Safestore to beat guidance as sales jump
Self storage company Safestore, which has three sites in the Black Country, nudged up its annual earnings guidance after it grew its fourth-quarter revenue by 19 per cent.
Revenue for the three months through October increased to £51.1 million, up from £42.8 million year-on-year.
Full-year earnings were anticipated to be slightly ahead of previous guidance.
In the fourth quarter, the company's occupancy rate rose five percentage points to 84.5 per cent, while the average storage rate rose 8.4 per cent to £28.42.
CEO Frederic Vecchioli said: "I am pleased to report a strong final quarter to conclude what was an exceptional and record result for the year. I would like to thank our staff for continuing to perform excellently throughout the period particularly given the challenges presented by Covid-19.
"All geographies have performed strongly and have shown good momentum in the final quarter. The UK business has traded particularly well this quarter, with exceptionally strong growth in average rate in the final three months driving like-for-like revenue growth of 16.8 per cent for the year.
"Our property pipeline continues to grow and we now have 800,000 sq ft planned to open over the coming years in the UK, Paris and Spain, representing growth of 11 per cent in the size of our estate. In November 2021, we added a further freehold London site to our pipeline in the Old Kent Road area. Our pipeline will be financed by our free cashflow and existing debt facilities and we anticipate further additions over the coming months.
"The company has weathered the pandemic well and continues to be in a very strong position. Despite the current high levels of occupancy, the business still has 1.1m square feet of currently unlet space in its existing fully invested estate in addition to 0.8m square feet in its pipeline. This represents a significant organic growth opportunity in what remains a fragmented and growing market. Our leading market positions in the UK and Paris, combined with our balance sheet strength and resilient business model, leave us well positioned for the future."
