13th Feb 2020 09:10
(Alliance News) - Safestore Holdings PLC on Thursday said revenue was higher in its first quarter, with modest growth both in the UK and in Paris.
The self-storage company's revenue for the three months ended January 31 totalled GBP39.9 million, a rise of 7.3% from the previous year's GBP37.2 million.
This included an increase in UK revenue of 8.2% to GBP30.3 million and a 6.7% rise in Paris revenue to GBP11.1 million.
On a like-for-like basis, total revenue for the quarter rose 4.8% to GBP39.0 million from GBP37.2 million.
Closing occupancy on January 31 was 5.0 million square feet, 8.7% higher than the 4.6 million square feet reported a year before.
The average storage rate was GBP26.07, down 1.7% from GBP26.52.
Chief Executive Frederic Vecchioli said: "It has been a pleasing start to the financial year. Our first quarter performance has been strong, driven by our core markets of the UK and Paris together with our recent acquisitions in London and Barcelona, as well as our Netherlands [joint venture], performing in line with or ahead of their business plans."
Vecchioli added: "Our priority, and largest opportunity, remains the significant upside from filling the 1.7 million square feet of fully invested currently unlet space in our UK, Paris and Barcelona markets. We remain confident in the future and our strong start to the year means the company is on course to meet the board's full year expectations."
The CEO also noted Safestore's recently opened developments in Peterborough and Birmingham have performed well and it intends to open 85,000 square feet of new space in Sheffield and Gateshead "in the coming months".
It also received planning permission for its site at Paris-Magenta, which is now set to open by 2020 end.
"Our strong and flexible balance sheet provides significant funding capacity which allows us to continue to consider strategic value-accretive investments as and when they arise," the CEO said.
Shares in Safestore, which has its headquarters in Hertfordshire, were up 0.6% at 815.00 pence in London on Thursday morning.
By Anna Farley; [email protected]
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