25th Sep 2018 11:48
LONDON (Alliance News) - Safestay PLC on Tuesday said its revenue increased but loss widened in the first half of 2018 due to increase in costs.
The hostels operator said pretax loss widened to GBP790,000 in the six months to June 30 from GBP370,000 reported for the same period a year before, as administrative expenses jumped to GBP5.3 million from GBP2.8 million.
Meanwhile, revenue rose year-on-year to GBP6.5 million from GBP4.1 million, with GBP2.4 million of the additional revenue coming from new acquisitions. All of the five properties acquired in 2017 have contributed positively, Safestyle said, particularly the 351 bed hostel in the centre of Barcelona, which added GBP150,000 in its' first the three months within the enlarged company.
Safestay now operates 2,618 beds in ten properties across four European and three UK cities, pending the opening of the Paris flagship site in 2019.
The company said it sold a total of 284,000 nights in the first six months of 2018, increasing from 140,000 sold in the same period in 2017. Average occupancy was 76.1%, also improving from the 71.6% a year ago.
"This has been a successful six months," said Chairman Larry Lipman. "Safestay is well positioned for further organic growth and to continue to pursue our acquisition programme."
Shares in Safestyle were trading 0.2% higher on Tuesday at 51.51 pence each.
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