Safestay PLC Trading Statement (0433P)
February 05 2019 - 2:00AM
UK Regulatory
TIDMSSTY
RNS Number : 0433P
Safestay PLC
05 February 2019
05 February 2019
Safestay plc
("Safestay" or the "Company")
FY18 Trading Statement
Poised for European roll-out
Safestay plc (AIM: SSTY), the owner and operator of an
international brand of contemporary hostels, is pleased to provide
the following trading update for the 12 months to 31 December
2018.
Key highlights in 2018
-- Positive trading performance
-- 39% increase in total revenues to GBP14.6 million (2017: GBP10.5 million)
-- Growth in Occupancy to 75.6% (2017: 72.8%)
-- Expect to deliver at least GBP3.4 million in EBITDA (2017: GBP3.2 million)
-- Added new hostel sites in Barcelona, Brussels and Vienna
-- Successful GBP10.36 million capital raise in December 2018 to fund future expansion
-- Poised for European roll-out with 15 European cities identified
At an annual growth rate of 5%*, the contemporary hostel market
is the fastest growing segment of the accommodation sector within
which Safestay is already one of the leading operators in Europe
with 2,792 beds. Demand for the hostel experience from the digital
generation, in particular, remains strong across the UK and the
continent.
* A report from Phocuswright 2016
The successful capital raise in December 2018 which generated
GBP10.36 million of new funds, reflects the strength of the
performance to date and provides the financial platform to complete
the next stage of the Group's expansion. 15 European cities have
been identified as suited to the Safestay brand and there is a
strong pipeline of potential sites located in these cities in
various stages of negotiations.
In 2018, the Company added three new city centre sites. In H1
the Company acquired the 351 bed Barcelona Passeig de Gracia hostel
which has performed strongly from the outset. In H2 the Company
secured 2 long term leases in Vienna and Brussels.
In addition, the Company is pleased to announce that the popular
Elephant & Castle Safestay hostel located in the Labour Party's
ex-headquarters has completed its 73 bed extension and now offers
486 beds per night. In total, the Group now consists of:
-- 4 sites in the UK: York, Edinburgh and two in London
-- 9 sites in Europe: Brussels, Lisbon, Madrid, Paris, Prague, Vienna and three in Barcelona
-- 2,792 beds across all 12 hostels and 234 under construction
Looking ahead, Larry Lipman, Chairman of Safestay, said:
"The focus is to grow the brand and the Company has the capital
to support an increase from the 13 sites today to over 20, at which
point the business will become self-funding and increasingly gain
from economies of scale and brand growth."
The Company will announce Final Results for the 12 months to 31
December 2018 in April 2018.
Enquiries:
Safestay plc +44 (0) 20 8815 1600
Larry Lipman
Nuno Sacramento
Hervé Deligny
Canaccord Genuity Limited
(Nominated Adviser and Broker) +44 (0) 20 7523 8000
Chris Connors
Martin Davison
Michael Reynolds
Novella +44 (0) 20 3151 7008
Tim Robertson
Toby Andrews
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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