First quarter trading update

RNS Number : 0764Q

Safestore Holdings plc

25 February 2016

 

25 February 2016

Safestore Holdings plc ("the Group")
First quarter trading update for the period 1 November 2015 to 31 January 2016

Robust first quarter, new Paris site

Group Operating Performance	Q1 2016	Q1 20152	Change	Change- CER1
Revenue- like-for-like (£'m)3	27.0	24.9	8.4%	10.4%
Revenue (£'m)	27.0	25.6	5.5%	7.4%
Closing Occupancy (let sq ft- million)4	3.435	3.381	1.6%	n/a
Closing Occupancy (% of MLA)5	69.7%	67.2%	+2.5ppts	n/a
Average Storage Rate (£)	25.69	25.07	2.5%	4.5%

Highlights
 

·      First quarter Group like-for-like revenue in CER¹ up 10.4%

·      UK like-for-like revenue up 11.9%

·      Paris revenue in CER¹ up 6.1%

·      New site at Marnes-la-Vallée in Paris acquired

Frederic Vecchioli, Chief Executive Officer commented:

"We have continued to see robust trading momentum in the first quarter of the new financial year. Our strategy of balancing rate and occupancy growth continues to gain traction and is driving a good financial performance.

We remain focused on the long term opportunity of filling the unlet space in our existing estate. We will continue to leverage our scale and expertise in generating enquiries through the internet channel and drive the operational performance of the business.

I am pleased that we are also announcing today the addition of a new site in Paris which will further enhance our leading position in this market.

I am confident that the momentum in the business, supported by our new website and motivated sales teams, will allow us to deliver earnings in line with the Board's expectations for the current financial year."

Business highlights

UK Trading Performance

UK Operating Performance	Q1 2016	Q1 20152	Change
Revenue- like-for-like (£'m)3	20.7	18.5	11.9%
Revenue (£'m)	20.7	19.2	7.8%
Closing Occupancy (let sq ft- million)4	2.641	2.626	0.6%
Closing Occupancy (% of MLA)5	67.4%	65.3%	+2.1ppts
Average Storage Rate (£)	24.77	23.36	6.0%

A good performance by the UK business in the first quarter delivered a pleasing 11.9% increase in like-for-like revenues building on the 12.9% growth in the prior year. Whilst the business typically experiences net vacates in the first quarter, reflecting seasonal industry trading patterns, the closing occupancy level was 2.1ppts higher than the prior year.

Our pricing policy continues to deliver rate growth and, for the first quarter, the average rate was up 6.0% on the same quarter last year.

Paris Trading Performance

Paris Operating Performance	Q1 2016	Q1 20152	Change
Revenue (€'m)	8.7	8.2	6.1%
Closing Occupancy (let sq ft- million)4	0.794	0.755	5.2%
Closing Occupancy (% of MLA)5	78.6%	74.7%	+3.9ppts
Average Storage Rate (€)	39.36	39.43	(0.2%)
Revenue (£'m)	6.3	6.4	(1.6%)

Our Paris performance was robust in the first quarter. The sq ft occupied grew 5.2% on the prior year and, as a result, occupancy as a percentage of MLA⁵ was 3.9ppts higher than the prior year at 78.6%.  

Revenue growth for the quarter was 6.1% on a constant currency basis despite the average storage rate being flat year-on-year. The impact of a 7% weakening in the average Euro exchange rate has resulted in a 1.6% year-on-year reduction in sterling revenue in the quarter.

Our strategy of achieving an appropriate balance of rate and occupancy growth, together with our leading position in the heart of the demographically attractive Parisian market, has continued to deliver year-on-year progress.

Marnes-la-Vallée

We are pleased to announce the completion of the acquisition of a freehold site in eastern Paris adjacent to the A4 motorway at Marnes-la-Vallée in the town of Emerainville for €4.2m. The site contains an existing warehouse which will be converted into a c.60,000 sq ft self-storage facility and c.8,000 sq ft of serviced offices. We estimate the costs of conversion at c.€2.4m.

We anticipate that the new store will open in late Summer 2016.

Following this acquisition, and the opening of the stores at Chiswick, Birmingham and Wandsworth, Safestore will have a total of 122 stores in the UK and Paris, of which 81 are freehold and long leasehold.

Ends

1 - CER is Constant Exchange Rate

2 - Q1 2015 is the quarter ended 31 January 2015

3 - Like-for-like numbers exclude Whitechapel and New Malden from the prior year numbers. In addition, Wandsworth, which is currently closed for redevelopment, has been excluded from the prior year. Please note that our preliminary results announcement made the statement "Group like-for-like revenue for the first two months up 7% at CER". This statement should have read "Group revenue for the first two months up 7% at CER."

4 - Closing occupancy excludes offices but includes 52,750 sq ft of bulk tenancy as at 31 January 2016 (31 January 2015: 84,972 sq ft)

5 - MLA is Maximum Lettable Area- Group MLA is currently 4.925m sq ft

Enquiries

Safestore Holdings plc	020 8732 1500
Frederic Vecchioli, Chief Executive Officer
Andy Jones, Chief Financial Officer
www.safestore.com
Instinctif Partners	020 7457 2020
Mark Reed Guy Scarborough

Notes to editors:

·	Safestore is the UK's largest self-storage group with 119 stores, comprising 95 wholly owned stores in the UK (including 56 in London and the South East with the remainder in key metropolitan areas such as Manchester, Birmingham, Glasgow, Edinburgh, Liverpool and Bristol) and 24 wholly owned stores in the Paris region. In addition, Safestore has 12 Space Maker stores under management in the UK.
·	Safestore operates more self-storage sites inside the M25 and in central Paris than any competitor providing more proximity to customers in the wealthiest and densest UK and French markets.
·	Safestore was founded in the UK in 1998. It acquired the French business "Une Pièce en Plus" ("UPP") in 2004 which was founded in 1998 by the current Safestore Group CEO Frederic Vecchioli.
·	Safestore has been listed on the London Stock Exchange since 2007. It entered the FTSE 250 index in October 2015.
·	The Group provides storage to around 49,000 personal and business customers.
·	Safestore (excluding Space Maker) has a maximum lettable area ("MLA") of 4.925 million sq ft (excluding the expansion pipeline stores) of which 3.435 million sq ft is currently occupied.
·	Safestore employs around 525 people in the UK and France.

 

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