27th Feb 2009 07:00
Safestore Holdings plc
First quarter trading update forthe period ended 31 January 2009
Safestore Holdings plc ("Safestore"or "the Company"), the largest self storage retailer in the UK and Paris, is pleased to report on itstrading progress for the three monthsended 31 January 2009.
Unaudited FinancialHighlights
|
First quarter to 31 January 2009 |
First quarter to 31 January 2008 |
Change % |
|
|
Revenue |
£20.9m |
£20.1m |
+4.2% |
|
Like-for-like revenue |
£19.7m |
£19.5m |
+1.1% |
|
Average rate per square foot ('sq ft') |
£25.71 |
£23.08 |
+11.3% |
|
Closing occupancy (sq ft) (excluding offices) |
2,661,000 |
2,805,000 |
(5.1%) |
|
Occupancy Movement (sq ft) |
(55,000) |
(106,000) |
Revenue for the first quarter of the financial year increased by 4.2% compared to the same period last year.This result is drivenby the superior rate and improved occupancy movement trend compared to the same periodlast year and is in spite of the openingoccupancy deficit reported at the time of our preliminary results.
Average rental rate has increased by 11.3% compared to last year and rose by 1.6% over Q4 2008. Around 3.0% ofthe year on year increase is attributable to favourable exchange rate movements.
Closing occupancy at the end of January was down5.1% compared to last year. This however represents an improvement on the 6.7% deficit at the year endand reflects the improvement in occupancy movement during the quarter compared tothe same period last year.
During the quarter, we opened one newstore in Clapham, London. Safestore has a remaining pipelineof 10 expansion stores, four of which are expected to open by the end of this financial year. We now have 113 stores trading (92 in the UK and 21 in Paris) which together with the pipeline stores willdeliver approximately 5.5 millionsquare feet of storage space in total across the UK and Paris.
Steve Williams, Chief Executive Officer, commented:
"Overall revenue andcash flow were broadly in line with Board expectations during the first quarter,which is traditionally our weakest period of the year. The trends show an improvement compared to the same periodlast year with less occupancy loss andrental rates remaining strong. We were particularly encouraged by the results inJanuary which saw positive occupancy movement driven by an improving trend in enquiriesand new lets, togetherwith low levels of vacates.
"Whilst we believe that trading conditions willremain challenging and that the level of new lets and vacates will remain at relativelylow levels over the next quarter, we are encouraged by the resilience we have seenin the current calendar year and believe that Safestore remains well positioned totake advantage of the favourable longer term trends for the self storage industry.
"The business willcontinue to be managed on a prudent basisand benefit from the flexibility of our business model, combined with a high level of discretionwithin the planned capital expenditure programme. This will ensure we can adjust costs in line with our trading performance.
"Safestore remainson course to meet our expectations for the full year."
Ends
For further information, please contact:
Safestore Holdings plc T: 020 87321500
Steve Williams, Chief Executive
Richard Hodsden, Chief Financial Officer
Cardew Group T: 020 7930 0777
David Roach / SofiaRehman
Notes to editors:
Safestore is the largest self storage providerin the UK and the central Paris region and the second largest in the EU, in terms of number of stores, providing individual,secure self storage space andrelated services. Over the pastfour years, the number of stores increased from 24 to 113, 92 of which operateunder the 'Safestore' brand in the UK and21 of which operate under the'Une Pièce en Plus' brand in France
The UK is the largest and most established self storage market in Europe. The UK and French marketsshow lower penetration rates than the US or Australia and, according to the UK Self Storage Association the UK market is expected to grow with a CAGR of 8 to 15 per cent.
This growth is supported by a number of key drivers including: increased workforce mobility, social factors such as high divorcerates and an ageing population, lifestyletrends, the shortage of livingspace and the demand from business customers who are attractedby the flexibility of self storage.
The Group's business model is supported by a substantial asset base, strong cashflowand a solid record of earningswhich are continuing to grow.
Any statements made in this announcement thatare not based on current or historical facts are forward-looking in nature. Suchforward-looking statements are based on current expectations and by their natureare subject to a number of risks and uncertainties that could cause actual resultsand performance to differ materially from any expected future results or performanceexpressed or implied by the forward-looking statement. These forward-looking statementsare made only as at the date of this announcement. Except as required by law, Safestorehas no responsibility or obligation to update publicly or revise any of the forward-lookingstatements contained herein.
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