26th Jun 2014 08:21
LONDON (Alliance News) - Safestore Holdings PLC Thursday increased its interim dividend despite reporting a sharp fall in profit for the half year as it was hurt by property revaluation losses.
The company, which provides storage space for businesses and personal customers, posted a pretax profit of GBP6.9 million for six months ended April 30, down from GBP12.8 million a year earlier, During the year, the company made a GBP6.8 million loss on investment properties compared with a GBP3.1 million gain a year earlier.
It declared an interim dividend of 2.15 pence, up 16% from 1.85 pence a year earlier.
Safestore which converted into a UK Real Estate Investment Trust in 2013 said revenue fell to GBP46.9 million from GBP47.1 million.
The company said its UK business saw revenue fall 2% to GBP33.9 million from GBP34.6 million. However it said that after adjusting for the fact that its Enfield South store was still open in the first half of 2013 and for the impact of lost sub-let tenancy revenue at its Whitechapel store, which was sold in November 2013, like for-for-like revenue rose 0.6% of the prior year.
The company said its UK businesses ended the period at closing occupancy of 2.55 million square feet or 63.4% of its maximum lettable area, which represented an increase on 2013 of 68,000 square feet, despite the closure of the Enfield South store. During the second quarter Safestore said it increased occupancy by 49,000 square feet.
On the other hand, the company said its French business performed strongly throughout the year, with revenue up 4% to GBP13.0 million from GBP12.5 million. Closing occupancy for the division was 0.76 million square feet, up from 0.74 million a year earlier.
Financially, Safestore said net debt fell to GBP311.5 million from GBP382.8 million in October. The loan-to-value ratio stood at 39%, compared with 47% at the end of October, principally as a result of the reduction in net debt.
Safestore shares were quoted up 4.5% at 209.00 pence Thursday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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