18th Jun 2020 09:59
(Alliance News) - Safestore Holdings PLC on Thursday upped its payout after profit more than doubled in the first half of its current financial year.
The FTSE 250-listed self-storage provider said revenue in the six months to the end of April grew by 8.5% to GBP79.3 million from GBP73.1 million, taking pretax profit to GBP99.7 million from GBP38.2 million.
The company said profit growth was driven by an increased gain on investment properties of GBP64.0 million from GBP7.9 million year-on-year.
Safestore said, as at the end of April, 4.8 million square feet were let compared to 4.7 million a year earlier, at an average rate of GBP26.52, up 0.8% from GBP26.30 a year prior.
Net asset value per share was GBP4.87 as at April 30 compared to GBP4.06 a year earlier, up 20%.
Safestore declared a dividend of 5.90 pence a share, up 7.3% from 5.50p paid a year prior.
Despite Covid-19 and the associated reduction in enquiries, move-in and move-out activity during lockdowns, the company said its proven business model and balanced approach to revenue management drives resilient operational performance.
As of Monday, 96.9% of Safestore's April and May revenue has been collected in the UK, just slightly lower than 97.5% collected at the same time a year earlier, and 83.8% in Paris versus 84.4% a year prior.
Looking ahead, the company said further new store openings are scheduled in Sheffield in June and Paris Magenta in early 2021.
"We believe the resilient characteristics of the self-storage industry, together with our leading market positions across the UK and Paris, place the business in a strong position to withstand the economic uncertainty arising from Covid-19," said Chief Executive Frederic Vecchioli.
Safestore shares were trading 6.6% higher in London on Thursday morning at 765.40p each.
By Evelina Grecenko; [email protected]
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