UK Self-Storage Operator Safestore Posts Financial Gains in 3Q 2012

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U.K. self-storage operator Safestore Holdings PLC released its financial operating results for the third quarter, posting a 3.4 percent rise in revenue, which climbed from £24.1 million ($31.4 million) to £24.9 million ($32.4 million) year-on-year. The company’s year-to-date revenue grew 5.4 percent from £69.6 million ($90.7 million) to £73.4 million ($99.5 million) year-on-year.

Although Safestore posted revenue growth in the quarter, it had a 5.9 percent decline in the average self-storage rental rate, dropping to £24.37 million ($31.7 million) year-on-year from £25.91 million ($33.7 million).  

“While macro-economic conditions remain challenging, we are making good progress as we implement the 'More Space' strategy outlined in January 2012,” said CEO Peter Gowers. “During the quarter, we delivered strong constant currency revenue growth, as well as further progress on our strategic priorities to strengthen the brand, drive operational excellence, build a powerful team and create value.”

Safestore’s 23 facilities in Paris also remain “robust,” Gowers said. Total revenue for the third quarter for the Paris stores was up 5.6 percent over the previous year in constant exchange rates.

The company did, however, report a sluggish beginning in the fourth quarter. "We have seen a slower start to the fourth quarter in terms of new lets, particularly during the London 2012 events,” said Gowers, adding this is traditionally one of the company’s softer trading periods and revenue growth remains solid.

Safestore has nearly 41,000 customers and employs approximately 500 people. Excluding the 12 Space Maker facilities under its management, Safestore boasts 5.2 million rentable square feet of storage, including 10 expansion pipeline stores.

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