new lets in the preceding two quarters.
1Unaudited
2Closing occupancy excludes offices but includes 33,400 sq ft of bulk tenancy at 31 January 2011 (31 January 2010: 13,400 sq ft)
Steve Williams, CEO, commented:
"Trading during the first quarter has been encouraging. Whilst we saw the expected loss in occupancy during the first quarter, we are particularly encouraged by the improved enquiry trend in a traditionally quiet quarter for self storage, the positive occupancy growth in January, and a strong rental rate that improved month-on-month during the quarter."
"We are confident that Safestore, as market leader, is well placed to take a bigger share of the overall market through our operational expertise, national coverage and scale and is ideally placed to exploit any potential opportunities."
Ends
For further information, please contact:
Safestore Holdings plc | Tel: 020 8732 1500 |
Steve Williams, Chief Executive | |
Richard Hodsden, Chief Financial Officer | |
www.safestore.com | |
Hudson Sandler | Tel: 020 7796 4133 |
Nick Lyon / Wendy Baker |
Notes to editors:
·; | Safestore is the UK's largest self storage group with 118 stores including 96 wholly owned stores and 12 stores under management throughout the UK and 22 stores in Paris.
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·; | The Company provides storage facilities to almost 41,000 domestic and business customers.
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·; | Safestore (excluding Space Maker stores under management) has a maximum lettable area ("MLA") for self storage of 5.2 million sq ft (including 10 expansion pipeline stores) of which 2.94 million sq ft was occupied as at 31 October 2010.
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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 along with increased bank facilities allows 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. |
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.