Yeah, barely £4k traded every day.But that is also an attrraction; if the growth keeps continuing, there will be more interest as momentum builds in the price, and so the limited liquidity will mean the share price will tend to overshoot the fair value at some point and create a really profitable exit. |
I’ve been trying to buy shares for the last three weeks with very limited success |
Looks like IMC presentation yesterday well received.Highlight for me was the underlying implication that the existing portfolio of hostels are profitable, they have developed a playbook to make it easy to grow the portfolio over the next few years.And they are really focused on the next few franchise/management contracts. Hired a new BD person just for franchise, and repeatedly stressed that as a focus area for management. Won't be surprised to see another management contract announced by end of year. |
H2 sales "significantly ahead in Jul&Aug24.Rest of H2 (Sep-Dec)" comfortably ahead in bookings".The question is though whether this is LfL basis or including the new hostels / excluding the Austria disposal?Management could be clearer in their wording. |
Trading must be going well if management keep signing new properties...Only a matter of time before the rating here changes from "basket case" to "growth company"...But why can't management give an update on current trading at the same time? |
Next set of results is going to be really positive in momentum...- Improving trading across the business with- continuing numbers to show vast improvement in profitability, from Vienna disposal- emerging shoots of growth momentum from the new hostels this yearPotential negatives in the next update? Hard to find any. Potentially cost inflation continuing to be stubbornly high. Trading for new properties softer than expected. Stretched balance sheet.(I hold in the Boon Fund) |
disappointing bed rates obtained in '23 imo....basically the same as '22..while hotels increased their prices a lot in '23. |
btw why is the hostel in Vienna being sold ?
I thought the plan was to grow by having more hostels. Lots of tourists in Vienna. |
Why is the outlook statement referencing the forward conditions as of 1st Jan? We're already almost finished with half of FY24!And why do they not mention that Edinburgh is already open and trading? Just says "ready for summer".Feels like they wrote this FY results back in Jan24, sat on it for 5 months, and then realised they had to release it within 6 months of year end! |
Looks like Edinburgh on course to open on 6th June:https://scottishbusinessnews.net/new-general-manager-appointed-for-edinburgh-cowgate-hostel/ |
Borrowing more money rather than less.
That can be viewed in different ways.
Debt is higher than than the cap. value. |
This is solidly set up for 2024.Existing LfL rev and profit growth. Probably on course to do £1-2m PBT in FY24.Edinburgh property will add more rev and profits this year.Refinanced lower interest rates (I make it paying 2-3% less overall?) means another £0.5-0.8m boost to PBT.Overall looking good for at least a £2-4m PBT in FY24 in my opinion.With the extra opportunity being how a big a recovery there is in school group tours. |
 Do people have confidence in the text in the accounts :-
" at 30 June 2023, accounting net asset value per share was 41.6p"
declared in company's interim accounts ?
Ssty. Money raised via shares. £24.5m
Retained profits. =Minus £14m
(Infers £10m left)
Borrowed £23 million.
Got £7m cash. So, £16m used from the £23m borrowed + £10m left from issuing shares..
.= £26m.
Which could have been used to buy property.
So, unless someone at Safestay has a money printer there is imo no way that the company could own £68m of property. (If it spent that £26m in property & gained £10m that would still only get you to £38m of property, not £68m !!). Even if the company has an undeclared/unsold gain in property due to adding extensions or an increase in prices (doubt that, property is down due to higher % rates not up) I can't see it being £68m in reality.
I don't believe the valuation of £26.8m for Elephant & Castle, which is leasehold, not freehold. Is there any rubbery accounting to get that valuation? ( it is not owned by SSTY, & hence SSTY has no right to sell it, again adding clouds to its valuation).
Apparently some sale & leaseback deal was done in 2017, & since then the co. claims it's value as an asset.
Does anyone understand the 2017 deal & the valuation for Elephant & Castle ?
So, I think the claimed 41p NAV is not true.
The "accounting net asset value per share was 41.6p" happens to be almost exactly the same as the value given to Elephant & Castle (leased not owned), if remove that then the NAV goes to
0 !!
Which is the best you could expect imo if you look at the amount of money raised & retained profits of minus £14m, & loans etc.
Imo the phrase being written as "accounting net asset value" is also worrying imo. I think I have never seen that word "accounting" being added before NAV by any other company in their accounts. It infers to me that phps it is not real. I think it is not real.
What do other ppl think ? |
Its a good location in Edinburgh well situated and I am certain occupancy levels will be high once the development is complete. Tourist accommodation is very expensive in the city and the current Airbnb lets are being hammered by the council licence charges. This should create an attractive room rate and high usage. Investors have missed the Airbnb issues and the company is well placed to take full advantage of the opportunity it provides. |
👍. Good to hear. GTC will come good IMHO |
battlebus2 we like the same quirky things. I have for me a large holding in getech! |
Great to see us back In Edinburgh. Should prove very successful as it’s a top destination and we know the City well. |
They really should have provided a Q3 trading update and a cash update situation.Clearly things going well otherwise they wouldn't have splashed out a big chunk of cash for an acquisition. Along with the capex required for the next 12 months to get Edinburgh operational.CFO being lazy not wanting to put in the work to issue a financial trading update with this announcement. |
I wasn’t disappointed, lots of headroom for more growth. |
There has been a seller for some time.
I agree the result blow out no lights!
I am, for me, a big holder here, and was disappointed with the figures.
Going to go and stay in one or two in Europe just to see |
No comments on today's results?Looks like someone was keen to sell, but this was absorbed nicely by the market makers, so it looks like someone else was happy to build a stake.Results disappointing, they didn't keep a control of costs at all. Not acceptable given the favourable backdrop of increased occupancy, revpar.Still heavily asset backed. And looks like H2 at least should be profitable, given the continued increase in revpar and also occupancy rates. But not blowing the lights out.Think this will find a new level higher, once the seller has gone. But IMO still will trade at a huge discount to NAV until they can demonstrate a healthy operating margin. |
We will get the results here in 3 or 4 weeks. Judging by hostelworld I think they are going to be stellar.
Hopefully they will have a star like affect on the share price |
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