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Safestore Holdings PLC reported a rise in interim profit and revenue but cautioned on inflationary and cost-of-living pressures moving forward.
The FTSE 250-listed self-storage space provider reported an underlying pretax profit of £51.8 million in the six months ended April 30. This represented an increase of 2% against the previous year's figure of £42.4 million.
Revenue for the interim grew 15% to £101.0 million from £88.1 million the previous year.
Like-for-like average storage rate for the period rose 13% in constant exchange rates. In the UK this was up 16%. Like-for-like occupancy was up 0.5% at 82.3%.
The company's property valuation increased by £398.3 million since October to £2.27 billion. Safestore said this included £32.2 million of additions and reclassifications.
As a result of its trading performance in the half, the company recommended an increased interim dividend of 9.4 pence per share, up from 7.5p a year prior.
‘Whilst performance in the first half of the year has been very strong we are conscious of the inflationary and cost of living pressures ahead. We have assessed our cost base and construction projects in the light of these factors and feel confident that we have the yield management capability and cost discipline to mitigate the likely cost inflation and are comfortable that our current pipeline projects will continue to deliver returns ahead of our internal hurdle rates,’ said Chief Executive Frederic Vecchioli.
Shares in Safestore were up 2.1% at 1,064.00 pence on Tuesday morning in London.
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