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SAFE

-1.07%
BAD

Safestore Reports Mixed Half-Year Results Amid Challenging Conditions

Why we think this is bad

The half-year results present a mixed picture, but with more concerning elements than positive ones. While revenue grew by 3.3%, underlying profit before tax declined by 11.0%, indicating significant margin pressure. The increase in net debt by £111.0 million is worrying, as is the decrease in underlying EBITDA margin from 61.4% to 58.5%. The company's outlook mentions challenging market conditions and inflationary cost headwinds, suggesting ongoing difficulties. These factors outweigh the positive aspects such as revenue growth and increased net asset value, pointing to a challenging period ahead for Safestore.

Key Points

  • Revenue increased by 3.3% to £112.8 million
  • Underlying profit before tax decreased by 11.0% to £43.6 million
  • Net debt increased by £111.0 million to £1,010.5 million
  • Underlying EBITDA margin decreased from 61.4% to 58.5%
  • Entered Italian market through joint venture with Nuveen
  • Facing challenging market conditions and inflationary cost headwinds
  • Maintained development pipeline with 20 new stores planned
  • Interim dividend increased by 1% to 10.1 pence per share

Summary

The self-storage operator reported mixed half-year results with revenue growth offset by declining profits and increasing debt, amid challenging market conditions and inflationary pressures.

Safestore's half-year results show a mixed performance with revenue growth of 3.3% to £112.8 million, but an 11.0% decrease in underlying profit before tax to £43.6 million. The company faced challenging market conditions, particularly in the UK and Paris, with inflationary cost headwinds impacting profitability. Net debt increased by £111.0 million to £1,010.5 million, while the underlying EBITDA margin decreased from 61.4% to 58.5%. Despite these challenges, Safestore maintained its development pipeline and entered the Italian market through a joint venture. The company remains cautiously optimistic about trading outlook but acknowledges ongoing economic uncertainties.

Key Dates

August 7, 2025
Interim dividend payment
Q4 2025
Expected completion of 4 new stores
2026
Projected opening of 9 new stores
HALF YEAR