Results round-up

Property development fund John Laing Infrastructure expects to see a slowdown in market activity due to the Brexit vote, though the company reported a rise in half-year profits due to international expansion and project divestments.

For the six months ended 30 June, profit before tax soared to £72.3m from £14.5m last year, due to an increase in the company’s portfolio, positive exchange rate movements, a reduction in discount rates and profits from disposals of two projects.

Chairman Paul Lester, said: “In the aftermath of the EU referendum vote, we expect to see a slowdown in market activity while investors take stock of the political and economic situation. However, given that there remains an oversupply of capital seeking investment in UK infrastructure and limited supply of projects, we do not expect this to last long.

“We also expect to see dual pressure on asset pricing with non-sterling denominated investors seeking to take advantage of a weakened sterling, offset by the 'wait and see' attitude likely to be adopted by some investors in the short term.”

Lester added that the UK was a challenging market due to the imbalance between supply demand and was increasingly considering overseas markets as result.

In June, the FTSE 250 company sold the Newham hospital and Barnsley BSF projects to Equitix Investment Management for a combined £43.43m, a 35% increase on the value of the investments.

The company also made investments of £178.6m during the period, including its first investments in Spain and the US.

Safestay, the 'boutique hostel' chain founded by serial entrepreneur Larry Lipman, more than doubled sales in the first half but reported a larger loss before tax.

The AIM-listed company, which was created to fill a perceived gap in the market for "stylish, spotlessly clean, safe and sociable budget accommodation", generated revenues of £3.29m in the six months to 30 June from its initial locations in Edinburgh, York and London's Elephant & Castle and Holland Park, up from £1.4m last year that included only York and E&C locations.

Earnings before interest, tax, depreciation and amortisation (EBITDA) of £0.78m were up from £0.26m last time, which did included Holland Park opening costs and was before the Edinburgh acquisition.

Losses before tax rose to £0.49m from £0.25m, as Lipman cited the effect on the London market of the slower European tourism market this year, compounded by the launch of the Holland Park hostel into the market.

York and E&S both grew revenue and EBITDA, while Holland Park is still in its first year and although revenues were at the lower end of management's expectations it is receiving strong guest satisfaction surveys and is expected to reach its sales potential within the three year build-up period.

A refreshed group website is "performing well" and a new online booking engine has been "particularly successful".