Safestay PLC Trading Statement (2098R)
February 28 2023 - 2:00AM
UK Regulatory
TIDMSSTY
RNS Number : 2098R
Safestay PLC
28 February 2023
28 February 2023
Safestay plc
("Safestay", the "Company" or the "Group")
Trading Update - Normal Business Resuming
Safestay (AIM: SSTY), the owner and operator of an international
brand of contemporary hostels, is pleased to announce a trading
update for the 12 months to 31 December 2022. Main highlights:
-- Revenues ahead of market expectations, expected to be GBP19.0
million (2021: GBP6.4 million - trading restricted)
-- Adjusted EBITDA is expected to be in line with market
expectations of GBP5.9 million (2021: Loss of GBP1.0 million).
Adjusted EBITDA represents earnings before interest, tax,
depreciation, amortisation, profit on disposal, rent charges and
exceptional one-off costs in the period
-- This marks the return to a near-normal premium hostel market with further upside anticipated
-- A key driver has been the improvement in average bed rate to GBP23.70 (2021: GBP19.70)
-- Occupancy also increased significantly to 63% versus 35% in 2021
Please note the 2022 figures are unaudited.
The business is returning to normal. Whilst the portfolio of 16
high quality hostels was only open for 97% of the year due to the
pandemic, the operational performance was broadly uninterrupted.
This allowed the business to re-emerge over the course of the year,
improving strongly over the key summer months.
Demand also built up over the course of the year across the
portfolio with occupancy increasing to 63%, although this still
remains well below historic market levels with significant
opportunity for continuing improvement. Importantly, guests were
predominantly young travellers visiting European cities as group
bookings by schools and colleges had not yet returned in
significant numbers, but there are positive signs that they are in
2023.
A strong driver behind the Group's successful trading
performance was the increase in the average bed rate to GBP23.70 up
from GBP19.70 in 2021. This 20% uplift should be sustainable and if
combined with a continued increase in occupancy, provides a firm
platform for a strong performance through this year.
Financially, the Group is in a good position following the sale
of two properties in 2021. As at 31 December 2022, the Group had
cash of GBP4.8 million.
Larry Lipman, Chairman of Safestay, said, " The pandemic
enforced fundamental change on our business. It required we
re-finance the Group and strip back the operational structure to a
bare minimum. As part of re-starting the business, we have been
able to use our accumulated knowledge to build the business back up
more efficiently and the Group is perhaps the stronger for it.
Certainly, our performance in 2022 was pleasing and we are now
focused on continuing the- growth in 2023."
Enquiries:
Safestay plc Tel: +44 (0) 20 8815 1600
Larry Lipman
Liberum (Nomad & Joint Broker) Tel: +44 (0) 20 3100 2000
Andrew Godber / Edward Thomas / Miquela Bezuidenhoudt
Novella Tel: +44 (0) 20 3151 7008
Tim Robertson / Safia Colebrook
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END
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