Safestay PLC is the owner operator of a branded contemporary “boutique” hostel group. The first Hostel in the Elephant and Castle, London was opened in June 2012.

The Safestay Business operates a new brand of contemporary hostel, designed to appeal to a broad range of guests. Known as a “boutique hostel” within the travel industry, it is aimed at providing safe, stylish accommodation which offers a more attractive alternative to both traditional hostels and budget hotel accommodation.

The Safestay Business was set up in April 2011 as a joint venture between the Moorfield Funds and the Safeland Group. The Safestay Hostel, at Elephant & Castle, which was opened in July 2012, is the first hostel to operate under the Safestay brand and the Directors intend to acquire and develop further properties in due course.

During its first full calendar year of trading, the Hostel operated profitably, in line with management’s expectations, and achieved 72 per cent. occupancy, generating turnover of £1.9 million (which is the equivalent of approximately £4,750 annual revenue per available bed). Operating profit was £494,000, representing a margin of approximately 26 per cent. The Directors believe that revenue growth and margin improvement at the Hostel can be driven by increased occupancy, additional ancillary spending by guests whilst staying at the Hostel and more aggressive pricing with changing demand.

The majority of the Group’s costs are relatively fixed, comprising premises, staff and energy, hence, as occupancy increases, an increasing proportion of revenue is converted into profit. The Group is highly cash generative with 76.5 per cent. of EBITDA converted to cash in the year ended 31 December 2013.

https://www.safestay.com/

Shares - The ambitious yet low-risk model behind boutique hostel owner Safestay (SSTY:AIM) could drive an almost doubling of the £8.5 million cap's share price over the next 12 months, according to analysts. Net debt to EBITDA is expected to fall from 6.1 times in 2015 to 4.0 times in 2016. Analysts target price ranges from 102p to 120p, implying an upside of 62% to 90%

Shares - Investors should expect increased revenues and profit from premium hostel Safestay when it reports full year results on 13 April

Final Results
RNS
RNS Number : 9373J
Safestay PLC
13 April 2015







Safestay PLC

("Safestay" or "the Company")



Final Results

For the Period to 31 December 2014



Highlights

· Successful listing on AIM on 2 May 2014, raising £4.8m and simultaneously acquired the Elephant & Castle hostel



· Trading highlights for Safestay Elephant & Castle* for the year to 31 December 2014:



· Revenues increased by 19.8% to £2.315m (2013: £1.933m) reflecting the growing awareness of the Safestay brand and an increase in repeat custom from schools and colleges

· Bed occupancy increased by 9.9%

· Revenue per available bed (RevPAB) increased by 21.6%

· Average bed rate (ABR) increased by 10.7%

· 62.0% increase in earnings before interest & tax to £0.972m (2013: £0.600m)



*Results provided on a Proforma basis to enable comparisons with the previous year



· Acquired an additional hostel in York and signed heads of terms for a 50-year lease on a hostel in Holland Park, London which completed on 12 January 2015 and is scheduled to commence trading in Q2 2015



· Raised £3.3m in a placing in December 2014 to fund the refurbishment of the Holland Park hostel, repay debt and provide further working capital



· Completed the refurbishment of Safestay York in December 2014



· Further operational progress expected in 2015 under Safestay's newly appointed CEO, Philip Houghton



· Looking to expand the portfolio in 2015



· Recommended final dividend of 0.3p per share



Commenting on the results, Chairman of Safestay, Larry Lipman, said:



"Hostels have sometimes had a poor reputation in the past but this is now changing with new entrants such as us introducing a new brand of luxury hostel, offering safe, stylish and fun accommodation but still for less than £25 per night. Demand is high not just from traditional hostel customers such as young adults, schools and colleges but increasingly also from cost conscious families and business travellers too.



We are aiming to build a premium pan European hostel brand and we have made good progress towards this aim in 2014 through the expansion of the portfolio, the increase in occupancy and the listing on AIM. Looking ahead, we expect to open in Holland Park and add further hostels in other principal European cities."

13 Apr Westhouse... 120.00 Buy

Shares - Westhouse Securities believes Safestay could achieve £5 million of EBITDA for 2017 if it built a portfolio of 10 hostels by the end of 2016. It forecasts a 70% increase in the share price to 120p.

Stmt re. Suspension - acquisitions/fundraising
RNS
RNS Number : 8075T
Safestay PLC
22 July 2015

22 July 2015

Safestay plc

("Safestay" or "the Company")



Possible acquisitions, fundraising and suspension

and

Company update



Safestay (AIM: SSTY), the owner and operator of a new brand of contemporary hostel, announces that on 22 July 2015 it executed a binding commitment letter to acquire, subject to certain conditions including the exchange of a final sale and purchase agreement, the entire issued share capital of a special purpose corporate vehicle ("Milan SPV") for a consideration of €9 million (approximately £6.3 million) on a cash and debt free basis ("Milan Acquisition"). The Milan SPV has agreed to acquire a property in Milan, Italy ("Milan Property") and it is a condition of the Milan Acquisition that the Milan SPV has completed the acquisition of the Milan Property on or before 31 January 2016 and that the debt and equity fundraise described below completes. The Milan Property is currently being operated as an apart-hotel, which, if acquired and refurbished and converted, Safestay intends to operate as a hostel with approximately 279 beds.



The Company is also in the advanced stages of negotiating a contract for the acquisition of a larger hostel and accommodation scheme in the UK ("UK Hostel") for a consideration of approximately £14.9 million ("UK Acquisition"). Due to its size in relation to the Company, the UK Acquisition will be treated as a "reverse" transaction for the purposes of the AIM Rules for Companies ("AIM Rules") and, accordingly, will require publication of an admission document under the AIM Rules and will be subject to shareholder approval.



The aggregate consideration for the acquisitions is approximately £21.2 million and accordingly both acquisitions will be conditional on the successful completion by the Company of an equity fundraising of approximately £15 million (net) by way of the issue of new equity and the securing of a new debt facility of £8.5 million.



Subject to completion, it would be the Company's intention to operate the UK Hostel and the Milan Property, once refurbished and converted, as hostels under the "Safestay" brand.



At the request of the Company trading on AIM for Safestay plc ordinary shares of 1p each have been temporarily suspended from 3.00 p.m. on 22 July 2015, pending an announcement and publication of an admission document. However, there can be no guarantee that the fundraising or acquisitions will progress to completion.



A further announcement will be made in due course.



Larry Lipman, Chairman of Safestay, said: "These potential acquisitions represent an excellent opportunity for expansion of the Safestay brand into cities that are core strategically for our business. We hope that the UK Hostel will bring in revenue and therefore enhance profits, while the Milan Property is an opportunity to acquire a property in a key location within a city that enjoys strong tourist numbers but we believe is low on budget accommodation. We are very pleased to be making our first move into mainland Europe, and look forward to the future with great confidence."



Company Update



Trading of the operating hostels in the first 5 months of 2015 has been satisfactory. The hostel at Elephant & Castle has experienced revenue growth of 5.5 per cent. and EBITDA growth of 20 per cent. compared with the same period in 2014. In its most recent financial year to 31 December 2014, the Elephant & Castle hostel had audited turnover of £2.3 million derived from 78 per cent. occupancy. The hostel in York, which launched as a Safestay branded hostel in January 2015, is seeing revenue and profitability growth but at a rate behind management's pre-opening expectations. The Board expects that the hostel in York will reach anticipated mature trading levels and to accelerate this process a new general manager is being appointed. In addition, a dedicated sales and marketing resource is being employed who will initially focus on driving York revenues and support the enlarged Company's sales and marketing activities.



Refurbishment works at the Holland Park Property are nearly complete following minor delays and trading is scheduled to commence on 1 August 2015. The level of interest in the property and bookings taken to date give the Board encouragement that this hostel will mature to trading levels that management expect. The leasehold interest of the Holland Park property was also independently valued at £4.5m in July 2015 (subject to completion of the refurbishment and that it is ready to commence trade).



In June 2015, the Group commenced charging for breakfast at both of its operating hostels (at Elephant & Castle and in York) so that guests have the option to add breakfast as part of their stay. The directors of the Company anticipate that the change will increase both revenue and profit.



Recent investment into head office infrastructure, to provide the Group with the necessary resources to support the growing scale of operations, is having an expected short term impact on profitability. The Board believes that further planned investment is required in the second half for 2015 to meet the requirements of the growing hostel portfolio and to absorb future acquisitions by the Company. During the first five months of 2015, the Company repaid loan notes totalling £1.0 million with £1.0 million raised from a loan from Coutts & Co secured on the York Property.

Placing, Acquisition and Restoration on AIM
RNS
RNS Number : 1607W
Safestay PLC
17 August 2015



Safestay plc

("Safestay" or "the Company" or "the Group")



Capital Raising, Acquisition of Edinburgh Hostel and Re-Admission to trading on AIM



Safestay (AIM: SSTY), the owner and operator of a new brand of contemporary hostel, is pleased to announce a Placing and Open Offer to raise up to £9.34 million, the proposed acquisition of a 615 bed Edinburgh Hostel for £14.9 million, a new £8.5 million debt facility and restoration of trading on AIM in the Company's existing shares at 8.00am today.



Highlights:



· Proposed acquisition of a 132 room/615 bed hostel and student accommodation scheme located in the heart of Edinburgh Old Town just off the Royal Mile for a consideration of £14.9 million. The Edinburgh hostel provides a mix of hostel and student accommodation and has a 12 year contract with Edinburgh University to provide student accommodation during the academic year



o In the year ended 31 December 2014, the Edinburgh Hostel reported audited revenues of approximately £2.7 million and adjusted EBITDA of £1.0 million



o The addition of the new hostel in Edinburgh will, once rebranded, increase the Group's aggregate number of beds in the peak summer season to over 1,500 beds and to 1,200 beds in the remainder of the year across 4 hostels



· £8.24 million capital raise (net of expenses) through the issue of up to 15,071,452 New Ordinary Shares by way of a Placing and Open Offer at 62p per share and the issue of New Loan Notes to raise £1.0 million (before expenses)



· Open Offer to provide Qualifying Shareholders the opportunity to acquire Open Offer Shares (representing 10.6 per cent. of the Capital Raising) by subscribing for their respective Open Offer Entitlements at the Issue Price. The Open Offer is expected to raise up to £0.994 million (before expenses), assuming that the Open Offer is fully subscribed



· New £8.5 million debt facility which will be used to fund the Acquisition and the balance will be used for working capital



· Net proceeds of the Capital Raising, issue of the New Loan Notes and the New Facility Agreement will be used to acquire and rebrand the Edinburgh Hostel



· The Edinburgh Acquisition constitutes a reverse takeover for the purposes of the AIM Rules for Companies and it and the Capital Raising are conditional, amongst other things, on Shareholders' approval which will be sought at a General Meeting at 11.00 a.m. on 9 September 2015



· Trading on AIM in the Company's shares will be restored at 8.00am today, following this announcement and publication of an admission document



Copies of this announcement and the Company's admission document are available on the Company's website, www.safestay.com.



Larry Lipman, Chairman of Safestay, said:



"Edinburgh is a top ten city for European travellers and one we have been targeting to gain a presence in since Safestay was launched. We know the hostel well and it has an established presence on the hostel circuit and will therefore be another flagship site within our growing portfolio as we pursue our aim of developing a European network of Safestay hostels.



Investor appetite amongst both new and existing institutional investors to support the Edinburgh acquisition was strong which has been encouraging and we welcome all new shareholders to the Company.



Due to the size of the fund raising and the potential for smaller shareholders to be diluted, we decided to make the Open Offer available to shareholders so that they can participate. I hope they take up the opportunity.



Our hostel in Holland Park opens this month and we look forward to adding Edinburgh to the Group."

Safestay’s branded hostel is a great concept, but can it make great money?

New research note at www.investorschampion.com/blog/

Interim Results for the Six Months to 30 June 2015
RNS
RNS Number : 4612Y
Safestay PLC
09 September 2015



Safestay plc

("Safestay" or "the Company" or "the Group")



Interim Results

For the Six Months to 30 June 2015



Safestay (AIM: SSTY), the owner and operator of a new brand of contemporary hostel, announces its unaudited interim results for the six months ended 30 June 2015



Financial Highlights

· Revenues in H1 2015 increased to £1.4m (H1 2014*: £0.5m)



· EBITD in H1 2015 £0.258m (H1 2014* £0.230m)



· Reflecting significant investment in expanding the central infrastructure to manage the expanding portfolio, the Group recorded a loss before tax of £0.249m (H1 2014*: profit before tax of £0.137m)



· Introduced dynamic pricing structure which increased the number of beds occupied at the Elephant & Castle hostel by 5% in the 6 months to 30 June 2015 compared with the pro forma 6 month to 30 June 2014, whilst average bed rate (ABV) in the 6 months to 30 June 2015 reduced slightly to £18.73 (pro forma 6 months to 30 June 2014: £18.76), overall revenues increased as a consequence



Operational Highlights

· During the period, the Group operated Safestay hostels in Elephant & Castle and York



· Substantially completed the refurbishment of the Holland Park hostel which opened to the public in August 2015; upon completion in September 2015, the Group will be able to offer 781 beds in London each night



· Appointment of Philip Houghton as Chief Executive Officer in January 2015 and joined the Board in June 2015



· After the period end, on 17 August 2015, the Company announced the proposed acquisition of a 132 room/615 bed hostel and student accommodation scheme in Edinburgh, a freehold property, for £14.9m which when completed will lift the total number of beds across the four hostels in the peak summer season to over 1,500 beds and to 1,200 beds in the remainder of the year







*while the Company was incorporated on 29 January 2014, the comparative figures for H1 2014 represent 2 months' trading (from 2 May 2014 to 30 June 2014) and for the most part are for the Elephant & Castle hostel as the York hostel was acquired on 23 May 2014



Larry Lipman, Chairman of Safestay, said:



"At the beginning of 2014, we were a private business running one hostel, today we have three contemporary hostels operating under the Safestay brand and we are poised to add what will be our largest hostel to date, in a very strong location in central Edinburgh.



A lot has happened in that time and these results reflect the rapid changes that have taken place. Importantly demand is good, we have invested in putting the infrastructure in place ahead of the expansion of our portfolio and we are well positioned to continue to grow the business, whilst underpinning the underlying value of the Company with a mix of freehold and long leasehold properties."

Completion of Acquisition
RNS
RNS Number : 4799Z
Safestay PLC
18 September 2015





18 September 2015



Safestay plc

("Safestay" or "the Company" or "the Group")

Completion of acquisition of Edinburgh Hostel

Further to its announcement of 9 September 2015, Safestay (AIM: SSTY), the owner and operator of a new brand of contemporary hostel, is pleased to announce that 1,209,677 Consideration Shares were admitted to trading at 8.00 a.m. today.



Following admission of the Consideration Shares and in accordance with the Financial Conduct Authority's Disclosure and Transparency Rules ("DTR"), the Company's issued share capital will comprise 34,219,134 Ordinary Shares. The above figure of 34,219,134 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the DTR.



All defined terms in this announcement have the same meaning as in the Company's admission document dated 17 August 2015.

Director/PDMR Shareholding
RNS
RNS Number : 8678B
Safestay PLC
12 October 2015

12 October 2015



Safestay plc ("Safestay" or the "Company")

Director/PDMR Shareholding

Safestay (AIM: SSTY), the owner and operator of a new brand of contemporary hostel, announces that it has been notified that earlier today Stephen Moss, Non-Executive Director, bought 83,333 ordinary shares of 1p each in the Company ("Ordinary Shares") at 60p per share. Following this purchase, Stephen Moss holds 83,333 Ordinary Shares representing approximately 0.25 per cent. of the Company's issued share capital.

- ENDS -

Who Should Attend?Date:

Thursday 25th February 2016

Venue:

Radisson Blu Hotel Edinburgh, 80 High Street, The Royal Mile, Edinburgh, EH11TH

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