10th Jun 2025 09:14
(Alliance News) - Safestore Holdings PLC on Tuesday said revenue increased in the first half of its financial year, boosted by an improved performance in the UK market.
The Hertfordshire, England-based self-storage provider said revenue grew 3.3% to GBP112.8 million in the six months to the end of April from GBP109.2 million a year earlier.
Despite higher revenue, pretax profit fell 44% to GBP97.0 million from GBP173.7 million. Safestore made a GBP49.5 million gain on the revaluation of investment properties in the first half of financial 2025, down 59% from a GBP121.7 million gain a year prior.
Operating profit before gains on investment properties was down 1.9% to GBP63.4 million from GBP64.6 million. Cost of sales were up 9.0% to GBP38.9 million from GBP35.7 million, while administrative expenses grew 17% to GBP10.4 million from GBP8.9 million.
Basic earnings per share for the first half were 36.3 pence, down 49% from 71.8p a year ago.
Safestore said group revenue at constant exchange rates was up 4.0%, while like-for-like revenue was 2.8% higher at GBP111.5 million.
Like-for-like revenue grew 1.6% in the UK, 0.8% in Paris and 17% in expansion markets. Safestore noted that performance in the UK improve month-on-month during the first half of the year.
The company said administrative costs were higher due to the normalisation of head office staff incentives and the write-off of costs for discontinued development projects.
Safestore recommended an interim dividend of 10.1p per share, up 1.0% from 10.0p last year.
"Our teams have worked hard to drive a robust first half performance while investing in the future growth pipeline. UK revenue growth continues to be led by domestic customer demand, with improvements in both occupancy and rate in the half," said Chief Executive Officer Frederic Vecchioli.
Looking ahead, Safestore said it remains comfortable with its expectations for financial 2025, with underlying like-for-like costs and interest charge expected to be at the lower end of previous guidance.
It said early trading trends in the third quarter has been consistent with the company's performance in the first half.
Its development pipeline and recently opened stores are on track to deliver incremental earnings before interest, tax, depreciation and amortisation of between GBP35 million and GBP40 million on stabilisation, Safestore added.
"Safestore in the UK is facing well documented inflationary cost headwinds, but we have identified cost savings which will help mitigate some of the impact of these in the full year and into next year," said CEO Vecchioli.
"Our LFL stores remain highly cash generative and it is pleasing to the see the continued top-line growth from our portfolio. This gives us confidence as we continue to invest in our new store pipeline. The investment is, as expected, dampening profit growth in the short term as we bear the extra costs of immature stores and interest on the additional borrowings funding our pipeline."
Shares in Safestore were up 6.2% at 662.60 pence in London on Tuesday morning.
By Michael Hennessey, Alliance News reporter
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