REG - Safestay PLC - Interim Results
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RNS Number : 3387A Safestay PLC 23 September 2025
Safestay plc
("Safestay", the "Company" or the "Group")
Interim Results
Resilient performance and further strategic progress despite challenging
trading backdrop
Safestay (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").
H1 2025 Financial Highlights:
· 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).
· 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%).
· 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.
· Profit before tax from continuing operations of £591,000 (H1 2024:
loss of £113,000).
· Net cash generated from operations of £3.4 million (H1 2024: £5.0
million).
· 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.
· Net asset value per share of 47.8p (30 June 2024: 49.8p).
H1 2025 Operational Highlights:
· Continued expansion of the portfolio:
· In April, planning approval received to develop new 170-bed hostel in
Brighton.
· In June, the Group signed a 12-year lease agreement to operate a
300-bed hostel in Naples.
· Post-Period end, in August, the Group signed its first franchise
agreement for two hostels in in Austria.
· Marginal increase in bed nights to 415,606 (H1 2024: 412,442), of
which 40.5% were booked through direct and non-commissionable channels (H1
2024: 42.3%).
· Occupancy rate of 68.2% (H1 2024: 70.6%).
· Average Bed Rate ("ABR") of £20.4, a 7.9% decline year on year (H1
2024: ABR: £22.1), reflecting the highly competitive pricing environment
across the European hostel market. Total Revenue per available bed ("RevPAB")
declined by 10.2% to £16.4 (H1 2024: £18.3).
· Group bookings remained robust representing 22% of accommodation sales
in the Period (H1 2024: 23%).
· As previously announced the Group is considering the sale of certain
UK freehold assets.
Current Trading & Outlook
· Notwithstanding the fact that the Group's revenue is typically second
half weighted, the Company is experiencing significant price pressures which
are impacting revenue, whilst we strive to maintain occupancy and control
costs.
· The key trading months of July and August were impacted by this
deterioration in market conditions, and consequently revenue for the full year
is expected to be lower than in 2024.
· The Company continues to achieve a satisfactory level of both group
and direct bookings through its website, and is pursuing a number of
promotions to build revenue.
· As a result of a licence review, the bed numbers in Barcelona, Passeig
de Gracia were reduced by 51 beds to 338.
· New hostels in Naples, Italy and Kitzbühel, Austria are expected to
open during Q4 2025.
· The Board remains positive about Safestay's long-term prospects as a
proven operator in the significant and fragmented European hostel market, with
several further expansion opportunities being appraised.
Larry Lipman, Chairman of the Group, commented:
"Safestay delivered further strategic progress in H1 2025 despite the
challenging trading environment across the European hostel market. We
continued to strategically expand the portfolio with one new hostel added, in
Naples and two further sites in Austria added post-Period end. The sites in
Austria represent both our first franchise agreement and our first in an
alpine resort, a model which has the potential to offer attractive
capital-light growth opportunities going forward.
Looking ahead, our ambition is to deliver sustainable growth and to
crystallise value for shareholders, whilst over the medium-term growing the
portfolio. With a proven model, well-invested systems and technology, a clear
strategy, and a strong pipeline of opportunities, we are confident in our
ability to deliver sustainable expansion."
Copies of this announcement are available on the Company's
website, www.safestay.com (http://www.safestay.com/)
Enquiries
Safestay PLC Tel: +44 (0) 20 8815 1600
Larry Lipman
Shore Capital (Nomad & Broker) Tel: +44 (0) 20 7408 4090
Tom Griffiths/Harry Davies-Ball
Hudson Sandler (Financial PR) Tel: +44 (0) 20 7796 4133
Alex Brennan/India Laidlaw safestay@hudsonsandler.com
For more information visit our:
Website www.safestay.com
(https://url.avanan.click/v2/___http:/www.safestay.com___.YXAxZTpzaG9yZWNhcDphOm86YjBkMWIzZWM0NTkxMzYyMTUyNWNhYTNmNGYyYTE0ZWM6Njo0NjAyOjJkMTBjMzdiYWJhN2RjMThhZDc0NzBhMmYxZDA4ODBkZTUzNTRkNDE1ZTMyMWNhYWIyY2ZhN2I0YjE0NzIwNmM6cDpUOk4)
Instagram page www.instagram.com/safestayhostels/
(https://url.avanan.click/v2/___http:/www.instagram.com/safestayhostels/___.YXAxZTpzaG9yZWNhcDphOm86YjBkMWIzZWM0NTkxMzYyMTUyNWNhYTNmNGYyYTE0ZWM6Njo3NWU2OmVjMTJmMDBjYzg1MDU4MDI3NGU2YWM2N2U5YTVmOWZiYTg3N2Q3ZDY5Mjk3NTFiNzYwM2ZmMGM1ZTU4MWIzMzI6cDpUOk4)
About Safestay PLC
Safestay
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6Nzo3ZDIzOjBjZWU2ZmU2MGJhZmIxYjdkODY3ZmE0MTRhMzA1MmFhY2M4MzYxYjIzY2FjNWZlMmNhZDJhZTZjZjlmZDg3NWM6cDpUOk4)
PLC is one of Europe's largest hostel groups, operating in the fragmented and
fast-growing global hostel market that is expected to be worth $8.9bn annually
by 2027*.
Safestay's operational sites of 21 premium hostels and one hotel offer guests
both private and shared rooms in destination cities across the UK, Spain,
Belgium, Czech Republic, Germany, Greece, Italy, Poland, Portugal, Austria and
Slovakia.
In 2025, the Group delivered a 1% increase in Total Bed Nights to 415,606,
40.5% of which were booked through direct and non-commissionable channels.
Safestay's mission at each of its locations is to provide a safe, inclusive,
and enjoyable space that caters to the needs of different travellers. Its
properties offer first-class locations and thoughtful designs that cater for
the different needs of travellers, from digital nomads to backpackers and from
families to group travellers.
https://www.safestay.com/
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*Source - Markets and Research, August 2025
Safestay's pan-European locations include:
· Athens Monastiraki, Greece
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· Barcelona Gothic, Spain
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· Barcelona Passeig de Gracia, Spain
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· Berlin Kurfurstendamm, Germany (hotel)
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· Bratislava Presidential Palace, Slovakia
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· Brighton, UK (in development)
· Brussels Grand Place, Belgium
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· Budapest, Hungary (in development)
· Calpe Seafront, Spain (in development)
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· Córdoba Mezquita Catedral, Spain
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· Glasgow Charing Cross, UK
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· Edinburgh Cowgate, UK
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· Kitzbühel, Austria (in development)
· London Elephant & Castle, UK
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· London Kensington Holland Park, UK
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· Lisbon Bairro Alto, Portugal
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· Madrid Central, Spain
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· Naples, Italy (in development)
· Pisa Centrale, Italy
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· Prague Charles Bridge, Czeck Republic
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· Warsaw Old Town, Poland
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· York Micklegate, UK
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Chairman's Statement
Financial Review
During H1 2025 Safestay delivered further strategic progress and a resilient
financial performance, despite the challenging trading environment which
impacted pricing and demand across the European hostels market.
Revenues from continuing operations were down 5.6% at £10.1 million (H1 2024:
£10.7 million). Within this, accommodation sales declined by 6.6% to £8.5
million (H1 2024: £9.1 million) whilst non-accommodation sales were stable at
£1.5 million (H1 2024: £1.5 million). Within non-accommodation sales, food
and beverage sales increased to £1.1 million (H1 2024: £1.0 million).
Adjusted EBITDA from continuing operations declined by 28% to £2.3 million
(H1 2024: £3.2 million), resulting in a 6.4% decline in EBITDA margin to
23.3% (H1 2024: 29.9%). This was due to higher staff costs in part driven by
the well-publicised increased to the National Living Wage and National
Insurance contribution in the UK as well as higher expenditure on operational
expenses.
The Group recorded profit before tax from continuing operations of £591,000
(H1 2024: loss of £113,000) and a profit for the Period attributable by
owners of the parent company of £472,000 (H1 2024: profit of £63,000). This
reflects the Group's award of a Covid-19 business interruption insurance claim
with net proceeds totalling £1.4 million which was received in June 2025.
Net cash generated from operations was £3.4 million (H1 2024: £5.0 million),
with the reduction reflecting the decline in EBITDA year on year.
Cash at bank at 30 June 2025 was £1.7 million, up 21.4% from the year end (31
December 2024: £1.4 million) reflecting the receipt of the £1.4 million
Covid-19 business interruption insurance claim described above.
Operational Review
Notwithstanding pressures on bed rates, the appeal of Safestay's portfolio of
premium hostels remains strong amongst its core customer base of young
travellers, families, and business travellers. This was evidenced by the
marginal increase in bed nights sold during the Period to 415,606 (H1 2024:
412,442). Of these, 40.5% (equating to £1.54 million) were booked through
direct and non-commissionable channels (H1 2024: 42.3%), representing 18% of
total accommodation revenue.
Occupancy during the Period was 68.2%, a 2.4% decline year-on-year (H1 2024:
70.6%). Average Bed Rate ("ABR") decreased by 7.9% year-on-year (H1 2024:
£22.15) reflecting the impact of a highly competitive pricing environment
across the European hostels market. As a result of these factors, total RevPAB
declined by 10.2% to £16.42 (H1 2024: £18.28), resulting in lower total
revenue for the Period.
Group bookings remained broadly flat, representing 22% of accommodation sales
in the Period (H1 2024: 23%).
In January, we announced a partnership with Cloudbeds, the industry's premier
hospitality management platform. Cloudbeds' innovative unified technology
provides the Company with a single comprehensive view of customer data across
all properties and booking platforms, enabling Safestay to provide a superior
guest experience, enhance its commercial and marketing strategy, and
streamline operational costs across its growing portfolio.
Portfolio expansion
During the Period we continued to actively pursue strategic expansion
opportunities with the addition of one new high-quality sites to our
portfolio, with a further two sites added post-Period end.
In June, we signed a 12-year lease agreement to operate a 300-bed hostel in
the centre of Naples, Italy. The lease agreement, signed with Italian property
developer Ma Creo srl, signals the commencement of a strategic partnership
together, with the aim of opening additional high quality and community
focused hostels across Italy over the coming years. A former monastery, the
hostel is in the city's Materdei district and retains numerous historic
features, including an entrance through a preserved chapel. Following
refurbishment, it will feature 300 beds across four and six bed dormitories
and private rooms. The site is expected to be operational in Q4 2025.
In August, Post the Period end, we signed our first franchise agreement with
hostel owner and operator, Sycomore Entwicklungen GmbH. The franchise covers
two hostels in the sought-after alpine resort of Kitzbühel, Austria, a
year-round destination with world-class ski facilities and summer attractions,
making it an ideal location for Safestay to broaden its reach beyond its core
market of city centres in major European capitals. The two properties -
currently operated as the Roomie Alps Design Hostel Kitzbühel and the
Guesthouse Johanna hotel - are being rebranded as Safestay Kitzbühel Centre
and Safestay Kitzbühel Alpine, respectively, and are due to be operational in
Q4 2025. Together, the properties offer 70 beds in Kitzbühel and are a
five-minute walk from the main ski lifts with easy access to local
restaurants, bars and transport links.
In April, we received planning approval to develop a new 170-bed hostel in the
heart of Brighton. The planning approval follows the Group's acquisition in
June 2024 of the freehold property for a total consideration of £2.275
million. We are investing approximately £1.0 million in the conversion of the
property, with the hostel anticipated to open in early 2026.
Directorate changes
Towards the end of the Period the Group announced the appointment of Carlos
Salas Dual as Chief Financial Officer replacing Paul Hingston with effect from
30 June 2025. Carlos is a Chartered Certified Accountant with extensive
experience in senior financial management roles across a range of sectors,
most recently acting as Group Financial Controller for Gibraltar-based MH
Bland Group of Companies.
On behalf of the Board, I would like to thank Paul for his contribution over
the last three years and wish him the very best for the future.
Current Trading & Outlook
The challenging macroeconomic and pricing environment has continued the second
half of the year, with bookings over the key trading months of July and August
below those in 2024. Forward bookings for the remainder of 2025 are expected
to be broadly in line with last year. Consequently, revenues for the full year
are expected to be lower than in 2024.
We continue to achieve a satisfactory level of both group and direct bookings
to our website and are pursuing a number of promotions to build revenue.
Looking ahead, our ambition is to deliver sustainable growth and to
crystallise value for shareholders, whilst over the medium-term growing the
portfolio. With a proven model, well-invested systems and technology, a clear
strategy, and a strong pipeline of opportunities, we are confident in our
ability to deliver sustainable expansion.
Larry Lipman, Chairman
23 September 2025
CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2025
Half year to Half year to Year to
30-Jun 30-Jun 31 December
2025 2024 2024
Unaudited Unaudited Audited
As restated
Total Total Total
Note £'000 £'000 £'000
Revenue 3 10,070 10,684 22,497
Cost of sales (1,487) (1,704) (3,939)
Gross profit 8,583 8,980 18,558
Other operating income and expenses 4 1,241 - -
-Administrative expenses (7,828) (7,518) (15,736)
Operating profit 1,996 1,462 2,822
Finance income and costs (1,405) (1,575) (3,229)
Loss before tax 591 (113) (407)
Tax 5 (120) 220 (875)
Profit / (loss) for the period from continuing operations 471 107 (1,282)
Net loss from discontinued operations - (44) 391
Profit /(loss) for the financial period attributable to owners of the parent 471 63 (891)
company
Basic profit / (loss) per share from continuing operations 6 0.73p 0.16p (1.97p)
Basic profit / (loss) per share from discontinued operations 6 0.00p (0.07p) 0.60p
Diluted profit / (loss) per share from continuing operations 6 0.69p 0.16p (1.87p)
Diluted profit / (loss) per share from discontinued operations 6 0.00p (0.06p) 0.57p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2025
Half year to Half year to Year to
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
As restated
Total Total Total
£'000 £'000
Profit / (loss) for the period 471 63 (891)
Exchange differences on translating foreign operations (157) (491) (812)
Property revaluation - - 1,181
Deferred tax on property revaluation - - (1,038)
Total comprehensive (expense)/income for the period attributable to owners of 314 (428) (1,560)
the parent company
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at June 2025
30 June 2025 As restated 30 June 2024 31 December 2024
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Non-current assets
Property, plant and equipment (including right of use asset) 7 75,684 77,659 76,507
Intangible assets 132 136 150
Goodwill 8 10,383 10,660` 10,383
Lease assets
Deferred tax asset 9 4,199 5,314 4,392
Fair value of financial assets 24 10 24
Total non-current assets 90,494 93,999 91,599
Current assets
Inventory 40 50 39
Trade and other receivables 1,008 1,318 981
Lease assets 145 141 140
Current tax asset 59 274 120
Cash and cash equivalents 1,692 2,139 1,430
Total current assets 2,944 3,922 2,710
Total assets 93,438 97,921 94,309
Current liabilities
Borrowings 10 (4,149) (267) (4,164)
Lease liabilities (1,785) (1,818) (1,815)
Liabilities held for sale - (470) -
Trade and other payables (4,795) (6,067) (5,084)
Current liabilities (10,729) (8,622) (11,063)
Non-current liabilities
Borrowings 10 (22,401) (26,427) (22,569)
Lease liabilities (21,332) (23,386) (21,891)
Deferred tax liabilities 9 (7,898) (7,155) (8,022)
Total non-current liabilities (51,631) (56,968) (52,482)
Total liabilities (62,360) (65,590) (63,545)
Net assets 31,078 32,331 30,764
Equity
Share capital 649 649 649
Share premium account 23,959 23,959 23,959
Other components of equity 21,125 21,461 21,282
Retained earnings (14,655) (13,738) (15,126)
Total equity attributable to owners of the parent company 31,078 32,331 30,764
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2025
Share Capital Share premium account Other Components Retained earnings Total Equity
of Equity
£000 £000 £000 £000 £000
Balance at 1 January 2025 649 23,959 21,952 (15,126) 32,759
Comprehensive Income
Profit for the period - - - 471 471
Other comprehensive income
Movement in translation reserve - - (157) - (157)
Property Revaluation Reserve
Balance at 30 June 2025 649 23,959 21,125 (14,655) 31,078
Share Capital Share premium account Other Components Retained earnings Total Equity
of Equity
£000 £000 £000 £000 £000
Balance at 1 January 2024 649 23,959 21,952 (13,801) 32,759
Comprehensive income
Loss for the period - - - 63 63
Other comprehensive income -
Movement in translation reserve - - - - -
Property Revaluation Reserve - - - - -
Deferred tax on property revaluation - - (491) - (491)
Balance at 30 June 2024 649 23,959 21,461 (13,738) 32,331
For the six months ended 30 June 2025, total equity decreased to £31.1
million (30 June 2024: £32.3 million). The movement mainly reflects the
recognition of profit of £0.5 million, offset by a translation reserve loss
of £0.2 million. In the comparative period, equity was reduced by a deferred
tax charge of £0.5 million on property revaluation. Share capital (£0.6
million) and share premium (£24.0 million) remained unchanged, while retained
earnings continued to show a deficit of £14.7 million.
CONSOLIDATED STATEMENT OF CASHFLOWS
For the six months ended 30 June 2025
Period to Period to Year to
30 June 30 June 31 December
Note 2025 2024 2024
As Restated
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flow from operating activities
Profit/(loss) for the period 471 63 (891)
Tax charge 120 (220) 191
Depreciation, amortisation 1,645 1,705 3,381
Net finance costs 1,372 1,574 3,421
Share based payment charge - - 428
Impairment charges - - (400)
(Increase)/decrease in inventories (1) (23) (12)
Decrease in lease asset debtor - - -
(Increase)/decrease in trade and other receivables 38 (118) 229
Increase in trade and other payables (101) 2,011 524
Fair value movement of derivatives - 25 -
Cash generated from operations attributable to continuing operations 3,544 5,018 6,871
Income tax received/(paid) (190) (140) (3)
Total net cash inflow from operating activities 3,354 4,878 6,868
Cash flow from investing activities
Purchases of property, plant and equipment (313) (5,685) (6,097)
Purchases of intangible assets - (39) (115)
Interest received 10 10 12
Total net cash outflow from investing activities (303) (5,714) (6,200)
Cash flow from financing activities
Share issue - - -
Proceeds from new borrowings - 19,695 (3,709)
Payment of fees related to new borrowings - (311) -
Principal elements of lease payments (1,687) (1,821) -
Interest paid (718) (675) (1,453)
Loan repayments (200) (15,995) (16,029)
Loan received - - 19,695
Fair Value movement in financial assets - - (24)
Total net cash outflow from financing activities (2,605) 893 (1,520)
Cash and cash equivalents at beginning of period 1,430 2,038 2,038
Net cash flows (used in)/generating from operating, investing and financing 446 135 (852)
activities
Differences on exchange (184) 48 244
Cash and cash equivalents at end of period (including discontinued operations) 1,692 2,221 1,430
NOTES
1 General Information
Safestay plc, the "Company", and together with its subsidiaries, the "Group",
is a public limited company whose shares are listed on the Alternative
Investment Market ("AIM") of the London Stock Exchange and is incorporated and
domiciled in the United Kingdom and registered in England and Wales. The
registered number of the Group is 08866498 and its registered address is 1a
Kingsley Way, London, N2 0FW.
2 Basis of Preparation
The consolidated interim financial information has been prepared in accordance
with UK adopted International Financial Reporting Standards ("IFRS") in
conformity with the requirements of the Companies Act 2006.
The Group's Annual Report and Accounts for the year ending 31 December 2025
are expected to be prepared under IFRS.
The comparative information for the period ended 30 June 2024 in this interim
report does not constitute statutory accounts for that period under section
435 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2024 have been delivered to
the Registrar of Companies.
The auditors' report on the statutory accounts for the year ended 31 December
2024 was unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under section 498(2) or 498(3) of
the Companies Act 2006.
Significant Accounting Policies
The consolidated interim financial information has been prepared in accordance
with accounting policies that are consistent with the Group's Annual Report
and Accounts for the year ended 31 December 2024 which is published on the
Safestay website, located at www.safestay.com. At the date of authorisation of
this financial information, certain new standards, amendments and
interpretations to existing standards applicable to the Group have been
published but are not yet affective and have not been adopted early by the
Group. The impact of these standards is not expected to be material.
In adopting the going concern basis for preparing these financial statements,
the Directors have considered the business model and strategies, as well as
taking into account the current cash position and facilities.
Based on the Group's cashflow forecasts, the Directors are satisfied that the
Group will be able to operate within the level of its current facilities for
the foreseeable future, a period of at least twelve months from the date of
this report. Accordingly, the Directors consider it appropriate for the Group
to adopt the going concern basis in preparing these financial statements.
Financial information contained in this document does not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006 (the
"Act"). The statutory accounts for the year ended 31 December 2024 have been
filed with the Registrar of Companies. The report of the auditors on those
statutory accounts was unqualified and did not contain a statement under
section 498(2) or (3) of the Act.
The financial information for the six months ended 30 June 2025 and 30 June
2024 is unaudited.
These condensed interim financial statements have not been audited, do not
include all the information required for full annual financial statements and
should be read in conjunction with the Group's consolidated annual financial
statements for the year ended 31 December 2024.
The financial statements have been presented in sterling, prepared under the
historical cost convention, except for the revaluation of freehold properties,
right of use assets and fair value of derivative financial assets and
liabilities.
The accounting policies have been applied consistently throughout all periods
presented in these financial statements. These accounting policies comply with
each IFRS that is mandatory for accounting periods ending on 31 December 2025.
New standards and interpretations effective in the year
No new standards have been implemented this year that have a material impact
on the business.
3 Segmental Analysis
For the six months ended 30 June 2025
Unaudited Unaudited Audited
6 months to 30 June 6 months to 30 June Year to 31 December
2025 2024 2024
£000 £000 £000
Hostel accommodation 8,475 9,136 19,962
Food and Beverages sales 1,136 1,001 1,915
Other income 459 547 1,132
Total Income from continuing operations 10,070 10,684 23,009
Group revenue for the six months ended 30 June 2025 was £10.1m (H1 2024:
£10.7m), down £0.6m year-on-year. Hostel accommodation contributed £8.5m
(H1 2024: £9.1m), food and beverage sales increased to £1.1m (H1 2024:
£1.0m), while other income was £0.5m (H1 2024: £0.5m).
Unaudited 6 months to 30 June 2025 (continuing operations) UK Spain Europe Shared Discontinued Total
services Operations
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 4,156 2,678 3,236 - - 10,070
Profit/(loss) before tax 1,019 125 364 (917) 591
Add back: Finance income and costs 60 364 134 847 1,405
Add back: Depreciation & Amortisation 283 642 508 212 1,645
EBITDA 1,362 1,131 1,006 142 3,641
Profit on disposal of assets - - - 44 44
Exceptional & Share based payment expense - (28) 40 (1,353) (1,341)
Adjusted EBITDA 1,362 1,103 1,046 (1,167) 2,344
Total assets 45,174 16,044 17,700 14,520 93,438
Total liabilities (13,697) (10,478) (7,148) (31,037) (62,360)
Unaudited 6 months to 30 June 2024 (continuing operations) UK Spain Europe Shared Discontinued Total
services operations
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 4,183 2,986 3,515 - - 10,684
Profit/(loss) before tax 1,627 512 463 (2,714) - (113)
Add back: Finance income and costs 115 - (19) 1,479 - 1,575
Add back: Depreciation & Amortisation 256 599 440 410 - 1,705
EBITDA 1,998 1,111 884 (826) - 3,167
Exceptional & Share based payment expense - - - - -
Adjusted EBITDA 1,998 1,111 884 (826) - 3,167
Total assets 44,794 16,987 20,414 15,726 - 97,921
Total liabilities (13,318) (12,250) (7,973) (32,049) - (65,590)
Unaudited 12 months to 31 December 2024 (continuing operations) UK Spain Europe Shared Discontinued Total
services operations
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 8,986 5,953 7,540 18 512 23,009
Profit/(loss) before tax 1,355 (456) 324 (1,630) 391 (16)
Add back: Finance income and costs 315 1,066 790 1,058 192 3,421
Add back: Depreciation & Amortisation 623 1,206 1,211 335 6 3,381
EBITDA 2,293 1,816 2,325 (237) 589 6,786
Impairment - - 428 - 428
Profit on disposal of assets - - - 4 (404) (400)
Fair value movements of derivatives - - - 13 - 13
Exceptional & Share based payment expense - - (344) 21 26 (297)
Adjusted EBITDA 2,293 1,816 2,409 (199) 211 6,530
Total assets 45,573 16,235 18,120 14,381 - 94,309
Total liabilities (13,322) (10,742) (7,085) (32,396) - (63,545)
Group revenue for the six months ended 30 June 2025 was £10.1m (H1 2024:
£10.7m), down £0.6m year-on-year. Adjusted EBITDA decreased to £2.3m (H1
2024: £3.2m), reflecting lower contributions from the UK and higher central
costs, partly offset by a stronger performance in Europe.
Total liabilities for the Europe segment for the period ended 30 June 2025
does not include any liabilities held for sale (30 June 2024: £470k).
4 OTHER OPERATING INCOME AND EXPENSES
For the six months ended 30 June 2025
Unaudited Unaudited Audited
6 months to 30 June 6 months to 30 June Year to 31 December
2025 2024 2024
As restated
Total Total Total
£000 £000 £000
Business interruption income settlement 1,365 - -
Profit on surrender of lease agreements / lease termination income - - -
Impairment or write-downs of fixed / right-of-use assets - - -
Total other operating income 1,365 0 0
Other operating expenditure
One-off legal / professional fees (Covid related advise) 42
Rent deferral Re: Covid 28
Impairment or write-downs of fixed / right-of-use assets 10
Profit or Loss on sale of assets 44
Lease termination / early exit costs -
Total other operating expenditure 124
Net other operating income and expenditure 1,241
In the first half of 2025, Safestay recorded a net gain of £1.2 million
within "Other Operating Income and Expenditure". This was mainly due to a
£1.4 million business interruption insurance settlement, which reflects
historic claims for disruption to trading.
Set against this, the Group incurred £0.1 million of one-off costs, including
professional fees linked to Covid related advice, a small Covid-related rent
deferral adjustment, and minor asset write-downs. A loss on the sale of assets
was also recognised.
As these items are not part of day-to-day hostel operations, they are reported
separately to give a clearer picture of the underlying trading performance.
5 TAXATION
For the six months ended 30 June 2025
Unaudited Unaudited Audited
6 months to 30 June 6 months to 30 June Year to 31 December
2025 2024 2024
Total Total Total
£000 £000 £000
Corporation tax on profits for the year 65 0 5
Adjustments for corporation tax on prior periods 0 0 -
Other Local taxes 0 0 186
Total current tax 65 - 191
Deferred tax 57 (220) 684
Adjustments for deferred tax on prior periods (2) 0 -
Effect of increased tax rate on opening balance 0 0 -
Total tax change 120 (220) 875
The Group recorded a tax charge of £120,000 for the six months ended 30 June
2025 (H1 2024: credit of £220,000; FY 2024: charge of £875,000). The charge
reflects the UK corporation tax rate of 25%, adjusted for fixed asset timing
differences, non-deductible expenses and foreign exchange movements. The
effective tax rate is expected to remain broadly in line with the statutory
rate for the full year.
The tax charge for the year can be reconciled to the profit per the
consolidated income statement as follows:
Unaudited Unaudited Audited
6 months to 30 June 6 months to 30 June Year to 31 December
2025 2024 2024
Total Total Total
£000 £000 £000
Profit before tax 591 82 (407)
Tax at the standard UK corporation tax rate of 25% (2025: 25%) 148 21 (102)
Fixed asset differences 103 39 91
Adjustments for tax rate differences in foreign jurisdictions 0 0 (1)
Adjustments for tax on prior periods-deferred tax (2) 0 174
Adjustments for tax on prior periods-deferred tax 0 0 175
Other tax adjustments, reliefs and transfers 0 0 -
Remeasurements of deferred tax for changes in tax rates - - -
Deferred tax not recognised (37) 4 192
Factors affecting charge for the period
Non-deductible items and other time differences (68) (283) 190
Chargeable gains / (losses) 0 0 -
Foreign exchange differences (24) 0 156
Deferred tax elimination -
Group tax charge 120 (220) 875
6 EARNING PER SHARE
Basic profit/(loss) per share has been calculated by dividing the loss
attributable to shareholders by the weighted average number of shares in issue
during the Period.
For the six months ended 30 June 2025
Period to Period to Period to
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Basic profit/(loss) per share from:
Continuing Operations 0.73p 0.16p (1.97p)
Discontinued Operations - (0.07p) 0.60p
Diluted profit/(loss) per share from:
Continuing Operations 0.73p 0.16p (1.87p)
Discontinued Operations - (0.06p) 0.57p
Diluted profit/(loss) per share has been calculated after adjusting the
weighted average number of shares used in the basic calculation to assume the
conversion of all potentially dilutive shares, such as share option awards.
The number of shares used in calculating basic and diluted profit/(loss) per
share are reconciled below:
30 June 30 June 31 December
2025 2024 2024
Weighted average number of ordinary shares (000s) for the purposes of basic 64,935 64,935 64,935
earnings per share
Effect of dilutive potential ordinary shares (000s) 3,441 3,441 3,441
Weighted average number of ordinary shares (000s) for the purposes of diluted 68,376 68,376 68,376
profit/(loss) per share
Basic earnings per share from continuing operations were 0.73p (H1 2024:
0.16p), with no contribution from discontinued operations (H1 2024: loss of
0.07p per share). Diluted earnings per share were also 0.73p (H1 2024: 0.16p),
with the weighted average number of shares unchanged at 64.9m (basic) and
68.4m (diluted).
7 FIXED ASSETS
As at June 2025
Freehold land and buildings Right of Use Assets Leasehold land and buildings Leasehold improvements Fixtures, fittings and equipment Assets Total
under construction
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 Jan 2025 22,857 20,393 26,556 2,904 1,344 2,453 76,507
Transfers - -
Additions - 13 182 118 313
Depreciation (196) (1,013) (165) (257) (1,631)
IFRS 16 Lease Modification
Exchange Differences 155 280 (141) 205 (4) 495
Revaluation - - -
At 30 June 2025 22,816 19,660 26,263 2,904 1,474 2,567 75,684
At 1 Jan 2024 16,999 23,244 27,020 3,253 1,039 2,154 73,709
Transfers 2,114 - - - - (2,114) -
Additions 2,688 - - 20 585 2,392 5,685
Depreciation (163) (1,037) (94) (161) (231) - (1,686)
IFRS 16 Lease Modification - 321 - - - - 321
Exchange Differences (7) (368) - 65 (60) - (370)
At 30 June 2024 21,631 22,160 26,926 3,177 1,333 2,432 77,659
At 1 Jan 2024 16,999 23,244 27,020 3,253 1,039 2,154 73,709
Transfers 2,114 - - - - (2,114) -
Reclassification as held for sale - - - - -
Additions 2,880 - - 20 742 2,413 6.097
Disposal -
Depreciation (435) (2,054) (188) (161) (322) - (3,345)
Impairment (235) (154) - (428)
IFRS 16 Lease Modification - 151 - - - - 151
Revaluation 1,457 - (276) - - - 1,181
Exchange Differences (140) (713) - - 65 - (834)
At 31 December 2024 22,857 20,393 26,556 2,904 1,344 2,453 76,507
The Group's property, plant and equipment, including right-of-use assets
amounted to £75.7 million (30 June 2024: £77.7 million). The decrease of
£2.0 million is primarily attributable to additions of only £0.3 million
during the period (H1 2024: £5.7 million), together with depreciation charges
of £1.6 million (H1 2024: £1.7 million).
No impairment losses were identified. In addition, exchange differences
resulted in a net gain of £0.5 million (H1 2024: £0.4 million loss).
No lease modifications were recognised in the Period (H1 2024: £0.3 million).
The overall reduction in carrying amount therefore reflects the natural effect
of depreciation and significantly lower capital investment in the current
Period, partially offset the exchange gains.
8 GOODWILL
Goodwill on 30 June 2025 amounted to £10.4 million (31 December 2024: £10.4
million; 30 June 2024: £10.7 million). The balance has remained unchanged
since the year end, with the decrease compared to the prior year primarily
reflecting foreign exchange translation differences.
Goodwill represents the excess of the consideration transferred over the fair
value of the Group's share of the identifiable net assets of acquired
subsidiaries at the acquisition date. It is not amortised but is subject to
annual impairment testing, or more frequently when indicators of impairment
exist.
For the purposes of impairment testing, goodwill has been allocated to
cash-generating units (CGUs) corresponding to the Group's hostels. The
recoverable amounts of the CGUs have been determined based on value-in-use
calculations derived from management's financial forecasts covering a
five-year period, together with an assessment of residual value beyond the
lease term.
The impairment testing indicated that the recoverable amount of each CGU
exceeded its carrying value. Accordingly, no impairment has been recognised
during the Period. Sensitivity analysis confirmed that no reasonably possible
change in assumptions would result in the carrying amount of goodwill
exceeding its recoverable amount.
9 DEFERRED INCOME TAX
As at 30 June 2025
The movement in the Group's deferred tax assets and liabilities during the
periods presented is as follows:
Deferred tax assets £'000 Deferred tax liabilities £'000 Total £'000
Balance at 1 January 2024 5,488 (7,359) (1,871)
Recognised in the income statement (1,065) 381 (684)
Adjustments for amendments to IAS12 (31) (6) (37)
Recognised included directly in equity - (1,038) (1,038)
Recognised in other comprehensive income - - -
Balance as at 31 December 2024 4,392 (8,022) (3,630)
Recognised in the income statement 54 54
Adjustments for amendments to IAS12 - 0
Recognised included directly in equity 0
Balance as at 31 December 2024 4,199 (7,898) (3,699)
At 30 June 2025, the Group recognised a net deferred tax liability of £3.7
million (31 December 2024: £3.6 million). This reflects temporary differences
primarily related to capital allowances and property revaluations, partly
offset by deferred tax assets on carried-forward tax losses and provisions.
A deferred tax charge of £54,000 was recognised in the income statement
during the Period. No amounts were recognised in equity or other comprehensive
income.
Deferred tax assets continue to be recognised where the Group expects
sufficient future taxable profits. Unrecognised deferred tax assets relating
to losses in certain subsidiaries remain under review and will be recognised
once appropriate profitability is forecast.
10 BORROWINGS
As at 30 June 2025
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
At amortised cost
Bank loan repayable within one year 4,031 349 4,246
Loan arrangement fees (85) (85) (85)
Property finance liability 3 3 3
3,949 267 4,164
Bank loans repayable within more than one year 15,595 `19,495 15,595
Property finance liability 7,174 7,175 7,174
Loan arrangement fees (168) (243) (200)
22,601 26,427 22,569
From March 2025 onwards, the Company commenced quarterly capital repayments of
£100k on the Term Loan as part of its scheduled repayment obligations.
11 POST BALANCE SHEET EVENTS
Subsequent to the Period end, in August 2025, the Group signed its first
franchise agreement, marking a significant milestone in its expansion
strategy, with the agreement covering two hostels located in Austria, both of
which are planned to commence operations in Q4 2025 and are expected to
contribute to the Group's growth in the European market.
The operations of the new hostel in Naples expected to commence in Q4 2025.
12 AVAILABILITY OF THIS ANNOUNCEMENT
Copies of this announcement are available from the Company's registered office
at 1a Kingsley Way, London, N2 0FW and the Company's website,
www.safestay.com.
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