5 September 2024
Safestay plc
("Safestay", the "Company" of the "Group")
Interim Results
23% increase in EBITDA reflects strong strategic progress and operational leverage
Accelerated expansion in 2024 to date with four outstanding new sites added to the portfolio, strengthening the Group's platform for long-term growth
Safestay (AIM: SSTY), one of
H1 2024 Financial Highlights:
● |
Revenue from continuing operations increased 6.6% to |
● |
Adjusted EBITDA for continuing operations increased 23.1% to |
● |
Adjusted Earnings Per Share from continuing operations of 0.16p (H1 2023: Adjusted loss per share of 1.46p) |
● |
Loss Before Tax from continuing operations of |
● |
Successful debt refinancing with HSBC in January 2024 to increase the Group's overall funding capacity and support its long-term growth plans. Existing borrowings refinanced into a single |
● |
Net cash generated from operations was |
● |
Cash at bank was |
● |
17.2% increase in net asset value per share to 49.8p (H1 2023: 42.5p) reflecting the strength of the Group's portfolio. |
H1 2024 Operational Highlights:
● |
6.0% increase in bed nights to 412,442 (H1 2023: 389,124), of which 42.3% were booked through direct and non-commissionable channels (H1 2023: 26.9%) reflecting a step-change in marketing capabilities and supported by a gradual recovery in group bookings, which represent 23% of accommodation sales in the period (H1 2023: 13%) |
||
● |
Occupancy rate of 70.6%, a 1.8% increase year on year (H1 2023: 68.8%), nearing pre-pandemic levels (H2 2019: 71.1%) |
||
● |
Total REVPAB increased 3.2% to |
||
● |
Average Bed Rate ("ABR") of |
||
● |
Successful opening of Edinburgh Cowgate Hostel in June 2024 following acquisition in 2023 with very encouraging initial trading. |
||
● |
Strategic portfolio expansion with the addition of three new properties during the Period: |
||
|
● |
in April 2024, the Group signed its first management contract to run the resort-based,120-bed Calpe Seafront Hostel on |
|
|
● |
in May 2024, the Group acquired the Hotel Lineros in the heart of |
|
|
● |
in June 2024, the Group acquired a freehold property in the Centre of |
|
Current Trading & Outlook
● |
Strong momentum has continued into Q3 with sales to the end of August significantly ahead of last year supporting strong overall occupancy levels across the two peak summer months |
● |
Forward bookings for the remainder of 2024 and into 2025 comfortably ahead of the prior year supported by continuing recovery in group bookings |
● |
Strategic decision taken to surrender the lease for the Group's 52-room hotel in |
● |
Fourth new property added to the portfolio in the year to date with the acquisition of a leasehold city centre site in |
Larry Lipman, Chairman of the Group, commented:
"2024 so far has been a period of significant strategic progress for Safestay as we have continued to strengthen our position as one of
In addition to our portfolio expansion, we have continued to focus on driving organic growth through operational excellence, supporting a 23.1% increase in Adjusted EBITDA in H1. Our strong trading momentum has continued into H2 with encouraging sales performances and occupancy rates across the peak summer months of July and August.
Safestay's portfolio now comprises 20 sites with 17 currently serving guests in premium locations across some of
Copies of this announcement are available on the Company's website, www.safestay.com
Enquiries
Safestay PLC Larry Lipman |
Tel: +44 (0) 20 8815 1600
|
Shore Capital (Nomad & Broker) Tom Griffiths/Harry Davies-Ball
|
Tel: +44 (0) 20 7408 4090 |
Hudson Sandler (Financial PR) Alex Brennan/Lucy Wollam
|
Tel: +44 (0) 20 7796 4133 safestay@hudsonsandler.com |
For more information visit our:
Website www.safestay.com
Vox Markets page https://www.voxmarkets.co.uk/company/SSTY/news/
Instagram page www.instagram.com/safestayhostels/
Chairman's Statement
Introduction
During H1 2024 Safestay delivered a period of important strategic, operational, and financial progress. The appeal of Safestay's portfolio of premium hostels remains very strong amongst its core customer base of young travellers, families, and business travellers. This resulted in a 6.0% increase in bed nights sold during the period to 412,442 (H1 2023: 389,124), of which 42.3% were booked through more profitable direct and non-commissionable channels (H1 2023: 26.9%).
The increasing demand for our great value hostels continues to be supported by the growing popularity of the Safestay brand as well as the strength of the Group's outstanding locations across highly popular European travel locations. As a result, we delivered sales growth of 6.6% to
We are pleased to report a 23.1% increase to Adjusted EBITDA for continuing operations to
Strategic portfolio expansion
Safestay operates in the significant and fragmented international hostel market, which is estimated to grow to
Safestay is an experienced acquirer of hostels and we have a proven track record of quickly integrating and improving the performance of acquired sites. We are well-positioned to take advantage as hostels and other buildings capable of being converted to hostels come to the market, but only if all internal criteria are met. Overall, our core offer of a comfortable and safe stay in beautiful, often iconic buildings that are centrally located, in well-known and popular cities, remains unchanged. During the first half of the year, we returned to more aggressive expansion of the portfolio with three new sites added across attractive European travel locations and building further critical mass in both
In April we signed an initial 20-year term management contract to run the resort-based 120 bed Calpe Seafront Hostel on
In May we continued to build critical mass in the Spanish market with the acquisition of Hotel Lineros in
In June we acquired a freehold property in the centre of
Operational Excellence
In addition to strategically expanding our portfolio, a key pillar of the Group's growth strategy is focused on driving organic revenue growth through operational excellence. Under the guidance of our Chief Operating Officer, Peter Zielke, a primary aim has been to lift all operational standards across the portfolio and create unique experiences for our guests that will, in turn, underpin sustainable revenue growth.
Key operational focus areas for the Group include driving occupancy rates; increasing Total REVPAB; increasing bookings through commission-free own channels supported by effective, digital-led marketing; and increasing non-accommodation sales through the provision of ancillary services to guests who are staying at our hostels. All of this is supported by our Commercial Hub in
Occupancy during the period was 70.6%, a 1.8% increase year on year (H1 2023: 68.8%), nearing pre-pandemic levels (H2 2019: 71.1%). Occupancy naturally increases over the summer and so the average for the year is expected to be higher and broadly in-line with 2019 at 71%. This improvement reflects increasing demand for Safestay's customer proposition as well as the success of our marketing initiatives and a gradual recovery in Group bookings, which represented 23% of accommodation sales in the period compared to just under 13% in the prior year.
Average Bed Rate ("ABR") fell 4.5% year-on-year (H1 2023: ABR
Since 1 January 2023, the Group has returned to an annual capex budget equivalent to 3.0% of annual revenue. This is essential to maintaining the Group's reputation as a leading premium hostel operator and to protecting the quality of the portfolio by ensuring that every site remains in excellent condition.
Financial Review
The Group generated revenues from continuing operations of
Adjusted EBITDA from continuing operations increased by 23.1% to
The Group recorded a loss before tax from continuing operations of
Net cash generated from operations was
Group bank borrowings as at 30 June 2024 were
In January, the Group announced the refinancing of all its existing borrowings into a single
Current Trading & Outlook
We are very pleased with the strategic progress made during the first half of the year. This strong momentum has continued into H2 so far with strong occupancy levels in July and August and sales significantly ahead of last year at the end of August. Forward bookings for the remainder of 2024 and into 2025 are comfortably ahead of the prior year supported by a continuing recovery in group bookings. As a result of the Group's progress in H1 and its trading momentum the Board anticipates delivering further profitable growth in H2 .
Since the period end, we have continued to develop our portfolio including through the acquisition in August of a leasehold city centre site in
In June, we successfully opened our Edinburgh Cowgate hostel following its acquisition in 2023 and we have been very encouraged by early trading and positive customer feedback, with particularly strong occupancy rates over the summer months including during the Edinburgh Fringe festival.
In the longer-term, the Board remains highly confident in Safestay's significant growth prospects. These are underpinned by the Group's growing portfolio of premium hostels in outstanding locations, as well as the Group's ability to leverage its established systems, brand, and proven operational capabilities to a sizeable and growing total addressable market. As a result, we look forward to the future with optimism and confidence.
Larry Lipman, Chairman
5 September 2024
CONSOLIDATED INCOME STATEMENT
|
|
Half year to |
|
Half year to |
|
Year to |
|
|
30-Jun |
|
30-Jun |
|
31 December |
|
|
2024 |
|
2023 |
|
2023 |
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
|
|
As restated |
|
|
|
|
Total |
|
Total |
|
Total |
|
Note |
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
Revenue |
3 |
10,684 |
|
10,022 |
|
21,493 |
Cost of sales |
|
(1,704) |
|
(1,723) |
|
(3,811) |
Gross profit |
|
8,980 |
|
8,299 |
|
17,682 |
Administrative expenses |
|
(7,518) |
|
(7,724) |
|
(15,231) |
Operating profit |
|
1,462 |
|
575 |
|
2,451 |
Finance income and costs |
|
(1,575) |
|
(1,522) |
|
(3,173) |
Loss before tax |
|
(113) |
|
(947) |
|
(722) |
Tax |
|
220 |
|
(1) |
|
(226) |
Profit / (loss) for the period from continuing operations |
|
107 |
|
(948) |
|
(948) |
Net loss from discontinued operations |
4 |
(44) |
|
(55) |
|
(376) |
Profit /(loss) for the financial period attributable to owners of the parent company |
|
63 |
|
(1,003) |
|
(1,324) |
|
|
|
|
|
|
|
Basic profit / (loss) per share from continuing operations |
5 |
0.16p |
|
(1.46p) |
|
(1.46p) |
Basic profit / (loss) per share from discontinued operations |
5 |
(0.07p) |
|
(0.08p) |
|
(0.58p) |
Diluted profit / (loss) per share from continuing operations |
5 |
0.16p |
|
(1.40p) |
|
(1.39p) |
Diluted profit / (loss) per share from discontinued operations |
5 |
(0.06p) |
|
(0.08p) |
|
(0.55p) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
Half year to |
|
Half year to |
|
Year to |
|
|
30 June |
|
30 June |
|
31 December |
|
|
2024 |
|
2023 |
|
2023 |
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
|
|
As restated |
|
|
|
|
Total |
|
Total |
|
Total |
|
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
Profit / (loss) for the period |
|
63 |
|
(1,003) |
|
(1,324) |
Exchange differences on translating foreign operations |
|
(491) |
|
(1,729) |
|
7 |
Property revaluation |
|
- |
|
- |
|
3,904 |
Deferred tax on property revaluation |
|
- |
|
- |
|
(171) |
Total comprehensive (expense)/income for the period attributable to owners of the parent company |
|
(428) |
|
(2,732) |
|
2,416 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
30 June 2024 |
|
As restated 30 June 2023 |
|
31 December 2023 |
|
As restated 1 Jan 2023 |
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
Audited |
|
Note |
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
Non-current assets |
|
|
|
|
|
|
|
|
Property, plant and equipment (including right of use asset) |
6 |
77,659 |
|
68,310 |
|
73,709 |
|
72,058 |
Intangible assets |
|
136 |
|
9 |
|
71 |
|
9 |
Goodwill |
|
10,660 |
|
11,663 |
|
10,896 |
|
12,014 |
Lease assets |
|
220 |
|
440 |
|
297 |
|
453 |
Deferred tax asset |
|
5,314 |
|
7,402 |
|
5,488 |
|
7,226 |
Fair value of financial assets |
|
10 |
|
- |
|
- |
|
- |
Total non-current assets |
|
93,999 |
|
87,824 |
|
90,461 |
|
91,760 |
Current assets |
|
|
|
|
|
|
|
|
Inventory |
|
50 |
|
26 |
|
26 |
|
24 |
Trade and other receivables |
|
1,318 |
|
707 |
|
1,210 |
|
1,122 |
Lease assets |
|
141 |
|
135 |
|
142 |
|
139 |
Current tax asset |
|
274 |
|
49 |
|
134 |
|
66 |
Cash and cash equivalents |
|
2,139 |
|
7,261 |
|
1,998 |
|
5,226 |
Total current assets |
|
3,922 |
|
8,178 |
|
3,510 |
|
6,577 |
Total assets |
|
97,921 |
|
96,002 |
|
93,971 |
|
98,337 |
Current liabilities |
|
|
|
|
|
|
|
|
Borrowings |
7 |
(267) |
|
(1,108) |
|
(932) |
|
(925) |
Lease liabilities |
|
(1,818) |
|
(1,810) |
|
(1,793) |
|
(1,871) |
Liabilities held for sale |
|
(470) |
|
- |
|
(506) |
|
- |
Trade and other payables |
|
(6,067) |
|
(5,537) |
|
(4,018) |
|
(3,128) |
Current liabilities |
|
(8,622) |
|
(8,455) |
|
(7,249) |
|
(5,924) |
Non-current liabilities |
|
|
|
|
|
|
|
|
Borrowings |
7 |
(26,427) |
|
(22,554) |
|
(22,354) |
|
(23,095) |
Lease liabilities |
|
(23,386) |
|
(29,030) |
|
(24,250) |
|
(30,349) |
Deferred tax liabilities |
|
(7,155) |
|
(8,385) |
|
(7,359) |
|
(8,737) |
Total non-current liabilities |
|
(56,968) |
|
(59,969) |
|
(53,963) |
|
(62,181) |
Total liabilities |
|
(65,590) |
|
(68,424) |
|
(61,212) |
|
(68,105) |
Net assets |
|
32,331 |
|
27,578 |
|
32,759 |
|
30,232 |
Equity |
|
|
|
|
|
|
|
|
Share capital |
|
649 |
|
649 |
|
649 |
|
647 |
Share premium account |
|
23,959 |
|
23,959 |
|
23,959 |
|
23,904 |
Other components of equity |
8,9 |
21,461 |
|
16,450 |
|
21,952 |
|
18,158 |
Retained earnings |
8,9 |
(13,738) |
|
(13,480) |
|
(13,801) |
|
(12,477) |
Total equity attributable to owners of the parent company |
|
32,331 |
|
27,578 |
|
32,759 |
|
30,232 |
Condensed consolidated statement of changes in equity
|
Share Capital |
Share premium account |
Other Components of Equity |
Retained earnings |
Total Equity |
|
|
|
|
|
|
Balance at 1 January 2024 |
649 |
23,959 |
21,952 |
(13,801) |
32,759 |
Comprehensive Income |
|
|
|
|
|
Profit for the period |
- |
- |
- |
63 |
63 |
Other comprehensive income |
|
|
|
|
|
Movement in translation reserve |
- |
- |
(491) |
- |
(491) |
Balance at 30 June 2024 |
649 |
23,959 |
21,461 |
(13,738) |
32,331 |
|
Share Capital |
Share premium account |
Other Components of Equity |
Retained earnings |
Total Equity |
|
|
|
|
|
|
Balance at 1 January 2023 as restated |
647 |
23,904 |
18,158 |
(12,477) |
30,232 |
Comprehensive income |
|
|
|
|
|
Loss for the period (as restated - see note 9) |
- |
- |
- |
(1,003) |
(1,003) |
Other comprehensive income |
|
|
|
|
|
Movement in translation reserve |
- |
- |
(1,729) |
- |
(1,729) |
Total comprehensive loss |
- |
- |
(1,729) |
(1,003) |
(2,732) |
|
|
|
|
|
|
Transactions with owners |
|
|
|
|
|
Share issue |
2 |
55 |
- |
- |
57 |
Share based payment charge for the period |
- |
- |
21 |
- |
21 |
Balance at 30 June 2023 |
649 |
23,959 |
16,450 |
(13,480) |
27,578 |
|
Share Capital |
Share premium account |
Other Components of Equity |
Retained earnings |
Total Equity |
|
|
|
|
|
|
Balance at 1 January 2023 as restated |
647 |
23,904 |
18,158 |
(12,477) |
30,232 |
Comprehensive income |
|
|
|
|
|
Loss for the year |
|
|
|
(1,324) |
(1,324) |
Other comprehensive income |
|
|
|
|
|
Movement in translation reserve |
|
|
7 |
|
7 |
Property revaluation reserve |
|
|
3,904 |
|
3,904 |
Deferred tax on property revaluation |
- |
- |
(171) |
- |
(171) |
Total comprehensive income |
- |
- |
3,740 |
(1,324) |
2,416 |
|
|
|
|
|
|
Transactions with owners |
|
|
|
|
|
Share Issue |
2 |
55 |
- |
- |
57 |
Share-based payment charge for the period |
- |
- |
54 |
- |
54 |
Balance at 31 December 2023 |
649 |
23,959 |
21,952 |
(13,801) |
32,759 |
Consolidated Statement of Cashflows
|
|
Period to |
|
Period to |
|
Year to |
|
|
30 June |
|
30 June |
|
31 December |
|
Note |
2024 |
|
2023 |
|
2023 |
|
|
As Restated |
|
|
||
Unaudited |
|
Unaudited |
|
Audited |
||
£'000 |
|
£'000 |
|
£'000 |
||
Cash flow from operating activities |
|
|
|
|
|
|
Profit/(loss) for the period |
|
63 |
|
(1,003) |
|
(1,324) |
Tax charge |
|
(220) |
|
(1) |
|
226 |
Depreciation, amortisation |
|
1,705 |
|
1,973 |
|
3,364 |
Net finance costs |
|
1,574 |
|
1,522 |
|
3,413 |
Share based payment charge |
|
- |
|
21 |
|
54 |
Impairment charges |
|
- |
|
- |
|
1,028 |
(Increase)/decrease in inventories |
|
(23) |
|
1 |
|
(2) |
Decrease in lease asset debtor |
|
78 |
|
18 |
|
153 |
(Increase)/decrease in trade and other receivables |
|
(118) |
|
413 |
|
136 |
Increase in trade and other payables |
|
2,011 |
|
2,407 |
|
1,076 |
Fair value movement of derivatives |
|
26 |
|
- |
|
- |
Cash generated from operations attributable to continuing operations |
|
5,096 |
|
5,351 |
|
8,124 |
Income tax received/(paid) |
|
(140) |
|
28 |
|
(69) |
Total net cash inflow from operating activities |
|
4,956 |
|
5,379 |
|
8,055 |
|
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(5,685) |
|
(183) |
|
(4,977) |
Purchases of intangible assets |
|
(39) |
|
- |
|
(80) |
Interest received |
|
10 |
|
11 |
|
35 |
Total net cash outflow from investing activities |
|
(5,714) |
|
(172) |
|
(5,022) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
|
Share issue |
|
- |
|
57 |
|
57 |
Proceeds from new borrowings |
|
19,695 |
|
- |
|
- |
Payment of fees related to new borrowings |
|
(311) |
|
- |
|
- |
Principal elements of lease payments |
|
(1,821) |
|
(1,505) |
|
(3,639) |
Interest paid |
|
(675) |
|
(775) |
|
(1,274) |
Loan repayments |
|
(15,995) |
|
(500) |
|
(1,000) |
Total net cash outflow from financing activities |
|
893 |
|
(2,723) |
|
(5,856) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
2,038 |
|
5,226 |
|
5,226 |
Net cash flows (used in)/generating from operating, investing and financing activities |
|
135 |
|
2,484 |
|
(2,823) |
Differences on exchange |
|
48 |
|
(449) |
|
(365) |
Cash and cash equivalents at end of period (including discontinued operations) |
4 |
2,221 |
|
7,261 |
|
2,038 |
1 General Information
Safestay plc, the "Company" together with its subsidiaries, "the Group", is a public limited company whose shares are listed on the Alternative Investment Market ("AIM") of the London Stock Exchange and is incorporated and domiciled in the United Kingdom and registered in England and Wales . The registered number of the Group is 08866498 and its registered address is 1a Kingsley Way, London , N2 0FW.
2 Basis of Preparation
The consolidated interim financial information has been prepared in accordance with UK -adopted International Financial Reporting Standards ("IFRS") in conformity with the requirements of the Companies Act 2006.
The Group's Annual Report and Accounts for the period ended 31 December 2024 are expected to be prepared under IFRS.
The comparative information for the period ended 30 June 2023 in this interim report does not constitute statutory accounts for that period under section 435 of the Companies Act 2006.
Statutory accounts for the period ended 31 December 2023 have been delivered to the Registrar of Companies.
The auditors' report on the statutory accounts for 31 December 2023 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.
Significant Accounting Policies
The consolidated interim financial information has been prepared in accordance with accounting policies that are consistent with the Group's Annual Report and Accounts for the period ended 31 December 2023 which is published on the Safestay website, located at www.safestay.com. At the date of authorisation of this financial information, certain new standards, amendments and interpretations to existing standards applicable to the Group have been published but are not yet affective and have not been adopted early by the Group. The impact of these standards is not expected to be material.
In adopting the going concern basis for preparing these financial statements, the Directors have considered the business model and strategies, as well as taking into account the current cash position and facilities.
Based on the Group's cashflow forecasts, the Directors are satisfied that the Group will be able to operate within the level of its current facilities for the foreseeable future, a period of at least twelve months from the date of this report. Accordingly, the Directors consider it appropriate for the Group to adopt the going concern basis in preparing these financial statements.
Financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 ("the Act"). The statutory accounts for the year ended 31 December 2023 have been filed with the Registrar of Companies. The report of the auditors on those statutory accounts was unqualified, and did not contain a statement under section 498(2) or (3) of the Act.
The financial information for the six months ended 30 June 2024 and 30 June 2023 is unaudited.
These condensed interim financial statements have not been audited, do not include all the information required for full annual financial statements and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2023.
The financial statements have been presented in sterling, prepared under the historical cost convention, except for the revaluation of freehold properties, right of use assets and fair value of derivative financial assets and liabilities.
The accounting policies have been applied consistently throughout all periods presented in these financial statements. These accounting policies comply with each IFRS that is mandatory for accounting periods ending on 31 December 2023.
New Accounting Policies
Due to the refinancing and the subsequent hedging arrangements agreed in January 2024 the Group has considered the need to apply hedge accounting on the two derivatives for the interim financial information. The Group has decided not to apply hedge accounting on the two derivatives. Fair value movements in these financial assets and liabilities will be recorded through the income statement.
New standards and interpretations effective in the year
No new standards have been implemented this year that have a material impact on the business.
3 Segmental Analysis
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
6 months to 30 June |
|
6 months to 30 June |
|
Year to 31 December |
|
|
2024 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
Hostel accommodation |
|
9,136 |
|
9,021 |
|
19,190 |
Food and Beverages sales |
|
1,001 |
|
689 |
|
1,495 |
Other income |
|
547 |
|
312 |
|
808 |
Total Income from continuing operations |
|
10,684 |
|
10,022 |
|
21,493 |
Unaudited 6 months to 30 June 2024 (continuing operations) |
|
|
|
Shared services |
Total |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Revenue |
4,183 |
2,986 |
3,515 |
- |
10,684 |
Profit/(loss) before tax |
1,626 |
512 |
463 |
(2,714) |
(113) |
Add back: Finance income and costs |
115 |
- |
(19) |
1,479 |
1,575 |
Add back: Depreciation & Amortisation |
256 |
599 |
440 |
410 |
1,705 |
EBITDA |
1,998 |
1,111 |
884 |
(826) |
3,167 |
Exceptional & Share based payment expense |
- |
- |
- |
- |
- |
Adjusted EBITDA |
1,998 |
1,111 |
884 |
(826) |
3,167 |
Total assets |
44,794 |
16,987 |
20,414 |
15,726 |
97,921 |
Total liabilities |
(13,318) |
(12,250) |
(7,973) |
(32,049) |
(65,590) |
Unaudited 6 months to 30 June 2023 (continuing operations) |
|
|
|
Shared services |
Total |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Revenue |
3,556 |
2,477 |
3,989 |
- |
10,022 |
Profit/(loss) before tax |
931 |
96 |
499 |
(2,473) |
(947) |
Add back: Finance income and costs |
98 |
- |
16 |
1,408 |
1,522 |
Add back: Depreciation & Amortisation |
298 |
549 |
615 |
511 |
1,973 |
EBITDA |
1,327 |
645 |
1,130 |
(554) |
2,548 |
Exceptional & Share based payment expense |
- |
- |
- |
21 |
21 |
Adjusted EBITDA |
1,327 |
645 |
1,130 |
(533) |
2,569 |
Total assets |
34,969 |
16,335 |
24,309 |
20,389 |
96,002 |
Total liabilities |
(12,227) |
(12,168) |
(12,681) |
(31,348) |
(68,424) |
Audited 12 months to 31 December 2023 (continuing operations) |
|
|
|
Shared services |
Total |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Revenue |
8,270 |
5,349 |
7,874 |
- |
21,493 |
Profit/(loss) before tax |
2,293 |
(431) |
(918) |
(1,666) |
(722) |
Add back: Finance income and costs |
315 |
278 |
254 |
2,326 |
3,173 |
Add back: Depreciation & Amortisation |
432 |
1,198 |
931 |
540 |
3,101 |
EBITDA |
3,040 |
1,045 |
267 |
1,200 |
5,552 |
Impairment |
- |
- |
1,028 |
- |
1,028 |
Exceptional & Share based payment expense |
- |
- |
- |
80 |
80 |
Adjusted EBITDA |
3,040 |
1,045 |
1,295 |
1,280 |
6,660 |
Total assets |
40,944 |
15,818 |
21,551 |
15,658 |
93,971 |
Total liabilities |
(11,424) |
(11,853) |
(7,904) |
(30,031) |
(61,212) |
Total liabilities for the
4 Discontinued Operations
Following the classification of the asset group of "Vienna Hotel" as held for sale in September 2023, the operational performance was classified as discontinued. The Hostel formed part of the
|
|
6 months to |
|
6 months to |
|
Year to |
|
|
30 June |
|
30 June |
|
31 December |
|
|
2024 |
|
2023 |
|
2023 |
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
£000s |
|
£000s |
|
£000s |
|
|
|
|
|
|
|
Revenue |
|
448 |
|
450 |
|
996 |
Cost of sales |
|
(95) |
|
(160) |
|
(228) |
Gross profit |
|
353 |
|
290 |
|
768 |
Administrative expenses |
|
(232) |
|
(223) |
|
(905) |
Operating profit |
|
121 |
|
67 |
|
(137) |
Finance income and costs |
|
(165) |
|
(122) |
|
(239) |
Profit/(loss) before tax |
|
(44) |
|
(55) |
|
(376) |
Loss after tax for discontinuing operations |
|
(44) |
|
(55) |
|
(376) |
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
30 June |
|
30 June |
|
31 December |
|
|
2024 |
|
2023 |
|
2023 |
|
|
£000s |
|
£000s |
|
£000s |
Property plant and equipment (including right-of-use asset) |
|
3,579 |
|
- |
|
3,884 |
Trade and other payables |
|
(293) |
|
- |
|
(187) |
Lease Liabilities |
|
(3,869) |
|
- |
|
(4,291) |
Cash and cash equivalents |
|
82 |
|
- |
|
40 |
Trade and other receivables |
|
31 |
|
- |
|
48 |
Liabilities held for sale |
|
(470) |
|
- |
|
(506) |
|
|
6 months to |
|
6 months |
|
Year to |
|
|
30 June |
|
30 June |
|
31 December |
|
|
2024 |
|
2023 |
|
2023 |
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
£'000 |
|
£'000 |
|
£'000 |
Cash flow from operating activities |
|
|
|
|
|
|
Loss for the year |
|
(44) |
|
(55) |
|
(376) |
Tax charge |
|
- |
|
- |
|
1 |
Depreciation, amortisation and impairment |
|
- |
|
- |
|
264 |
Net finance costs |
|
165 |
|
122 |
|
239 |
(Increase)/decrease in inventories |
|
(1) |
|
- |
|
2 |
Decrease in trade and other receivables |
|
17 |
|
45 |
|
(54) |
Increase in trade and other payables |
|
200 |
|
106 |
|
306 |
Net Cash generated from operations attributable to discontinued operations |
|
337 |
|
218 |
|
382 |
|
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(44) |
|
(16) |
|
(9) |
Net cash used in discontinued investing activities |
|
(44) |
|
(16) |
|
(9) |
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
|
Principal elements of lease payments |
|
(251) |
|
(211) |
|
(419) |
Loan repayments |
|
- |
|
- |
|
(80) |
Net cash used in discontinued financing activities |
|
(251) |
|
(211) |
|
(499) |
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
40 |
|
162 |
|
162 |
Net cash flows (used in)/generating from operating, investing and financing activities |
|
42 |
|
(9) |
|
(126) |
Differences on exchange |
|
- |
|
|
|
4 |
Cash and cash equivalents at end of year |
|
82 |
|
153 |
|
40 |
5 Earnings Per Share
|
|
Period to |
|
Period to |
|
Period to |
|
|
30 June |
|
30 June |
|
31 December |
|
|
2024 |
|
2023 |
|
2023 |
|
|
Unaudited |
|
Unaudited |
|
Audited |
|
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
Basic profit/(loss) per share from: |
|
|
|
|
|
|
Continuing Operations |
|
0.16p |
|
(1.46p) |
|
(1.46p) |
Discontinued Operations |
|
(0.07p) |
|
(0.08p) |
|
(0.58p) |
Diluted profit/(loss) per share from: |
|
|
|
|
|
|
Continuing Operations |
|
0.16p |
|
(1.40p) |
|
(1.39p) |
Discontinued Operations |
|
(0.06p) |
|
(0.08p) |
|
(0.55p) |
Basic profit/(loss) per share has been calculated by dividing the loss attributable to shareholders by the weighted average number of shares in issue during the period.
Diluted profit/(loss) per share has been calculated after adjusting the weighted average number of shares used in the basic calculation to assume the conversion of all potentially dilutive shares, such as share option awards.
The number of shares used in calculating basic and diluted profit/(loss) per share are reconciled below:
|
|
30 June |
|
30 June |
|
31 December |
|
|
2024 |
|
2023 |
|
2023 |
Weighted average number of ordinary shares (000s) for the purposes of basic earnings per share |
|
64,935 |
|
64,802 |
|
64,869 |
Effect of dilutive potential ordinary shares (000s) |
|
3,441 |
|
3,142 |
|
3,441 |
Weighted average number of ordinary shares (000s) for the purposes of diluted profit/(loss) per share |
|
68,376 |
|
67,944 |
|
68,310 |
6 Fixed Assets
|
Freehold land and buildings |
Right of Use Assets |
Leasehold land and buildings |
Leasehold improvements |
Fixtures, fittings and equipment |
Assets under construction |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
At 1 Jan 2024 |
16,999 |
23,244 |
27,020 |
3,253 |
1,039 |
2,154 |
73,709 |
Transfers |
2,114 |
- |
- |
- |
- |
(2,114) |
- |
Additions |
2,688 |
- |
- |
20 |
585 |
2,392 |
5,685 |
Depreciation |
(163) |
(1,037) |
(94) |
(161) |
(231) |
- |
(1,686) |
IFRS 16 Lease Modification |
- |
321 |
- |
- |
- |
- |
321 |
Exchange Differences |
(7) |
(368) |
- |
65 |
(60) |
- |
(370) |
Revaluation |
- |
- |
- |
- |
- |
- |
- |
At 30 June 2024 |
21,631 |
22,160 |
26,926 |
3,177 |
1,333 |
2,432 |
77,659 |
At 1 Jan 2023 |
11,717 |
29,464 |
26,203 |
3,454 |
1,220 |
- |
72,058 |
Transfers |
- |
- |
- |
154 |
(194) |
40 |
|
Additions |
- |
- |
- |
- |
183 |
- |
183 |
Depreciation |
(113) |
(1,146) |
(298) |
(215) |
(146) |
- |
(1,918) |
IFRS 16 Lease Modification |
- |
29 |
- |
- |
- |
- |
29 |
Exchange Differences |
(260) |
(479) |
- |
(1,014) |
(287) |
(2) |
(2,042) |
At 30 June 2023 |
11,344 |
27,868 |
25,905 |
2,379 |
776 |
38 |
68,310 |
At 1 Jan 2023 |
11,717 |
29,464 |
26,203 |
3,454 |
1,220 |
- |
72,058 |
Transfers |
- |
- |
- |
154 |
(194) |
40 |
- |
Reclassification as held for sale |
- |
(3,858) |
- |
- |
(26) |
- |
(3,884) |
Additions |
2,522 |
- |
- |
4 |
337 |
2,114 |
4,977 |
Depreciation |
(169) |
(2,408) |
(185) |
(318) |
(266) |
- |
(3,346) |
Impairment |
- |
(83) |
- |
(65) |
- |
- |
(148) |
IFRS 16 Lease Modification |
- |
323 |
- |
- |
- |
- |
323 |
Revaluation |
2,902 |
- |
1,002 |
- |
- |
- |
3,904 |
Exchange Differences |
27 |
(194) |
- |
24 |
(32) |
- |
(175) |
At 31 December 2023 |
16,999 |
23,244 |
27,020 |
3,253 |
1,039 |
2,154 |
73,709 |
7 Borrowings
|
Unaudited |
|
Unaudited |
|
Audited |
|
30 June |
|
30 June |
|
31 December |
|
2024 |
|
2023 |
|
2023 |
|
£'000 |
|
£'000 |
|
£'000 |
At amortised cost |
|
|
|
|
|
Bank Loan repayable within one year |
349 |
|
1,108 |
|
1,000 |
Property finance liability |
3 |
|
- |
|
- |
Loan arrangement fees |
(85) |
|
- |
|
(68) |
|
267 |
|
1,108 |
|
932 |
|
|
|
|
|
|
Bank Loans repayable within more than one year |
19,495 |
|
15,495 |
|
15,180 |
Property finance liability |
7,175 |
|
7,087 |
|
7,174 |
Loan arrangement fees |
(243) |
|
(28) |
|
- |
|
26,427 |
|
22,554 |
|
22,354 |
In January 2024, the Group refinanced its existing borrowings into a single
The Term Loan interest rates are
The Group have entered into two hedging arrangements on the term loan, one being an interest rate swap of 3.955% for
The Term Loan replaces the previous interest only
In June 2024, the Group acquired a freehold property located in
The loan will be made to Safe Hostels Limited (a 100% owned subsidiary of Safestay plc) with Safestay plc providing a written guarantee. The interest rate on the loan is 1% per month and is serviced monthly, plus there are arrangement and exit fees of 1% each. The repayment date is 18 months after the drawdown date.
8 Deferred Tax
The adoption of the amendments to IAS 12 effective 1 January 2023 , resulted in an increase in deferred tax assets of
The adoption of the amendments results in an increase in deferred tax assets of
9 Prior Year Restatements
Following a review of the share options workings for the year ended 31 December 2023, it was noted that in prior years 1.4 million share options in relation to option holders who had since left the business and were no longer entitled to those options, had not been cancelled. The impact of this has been that the share option charge in prior years has been overstated. Therefore a prior year adjustment to the 1 Jan 2023 comparatives has been made in respect of this which has resulted in a reduction in the share based payment reserve of
10 Post Balance Sheet Events
On 1 August 2024, the Group surrendered the lease for its 52-room hotel in
On 8 August 2024, the Group announced an acquisition of a leasehold property in
Safestay Hungary kft has signed a five-year lease for the property from Curzon Capital kft and under the terms of the agreement has the option to extend this over two additional five-year terms. The first eight months of the property's
Should Safestay be unable to secure the correct licence, the agreement will be terminated. Once operational, the
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