Business
Interim Results
Safestay PLC reported interim results for the six months ending June 30, 2025, with revenue from continuing operations at £10.1 million, down from £10.7 million in H1 2024. Adjusted EBITDA from continuing operations decreased to £2.3 million from £3.2 million, with the EBITDA margin declining to 23.3% from 29.9%. Adjusted Earnings Per Share increased to 0.73p from 0.16p due to a £1.4 million Covid-19 business interruption insurance claim. Profit before tax from continuing operations was £591,000, compared to a loss of £113,000 in H1 2024. Net cash generated from operations was £3.4 million, down from £5.0 million, and cash at bank was £1.7 million, up from £1.4 million at the prior year end. Net asset value per share was 47.8p, down from 49.8p. Disclaimer*
About this update from Safestay Plc
[{"type":"text","content":"\n\nSafestay plc\n(\"Safestay\", the \"Company\" or the \"Group\")\n \nInterim Results\n \nResilient performance and further strategic progress despite challenging trading backdrop\n \nSafestay (AIM: SSTY), one of Europe's largest hostel groups, announces its unaudited interim results for the six months to 30 June 2025 (\"H1 2025\" or the \"Period\").\n \nH1 2025 Financial Highlights:\n· Revenue from continuing operations of £10.1 million (H1 2024: £10.7 million) reflecting the challenging trading environment and highly competitive pricing across European hostels; food and beverage sales increased to £1.1 million (H1 2024: £1.0 million).\n· Adjusted EBITDA from continuing operations was £2.3 million (H1 2024: £3.2 million). The reduction reflects higher staff costs, driven by increases in the UK National Living Wage and National Insurance contributions, as well as above-inflation rises in minimum wages across several European properties. Operating expenses also rose due to cost inflation, particularly in utilities, cleaning and linen supplies. As a result, the EBITDA margin declined to 23.3% (H1 2024: 29.9%).\n· Adjusted Earnings Per Share for continuing operations increased to 0.73p (H1 2024: 0.16p), due to the receipt of a £1.4 million Covid-19 business interruption insurance claim.\n· Profit before tax from continuing operations of £591,000 (H1 2024: loss of £113,000).\n· Net cash generated from operations of £3.4 million (H1 2024: £5.0 million).\n· Cash at bank at 30 June 2025 was £1.7 million, up 21.4% from the year end (31 December 2024: £1.4 million), but a 23.8% decrease from £2.2 million at 30 June 2024.\n· Net asset value per share of 47.8p (30 June 2024: 49.8p).\n \nH1 2025 Operational Highlights:\n· Continued expansion of the portfolio:\n· In April, planning approval received to develop new 170-bed hostel in Brighton.\n· In June, the Group signed a 12-year lease agreement to operate a 300-bed hostel in Naples.\n· Post-Period end, in August, the Group signed its first franchise agreement for two hostels in in Austria.\n· Marginal increase in bed nights to 415,606 (H1 2024: 412,442), of which 40.5% were booked through direct and non-commissi...