Safestore (SAFE) continues to open new self-storage outlets, but the main emphasis last year was on improving efficiency in existing ones. This was achieved by offering staff incentives to accelerate the conversion of enquiries into new business, and through a programme of intensive staff training. The benefits are already evident, with improvements in conversion delivering nearly 19 per cent growth in new lettings, which helped to boost occupancy rates from 68.8 per cent to 72.6 per cent. As a result, revenue grew by 7 per cent to £104.8m, while profits were boosted by a valuation uplift of £78.9m compared with £24.1m a year earlier.
The internet is becoming an increasingly important distribution channel: four in five customer enquiries are generated online. The group allocated a budget of £5m to expand its in-house marketing operation, and a new customer website was launched in November.
In Paris, new lets reached a record level in the fourth quarter and occupancy rose to 81.8 per cent. Solid demand helped to push rents here up by 2.4 per cent, while rental growth in the UK was even stronger at 6.7 per cent.
Safestore also moved to strengthen the balance sheet, with facilities extended for two years to June 2020 on better terms which cut underlying finance charges by 17 per cent to £11.4m.
Analysts at Peel Hunt are forecasting adjusted earnings per share for the 2016 financial year of 18p, compared with 16.6p in 2015.
| SAFESTORE (SAFE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 336p | MARKET VALUE: | £698m | |
| TOUCH: | 336-336.1p | 12-MONTH HIGH: | 370p | LOW: 257p |
| DIVIDEND YIELD: | 2.9% | DEVELOPMENT PROPERTIES: | £6m | |
| PREMIUM TO NAV: | 31% | |||
| INVESTMENT PROP: | £776m | NET DEBT: | 48% | |
| Year to 31 Oct | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 147 | 8.6 | 7.0 | 5.3 |
| 2012 | 130 | -19.5 | -4.2 | 5.65 |
| 2013 | 210 | 48.6 | 57.8 | 5.75 |
| 2014 | 218 | 52.4 | 23.2 | 7.45 |
| 2015 | 256 | 118.2 | 52.4 | 9.65 |
| % change | +17 | +126 | +126 | +30 |
Ex-div: 10 Mar Payment: 8 Apr | ||||
