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Safestore expects strong results amid ‘excellent’ UK result

Safestore

The group’s revenue rose 9.8 per cent and like-for-like sales were 6.6 per cent higher, as its UK sales surged 8.3 per cent

The self-storage firm, Safestore, said full-year earnings are likely to hit the top end of expectations after strong trading in the first quarter, amid “excellent” UK result.

The group’s revenue rose 9.8 per cent and like-for-like sales were 6.6 per cent higher, as its UK sales surged 8.3 per cent.

There was 6.8 percentage points in occupancy, reaching 80.6 per cent. However like-for-like average rates dropped 9.0 per cent during the quarter ended 31 January.

The UK performed “very strongly” for the company, where Safestore opened sites in Carshalton, Sheffield and Gateshead, with regional sites slightly out-performing London and the south east.

The company anticipates its pipeline growing over the current months, and will “consider strategic, value-accretive investments as and when they arise”.

Safestore said that it expects earnings per share for the year to be towards the top range of analyst forecasts if current momentum continues.

Frederic Vecchioli, Safestore chief executive, said: I am pleased to report that the strong performance of the final quarter of our 2020 financial year has continued throughout the first quarter of 2021 driven by an excellent UK result, complemented by solid performances from Paris and Spain. In addition, our JV with Carlyle, operating in Belgium and the Netherlands, is performing in line with its business plan.

Our priority, and largest opportunity, remains the significant upside from filling the 1.4m square feet of fully invested currently unlet space in our UK, Paris and Barcelona markets, he added.

Whilst the potential for disruption arising from current Covid restrictions remains, the inherent resilience of our business model as well as our recent and current trading allows me to look forward with confidence, Vecchioli said.

He said that the first quarter’s trading performance has provided us with a strong base for the rest of the financial year and, if the current momentum continues, we would anticipate that the business delivers Adjusted Diluted EPRA Earnings per Share for 2020/21 towards the top of the range of analysts’ forecasts.

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