Safestore plans four new units after year of strong growth

Shares in Safestore dropped sharply despite the company showing growth in the financial year as it filled up its storage units in France and the UK.

Revenues for the year ending October rose by 10.8 per cent to 143.9m, or 5.6 per cent on a like-for-like basis, the company said in a trading update today.

Occupancy rates also increased ensuring that, on average, it let out 4.3m sq ft of its storage space in the financial year, a 4.4 per cent rise on 2017.

The chain has integrated the 12 stores it acquired when taking over the Alligator Safe Storage chain for £56m in September last year.

Meanwhile it opened two new storage units in London and a third in Paris as it closed four in the UK.

The company said it expects four new openings in the coming financial year.

Shares dropped by as much as 5.5 per cent to 519p today as political fall out from the Brexit deal sparked a sell off in the sector, analysts told Morning Wire They later recovered, closing  down 3 per cent. 

Chief executive Frederic Vecchioli said: “Improving trading momentum has driven a strong fourth quarter, concluding another excellent year's performance. The Alligator portfolio of twelve stores, acquired at the beginning of the financial year, is fully integrated and performing well.

“Our strong balance sheet continues to provide the flexibility to target selected development and acquisition opportunities as they arise.

“The company is in an excellent position and, as ever, our top priority remains the significant organic growth opportunity represented by the 1.7m square feet of currently unlet space in our existing fully invested estate.

“Our leading market positions in the UK and Paris combined with our resilient business model enable us to withstand any macro-economic uncertainty that may arise over the coming months and we look forward to the future with confidence.”