Safestay FY trading ‘comfortably in line’ with market expectations

Safestay said on Monday that full-year trading was set to be "comfortably in line" with market expectations.

For the year to the end of December 2023, analysts are expecting revenue of £21.2m and earnings before interest, taxes, depreciation and amortisation of £6.7m.

The AIM-listed company, which owns and operates hostels, said sales are expected to come in at £22.5m, up from £19.1m a year earlier, while occupancy is expected to rise to 71.4% from 63%.

As at 1 January, forward bookings were £3.9m, up from £1.9m.

Chairman Larry Lipman said: "This performance demonstrates that demand for our product has come back stronger than before the pandemic, and represents an opportunity for Safestay to grow in this exciting market.

"Our objective is to further build the business and we are very focused on doing so through a careful mix of organic and acquisition led growth."

Safestay also announced on Monday that it has successfully refinanced its debt with HSBC into a single £16m term loan and added a new £2.5m revolving credit facility "to support future growth plans".