LONDON (ShareCast) - Safestore is set to continue capitalising on the growing need for self-storage facilities. The sector is growing as the housing market improves, driving demand from retail users, but companies are also increasingly using its services. That is true of small online companies who need flexible warehouse arrangements - storage can be hired and paid on a monthly basis - and of large multinationals. The latter, which includes the likes of Halfords, Diageo, Redbull or Coca Cola, sometimes need additional space at a short distance to run local promotions, for example. In the US there is 14 times more storage space available per square mile than in Britain and the occupancy rate stands at over 90%, versus 68.9% at present for Safestore.
New chief Frederic Vecchioli has reinvigorated the company´s strategy. In the last financial year profits jumped 31% to £28.5m and the dividend was raised by almost 30% to 7.45p. There is more to come both in terms of share price appreciation and dividend growth. Buy, says The Mail on Sunday´s Midas column.
The decision by the national park authority, on Tuesday, on whether it will allow Sirius Minerals to dig Britain´s biggest new mine in decades could send the shares soaring or crashing. The company wants to excavate a mile-deep shaft under the North York Moors to tap a huge seam of polyhalite, a type of fertiliser. The Redcar and Cleveland council has already given the project its blessing, with the firm having presented a plan to mitigate th environmenatal impact.
Demand for fertiliser keeps pushing higher alongside the need for to feed the world´s growing population. The project will cost £1.7bn to build, in comparison with loss-making Sirius´s scant £27m in the bank. So obtaining approval will only be the start of the matter. However, "If you have a few extra bob and fancy a wild ride, this is your chance. But do it tomorrow - and don't bet the farm," writes the Sunday Times´s Danny Fortson.
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