Safestore Holdings PLC on Tuesday highlighted strong growth in its Expansion markets division, amid a moderate contraction in full-year revenue.

The Hertfordshire, England-based self-storage provider realised a marginal decline in revenue to £223.4 million in the financial year that ended October 31 from £224.2 million the prior year, amid a slight decrease in UK revenue coupled with growth in Paris and its Expansion markets. At constant currency, revenue grew by 0.2%.

The UK division saw revenue decline by 2.4% on-year to £162.2 million from £166.2 million, as its average rate per square foot fell 1.0% over financial year 2024 to £29.94 from £30.25.

By contrast, Paris revenue grew 1.5% to €51.3 million in financial 2024 from €50.5 million in financial 2023 alongside a 0.5% rate increase to €42.28 from €42.05.

Expansion markets, comprising of Spain, the Netherlands and Belgium realised revenue growth of 29% to €20.6 million from €16.0 million, with its average rate per square foot remaining flat on-year at €24.40.

In the fourth quarter alone, group revenue was £57.9 million, up 0.5% from £57.6 million a year before. Revenue in the UK was down 1.9%, but it was up 1.6% in Paris and 35% in the Expansion markets.

Safestore said closing occupancy for financial year 2024 fell to 75% from 77%, with the UK closing occupancy broadly in line with the prior year at 77% compared with 78%.

Safestore maintained its guidance for full-year adjusted diluted EPRA earnings per share, expecting it to be broadly in line with consensus forecasts of between 41.3 pence and 44.6p. This compares with 47.9p in financial 2023.

Safestore Chief Executive Frederic Vecchioli said: ‘We have delivered improved revenue performance in Q4, led by the UK, and have returned to growth overall for the financial year.

‘In the UK, we are encouraged by the continued improvements in domestic customer occupancy with increasingly positive levels of occupied space versus the prior year through the second-half of the year. However, business customer demand, particularly from smaller business customers, remains softer than in 2023.

‘We are pleased with the steady performance of our operations in Paris despite challenging economic trading conditions. ’We have presented our other countries combined together as Expansion markets to reflect their importance in driving growth for the group.‘

Shares were down 1.0% at 749.50p on Tuesday afternoon in London.

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