Safestore, the largest self-storage company in the UK, has locked in profits thanks to a rise in business in the six months leading up to the end of April. However, the company has warned that “inflationary and cost of living pressures” could affect the business environment in the future.
The company’s pre-tax earnings surged by 70 percent to £285,2 million, while its core earnings rose from £54.4 million to £65,2 million. The income also went up by 15%, to £101 million.
Safestore has most of its 125 locations in the UK, where it is based. It also has two places where business is done in Britain.
The company has 29 locations in the area around Paris, 6 in the Netherlands, and 4 in Barcelona. Other self-storage facilities in the area include Big Yellow and Storage King.
In March, the group paid €146 million (£125 million) to buy the last 80 percent of a Benelux joint venture that was owned by investment firm Carlyle.
The CEO of Safestore, Frederic Vecchioli, said that business was “very strong” in the first half of the year, and he was happy to report “continuing excellent performance” and “strong average storage rates.”
If there is no severe macro-economic disruption that affects the firm in the near future, “our track record in customer acquisition… combined with our existing lettable space, our new store pipeline, and our self-funding capability should allow the business to produce sustainable growth,” he concluded.
Last year, Safestore established a 74,000 square feet location in London’s Bow neighborhood and has since added locations in Paris, the Netherlands and Greater Manchester. The company said it would keep growing into more European markets.