Hervé Deligny, Chief Financial Officer of Safestay covers their Half Year Results

Hervé Deligny, Chief Financial Officer of Safestay #SSTY covers their Half Year Results.

Trading Highlights

·    Safestay operates 20 hostels with approximately 4,800 beds across 11 European and 4 UK cities

·    In response to the COVID-19 pandemic, and in line with the hospitality industry globally, all our hostels closed on 1 April 2020 and a gradual reopening programme began from 26 May 2020 

·    As a result occupancy was 55% (based only on hostels while they were open)

·    Total revenues decreased by 58% to £3.4 million (2018: £8.1 million) 

·    Recorded Adjusted EBITDA (post IFRS 16 adjustment) loss of £1.2 million (2019: £2.5 million profit)

·    To offset the reduction in income, the Group reduced costs where practical, taking advantage of government support schemes and working with landlords to reduce rents

·    In April the Group secured a £5 million overdraft facility with HSBC and as at 16 September 2020 the cash in bank was -£1 million

 
H2 2020 and beyond

·    All hostels re-opened by 28 August, except for London Kensington Holland Park and Barcelona Gothic

·    On 2 September, the Company received a £0.2 million government backed loan in Germany

·    In July and August, the Company has traded at the higher end of the Board's forecast scenarios

·    On 23 September, the Company agreed with HSBC in principle to replace the £5 million overdraft facility with a £5 million Coronavirus Business Interruption Loan Scheme (CBILS)