Safestore Investors - SAFE

Safestore Investors - SAFE

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Stock Name Stock Symbol Market Stock Type
Safestore Holdings Plc SAFE London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-8.00 -0.74% 1,066.00 16:35:09
Open Price Low Price High Price Close Price Previous Close
1,093.00 1,048.00 1,093.00 1,066.00 1,074.00
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Industry Sector
REAL ESTATE INVESTMENT & SERVICES

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Top Posts
Posted at 28/9/2022 07:57 by hybrasil
I was a substantial investor in this many years ago.

Even after the falls its overvalued. Its worth its assets but that's about it.

Posted at 29/10/2021 14:48 by nerja
Interactive investors winter list,

Lio, Safe, Xpp, Hlma, Adm, Synt, SXs, Hils,

It’s performed very well over the last 8 winters

Posted at 23/9/2021 07:05 by netcurtains
eggbaconandbubble:
All your points are salient however, due to brexit, business needs more storage - Just In Time no longer works. I suspect many small businesses for the next few years will need more space in storage companies.

Then we have the housing market. Every year more and more boomers retire. This is going to accelerate for the next few years. Downsizing often requires storage. This is a growing market.

I think the storage market is no where near peaking. The great early growth has given early investors a nose bleed but that will allow others to come in and catch the big boom.

Good luck everyone.

Posted at 14/1/2021 11:26 by 18bt
This sums up the further growth opportunities - from the investor presentation:
Further non-dilutive growth opportunities
•Multi-country platform widens growth opportunities -Joint Venture and Spain acquisition provide additional long term growth options
•Significant additional capacity already invested for further growth
•1.4m sqft already fully invested available for rent (average absorption 230,000 sqftper year)
•Additional 190,000 sqftwith currently disclosed pipeline
•Pipeline building further
•Financing capabilities –LTV 29% and ICR 9x
•Flexible investment model and ownership delivers higher ROE

Posted at 16/3/2012 19:17 by battlebus2
Not many investors here but as you say very undervalued, looking at 150 by next results. Your still a holder of four too like myself.
Posted at 07/3/2011 18:32 by tricky1992000
Increasing demand for storage solutions could boost this company's growth.

This week, my search for solid companies with a good track record, room to grow, and a reliable and growing dividend yield, has taken me to the FTSE Small Cap Index. Mind you, I wouldn't describe this company as a tiddler, sporting as it does a £274m market capitalisation.

It describes itself as the "UK's largest and Europe's second largest self storage provider," and it goes by the name of Safestore Holdings (LSE: SAFE).

It's a company that does what it says on the tin, and if you want a rapid appreciation of what it can do for individuals and companies, it's a good idea to take the virtual store tour that's available on the company's website (with the sound up!)
In, out

I think you'll agree the website looks very polished, and geared to making sales efficiently. That's what I like to see in companies that make potential investments: it's got the appearance of a business that has been successful, looks to have learnt how to optimise the execution of its operations, and has developed a recognisable and marketable brand.

To my way of thinking, by picking established and apparently hitherto successful enterprises to invest in, I'll have a pretty good chance of minimising the downside. The belt to my braces is that businesses like this one, have just survived the worst recession in a generation.

However, the company's fortunes haven't always been forged in the public arena. For example, in 2003 it delisted from the AIM market, and was the subject of a management buyout. It wasn't until 2007 that it then listed on the main market of the London Stock Exchange at 240p per share.
Shake it all about

During its years in private hands, the company experienced what it describes as "transformation" when it acquired four other businesses and increased its store count from 24 to 99. Today, it operates 118 stores, 22 of which are in and around Paris with the rest in the UK.

To put that into perspective, the business owns around 5.2m square feet of lettable storage space, with around 3m square feet currently occupied.

What I find interesting is the performance of the business since its 2007 appearance on the main market. To iron out the affect of property value fluctuations in its net profit figures, I've concentrated on operating profit that has been adjusted to remove the property element, and cash flow, for an indication of performance in this table:
2007 2008 2009 2010
Revenue (£m) 74 83 84 89
Operating Profit (£m) 41 45 47 48
Net cash from operations (£m) 26 28 25 28
Dividend per share 4.5p 4.65p 4.65p 4.95p
Net cash return on equity 10% 11% 10% 10%

Revenue profits and cash flow have all held up well through the recent economically tough years and the business has returned a reasonable return on equity through that time. This has all translated into a steadily rising dividend.

Having said that, the company appears to be pumping most of its cash into the improvement, maintenance and expansion of its property portfolio and has a pipeline of stores under construction valued at £18m. Also to that end, there is a fair chunk of debt with gearing of about 140% if you include stuff like finance lease commitments, too.
The hokey cokey

It's clear that the business has plenty of capacity for expanding its turnover and in the latest guidance released on 17 February, the CEO said:

"We are confident that Safestore, as market leader, is well placed to take a bigger share of the overall market through our operational expertise, national coverage and scale and is ideally placed to exploit any potential opportunities."

So with economies on an upward improving trend, it's easy to imagine the housing market picking up, for example, with a resulting increase in demand for the services of companies like Safestore.

Meanwhile the latest balance sheet shows net tangible assets of around 144p per share which compares well to the share price of 149p as I write.

In fact, it's tempting to think of the business purely as a property company when the market capitalisation is so well supported by the asset valuation. However, to do so might underestimate the strength of the business model and its potential to deliver greater profits in the event of higher occupancy rates, in my view.

It's useful to compare net cash from operations, which is derived after interest payments, to the market capitalisation. If you do that, the ratio is around 10 suggesting a fair valuation for the operating business. There is also a historic dividend yield of about 3.3% to keep investors company.
Turn around

There is change afoot at Safestore with a new CEO taking charge after the recent retirement of his long serving predecessor. That could unsettle investors, especially since the outgoing boss presided for around nine years and guided the business through its recent growth.

On the other hand, it looks like he has left the company in good shape and my guess is that the business might do well for investors over, say, a five year investment horizon if it can continue to gain market share and fill its spare capacity, perhaps due to rising demand as economies continue to recover.

http://www.fool.co.uk/news/investing/company-comment/2011/03/07/storing-up-potential-for-growth.aspx

Posted at 18/1/2011 17:20 by tricky1992000
motley fool writer on safestore

Storing boxes is a profitable business.

American-style self-storage facilities are a relatively recent arrival to the UK. But for both consumers and businesses, they offer a convenient way of storing possessions and documents, on either a temporary or long-term basis.

From a UK investor's perspective, the market leader is Safestore (LSE: SAFE), which has 118 stores throughout the UK, and 22 stores in and around Paris.

Describing itself as the UK's only national self-storage provider, it serves 41,000 domestic and business customers, employs 500 people, and has 5.2 million sq ft of lettable storage space. What's more, it continues to add new storage outlets, opening three more during 2010 -- two in the UK, and one in France. A further ten stores are reportedly in the pipeline.
Recovery

It's difficult to quibble with the company's annual results for the year ending 31 October 2010, published this morning. The contrast with the recession-hit results of 2009 couldn't be more stark.

* Revenue up 5.7% to £89.2 million.

* Pre-tax profit of £29.2 million, contrasting with a prior year pre-tax loss of £9.4 million.

* Adjusted EPS up 8.9% to 8.19 pence.

* Final dividend increased by 8.3% to 3.25 pence.

* As at 31 October 2010, the property portfolio was valued at £687.2 million, up 6.1% since October 2009.

Additionally, rental rates were at a record £25.55 per square foot, while end-of-year occupancy was also at a record 2.94 million sq ft, up 168,000 sq ft -- and an increase of 195% over the growth experienced in 2009.

Given a fairly flat economy and a stagnant housing market, retiring chief executive Steve Williams seemed pleased, describing 2010 as "a year of considerable progress".
Property portfolio

That said, there's more to Safestore than meets the eye, and any investor will want to take a long hard look at several aspects of the business.

Most notably, Safestore is a property company, albeit one with a difference. So rental yields and occupancy rates come into consideration, in other words, as do property valuations and associated gains and losses. As fellow Fool Owain Bennallack points out, the commercial property sector is attractively unfashionable, but not without its risks and dangers.

That property portfolio valuation of £687 million is reassuring, for instance, but it's only an opinion. Likewise, talk of becoming a tax-efficient dividend-friendly REIT at some future point is just that: talk.

That said, Safestore's portfolio seems fairly solid. Roughly two-thirds of the UK portfolio is either freehold or long leasehold, with UK short leasehold properties ("short" being defined as 25 years or less) having an average remaining lease of just under 13 years. Less than half the French properties are freehold or long leasehold.

The business in France also complicates life -- both from a property valuation and management perspective, as well as exposing the company to currency fluctuations and hedging.

Debt is a factor, as well, although new (and larger) banking facilities have been negotiated until August 2013. Net borrowing (excluding finance leases) at 31 October 2010 stood at £294.0 million, little changed from the previous year, resulting in gearing of 109% -- high, but not ridiculously so.

Finally, although a well-established business, Safestore doesn't have a long stock market history -- at least, not this time round, anyway.

Taken private in a management buyout in 2003 that seemingly left some investors feeling unhappy, the business returned to the market in 2007. Trading above 250 pence at the time, the share price dipped to 40 pence in the depths of the recession, recovering to 135 pence today.
Is it a buy?

Analysts unanimously rate Safestore as a "strong buy". On balance, I think they're right.

The P/E of 11 isn't screamingly cheap, but the growing dividend provides a tasty forecast yield of over 4%. The PEG ratio of 0.2, meanwhile, places the business firmly in 'take a look' territory.

More to the point, while many property companies invest in office space or retail space -- and are thus subject to economic vagaries and the overhang of distressed properties held by the banks -- Safestore ploughs a different furrow: edge-of-town sites rented to people with a lot of cardboard boxes to store.

One for the watch list, I think.

http://www.fool.co.uk/news/investing/company-comment/2011/01/18/a-property-play-with-a-difference.aspx

Posted at 26/6/2008 13:33 by tricky1992000
hybrasil, there is more than one way to value a company, it's obvious to see that you are a value investor.
Posted at 11/4/2007 09:04 by richandjanet
MomentumInvestor view this month.

Safestore - Newly listed self-storage company also under-valued

254p Epic code: SAFE
(Momentum Investor) In spite of the fact that its shares drifted to a slight discount on the first day of dealings, there is a good chance that new issue Safestore (FT sector: Real Estate) will perform well as the year progresses. Safestore, the largest provider of self-storage space in the UK and France, was introduced to the Full List by joint bookrunners Citigroup and Merrill Lynch on 9 March. The float allowed its largest shareholder, private equity firm Bridgepoint to realise a partial sale and also raised nearly £29m net new money for the company, to reduce net debt. Post admission, Bridgepoint will retain up to 41% with management holding 10.5%.

As some readers may recall, this is Safestore's second stint on the Stock Market, with the first (on AIM) proving somewhat ill-fated given the aggressively over-valued level at which it was priced in 1998 before being taken private five years later. However, the company has since been fattened up by Bridgepoint through four acquisitions including Mentmore for £129m, which added 47 stores and Access France, which added a further 10.

Today, Safestore has 79 stores in the UK and 19 in France, yielding current lettable space of 3.6m sq. ft. Trading has been very good and in its latest year to 31 October, turnover rose nearly 22% to £64m, with underlying EBITDA rising almost 24% to £33.4m. However, as we have noted in this month's main write-up, Lok 'n' Store (and Big Yellow previously), the greater gains have come from property re-valuations with Safestore enjoying cumulative valuation uplifts of a whopping £158m in the past two years.

Aside from ancillary income from selling contents insurance and storage accessories such as boxes, tape, bubble wrap and padlocks, the vast majority of sales comes from renting out space. Its storage centres, which are located adjacent to busy main roads and have rooms between 10 – 1,000 sq. ft., provide dry and secure areas protected by CCTV and burglar alarms. Around 75% of revenues comes from domestic customers who store belongings for reasons such as going through a divorce, moving or renovating their house or going abroad. The remaining 25% are business customers.

Safestore operates in a market that has grown at a massive 25% p.a. for the past ten years and given that it is still far smaller than the US, we expect this trend to continue for some time. Amidst this positive backdrop, Safestore intends to expand its portfolio by 10% a year and is fortunate to have a pipeline of 13 stores, of which nine already have planning. These, along with extensions to existing stores, means total lettable space will increase by another 1.1m sq. ft. to 4.7m even before further acquisitions are made.

Safestore, whose portfolio is currently valued at £475m, level pegging with its market value (also £475m), appears cheap in comparison to Big Yellow, which trades at an 84% premium to its NAV. That said, it does carry over £200m net debt while only 55% of its property is freehold / long leasehold, the rest being short leaseholds. Nevertheless, the shares are likely to do well in a sector which, fuelled by the introduction of REITs, is showing no signs of flagging. Buy.

Posted at 09/10/2003 11:36 by garth
Following indigestion caused by the press feeding-frenzy post-Iraq and the drift of time following 9/11, anthrax alerts and tanks at Heathrow, public security stocks are back off the menu. But the desire for safety is a fundamental human trait. Its why we alarm our houses, lock our doors and drop our kids at school.

So I thought that now might be a good time to open a discussion with 3 beaten-up security stocks:

Jasmin (JAS),
Image Scan Holdings(IGE),
Energy Technique PLC(ETQ)

All 3 have been sold down, all 3 suffer comparatively week balance sheets and therefore carry some risks, but all 3 have a story.....


Jasmin(JAS)




Jasmin hit real problems over the summer when results which were anticipated to be good turned sour. The way revenues are booked was altered. The 'highly cashflow generative' motorway emergency telephones deal wasn't proving so cash generative. Things were so bad that Jasmin appears to have told its broker that its services would no longer be needed and it appears that its broker wrote a piece in a financial publication that stated that Jasmin was facing chronic cashflow difficulties.

What actually seems to have happened was that over £800k of raw materials were ordered in the month and that that was foing to put great pressure on the end of September when payment fell due. Lots of fuss made. The MD and FD went and CEO Roger Plant took up a joint MD/CEO role.

Plant insisted back in August that the situation was no worse than it had been many times before and that they would get through it. They were simply undercapitalised. All creditors were being paid on time and that is the way it would stay.

Shares Mag ran a piece months ago suggesting that extra capital was desired to allow expansion.

We are now into October and there has been no statement. Jasmin are still trading. Are they through the worst? And if so, could the next results look somewhat better?

Jasmin have a number of strings to the bow including the large Emergency motorway telephones contract, transport industry passenger displays, and Digital CCTV. They also have had Smart-card passport trials in the near East for their 'pocket' smart card reader. The one that keeps on pulling in contracts, however, is their chemical weapons detectors. When concern over terrorism was high in the public mind (and lets fact it, it isn't right now) interest surrounding these was instrumental in pushing Jasmin to over 270p - more than 3 times the current price. In fact, Jasmin have lost more than 60% of their value in little over a year. Will sentiment shift again?

Price 79p
Market Cap £3.7m
Turnover £5.84m
Profit (£890,000 loss 2003, £720,000 profit 2002)

For a wider perspective see current thread:
http://www.advfn.com/cmn/fbb/thread.php3?id=3157156

Relevant section of the website:
http://www.jasminplc.com/defence.asp

Energy Technique PLC(ETQ)

Energy Technique's business is industrial heating, refrigeration and air conditioning. Trading in some areas has been weaker than anticipated and with redundancy costs and development costs added in, their recent AGM statement pointed to losses for the 5 months to the end of August - that sent the shares down further. They bounced 10% yesterday. From the point of view of this thread, the intersting bit is their Nightingale UVGI filtration product.


New UVGI air filtration product

In November 2002, the Company was pleased to announce its exciting new
Nightingale UVGI air filtration product, to be produced by a new joint-venture
company, UVGI Systems Limited, owned 55% by the Group and 45% by Suvair Limited. This rapid response mobile air filtration unit is capable of killing the MRSA
super bug and other airborne pathogens.

The Nightingale UVGI unit has widespread application where there is need to keep
air free of dangerous live bacteria, viruses, and fungal spores, including
hospitals, schools, cruise liners, aircraft, food processing, and military
applications.

The UVGI unit uses a high intensity Ultra Violet Germicidal Irradiation ("UVGI")
filter, which has been designed to control harmful and dangerous airborne
pathogens, such as Anthrax, Tuberculosis, and Staphylococcus aureus, the
causative agent in MRSA. The filtration system is combined with use of high
intensity Ultra Violet light, which inactivates micro organisms by disrupting
their DNA structure.

Tests of a prototype at the Defence Science Technology Laboratory ("Dstl") at
Porton Down, the centre for excellence for the Ministry of Defence, showed that
the UVGI unit captured and/or destroyed more than 99.9% of Bacillus subtilis
spores, a simulant for Anthrax bacteria.

Since November, second generation units have been developed, which will go on
applications testing at an NHS Trust Hospital in December 2003, following
building completion of its new haematology unit. It is also anticipated the
UVGI unit will shortly go on laboratory testing in the United States with
contractors nominated by the Department of Homeland Security.

The AGM statement adds;

"The development of the second-generation model of Nightingale, our award winning
UVGI air filtration unit is now virtually complete, but we are unlikely to be in
a position to announce sales until the unit has successfully completed clinical
field trials and accreditations. This process is proving far more protracted
than anticipated. In the UK the accreditation test of the production model will
be undertaken shortly and subsequently the unit is expected to commence clinical
field trials at an NHS hospital. A confirmed date is still awaited for laboratory testing in the USA to gain accreditation for the USA market. In addition, discussions are continuing with a number of parties who are interested
in licensing the UVGI product in their respective markets and countries."

As for the financial position, they don't appear to be swimming in cash, but were profitable and cash genearative last year:

"Profit before tax is £0.263 million, compared with last year's loss of £0.635
million, which included a loss on the disposal of Benson Heating. Profit before
tax on continuing activities improved by 18%.

Group cash flow

The Group generated a strong cash inflow from operating activities of £0.487
million, resulting in a further reduction in debt to £0.947 million at 31 March
2003, representing a gearing level of 78%. Interest paid was covered 3.5 times
by operating profit.

Working capital continued to be tightly controlled and has remained
substantially unchanged, notwithstanding a planned stock build of £0.285 million
to service the new Panasonic and LG Electronics distribution business.

Capital expenditure on plant, infrastructure, and computer systems amounted to
£0.2 million. This was the first year of a continuing capital expenditure
programme, which has started to redress the many years of under-investment
caused when the Group funded loss-making activities now disposed of."

For a wider perspective see current thread:
http://www.advfn.com/cmn/fbb/thread.php3?id=2535857



Image Scan Holdings(IGE)


Image produced using the DEX camera – An all plastic asthma inhaler

Image Scan announced this week that they would be raising new equity (30% dilutative by the look of things). This placing will not be made available to existing investors on a pre-emptive basis as the company wishes to broaden and institutionalise its shareholder base.

29th September 2003

IMAGE SCAN HOLDINGS plc

("Image Scan" or the "Company")

Mobile AXIS-3D(R)

Image Scan, a leading provider of multi-view, 3D X-ray imaging technologies for
the security and industrial inspection markets, is pleased to announce the
delivery and introduction into active service of the world's first
self-contained mobile 3D X-ray screening facility for use at airports, seaports
and other locations that require a rapid response - the MAXIS-3D(TM)

The MAXIS-3D(TM) has been purchased by the Police Scientific Development Branch
(PSDB) and will see active service at this year's Party Political Conferences,
starting with the Labour conference in Bournemouth.

Nicholas Fox, Chief Executive, said:

"The delivery of the MAXIS-3D(TM) to the PSDB represents another example of the
Company's core technologies finding commercial application in the continual and
real demands in the fight against terrorism ."

Image Scan Holdings plc ("Image Scan" or the "Company")
1 October 2003

ISSUE OF EQUITY

Image Scan today announces a proposed placing (the "Placing") by Durlacher
Limited ("Durlacher") of up to 4,500,000 Ordinary Shares at a placing price of
35 pence per Ordinary Share to raise up to £1.575 million before expenses.

Commenting on the placing, Nick Fox, Chief Executive said:

'I am delighted that investors have responded so positively to the Placing.
Image Scan is at an exciting period in its development and these additional
funds will allow us to push the commercialisation of our innovative products and
take the Company forward to the next stage in its evolution.'

Reasons for the Placing

The Placing proceeds will be used to provide additional funds to further develop
the Company's business and, in particular, to provide sufficient working capital
to enable the Company within a 12 month timeframe to:

* Establish an infrastructure to manage delivery of the Company's
current and future strategic agreements in the aviation security
sector

* Create a focused marketing function within the Company to specifically
address:

o Development of sales for security equipment into non-aviation
security markets
o Establish key industrial reference sites for DEX, VIXion and
AXIS-3D(R) products

* Accelerate on-going enhancements to the Company's IP portfolio

Ed. 17.11.03
Results due 16th December.
Working capital raised:

29 October 2003
Image Scan Holdings plc

Result of placing

On 1st October 2003, Image Scan Holdings plc ("Image Scan" or the "Company")
announced a placing of up to 4,500,000 ordinary shares of 1p each at 35p per
share (the "Placing").

Today, the Company announces that, following the closing of the Placing the
Company has raised £1,080,000 before expenses for ongoing working capital
purposes and to further develop the Company's business.

Nick Fox, Image Scan's CEO today commented "We are delighted to have comfortably exceeded our minimum gross funding requirement of £900,000 and believe that this good response will provide Image Scan with the funds that it needs to move forward and continue to develop the business as set out in the "Recent developments/current trading" section of the Circular sent to shareholders on 1st October 2003, and the Stock Exchange announcement of the same date."
Subsequent to the closing of the Placing, the Company has applied for the
Placing Shares, which will rank pari passu with Existing Ordinary Shares, to be
admitted to trading on AIM, and expects that admission will occur on Friday 31st October 2003.

Edit 02/12/03:
Image Scan, results in two weeks.

AXIS-3D© AND 3DX-CAMERA™
"Currently the core security product Image Scan Holdings manufactures is the Axis-3D© baggage inspection system, which is the world's first real time 3D X-ray baggage inspection system. By using the 3DX-camera™, Axis-3D© provides unparalleled 2D, 2½D and 3D images without any compromise to either baggage throughput or material discrimination."
The view from the new piece of kit marketed in conjunction with Rapiscan:



And endless zoom-in:


Interesting website. Looks to be an Italian company marketing ISH products. Has some great pictures of scanned plastic components:

http://www.masbonfante.it/english/cards/scheda_ish.htm

For a wider perspective see current BB thread:
http://www.advfn.com/cmn/fbb/thread.php3?id=3641998


More later...


G.

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