Safestore hit by property re-valuation and currency costs
Safestore, the provider of self storage in the UK and France, has dropped dramatically in morning trading after revealing a near-12m sterling pre-tax loss.
Safestore, the provider of self storage in the UK and France, has dropped dramatically in morning trading after revealing a near-12m sterling pre-tax loss.
Figures for the six months to April 30th, show the company's property portfolio valuation has been reduced by £24m (or 3.4%) compared to the end of October last year.
Obviously, Safestore has to reflect that loss in the numbers released today, as well as £12m in currency translation losses incurred in moving money from France back to HQ.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Combined, those two effects have lead to a pre-tax loss of £11.8m and a loss per share of 3.31p.
The group's other metrics look reasonable, one indicator often used by storage firms is revenue per available foot, which has risen 7.6%, while total revenues have climbed 6.4% on the prior year to £48.4m.
The interim dividend has also been boosted 5.7% to 1.85p.
Unfortunately for Safestore though, the market seems to only really care about the loss. At 09:52, the stock was down 9.3%.
BS
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
GSK share price surges after $2.2bn Zantac drug settlement
GSK has settled lawsuits in the US that alleged the drugmaker’s now-discontinued heartburn drug Zantac triggered cancer
By Chris Newlands Published
-
Will the Autumn Budget impact investment markets?
Keir Starmer has warned the Autumn Budget will be “painful”. Will it impact investment markets and should you tweak your portfolio before 30 October?
By Katie Williams Published