Safestore Holdings PLC on Wednesday reported marginal revenue growth in the first half against the backdrop of challenging economic conditions.

The Borehamwood, England-based firm is one of the UK’s largest self-storage company’s operating 181 stores in the UK, alongside a further 51 across France, Belgium, Spain, and the Netherlands.

In the six months ended April 30, pretax profit soared 68% to £173.7 million from £103.4 million the previous year.

The company benefited from a substantial £121.7 million gain on revaluation of investment properties versus a smaller £47.3 million gain last year.

Total revenue declined 0.8% over the same period to £109.2 million from £110.1 million.

Safestore raised its interim dividend 1.0% to 10.00 pence per share from 9.90 pence year-on-year.

Chief Executive Officer Frederic Vecchioli said: ‘In the UK, despite a challenging economic backdrop, we have seen solid like-for-like revenue performance with broadly flat average storage rates and a small occupancy decline.

‘In addition, we continue to grow income through our store development programme. In the period new stores and developments, generated an additional £2.2 million of revenue, with particularly strong performance in Spain.’

So far this year, 6 new stores have opened in multiple countries, adding 3% to Safestore’s available rental area.

The expansion programme will see a further 30 stores open, including 6 in the second half, adding 1.5 million square feet of space once opened.

At April 30, maximum lettable area stood at 8.2 million sq ft of which 6.1 million sq ft was occupied.

Looking ahead, management said it is focused on optimising the company’s operational performance and continuing growth in all geographies.

With £13.8 million in cash and equivalents recorded on the balance sheet at period end, Safestore has the flexibility to pursue self-funded development and acquisition opportunities in all markets.

Safestore shares were down 3.2% to 801.50 pence each in London on Wednesday morning.

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