3rd Sep 2014 08:14
LONDON (Alliance News) - Safestore Holdings PLC Wednesday said group revenue in the third quarter ended July 31 increased 2.5%, as the trading progress it achieved in the first half of the year continued throughout the third quarter.
The company, which provides storage space for businesses and personal customers, said revenue in the quarter rose to GBP24.9 million compared with GBP24.3 million in the third quarter 2013.
Like-for-like revenue in third quarter rose to GBP24.9 million, from GBP24.0 million a year earlier.
Group occupancy ended the quarter at 68.4%, compared with 65.4% at the end of the third quarter in 2013.
Safestore said: "Our focus on operational improvement in the UK is resulting in higher occupancy and rate growth whilst our French business has continued to perform well following a strong first half."
In the UK, revenue rose 4.5% to GBP18.4 million in the three months ended July 31 from GBP17.6 million in the same period of 2013. It said the UK business performed well in what is traditionally the busiest period in the year, showing significant growth compared with the prior year and continuing the improved trends reported in the first half of the year.
Revenue for French division, however, fell to GBP6.5 million in the quarter to July 31 from GBP6.7 million in the third quarter 2013. Safestore said it was impacted by the weakening of the euro, which meant revenue fell 3.0% in sterling terms.
Overall, Safestore said it is pleased with its operational progress in the UK and the continued "robust performance in France". The company does, however, expect a reduction in group occupancy in the fourth quarter compared with the third quarter, reflecting normal industry trading patterns, it said.
"Although the trading performance is improving, there is much to do to achieve the long-term opportunity of filling the 1.6 million square feet of currently unlet space," Chief Executive Frederic Vecchioli said in a statement.
"Our focus remains on driving the operational performance of the business and I am confident that the recent progress in the business will continue through the remainder of the financial year," he added.
The stock was quoted up 0.6% at 215.25 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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