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11 Nov 2008 07:00
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Safestore Holdings plc
Pre-close trading updateΒ for theΒ year endedΒ 31 October 2008
Safestore Holdings plc ("Safestore" or "the Company"), the largest self storage retailer in the UK and Paris, is pleased to report on its trading progress for the 12 months ended 31 October 2008.
Financial Highlights*
Β
|
Β
|
2008
|
2007
Β
|
Change
|
|
Revenue for full year
|
Β£82.7m
|
Β£74.3m
Β
|
11.3%
|
|
Like-for-like revenue
Β
|
Β£79.1m
|
Β£73.0m
|
8.4%
|
|
Revenue for second half
Β
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Β£42.5m
|
Β£39.0m
|
9.0%
|
|
Closing occupancy (sq ft)**
Β
|
2,716,000
|
2,911,000
|
(6.7)%
|
|
Average rate
(per square foot)
|
Β£24.05
|
Β£21.62
|
11.2%
|
* Unaudited figures
** This represents aΒ 122,000Β sq ftΒ decreaseΒ over the closing occupancy at the half year.
Despite consumer confidence being at its lowest level for many years, revenues for the year increased by 11.3% compared to the same period last year. Revenues for the second half of the financial year ("H2") increased by 5.9% to £42.5 million compared to the first half of the financial year ("H1"). The average rental rate has remained strong, increasing by 11.2% while overall occupancy has fallen by 6.7% in the year. The fourth quarter saw lower volumes of enquiries and lower new lets in the UK, however, the revenue impact of this has been partially offset by a lower number of vacates and improvements in the average rental rates. Our Parisian business, Une Pièce en Plus ("UPP"), has continued to perform strongly with good growth in both new lets and rates.
During the financial year we have opened nine new stores, five of which are freehold and four leasehold with six being new purpose built facilities. The initial performance of these stores has been encouraging and ahead of budget. We currently have a pipeline of 13 expansion stores all of which will be purpose built. Of these stores 11 are freehold, two are long leasehold and nine have planning permission.
Steve Williams, Chief Executive Officer, commented:
"In spite of the difficult economic climate, the Board is encouraged by the performance of the business which reflects the operating experience of the executive team. Whilst Safestore is not immune to the broader economic downturn, the Company's performance underpins the fact that the business is not wholly reliant on the housing market.
Β
"In light of the current conditions, the Board of Safestore has taken steps to manage the business conservatively. New store openings remain on track although we have re-phased our opening schedule, anticipating that we will open around four to six new stores in each of the next two years rather than the seven to ten stores previously planned. We believe this action is prudent in the current climate. The Board believes that the Company is well positioned not only to withstand the continued downturn of the economy but with its flexible business model, operating expertise and market leading position, to emerge in a stronger position."
Safestore will be announcing full year resultsΒ onΒ 20Β January 2009.
Ends
For further information, please contact:
Safestore HoldingsΒ plcΒ T: 020 8732 1500
Steve Williams, Chief Executive
Richard Hodsden, Chief Financial Officer
Cardew GroupΒ T: 020 7930 0777
Nadja VetterΒ / Sofia Rehman / David Roach
Notes to editors:
Safestore is the largest self storage provider in 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 and related services. Over the past four 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 Pièce en Plus' brand in France
The UK is the largest and most established self storage market in Europe. The UK and FrenchΒ markets show lower penetration rates than the US or Australia and, according to the UK SelfΒ 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 market trends 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.Β The self storage model is also becoming increasinglyΒ popular withΒ business customers and is now an important part of the customer mix.
Safestore currently has approximatelyΒ 38,000Β domestic and business customers with anΒ average length of stay ofΒ 91Β weeks for current users.Β The Group'sΒ business model is supported by a substantial asset base, strong cashflow and a solid recordΒ of earnings which are continuing to grow.
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