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Empiric Reports Revenue Growth of 10%

Posted by Richard Ward

Image courtesy of Flickr, (View licence)

Empiric Student Property plc has reported an increase in student revenue of approximately 10% for the full year 2019, driven by an increase in the number of beds, better occupancy rates, and an increase in revenue per bed.

The company is continuing efforts to reduce the average cost per bed and is anticipating a reduction of around 8% for the full year.

For the 2019-20 academic year, bookings are at 93%, in line with the corresponding point in the previous year.

Opportunities to sell semester lets could increase occupancy to 97%, assuming a similar take up to 2018-19.

For 2019-20 the company is expecting c. 3% growth in average rents and for the full year is anticipating a gross margin of around 67%. Administration costs are due to be around £9.5 million, down slightly from previous guidance of £10 million.

Bookings for 2020-21 will represent the first time the group will control all its properties, as the company looks to drive further efficiencies across the business through its operational platform.