LONDON (ShareCast) - (Sharecast News) - Self-storage firm Safestore recorded a significant drop in pre-tax profits in the year ended 31 October despite having delivered an increase in revenues.
Safestore revealed on Tuesday that pre-tax profits had tumbled 20.5% year-on-year to £147.3m as gains on investment properties fell to £84.2m from £122.1m.

However, underlying earnings increased by 5.5% to £87.5m - in line with the 5.5% growth in revenues to £151.8m.

Earnings per share grew 6.3% year-on-year to 28.5p and free cash flow was £61.2m, up 10.5% year on year.

The FTSE 250-listed firm continued to expand its operations throughout the year - with new sites opened in Sheffield, Newcastle, Peterborough, Birmingham and Pontoise. Safestore also made its first foray into the Spanish market with the acquisition of OMB Self Storage and established a joint venture in the Netherlands with Carlyle by purchasing M3 Self Storage.

Chief executive Frederic Vecchioli said: "The company is in a very strong position and we are encouraged by early trading in the new 2019/20 financial year. Our leading market positions in the UK and Paris combined with our resilient business model enable us to look forward to the future with confidence."

As of 0820 GMT, Safestore shares were up 0.38% to 802p.

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