Safestay
SSTY · AIM · Travel and Leisure · mcap £5.5m · 6.0p 3 open situations →
- EV
- £20.1m
- EV / EBIT
- –
- Net debt
- £16.2m
- FCF yield
- -82.5%
- Revenue
- £18.1m
- Share price 1y
- −71%
- Insiders 12m
- no deals
- Next report
- around 28 Jun
Open · 3
Freehold disposals and franchising
In June 2026 Safestay served notice to end the Berlin lease, and the landlord's notice had been announced on 4 June. The interim results describe the site as closed. The lease runs to 31 Dec 2026, after which Hotel Auberge GmbH will be liquidated. Exit is expected to improve the cash profile.
- Lease expiry
- Contractual expiry 31 December 2026 25 Sep 2026 ↗
- Operating entity
- Hotel Auberge GmbH, to be liquidated after lease termination 25 Sep 2026 ↗
- Rationale
- Loss-making site with significant investment needs; exit expected to improve cash profile 25 Sep 2026 ↗
Next: Lease ends and Hotel Auberge GmbH liquidated · 31 Dec 2026
- 25 Sep 2026 Glasgow completed; Holland Park exchanged
- 29 Jun 2026 Glasgow exchanged; more disposals under review
- 4 Jun 2026 Termination notice served; liquidation intended
- 2 Mar 2026 Edinburgh and Brighton done; more options under review
Results below expectations
Trading has been below expectations since the interim results, with summer weaker than management anticipated. The 26 Oct 2026 update says recent trading is improving under the new COO but year-to-date remains below the Board's original expectations. A further update is due.
- Trading
- Year-to-date below Board's original expectations; recent signs of improvement 26 Oct 2026 ↗
- Driver of improvement
- Revenue management and operational initiatives by the recently appointed COO 26 Oct 2026 ↗
- Next milestone
- Further Board update 'in due course' 26 Oct 2026 ↗
Next: further update from the Board in due course
- 26 Oct 2026 below expectations · -29% on the day
Liquidity and financing review
Announced 26 Oct 2026: the Group faces liquidity pressure through winter into 2027, as winter cash flow is seasonally weak. Bank borrowings were cut to £9.1m from £13.6m using Glasgow and Holland Park proceeds. The Board is weighing further property disposals and a financing review, with no certainty of outcome.
- Bank borrowings
- £9.1 million at 23 October 2026, from £13.6 million at 30 June 2026 26 Oct 2026 ↗
- Debt paydown source
- Glasgow sale proceeds and part of Holland Park proceeds 26 Oct 2026 ↗
- Options
- Further property disposals and review of existing financing arrangements 26 Oct 2026 ↗
- Pressure period
- Winter months and into 2027 26 Oct 2026 ↗
- Certainty
- No certainty on timing or outcome of disposals or financing 26 Oct 2026 ↗
- Cost action
- Head office moving to Elephant & Castle in November 2026 26 Oct 2026 ↗
Next: update on disposals and financing review
- 26 Oct 2026 Liquidity pressure; options being evaluated
Closed · 1
Company filings. Not investment advice.