It's not too busy in RNS-land, and Paul is feeling under the weather, but let's see what we can do here today!
Share price: 53p (+1%)
No. shares: 40.7m
Market cap: £18m
A reduced loss from this provider of "premium hostels":
Strong uplift in revenues to £7.4 million (2015: £4.0 million) reflecting demand for Safestay's unique contemporary hostel offer and full year contributions from Edinburgh and Holland Park
EBITDA of £2.2 million (2015: £0.7 million)
Reduced loss after tax of £0.5m (2015: loss £0.6m)
The concept, as one might expect, is to compete directly with budget hotels, primarily on price ("just under £20 per night").
The level of occupancy appears questionable - almost 300,000 bed nights were sold in the four hostel properties, which have 1,526 beds in total. Based on all of those rooms being available for 365 days a year, which as far as I can tell was the case, that's a 53% occupancy rate.
Edit: I've been helped by a commenter, who points out that the Edinburgh hostel is shared with university students. From the 2015 Annual Report:
The property has 272 hostel beds throughout the year,a licensed stand-alone food and beverage business trading as Bar 50 and leases 81 rooms to the University of Edinburgh for the academic year September through May. For the months of June, July and August the student rooms are converted to hostel rooms increasing the capacity to 615 beds which complements the surge in accommodation demand Edinburgh enjoys each summer.
If I adjust for this, my new back-of-the-envelope calculation is that occupancy was 65%.
According to PwC, occupancy in the hotel industry was 76% last year.
I suppose one could argue that since three of the properties were either bought or refurbished in mid- or late- 2015, that they have not yet had a chance to build up their reputations and attract repeat business. So hopefully the occupancy rates can improve to more impressive levels!
Positive bookings trends, according to the Chairman:
We are continuing to generate efficiencies in the business by consolidating our Group purchasing wherever possible and improving our management structure. Our bookings pipeline for the coming year is encouraging with cash received in respect 2017 revenues as at 31 December 2016 up 51% over the corresponding period in 2015, which underpins my belief that…
Disclaimer:All my own views. I am not regulated by the FSA. No advice.