Safestay narrows full-year loss after strong uptick in revenue

Luxury hostel company Safestay has narrowed its full-year pre-tax loss and seen a strong uptick in revenue.

Revenue was £7.4m, which was considerably up on the previous year's £4m thanks to demand for Safestay's contemporary hostel offer and contributions from Edinburgh and Holland Park.

"In 2016 we sold a total of 297,276 individual bed nights compared to 184,061 in 2015, an increase of 61.5%," said chairman Larry Lipman.

Safestay, he said, had expanded significantly and the systems and infrastructure to support this were in place and are capable of managing current capacity and future expansion plans.

Lipman said Safestay's recent restructuring and refinancing had transformed the financial base of the business and provided the necessary resources to support its ambitions.

Net asset value per share rose to 58p, from 48p. The company's pre-tax loss was £468,000, from a loss of £610,000.

At 13:39 GMT, shares in AIM-listed Safestay were up 0.95% to 53p each.