Safestay (SSTY)

Sector:

Tourism and Leisure Services

Index:

FTSE AIM All-Share

 21.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 24.50
  • 52 Week Low: 15.50
  • Currency: UK Pounds
  • Shares Issued: 64.68m
  • Volume: 15,000
  • Market Cap: £13.58m
  • Beta: 0.30

Safestay accepts £16m offer for Edinburgh hostel

By Josh White

Date: Thursday 01 Jul 2021

LONDON (ShareCast) - (Sharecast News) - Hostel operator Safestay has completed the sale of its Edinburgh hostel to a&o Hotels and Hostels, it announced on Thursday, for a cash consideration of £16m.
The AIM-traded firm said that represented a 22% premium to the £13.4m, adding that the 2019 annual EBITDA of the hostel, pre-pandemic, was £1.7m.

Safestay explained that it had responded to the pandemic and associated lockdowns across Europe by reducing the monthly cash burn of the business to £0.35m, which had "significantly mitigated" the impact of having to close its hostels.

However, despite those measures, following the prolonged extension of lockdownsit had decided to seek greater balance sheet security and flexibility by securing additional capital in approving the £16m offer for the Edinburgh asset.

The board said it believed the sale was the best option to protect shareholder interests, and place the company in a strong position for when the market recovered, being able to take advantage of new opportunities that were expected to arise.

Part of the proceeds of the disposal would be used to reduce debt by 35%, while providing the group with sufficient cash reserves as the business moved back out of lockdown towards positive cash generation over the coming months.

"This transaction has facilitated a 35% reduction in group borrowings as well as providing us with the cash to reset our hostels and re-engage as restrictions lift," said chairman Larry Lipman.

"It is a very positive solution both for the restart, which is underway, but also to have the option to invest at a time when many of our competitors will not."

At 0918 BST, shares in Safestay were up 2.14% at 21.45p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Safestay Market Data

Currency UK Pounds
Share Price 21.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 24.50
52 Week Low 15.50
Volume 15,000
Shares Issued 64.68m
Market Cap £13.58m
Beta 0.30

Safestay Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
21.52% above the market average21.52% above the market average21.52% above the market average21.52% above the market average21.52% above the market average
75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average
Price Trend
47.04% below the market average47.04% below the market average47.04% below the market average47.04% below the market average47.04% below the market average
5.56% above the sector average5.56% above the sector average5.56% above the sector average5.56% above the sector average5.56% above the sector average
Income Not Available
Growth
46.63% below the market average46.63% below the market average46.63% below the market average46.63% below the market average46.63% below the market average
12.12% below the sector average12.12% below the sector average12.12% below the sector average12.12% below the sector average12.12% below the sector average

Safestay Dividends

  Latest Previous
  Final
Ex-Div 14-May-15
Paid 26-Jun-15
Amount 0.30p

Trades for 02-Dec-2021

Time Volume / Share Price
11:10 15,000 @ 20.20p

Safestay Key Personnel

Chair Larry Glenn Lipman
COO Nuno Sacramento

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