Safestore Holdings PLC (LON:SAFE) has increased its interim dividend as it revealed that sales and profits grew in the first half of its financial year and have remained solid in recent weeks.
With its self-storage outlets all continuing to operate in all geographies, the group generated £79.3mln of revenue in the six months to April 30, 2020, up 8.5% on a year earlier.
Like-for-like (LFL) revenue rose 5.9%, continuing the trend seen in the first quarter, with the rest coming from openings in the previous period, including in Carshalton and Gateshead plus acquisitions of two more stores in the period, and another six in Belgium this month.
LFL average occupancy grew 3.7% and underlying profit margin improved, with underlying profits up 3.7% to £45.9mln. Statutory profit before tax rose 161% to £99.7mln thanks to a much-increased gain on investment properties of £64mln.
As of June 15, 2020, the group said, occupancy had increased 1.3% since April, with LFL revenue from the start of May up 0.4% year-on-year.
With £158mln of available bank facilities, significant covenant headroom and no imminent refinancing required, the board recommended a 7.3% increase in the interim dividend to 5.9p per share.
Safestoer chief executive Frederic Vecchioli said new openings are planned in Sheffield and Paris as well as extensions of three other locations.
“We believe the resilient characteristics of the self-storage industry, together with our leading market positions across the UK and Paris, place the business in a strong position to withstand the economic uncertainty arising from (coronavirus) COVID-19,” he said in the results statement.