Source - Alliance News

Safestay plc - city centre hostels operator - Says annual revenue in 2022 will come in ahead of market expectations at £19.0 million, multiplying from £6.4 million in 2021. Adjusted earnings before interest, tax, depreciation and amortisation are expected to be in line with market expectations at £5.9 million, swinging from a £1.0 million loss. Says business is ‘returning to normal’ with guests being predominantly young travellers, as group bookings are seeing a slower recovery. Average bed rate increases to £23.70 from £19.70, which should be ‘sustainable’, firm says.

Chair Larry Lipman say: ‘The pandemic enforced fundamental change on our business. It required we re-finance the group and strip back the operational structure to a bare minimum. As part of re-starting the business, we have been able to use our accumulated knowledge to build the business back up more efficiently and the group is perhaps the stronger for it. Certainly, our performance in 2022 was pleasing and we are now focused on continuing the growth in 2023.’

Back in September, Safestay reported a surge in revenue to £7.3 million in the six months ended on June 30, from £407,000 a year ago as pretax loss narrowed to £338,000 from £3.4 million.

Current stock price: 24.30 pence each, up 22% on Tuesday afternoon in London

12-month change: up 35%

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