REG - Safestore Hldgs plc - Interim Results <Origin Href="QuoteRef">SAFE.L</Origin> - Part 3
16/06/2016 07:15
- Part 3: For the preceding part double click ID:nRSP3321Bb
future, a
period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis
in preparing this condensed consolidated interim financial information.
The condensed consolidated interim financial information should be read in conjunction with the annual financial statements
for the year ended 31 October 2015, which have been prepared in accordance with IFRS as adopted by the European Union.
3 Accounting policies
The condensed consolidated interim financial information has been prepared on the basis of the accounting policies expected
to apply for the financial year to 31 October 2016 applicable to companies under IFRS. The IFRS and IFRIC interpretations
as adopted by the European Union that will be applicable at 31 October 2016, including those that will be applicable on an
optional basis, are not known with certainty at the time of preparing these interim financial statements. Thus the
accounting policies adopted in these interim financial statements may be subject to revision to reflect further IFRS, IFRIC
interpretations and pronouncements issued between 15 June 2016 and publication of the annual IFRS financial statements for
the year ending 31 October 2016.
The accounting policies and presentation applied are consistent with those in the annual financial statements for the year
ended 31 October 2015, as described in those financial statements. There are no new or revised accounting standards or
IFRIC interpretations which are applicable for the first time in the year ended 31 October 2016.
The financial statements have been prepared under the historical cost convention as modified by the revaluation of
investment properties and fair value of derivative financial instruments.
The preparation of financial statements in conformity with generally accepted accounting principles requires the use of
certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the
Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions
and estimates are significant to the condensed consolidated interim financial statements are disclosed within the Group's
accounting policies as disclosed in the IFRS financial statements for the year ended 31 October 2015. There have been no
significant changes in accounting estimates in the period.
Certain costs previously reported as administrative expenses, primarily relating to marketing and the customer service
centre, are now reported within cost of sales, as the directors believe this provides a fairer presentation. Prior periods
have been restated, resulting in an increase to cost of sales of £2.8m at 30 April 2015 and £6.1m at 31 October 2015, with
an equal reduction to administrative expenses. This restatement has had no impact on previously reported profit.
4 Segmental information
The segmental information for the six months ended 30 April 2016 is as follows:
United Kingdom France Total
£m £m £m
Continuing operations
Revenue 41.1 13.0 54.1
Underlying EBITDA 20.8 8.5 29.3
Costs incurred relating to corporate transactions (0.3) - (0.3)
Change in fair value of derivatives - - -
Depreciation and contingent rent (0.2) (0.1) (0.3)
Operating profit before gain on investment properties 20.3 8.4 28.7
Gain on investment properties 25.0 3.2 28.2
Operating profit 45.3 11.6 56.9
Net finance expense (6.8) (1.0) (7.8)
Profit before tax 38.5 10.6 49.1
Total assets 704.8 226.5 931.3
The segmental information for the six months ended 30 April 2015 is as follows:
United Kingdom France Total
£m £m £m
Continuing operations
Revenue 38.2 12.2 50.4
Underlying EBITDA 18.8 8.1 26.9
Change in fair value of derivatives - 0.2 0.2
Depreciation and contingent rent (0.4) (0.3) (0.7)
Operating profit before gain on investment properties 18.4 8.0 26.4
Gain on investment properties 43.2 0.7 43.9
Operating profit 61.6 8.7 70.3
Net finance expense (6.8) (1.3) (8.1)
Profit before tax 54.8 7.4 62.2
Total assets 652.4 184.4 836.8
Underlying EBITDA is defined as operating profit before exceptional items, corporate transaction costs, change in fair
value of derivatives, gain/loss on investment properties, contingent rent and depreciation.
During H1 2016, the Group incurred £0.3m of costs relating to corporate transactions, which are unrelated to the Group's
trading performance, so have been excluded from underlying EBITDA.
5 Finance income and costs
Six monthsEnded30 April2016 Six monthsEnded30 April2015 YearEnded31 October2015
(unaudited) (unaudited) (audited)
£m £m £m
Finance income
Fair value movement of derivatives 4.4 3.1 3.1
Unwinding of discount on Capital Goods Scheme receivable 0.1 0.1 0.1
Total finance income 4.5 3.2 3.2
Finance costs
Interest payable on bank loans and overdrafts (4.8) (5.7) (11.2)
Amortisation of debt issuance costs on bank loans (0.2) (0.1) (0.2)
Underlying finance charges (5.0) (5.8) (11.4)
Interest on obligations under finance leases (1.7) (1.9) (3.8)
Fair value movement of derivatives (1.6) (0.6) (1.2)
Net exchange losses (4.0) (3.0) (2.8)
Total finance costs (12.3) (11.3) (19.2)
Net finance costs (7.8) (8.1) (16.0)
Included within interest payable of £4.8m (April 2015: 5.7m) is £0.5m (April 2015: £0.5m) of interest relating to
derivative financial instruments that are economically hedging the Group's borrowings. The change in fair value of
derivatives for the period is a net credit of £2.8m (April 2015: credit of £2.5m).
6 Income tax charge
Six monthsEnded30 April2016 Six monthsEnded30 April2015 YearEnded31 October2015
(unaudited) (unaudited) (audited)
£m £m £m
Current tax (1.6) (0.6) (1.6)
Deferred tax (1.8) (1.8) (7.9)
(3.4) (2.4) (9.5)
Income tax is recognised based on management's best estimate of the weighted average annual income tax rate expected for
the full financial year.
The Group is a Real Estate Investment Trust ("REIT"), and as a result is exempt from UK corporation tax on the profits and
gains from its qualifying rental business in the UK provided that it meets certain conditions. Non-qualifying profits and
gains of the Group remain subject to corporation tax as normal. The Group monitors its compliance with the REIT conditions.
There have been no breaches of the conditions to date.
7 Deferred income tax
As at30 April2016 As at30 April2015 As at31 October 2015
(unaudited) (unaudited) (audited)
£m £m £m
The amounts provided in the accounts are:
Revaluation of investment properties and tax depreciation 47.2 36.3 41.2
Other timing differences 0.7 0.7 0.7
Deferred tax liabilities 47.9 37.0 41.9
Tax losses - (0.6) -
Interest rate swap instruments (0.2) (0.3) (0.1)
Deferred tax assets (0.2) (0.9) (0.1)
Deferred tax - net 47.7 36.1 41.8
As at 30 April 2016, the Group had trading losses of £10.7m (April 2015: £4.1m) and capital losses of £36.4m (April 2015:
£36.4m) in respect of its UK operations. No deferred tax asset has been recognised in respect of these losses.
8 Dividends
Six monthsEnded30 April2016 Six monthsEnded30 April2015 YearEnded31 October2015
(unaudited) (unaudited) (audited)
£m £m £m
For the year ended 31 October 2014:
Final dividend - paid 8 April 2015 (5.30p per share) - 11.0 11.0
For the year ended 31 October 2015:
Interim dividend - paid 14 August 2015 (3.00p per share) - - 6.2
Final dividend - paid 8 April 2016 (6.65p per share) 13.8 - -
Dividends in the statement of changes in equity 13.8 11.0 17.2
Timing difference on payment of withholding tax (1.7) (0.7) -
Dividends in the cash flow statement 12.1 10.3 17.2
An interim dividend of 3.6 pence per ordinary share (April 2015: 3.0 pence) has been declared. The ex-dividend date will be
7 July 2016 and the record date 8 July 2016, with an intended payment date of 12 August 2016.
It is intended that 50% (April 2015: 100%) of the interim dividend of 3.6 pence per ordinary share (April 2015: 3.0 pence)
will be paid as a REIT Property Income Distribution ("PID") net of withholding tax where appropriate.
The interim dividend, amounting to £7.5m (April 2015: £6.2m), has not been included as a liability at 30 April 2016. It
will be recognised in shareholders' equity in the year to 31 October 2016.
9 Earnings per ordinary share
Basic earnings per share has been calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the period/year excluding ordinary shares held by the Safestore
Employee Benefit Trust. Diluted earnings per share are calculated by adjusting the weighted average numbers of ordinary
shares to assume conversion of all dilutive potential shares. The Company has one category of dilutive potential ordinary
shares: share options. For the share options, a calculation is done to determine the number of shares that could have been
acquired at fair value (determined as the average annual market price of the Company's shares) based on the monetary value
of the subscription rights attached to the outstanding share options. The number of shares calculated as above is compared
with the number of shares that would have been issued assuming the exercise of the share options.
Six months ended Six months ended Year ended
30 April 2016 30 April 2015 31 October 2015
(unaudited) (unaudited) (audited)
Earnings Shares million Pence Earnings Shares million Pence per share Earnings Shares million Pence
£m per share £m £m per share
Basic 45.7 207.8 22.0 59.8 207.3 28.8 108.7 207.5 52.4
Dilutive share options - 1.5 (0.2) - 1.5 (0.2) - 1.6 (0.4)
Diluted 45.7 209.3 21.8 59.8 208.8 28.6 108.7 209.1 52.0
Adjusted earnings per share
Adjusted earnings per share represents profit after tax adjusted for the valuation movement on investment properties,
exceptional items, change in fair value of derivatives and the associated tax thereon. As an industry standard measure,
European Public Real Estate Association ("EPRA") earnings are presented below. Cash tax adjusted earnings are also
presented by deducting all deferred taxation from the EPRA earnings. The Directors consider that these alternative measures
provide useful information on the performance of the Group.
Six months ended30 April 2016 Six months ended30 April 2015 Year ended31 October 2015
(unaudited) (unaudited) (audited)
Earnings/(loss)£m Shares million Penceper share Earnings/(loss)£m Shares million Pence per share Earnings/(loss)£m Shares million Penceper share
Basic 45.7 207.8 22.0 59.8 207.3 28.8 108.7 207.5 52.4
Adjustments:
Gain on investment properties (28.2) - (13.6) (43.9) - (21.1) (78.9) - (38.0)
Costs relating to corporate transactions 0.3 - 0.1 - - - - - -
Unwinding of discount on CGS receivable (0.1) - - (0.1) - (0.1) - -
Net exchange losses 4.0 - 1.9 3.0 - 1.4 2.8 - 1.3
Change in fair value of derivatives (2.8) - (1.3) (2.7) - (1.3) (1.6) - (0.8)
Tax adjustments 1.4 - 0.7 0.1 - - 5.7 - 2.7
Adjusted 20.3 207.8 9.8 16.2 207.3 7.8 36.6 207.5 17.6
EPRA adjusted:
Depreciation of leasehold properties (2.1) - (1.0) (2.1) - (1.0) (4.1) - (2.0)
Tax on leasehold depreciation adjustment 0.4 - 0.2 0.4 - 0.2 0.8 - 0.4
EPRA basic 18.6 207.8 9.0 14.5 207.3 7.0 33.3 207.5 16.0
Adjustment for underlying deferred tax - - - 1.3 - 0.6 1.2 - 0.6
Adjusted cash tax earnings 18.6 207.8 9.0 15.8 207.3 7.6 34.5 207.5 16.6
10 Property portfolio
Investmentproperties Interest inLeaseholdproperties Investmentproperties under construction TotalInvestmentProperties
£m £m £m £m
At 1 November 2015 775.5 47.1 6.0 828.6
Additions 2.9 3.0 6.1 12.0
Revaluation movement 30.5 - (0.2) 30.3
Depreciation - (2.1) - (2.1)
Exchange movements 17.7 1.1 0.1 18.9
At 30 April 2016 826.6 49.1 12.0 887.7
InvestmentProperties Interest inLeaseholdproperties InvestmentPropertiesUnder construction TotalInvestmentProperties
£m £m £m £m
At 1 November 2014 704.0 51.0 5.3 760.3
Additions 2.4 5.0 - 7.4
Disposals - (2.8) - (2.8)
Purchase of freehold 1.8 (0.7) - 1.1
Revaluation movement 45.4 - 0.6 46.0
Depreciation - (2.1) - (2.1)
Exchange movements (16.0) (1.3) - (17.3)
At 30 April 2015 737.6 49.1 5.9 792.6
11 Valuations
External valuation
A sample of the Group's largest properties, representing approximately 45% of the value of the Group's investment property
portfolio at 31 October 2015, has been valued by the Group's external valuers, Cushman & Wakefield LLP ("C&W"), as at 30
April 2016. The valuation has been carried out in accordance with the current UK edition of the RICS Valuation -
Professional Standards, published by The Royal Institution of Chartered Surveyors ("the Red Book"). The valuation of each
of the investment properties has been prepared on the basis of fair value as a fully equipped operational entity, having
regard to trading potential. The valuation has been provided for accounts purposes and, as such, is a Regulated Purpose
Valuation as defined in the Red Book. In compliance with the disclosure requirements of the Red Book, C&W has confirmed
that:
· of the members of the RICS who have been the signatories to the valuations provided to the Group for the same purposes
as this valuation, one has done so since October 2006 and the other has done so since October 2014;
· C&W has been carrying out regular valuations for the same purpose as this valuation on behalf of the Group since
October 2006;
· C&W does not provide other significant professional or agency services to the Group;
· in relation to the preceding financial year of C&W, the proportion of total fees payable by the Group to the total fee
income of the firm is less than 5%; and
· the fee payable to C&W is a fixed amount per property and is not contingent on the appraised value.
Market uncertainty
C&W's valuation report comments on valuation uncertainty resulting from low liquidity in the market for self-storage
property. C&W notes that in the UK since the start of 2013 there have only been six transactions involving multiple assets
and 13 single asset transactions, and C&W is unaware of any comparable transactions in the Paris market. C&W states that
due to the lack of comparable market information in the self-storage sector, there is greater uncertainty attached to its
opinion of value than would be anticipated during more active market conditions.
Brexit Risk
The UK is set to hold a referendum on 23 June on whether or not to remain a member of the European Union.
C&W's valuation report comments on reduced transaction volumes in the real estate markets in the run up to the referendum
date as major decisions are postponed until after the referendum vote is known. Should the vote be for the UK to exit, then
C&W expects there to be continued uncertainty in the real estate markets while the UK renegotiates its relationships with
the EU and other nations.
Portfolio premium
C&W's valuation report further confirms that the properties have been valued individually but that if the portfolio was to
be sold as a single lot or in selected groups of properties, the total value could be different. C&W states that in current
market conditions it is of the view that there could be a material portfolio premium.
Further details of the valuation carried out by C&W as at 31 October 2015, including the valuation method and assumptions,
are set out in note 11 to the Group's annual report and financial statements for the year ended 31 October 2015. This note
should be read in conjunction with note 11 of the Group's annual report.
Directors' valuation
In addition, at the same date, the directors have prepared estimates of fair values for the remaining 55% of the Group's
investment property portfolio, incorporating assumptions for estimated absorption, revenue growth and capitalisation rates
to reflect current market conditions and trading.
Assumptions
The key assumptions incorporated into both the external valuation and the directors' valuation, calculated on a weighted
average basis across the entire portfolio, are:
· Net operating income is based on projected revenue received less projected operating costs together with a central
administration charge of 6% of the estimated annual revenue subject to a cap and collar. The initial net operating income
is calculated by estimating the net operating income in the first twelve months following the valuation date.
· The net operating income in future years is calculated assuming either straight line absorption from day one actual
occupancy or variable absorption over years one to four of the cash flow period, to an estimated stabilised/mature
occupancy level. In the valuations the assumed stabilised occupancy level for the trading stores (both freeholds and all
leaseholds) open at 30 April 2016 averages 79.70% (31 October 2015: 77.87%). The projected revenues and costs have been
adjusted for estimated cost inflation and revenue growth. The average time assumed for stores to trade at their maturity
levels is 29.98 months (31 October 2015: 23.93 months).
· The capitalisation rates applied to existing and future net cash flows have been estimated by reference to underlying
yields for industrial and retail warehouse property, yields for other trading property types such as student housing and
hotels, bank base rates, ten year money rates, inflation and the available evidence of transactions in the sector. The
valuations included in the accounts assume rental growth in future periods. If an assumption of no rental growth is applied
to the valuations, the net initial yield pre-administration expenses for the 109 mature stores (i.e. excluding those stores
categorised as "developing") is 7.49% (31 October 2015: 7.89%), rising to stabilised net yield pre-administration expenses
of 9.20% (31 October 2015: 9.08%).
· The future net cash flow projections (including revenue growth and cost inflation) have been discounted at a rate that
reflects the risk associated with each asset. The weighted average annual discount rate adopted (for both freeholds and all
leaseholds) is 10.80% (31 October 2015: 10.79%).
· Purchaser's costs of approximately 6.0% to 6.8% (for the UK) and 6.2% to 6.9% (for France) have been assumed
initially, reflecting the new progressive SDLT rates brought into force in March 2016 in the UK, and sales plus purchaser's
costs totalling approximately 8.0% to 8.8% (UK) and 8.2% to 8.9% (France) are assumed on the notional sales in the tenth
year in relation to freehold and long leasehold stores.
As a result of these exercises, as at 30 April 2016, the Group's investment property portfolio has been valued at £826.6m
(April 2015: £737.6m), and a revaluation gain of £30.5m (April 2015: £45.4m) has been recognised in the income statement
for the period.
A full external valuation of the Group's investment property portfolio will be performed at 31 October 2016.
12 Net assets per share
As at30 April2016 As at30 April2015 As at31 October2015
(unaudited) (unaudited) (audited)
Analysis of net asset value £m £m £m
Net assets 533.9 448.0 490.6
Adjustments to exclude:
Fair value of derivative financial instruments (net of deferred tax) (2.1) 1.4 0.7
Deferred tax liabilities on the revaluation of investment properties 47.2 36.3 41.2
EPRA net asset value 579.0 485.7 532.5
Basic net assets per share (pence) 256.4 215.8 236.2
EPRA basic net assets per share (pence) 278.1 233.9 256.4
Diluted net assets per share (pence) 254.6 214.2 234.4
EPRA diluted net assets per share (pence) 276.1 232.2 254.4
Number Number Number
Shares in issue 208,210,529 207,625,418 207,682,712
Basic net assets per share is shareholders' funds divided by the number of shares at the period end. The number of shares
in issue at the period end excludes 80,420 shares (April 2015: 18,218 shares) held by the Safestore Employee Benefit Trust.
Diluted net assets per share is shareholders' funds divided by the number of shares at the period end, adjusted for
dilutive share options of 1,462,774 shares (April 2015: 1,523,363 shares). As an industry standard measure, European Public
Real Estate Association ("EPRA") net asset values are presented.
13 Borrowings
As at30 April2016(unaudited) As at30 April2015 (unaudited) As at31 October 2015(audited)
Current £m £m £m
Bank loans and overdrafts due within one year or on demand:
Secured - bank loan - 10.0 -
- 10.0 -
As at As at As at
30 April 30 April 31 October 2015
2016 2015
(unaudited) (unaudited) (audited)
Non-current £m £m £m
Borrowings:
Secured - bank loans 180.4 178.3 178.1
Secured - US Private placement notes 77.3 73.4 73.2
Debt issue costs (2.0) (0.5) (1.8)
255.7 251.2 249.5
The bank loan facility agreement expires in June 2020. The private placement notes have $65.6m (31 October 2015: $65.6m)
due for repayment in 2019 and $47.3m (31 October 2015: $47.3m) due for repayment in 2024.
The borrowings are secured by a fixed charge over the Group's investment property portfolio.
Borrowings are stated before unamortised issue costs of £2.0m (31 October 2015: £1.8m). The bank loans and private
placement notes are repayable as follows:
As at As at As at
30 April 30 April 31 October
2016 2015 2015
(unaudited) (unaudited) (audited)
£m £m £m
In one year or less - 10.0 -
Between one and two years - 10.0 -
Between two and five years 225.3 210.9 220.6
After more than five years 32.4 30.8 30.7
Borrowings 257.7 261.7 251.3
Unamortised issue costs (2.0) (0.5) (1.8)
255.7 261.2 249.5
The effective interest rates at the balance sheet date were as follows:
As at As at As at
30 April 30 April 31 October
2016 2015 2015
(unaudited) (unaudited) (audited)
Bank loans Quarterly or monthly LIBOR plus 1.50% Monthly LIBOR plus Quarterly or monthly LIBOR plus 1.50%
2.25%
Bank loans Quarterly EURIBOR plus 1.50% Quarterly EURIBOR plus 2.25% Quarterly EURIBOR plus 1.50%
Private placement notes Weighted average rate of 6.21% Weighted average rate of 6.21% Weighted average rate of 6.21%
Borrowing facilities
The Group has the following undrawn committed borrowing facilities available at the period end in respect of which all
conditions precedent had been met at that date:
Floating rate
As at As at As at
30 April 30 April 31 October
2016 2015 2015
(unaudited) (unaudited) (audited)
£m £m £m
Expiring beyond one year 125.5 67.9 77.8
14 Financial instruments
IFRS 13 requires disclosure of fair value measurements by level of the following measurement hierarchy:
Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset of liability, either
directly or indirectly.
Level 3 - inputs for the asset of liability that are not based on observable market data.
The table below shows the level in the fair value hierarchy into which fair value measurements have been categorised:
As at As at As at
30 April 30 April 31 October 2015
2016 2015
(unaudited) (unaudited) (audited)
Assets per the balance sheet £m £m £m
Derivative financial instruments - Level 2 4.3 1.3 0.6
As at As at As at
30 April 30 April 31 October 2015
2016 2015
(unaudited) (unaudited) (audited)
Liabilities per the balance sheet £m £m £m
Derivative financial instruments - Level 2 2.4 3.0 1.4
The fair value of financial instruments that are not traded in an active market, such as over-the-counter derivatives, is
determined using valuation techniques. The Group obtains such valuations from counterparties who use a variety of
assumptions based on market conditions existing at each balance sheet date. The valuation techniques maximise the use of
observable market data where it is available and rely as little as possible on entity specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
If one or more of the significant inputs is not based on observable market data, the asset or liability is included in
level 3. The Group has no disclosable level 3 financial instruments.
There have been no transfers of assets or liabilities between levels of the fair value hierarchy.
15 Share capital
As at As at As at
30 April 30 April 31 October
2016 2015 2015
(unaudited) (unaudited) (audited)
Called up, issued and fully paid £m £m £m
208,290,949 (30 April 2015: 207,643,636) ordinary shares of 1p each 2.1 2.1 2.1
16 Capital commitments
The Group had capital commitments of £18.7m as at 30 April 2016 (30 April 2015: £2.6m).
17 Seasonality
Self-storage revenues are subject to seasonal fluctuations, with peak sales occurring in the second and third quarters of
the year. This is due to seasonal weather conditions and holiday periods leading to less demand for storage. For the six
months ended April 2015, the level of self-storage revenues represented 48.1% (April 2014: 47.9%) of the annual level of
self-storage revenue in the year ended 31 October 2015.
Principal risks and uncertainties
The principal risks and uncertainties which could affect the Group for the remainder of the financial year are consistent
with those detailed on pages 13 and 14 of the Annual Report and Financial Statements for the year ended 31 October 2015, a
copy of which is available at www.safestore.com, and include:
· Strategy risk
· Finance risk
· Treasury risk
· Property investment and development risk
· Valuation risk
· Occupancy risk
· Real estate investment trust ("REIT") risk
· Catastrophic event risk
The Company regularly assesses these risks together with the associated mitigating factors listed in the 2015 Annual
Report. The levels of activity in the Group's markets and the level of financial liquidity and flexibility continue to be
the areas designated as appropriate for added management focus.
We continue to believe that our market leading position in the UK and Paris, our strong brand and depth of management, as
well as our retail expertise and infrastructure, help mitigate the effects of fluctuations the economy or the housing
market. Furthermore, the UK self-storage market remains immature with little risk of supply outstripping demand in the
medium term.
Our prudent approach on new stores reduces our dependence on the number of non-trading investment properties in relation to
the established and mature stores that provide relatively stable and growing cash flow. The Board regularly reviews the
cash requirements of the business, including the covenant position although given the nature of the product, customer base
and lack of working capital requirements, liquidity is not considered to be a significant risk.
The Outlook section of this half yearly report provides a commentary concerning the remainder of the financial year.
Forward-looking statements
Certain statements in this interim results announcement are forward-looking statements. By their nature, forward-looking
statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ
materially from those expressed or implied by the forward-looking statements. These risks, uncertainties or assumptions
could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking
statements contained in this interim results announcement regarding past trends or activities should not be taken as a
representation that such trends or activities will continue in the future. You should not place undue reliance on
forward-looking statements, which speak only as of the date of this interim results announcement. Except as required by
law, the Company is under no obligation to update or keep current the forward-looking statements contained in this interim
results announcement or to correct any inaccuracies which may become apparent in such forward-looking statements.
Statement of directors' responsibilities for the six months ended 30 April 2016
The directors confirm that, to the best of their knowledge, this condensed consolidated interim financial information has
been prepared in accordance with IAS 34 as adopted by the European Union and that the interim management report includes a
fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:
· an indication of important events that have occurred during the first six months of the financial year and their
impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
· material related-party transactions in the first six months and any material changes in the related-party
transactions described in the last annual report.
The directors of Safestore Holdings plc are listed in the Safestore Holdings plc Annual Report for 31 October 2015. There
have been no changes of director since the Annual Report. A list of current directors is maintained on the Safestore
Holdings plc website, www.safestore.com.
The directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United
Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other
jurisdictions.
By order of the Board
Frederic Vecchioli Andrew Jones
15 June 2016 15 June 2016
Chief Executive Officer Chief Financial Officer
INDEPENDENT REVIEW REPORT TO SAFESTORE HOLDINGS PLC
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report
for the six months ended 30 April 2016 which comprises the consolidated income statement, the consolidated balance sheet,
the consolidated statement of changes in equity, the consolidated cash flow statement and related notes 1 to 17. We have
read the other information contained in the half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland)
2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state
to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are
responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by
the European Union. The condensed set of financial statements included in this half-yearly financial report has been
prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European
Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the
half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board
for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland)
and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 April 2016 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
15 June 2016
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Safestore Holdings
See all newsREG - Safestore Hldgs plc - First Quarter Trading Update
AnnouncementREG - Safestore Hldgs plc - Notice of First Quarter Trading Update
AnnouncementREG - Safestore Hldgs plc - Publication of Annual Report and Notice of Meeting
AnnouncementREG - Safestore Hldgs plc - Final Results
AnnouncementREG - Safestore Hldgs plc - Notice of Final Results
Announcement