Market's view on Safestay
Published on April 2024
- Stock watchers are concerned about the high levels of debt which exceed the company’s capital value, raising doubts about financial sustainability.
- Positive expectations for the financial year 2024 include projected profits before tax of £2-4 million, driven by growth in like-for-like revenue, profit, and lower interest rates from refinanced debts.
- There is skepticism regarding the accuracy of the company’s reported net asset value per share of 41.6p, with concerns about potential overvaluation of leasehold properties and unclear financial manoeuvres in past transactions.
- Optimism exists around the Edinburgh property’s potential due to its strategic location and the high cost of alternative tourist accommodations in the city.
- Some watchers express disappointment with the lack of detailed financial updates from the company, especially given recent capital expenditures and acquisitions.
- The company is observed to have a substantial asset base, though there is criticism over cost control and the effectiveness in translating increased occupancy and revenue per available room into net profits.
- Concerns are raised about possible conflicts of interest and transparency issues related to property dealings and the financial interconnections within the company’s management and related entities.