3rd Feb 2020 13:03
(Alliance News) - Safestay PLC on Monday said its performance improved in 2019 and it expects to grow "substantially" in the year ahead.
The hostels operator said revenue grew by 25% in 2019 to GBP18.3 million, with like-for-like revenue growth of 7% over the year. This was thanks to 77.3% occupancy achieved compared to 75.6% the year earlier, reflecting "good" demand. In addition, Safestay refreshed its booking engine and website early in 2019, it said.
Its average bed rate, meanwhile, grew by 5% to GBP21.3 from GBP20.3 year-on-year.
Safestay reported an 11% increase in adjusted earnings before interest, tax, depreciation and amortisation to GBP3.8 million in 2019.
The AIM-listed company completed six transactions during the recent year, adding eight hostels increasing the portfolio to 21 sites and over 5,100 beds.
"In 2019 we near doubled the size of the Safestay network," said Chair Larry Lipman. "Trading in 2019 was good, all key indicators were strongly positive, in particular the organic growth performance, and critically we have yet to really benefit from the recent acquisitions agreed towards the end of the year."
Lipman added: "Safestay is therefore well placed to grow substantially in 2020 and take advantage of the increasing popularity of the modern hostel sector."
Safestay shares were trading 2.7% higher in London on Monday at 37.98 pence each.
By Evelina Grecenko; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Safestay