9th Sep 2015 08:04
LONDON (Alliance News) - Safestay PLC Wednesday said it swung to a loss in the first half of 2015 as it continued to invest in its portfolio, but revenue almost tripled and it said that trading has been positive and demand strong.
The hostel owner said it made a pretax loss of GBP249,000 in the six months ended June 30, having made a pretax profit of GBP137,000 in the first half of 2014, as it made "significant investments" in the expansion of its portfolio.
Revenue, however, grew to GBP1.4 million from GBP502,000, and the company added that trading in the first two months of the second half has been positive.
"At the beginning of 2014, we were a private business running one hostel, today we have three contemporary hostels operating under the Safestay brand and we are poised to add what will be our largest hostel to date, in a very strong location in central Edinburgh," Chairman Larry Lipman said in a statement.
"A lot has happened in that time and these results reflect the rapid changes that have taken place. Importantly demand is good, we have invested in putting the infrastructure in place ahead of the expansion of our portfolio and we are well positioned to continue to grow the business, whilst underpinning the underlying value of the company with a mix of freehold and long leasehold properties," he added.
Shares in Safestay were trading down 1.2% at 59.80 pence Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Safestay