13th Apr 2015 07:19
LONDON (Alliance News) - Hostel operator Safestay PLC Monday reported strong growth in revenue in 2014, driven by higher bed occupancy and a strong increase in revenue per available bed.
The company, which operates "boutique" hostels that still cost less than GBP25 a night and which listed on AIM last May, reported a pretax profit of GBP137,000 for 2014, although it gave no comparative figure for 2013. Earnings before interest and tax from to GBP972,000, from GBP600,000.
It said revenue rose to GBP2.3 million, from GBP1.9 million, as it won new customers and got more repeat business from schools and colleges. Bed Occupancy was up 9.9%, and revenue per available bed rose 21.6%. Its average bed rate rose 10.7%.
Safestay opened its first hostel, in Elephant & Castle in London, in 2012, and in 2014 it bought a hostel in York and signed heads of terms for a 50-year lease on a hostel in London's Holland Park. It said it is looking to expand its portfolio this year, and is looking at other main European cities.
The refurbishment of the York hostel was completed in December, and it expects the Holland Park hostel to start trading in the second quarter of this year.
It said it had seen growth in the first quarter of 2015, its traditionally weakest quarter, supporting its "confidence that 2015 will be another successful year".
It will pay a final dividend of 0.3 pence a share for 2014.
Safestay shares were up 1.4% at 71.50 pence early Monday.
By Steve McGrath; [email protected]; @stevemcgrath1
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