28th Feb 2023 14:39
Safestay plc - city centre hostels operator - Says annual revenue in 2022 will come in ahead of market expectations at GBP19.0 million, multiplying from GBP6.4 million in 2021. Adjusted earnings before interest, tax, depreciation and amortisation are expected to be in line with market expectations at GBP5.9 million, swinging from a GBP1.0 million loss. Says business is "returning to normal" with guests being predominantly young travellers, as group bookings are seeing a slower recovery. Average bed rate increases to GBP23.70 from GBP19.70, which should be "sustainable", firm says.
Chair Larry Lipman say: "The pandemic enforced fundamental change on our business. It required we re-finance the group and strip back the operational structure to a bare minimum. As part of re-starting the business, we have been able to use our accumulated knowledge to build the business back up more efficiently and the group is perhaps the stronger for it. Certainly, our performance in 2022 was pleasing and we are now focused on continuing the growth in 2023."
Back in September, Safestay reported a surge in revenue to GBP7.3 million in the six months ended on June 30, from GBP407,000 a year ago as pretax loss narrowed to GBP338,000 from GBP3.4 million.
Current stock price: 24.30 pence each, up 22% on Tuesday afternoon in London
12-month change: up 35%
By Xindi Wei, Alliance News reporter
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