StockMarketWire.com - Hostel group Safestay posted an annual loss after expenses more than offset a rise in revenue.

Pre-tax losses for the year through December amounted £0.6m compared to losses of £0.9m on-year.

Revenue rose 39% to £14.6m, though exceptional expenses included costs related to acquisitions, hostel openings and projects that did not materialise.

Like-for-like sales rose 1% after an 8% rise in Europe was offset by a 1% fall in the UK, pinned on the disruption from adding 73 beds at a property in Elephant & Castle.

'2018 was a positive year for the business and I am confident that 2019 will deliver continued growth,' chief executive Larry Lipman said.

'The portfolio is maturing and shows the benefits of the group gaining from economies of scale, geographic spread and group wide automation.'

'This, together with continuing global demand for the modern hostel experience means we are well placed to sell an increasing number of bed nights in 2019 and add further destination cities to our portfolio.'




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