UK weakness at Safestore in Q3 offset by strong showing in France

Alexander Bueso Sharecast | 14 Sep, 2017 08:32 | | |


Safestore Holdings


17:18 21/09/17
  • 19,418.33
  • -0.63%-122.44
  • Max: 19,542.48
  • Min: 19,405.59
  • Volume: 0
  • MM 200 : n/a
17:25 21/09/17
  • 4,035.42
  • -0.20%-8.03
  • Max: 4,048.50
  • Min: 4,033.21
  • Volume: 0
  • MM 200 : n/a
17:25 21/09/17
  • 3,985.05
  • -0.20%-7.88
  • Max: 3,997.75
  • Min: 3,982.99
  • Volume: 0
  • MM 200 : n/a
17:30 21/09/17
  • 2,649.61
  • -0.28%-7.55
  • Max: 2,657.16
  • Min: 2,642.99
  • Volume: 0
  • MM 200 : n/a
17:25 21/09/17

Safestore reiterated its full-year guidance despite posting what appeared to be weaker-than-expected like-for-like sales in the UK.

The company's trading update for the quarter to 31 July, the third of its fiscal year, appeared to reflect the change in fortunes between the British and French economies, with the company highlighting the "particularly strong momentum" seen in its Paris business.

On a like-for-like and constant currency basis, revenues in Paris were ahead by 5.7% to €9.3m- and near the top end of some analysts' forecasts - but in the UK rose by just 2.3% to £21.8m, whereas some analysts had been expecting something closer to at least 4%.

Nonetheless, the self-storage space provider's chief, Frederic Vecchioli, expressed confidence in the company's ability to forge ahead despite the macroeconomic headwinds, telling shareholders that the company was "strong" and "on course to meet the Board's full year expectations".

"I am pleased to report continuing positive trading across the group in the third quarter with particularly strong momentum in our Paris business. As ever, our top priority remains the significant organic growth opportunity represented by the 1.5m square feet of currently unlet space in our existing fully invested estate," he said.

Total group revenues were higher by 12.5% at constant FX to reach £32.9m, alongside a 1.2 percentage point increase in its closing occupancy rate versus a year ago to 76.0%.

The company's average storage rate also improved, by 0.8% to £26.77 and by 1.5% year-to-date to £27.26.

More news

00:01 US close: Markets end lower as investors digest Fed meeting, economic data

Stocks finished lower on Thursday, as traders tried to work out the implications of the US central bank's policy announcement on Wednesday, despite a raft of better-than-expected readings on the economy.

21 Sep Europe close: Lenders pace gains in wake of FOMC decision

Banks lead Europe's main stockmarket indices to modest gains in the wake of the US central bank's policy announcement the night before with global capital markets apparently generally unruffled by the Federal Reserve's indications that it is looking to push ahead with multiple rate increases and balance sheet taper over the medium-term.

21 Sep London close: FTSE flat as investors mull latest Fed decision and UK lending figures

London stocks closed marginally lower on Thursday, giving up earlier small gains as investors digested the latest UK borrowing figures and Sterling bounced back.

21 Sep Capita dives despite making progress in first half, results 'difficult to read'

Capita reported a mixed set of results for the first six months of the year but said underlying profits would "rise modestly" in the second half compared to the first, though some investors and analysts found the numbers rather disappointing and difficult to decode.

21 Sep Capita staff prepare for strikes over pensions

Alongside Capita's labyrinthine half-year results that left many investors cold and sent the shares down 11%, the company was also forced to prepare for industrial action after unions voted to strike.

21 Sep Chevron cancels drillship contract with Transocean

Chevron blew a hole in Transocean's share price on Thursday after cancelling its contract for ultra-deep water drillship Discoverer Clear Leader one year ahead of its scheduled expiry, effective from the following November.

21 Sep Barnier fires shot across May's bows ahead of Florence speech

Ahead of the UK Prime Minister's major Brexit speech on Friday, chief European Union Brexit negotiator Michel Barnier has warned Theresa May against trying to have her cake and eat it and stressing that if a transition period is requested it will first require a withdrawal agreement.

21 Sep US open: Stocks dip as two-year yields hover near eight-year highs

Stocks are stuck in a bit of a rut as traders try to work out the implications of the US central bank's policy announcement the night before, despite a raft of better-than-expected readings on the economy.

21 Sep IG Design Group swallows Aussie card firm Biscay

Designer and manufacturer of celebration, gifting, stationery and creative play products IG Design Group announced on Thursday that it has signed a contract to acquire the trade and certain assets of Biscay Greetings, which it described as a “leading” greetings card and paper products business based in Australia.

21 Sep Friday preview: Importance of May's Brexit speech 'cannot be over-emphasised'

Theresa May's Big Brexit Speech in Florence may dominate the narrative on Friday, though for traders and investors there's PMI surveys and one from the CBI, with results from Sage and Smiths Group.