Safestay PLC Funding Update (5406J)
April 14 2020 - 4:45AM
UK Regulatory
TIDMSSTY
RNS Number : 5406J
Safestay PLC
14 April 2020
14 April 2020
Safestay plc
("Safestay", the "Company" or the "Group")
Funding Update
Safestay (AIM: SSTY), the owner and operator of an international
brand of contemporary hostels, is pleased to confirm a new GBP5
million overdraft extension with HSBC. The new facility will be
added to the Company's cash reserves of GBP1.1 million as at 8
April 2020, to enable the Company to meet its significantly reduced
liquidity requirements while the trading restrictions relating to
COVID-19 remain in place.
In line with the hospitality industry globally, all of our
hostels have been closed since 1 April 2020. The Company has
registered to benefit from government support schemes in all
countries where it operates, including deferments of taxes and
social charges, grants and reliefs. The majority of our hostel
staff have been furloughed, receiving financial support from the
governments in their respective countries. Operational costs
associated with the running of the individual sites and our head
office have been greatly reduced. Capital expenditure and the
conversion of hotels into hostels has been suspended. Individual
agreements have been reached with landlords involving a mix of
suspension of rents or rent reductions for a limited period. As a
result, the monthly cost base of the Group has been significantly
lowered to approximately GBP0.6 million of which half relates to
payments which can be temporarily deferred.
Whilst we are unable to forecast the duration and impact of
COVID-19, the new GBP5 million overdraft with HSBC together with
the Company's cash reserves should enable the business to fund its
requirements during this lockdown period and enable us to be well
positioned to re-open as restrictions are lifted.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (MAR).
Enquiries
Safestay plc +44 (0) 20 8815 1600
Larry Lipman
Liberum Capital Limited
(Nominated Adviser and Broker) +44 (0) 20 3100 2000
Andrew Godber/Edward Thomas/Laura Hamilton
Novella +44 (0) 20 3151 7008
Tim Robertson
Fergus Young
For more information visit our:
Website www.safestay.com
Vox Markets page
https://www.voxmarkets.co.uk/company/SSTY/news/
Instagram page www.instagram.com/safestayhostels/
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END
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