Partner Article

Storage firm see slow growth

Storage providers Safestore have experienced a slowdown in rental rate growth, the company says in a trading update.

The company says business was slow in the period between May 1 and July 31, particularly during London 2012 events.

Nevertheless, revenue for the quarter was up 3.4% on the same period last year, and occupancy rates remained buoyant.

Safestore say a major internet advertising campaign across May helped to drive revenues, as did pricing strategy, as the average self storage rate per sq ft was 4.4% lower than last year.

Peter Gowers, Chief Executive Officer commented: “While macro-economic conditions remain challenging, we are making good progress as we implement the ‘More Space’ strategy outlined in January 2012.

“During the quarter, we delivered strong constant currency revenue growth, as well as further progress on our strategic priorities to strengthen the brand, drive operational excellence, build a powerful team and create value.

“As we progress through the fourth quarter, our scale and strong competitive position leave us well positioned to withstand the short-term headwinds of adverse foreign currency movements and the introduction of VAT on UK self-storage.”

This was posted in Bdaily's Members' News section by Tom Keighley .