LONDON (ShareCast) - Self-storage chain Safestore said storage rates fell in the last three months but said it was encouraged by a slowdown in the decline.

Safestore, which has 134 outlets in the UK and France, said the average storage rate across its UK and French businesses fell 2.8% to £24.18 between November 1st and January 31st.

In the UK, the rate dropped 4.8%, but Safestore said it fell by less than 1% against the fourth quarter, the lowest Q4 to Q1 reduction it had faced in three years.

The first quarter is usually Safestore's quietest, but it said business in the period had improved markedly against the same quarter last year as the UK housing market upturn boosted demand for temporary storage.

The group said its French business had begun the year particularly well, with revenue at constant exchange rates up 5.9% on the first quarter of 2013 with further improvement in rate and occupancy.

Chief Executive Frederic Vecchioli said: "Our French business has made a particularly good start and we are seeing improving occupancy and rate trends in the UK.

"The measures we are taking to improve rental rates will take some time to impact the entire customer base and feed through to revenues but we are encouraged by the improving trend."

The group said its French business had begun the year particularly well, with revenue at constant exchange rates up 5.9% on the first quarter of 2013 with further improvement in rate and occupancy.

Shares in Safestore fell 1.75p or 0.76% to 227.25p at 10:09 in London.

PW

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