STOCKS NEWS EUROPE-Safestore up; sees 2009 results in line

Shares in Safestore (SAFE.L) rise 3.5 percent after the British safe storage company says it sees full-year results in line with expectations, prompting Evolution Securities to repeat its "buy" rating.

The broker says trading has been "strong" despite the economic conditions, with revenue ahead of its forecasts, while the company continues to achieve rental growth, partly derived from foreign exchange benefits, as enquiries increase and the domestic market improves.

"We expect further growth in the near-term to be delivered through the company's pipeline of six stores which all have planning and which we expect to be delivered by 2011," says Evolution Securities in a note.

The broker also says Safestore trades on a blended price-to-earnings of 13.9 times, compared to rival Big Yellow Group's (BYG.L) 36.1 times.

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