Safestore aims to fill unlet space – Safestore has published results for the year ended 31 October 2017.
Highlights:
- Group revenue for the year up 12.6% (10.0% in constant exchange rates)
- Like-for-like group revenue for the year in constant exchange rates up 3.3%. Like-for-like like adjustments have been made to remove the impact of the 2016 openings of Wandsworth, Altrincham, Birmingham (including closure of our existing Birmingham store) and Emerainville, as well as Chiswick and Combs-la-Ville and the closure of Deptford in the current financial year. In addition, the impact of the acquisition of Space Maker on 29 July 2016 has been adjusted.
- UK up 3.1%
- Paris up 4.0%
- Underlying EBITDA up 10.7% in constant exchange rates which, offset by exceptional refinancing costs of GBP16.3m, drove a reduction in Profit before Tax of 16.9%
- Cash Tax Adjusted Earnings per Share up 17.7% at 23.3p
- 21.7% increase in the final dividend to 9.8p (FY2016: 8.05p)
Operational Focus
- Balanced approach to revenue management continues to drive returns
- Like-for-like average occupancy for the year up 1.4%
- Like-for-like closing occupancy of 75.0% (up 1.3ppts on 2016)
- Like-for-like average storage rate for the year up 1.3% in constant exchange rates
- Space Maker and new stores trading well
Strategic Progress
- 12 Alligator stores acquired on 1 November 2017 for GBP56m(11) , immediately earnings enhancing
- Three new UK stores in the pipeline with 146,000 sq ft of new space scheduled to open in London Mitcham, London Paddington Marble Arch and Birmingham Merry Hill
- Contracts exchanged in November 2017 for an 80,000 sq ft freehold site at Poissy, in the West of Paris
Strong and Flexible Balance Sheet
- Debt refinancing in May 2017 resulting in circa GBP3m per annum finance costs savings on a pro forma basis
- Group loan-to-value ratio at 31 October 2017 at 36% and interest cover ratio at 6.7x
Frederic Vecchioli, Safestore’s Chief Executive Officer, commented: “We have had a successful year through a combination of organic and acquisitive growth combined with a strong operational performance. Over the last 18 months our market leading positions in the UK and Paris have been consolidated, supported by the acquisitions of Space Maker and Alligator Self Storage, which added 24 stores to the UK portfolio and boosted earnings from the outset. Organically we have developed and opened six new stores in the UK and Paris, with a pipeline of a further four new stores opening in London, Birmingham and Paris.
The refinancing of our borrowings earlier in the year has resulted in a strengthened, efficient, low cost balance sheet which gives us the flexibility to continue to target selected development and acquisition opportunities.
We enter the new financial year in a strong position with substantial growth potential from the integration of Alligator Self Storage and the development of three new sites. However, our priority and the largest opportunity remains the significant upside from our 1.7m square feet of invested unlet space. We remain confident in the future and focused on the continued delivery of value to all shareholders.”
SAFE : Safestore aims to fill unlet space