Safestore enjoys rising storage demand
A small sign of increased housing market activity accompanied Safestore's revelation today that the firm has seen a pick up in demand for self-storage over the last three months.
Pick-up: Safestore expects demand to continue increasing
Safestore is the UK's biggest self-storage firm with 94 sites and today said it expects demand to continue improving in the approach to Christmas.
Chief executive Steve Williams said a high level of enquiries and new lets was down to a 'modest return in the housing market', but added business customers reluctant to commit to long leases were also looking at the self-storage option.
Revenues for the nine months to July 31 were 1.7% above last year, with occupancy growth of more than 110,000 square feet during the period. This contrasts with a 29,000 foot decline last year.
The company has more than 41,000 customers, of which around 70% are domestic clients.
Safestore remains on track to meet expectations for the full year and said it was 'particularly pleased' with the improvement seen during the third quarter.
Mr Williams added: 'Another thing that has helped us is that we are the only (self-storage firm) with national coverage so we have a lot of national accounts.'
Borehamwood-based Safestore, which has around 500 staff, also has 22 outlets in central Paris.
It continued with the expansion of the business during the period, opening stores in Paris and Ipswich. Safestore has opened four new stores in the current financial year so far, with a further opening planned in Leicester by September.
Another six stores are expected to open in 2010/11, which would give the company around 5.4 million square foot of space in the UK and Paris.
Mr Williams said: 'The economic environment remains challenging for the sector, but we believe Safestore is well set to take advantage of any increase in the levels of activity.'
Recent signs that the housing market may be on the mend were corroborated last week when the Land Registry reported that House prices rose by 1.7% during July - the biggest surge during a single month for five years.
Despite the news, Safestore shares were 2p down at 129p in morning trading.
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