Shares in London have begun the week with a positive move upwards.
IC TIP UPDATES:
Safestay (SSTY) has doubled the number of hostels it owns to six locations with the acquisition of U Hostels Albergues Juveniles for €3m. The deal is part of Safestay’s strategy to expand across Europe, and it now operates in London, York, Edinburgh, Paris, and Madrid. In the year ended December 2016 U Hostels reported sales of €1.3m and a net loss of €100,000, but business is expected to increase “substantially” after the opening of an apartment block in Madrid. Shares were up nearly 1 per cent in early trading. Buy.
KEY STORIES:
HSS Hire (HSS) has appointed a new chief executive. Steve Ashmore will join the group on June 1st. He has previously worked in management positions in Wolseley (WOS) and Brammer. John Gill, current chief executive, will step down from the board tomorrow. Shares are up a little more than 1 per cent on the news.
OTHER COMPANY NEWS:
Restore (RST) has released a trading statement ahead of its annual general meeting later today. The group is trading in line with expectations and benefitting from the acquisition of PHS Data Solutions late last year. The group’s toner cartridge recycling business, ITP, is improving following a disappointing performance in 2016.
