Safestore Holdings Swings To Loss In H1

6/30/2009 7:12 AM ET

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(RTTNews) - Tuesday, self storage group Safestore Holdings Plc (SAFE.L: News ) reported a loss for the first half ended April 30, 2009, impacted mainly by a loss in investment properties. The company also maintained its interim dividend for the period.

Half-yearly loss before taxation was GBP 11.69 million compared with a pre-tax profit of GBP 28.48 million a year ago.

Loss attributable to shareholders was GBP 6.75 million or 3.60 pence per share, compared with a profit of GBP 20.52 million or 10.96 pence per share last year.

However, after adjusting for the loss on the revaluation of the property portfolio, exceptional items, and the associated tax charges, Safestore Holdings' adjusted profit after tax increased to GBP 8 million from GBP 7.5 million in the same period last year. Adjusted earnings, on a per share basis, increased 7.5% to 4.30 pence from 4.00 pence last year.

Underlying earnings before interest, tax, depreciation and amortization increased 4.3% to GBP 22 million from GBP 21.13 million a year ago.

Final results included loss on investment properties of GBP 29.99 million compared with a profit of GBP 18.20 million last year.

Revenue increased 3.3% to GBP 41.29 million from GBP 39.99 million, reflecting an improvement in rental rate and occupancy movement performance. Like-for-like revenue declined 1.2% to GBP 38.3 million from GBP 38.8 million a year ago.

Geographically, revenue from United Kingdom declined to GBP 30.78 million from GBP 32.14 million, while revenue from France increased to GBP 10.52 million from GBP 7.85 million last year.

For the period, Safestore Holdings' average rental rate was up 7.2% to GBP 25.24 per square foot and occupancy movement improved to 11,200 square feet from 73,100 square feet last year.

Looking forward, Chief Executive Steve Williams said, "The second half of the year has begun positively. We continue to make progress on the rate per sq ft and we have seen positive occupancy growth." The company said it remains confident of the outcome for the full year.

Further, the company announced an interim dividend of 1.65 pence per share which is in line with last year. The ex-dividend date will be July 8 and the record date July 10, with an intended payment date of August 12, 2009.

SAFE is currently trading at 92 pence per share, down 1.10%, on the London Stock Exchange.