Safestay PLC - London-based hostel operator - Pretax loss widens to £722,000 in 2023 from a restated £486,000 in 2022. Revenue rises 21% to £21.5 million from £18.1 million, but cost of sales also increase, as do administrative expenses and finance costs. Adjusted earnings before interest, tax, depreciation and amortisation rises by 15% to £6.8 million from £5.9 million. Net asset value per share grows 8.7% to 50 pence from 46p. Occupancy improves to 71.4% from 63%. Safestay says forward booking totalled £3.7 million at the start of 2024, up from £1.9 million a year before.

Chair Larry Lipman says Safestay is in a strong position to deliver growth in 2024, citing both headroom to improve occupancy and plans for expansion from 16 hostels at the end of 2023 to 20 in 2024. On Friday, the company says it has bought a freehold property in the centre of Brighton, on the south coast of England, for £2.3 million. It will spend an additional £1 million turning the property, opposite the Royal Pavilion, into a 220 bed hostel. The acquisition will be funded from existing cash resources and a new £1.2 million loan with an interest rate of 1% per month.

Current stock price: 21.40 pence, up 7.0% in London on Friday morning

12-month change: down 26%

Copyright 2024 Alliance News Ltd. All Rights Reserved.