Safestay PLC

25 September 2026

25 September2026

Safestay plc

(“Safestay”,the“Company”orthe“Group”)

InterimResults

Strengthenedbalancesheet;continuedchallengingtradingenvironment

Safestay (AIM: SSTY), one of Europe’s largest hostel groups, announces its unaudited interim results for the six months ended 30 June 2026 (“H1 2026” or the “Period”).

FinancialHighlights:

• Revenue from continuing operations was £8.4 million (H1 2025 restated: £9.4 million) and Adjusted EBITDA was £0.6 million (H1 2025 restated: £2.1 million).
• Excluding the £0.5 million Edinburgh revenue contribution in the prior period, like-for-like revenue declined by 6%, reflecting continued challenging trading conditions across the Group’s pan-European portfolio.
• Reflecting the lower EBITDA year-on-year, the Group reported a loss after tax of £1.9 million (H1 2025: profit of £471,000) and a loss per share for continuing operations of 2.76p (H1 2025 restated: basic earnings per share of 0.49p).
• Availablecashat30June2026wasup70%to£4.6million(FY2025:£2.7million), reflecting the receipt of £5.1 million from the sale of the Glasgow property, which completed in June 2026, and continued focus on improving the balance sheet.
• Net asset value per share of 19.96p (H1 2025: 47.8p), principally reflecting impairment, revaluation and disposal-related movements recognised, together with the loss for the Period.

OperationalHighlights:

• Inlinewiththestrategicfocusonpriceoptimisationandimprovingmargins,theAverageBed Rate (“ABR”) increased by 8.3% to £22.10 (H1 2025: ABR: £20.40). This contributed to improved gross EBITDA margins across the portfolio although occupancydecreasedto60.8%(H12025:68.2%),andtotalbednightsdecreased to 349,060 (H1 2025: 415,606).
• Group bookings represented 16.6% of accommodation sales (H1 2025: 22%).The decline primarily reflects softer inbound tourism into the UK during the Period, compounded by internal prioritisation decisions following the announcement of potential property disposals intheUK.Asaresult,thereservationsteamreducedfocusongroupsalesfortheseproperties, which impacted conversion and pipeline development.
• TotalRevenuePerAvailableBed(“RevPAB”)decreasedto£15.70(H12025:£16.40),reflecting the higher ABR offset by lower occupancy rates.
• Retained more revenue per booking than theindustryaverage, with direct bookings representing 32.8% of sales (H1 2025: 40.5%) versus a global rate of 26.3% (D-EDGE Hotel Distribution Report 2025).
• Closed the loss-making Berlin Kurfürstendamm property following operational pressures and significant investment needs, which is expected to improve the Group's future cash profile.
• Launched strategic partnership with Zostel, India's largest hostel network, creating a hostel alliance spanning more than 8,000 beds across Europe, the UK and India.

PostBalanceSheetEvents:

• On1July2026, £3.0 million of the proceeds from the disposal of the Group’s Glasgow freehold property wereapplied to a capital repayment, reducing gross bank debt to £10.7 million.
• On10July2026,theBoardnotedthepublicationofinformationonthewebsiteofInfillCapital Partners("ICP")referringtoapotential£40.9millionacquisitionofSafestay,andconfirmedat that time that it was in discussions with ICP. On 14 July 2026, ICP confirmed that it did not intend to make an offer for Safestay.
• On 5 August 2026, contracts were exchanged for the sale of the leasehold interest in, and associated hostel business operated from, Safestay London Kensington Holland Park to Acerhawk Limited, for a cash consideration of £3.0 million.

CurrentTradingandOutlook:

• The trading environment remains challenging with forward bookings currently lower year-on-year. As at 22 September 2026, forward bookings on a like-for-like basis were £3.7 million (As at 22 September 2025: £4.7 million), reflecting a reduction of 21%. This decline reflects a weaker consumer environment and tourist levies in certain markets.
• However, the new operational management team is leading the implementation of a number of operational and investment initiatives across the portfolio. The addition of 20 further beds in Brussels is expected to be completed during H2 to cater for demand at that property and the Group is investing in its communal spaces across the portfolio, such as the introduction of a shuffleboard experience in Athens to enhance the guest experience, encourage repeat visits and increase ancillary spend.
• The recent openings in Naples and Brighton are each performing well and the Board continues to evaluate further opportunities for growth.
• Lookingahead,theBoardremainsmindfulofcontinuingcostpressures,includingVATchanges in Europe and higher business rates and employment costs in the UK, and remains focused on proactive cost control and pricing optimisation.
• The Board also continues to consider various strategic options to crystallise value for shareholders and support the Group’s focuson expanding its European footprint through an increasingly asset-light model, including potential further disposals and sale and leasebacks, alongside growth through franchising and leasehold structures.
• Notwithstanding the current challenging trading environment, the Board remains positive about Safestay'slong-termprospects asanestablishedinternationaloperatorin the significant and fragmented European hostel market.

LarryLipman,ChairmanofSafestay,said:

"Throughout the first half of 2026, the Board took a number of proactive measures to alter the composition of Safestay’s pan-European portfolio, including disposing of our property in Glasgow, closing our Berlin property and, post-period end, announcing the disposal of our property in Holland Park, London. These actions, together with our focus on cost control and pricing optimisation, have improved the Group’s liquidity and, following the post-period end repayment, reduced our debt. They are aligned with the Board’s focus on creating value for shareholders.

We are seeing encouraging progress under the new management team who are executing at pace to deliver a number of initiatives to enhance the guest experience and drive demand across the portfolio.

We also launched our marketing partnership with Zostel during the Period which represents an exciting strategicinitiativetoextendSafestay'sinternationalreachthroughascalable,capital-lightmodel.We look forward to building on this partnership over time.”

ENDS

CopiesofthisannouncementareavailableontheCompany'swebsite,www.safestay.com

Enquiries:

SafestayPLC LarryLipman	Tel:+44(0)2088151600
ShoreCapital(Nomad&Broker) DavidCoaten/HarryDavies-Ball	Tel:+44(0)2074084090
HudsonSandler(FinancialPR) AlexBrennan/IndiaLaidlaw	Tel:+44(0)2077964133 safestay@hudsonsandler.com

Formoreinformationvisit:

Websitewww.safestay.com

Instagrampagewww.instagram.com/safestayhostels/

AboutSafestayplc:

SafestayPLC, one of Europe's largest hostel groups, operates in the exciting and growing hostel segment ofthe globalhospitality market. Worthapproximately US$6.53bn in2026, it isestimatedto grow to US$15.25bn by 2034 (The Market Data Forecast, 2025).

Safestay'sportfolio comprises20premiumhostelsandonehotelofferingguestsbothprivateandshared rooms in destination cities across the UK, Spain, Belgium, Czech Republic, Greece, Italy, Poland, Portugal, Austria and Slovakia.

Safestay'smissionateachofitslocationsistoprovideasafe,inclusive,andenjoyablespacethatcaters totheneedsofdifferenttravellers.Itspropertiesofferfirst-classlocationsandthoughtfuldesignsthat cater for the different needs of travellers, from digital nomads to backpackers and from families to group travellers.

Safestay'span-Europeanlocationsinclude:

• KitzbühelAlpine,Austria(Franchise)
• KitzbühelCentre,Austria(Franchise)
• BrusselsGrandPlace,Belgium
• PragueCharlesBridge,Czechia
• AthensMonastiraki,Greece
• Naples,Italy
• PisaCentrale,Italy
• WarsawOldTown,Poland
• LisbonBairroAlto,Portugal
• BratislavaPresidentialPalace,Slovakia
• BarcelonaGothic,Spain
• BarcelonaPasseigdeGracia,Spain
• CalpeSeafront,Spain(indevelopment)
• CórdobaMezquitaCatedral,Spain
• MadridCentral,Spain
• Brighton,UK
• EdinburghCowgate,UK(Franchise)
• LondonElephant&Castle,UK
• LondonKensingtonHollandPark,UK(saleexchanged,completionpending)
• YorkMicklegate, UK

Chairman'sStatement Financial Review

DuringH12026,Safestaydeliveredimprovedliquidity,despitetradingconditions across the Group’s pan-European markets remaining challenging.

Revenue from continuing operations declined 10.6% to £8.4 million (H1 2025 restated: £9.4 million). Within this, accommodation sales decreased by 9.0% to £7.1 million (H1 2025 restated: £7.8 million) whilst non-accommodation sales decreased to £1.3 million (H1 2025 restated: £1.5 million). Withinnon-accommodationsales,foodandbeveragesalesdecreasedto£1million(H12025restated:

£1.1million).

Adjusted EBITDA for continuing operations declined 71.4% to £0.6 million (H1 2025 restated: £2.1 million), resulting in a 15.1 percentage point reduction in Adjusted EBITDA margin to 7.5% (H1 2025 restated: 22.6%). This reflects continued challenging trading conditions across the Group’s portfolio alongside higher costs,including increases in theNationalLivingWageandNationalInsurancecontributionsintheUKaswellashigher operating expenses.

ReflectingthelowerEBITDAyear-on-year,theGroupreportedalossaftertaxof£1.9 million(H12025:profit of £471,000) and a loss per share from continuing operations of 2.76p (H1 2025 restated: basic earnings per share of 0.49p).

Net cash generated from operations was £1.1 million (H1 2025: £3.4 million), with the reduction reflecting the decline in EBITDA year-on-year.

Availablecashat30June2026was£4.6million,whichrepresentsa c.70%improvementin respecttothebalanceat31December2025(FY2025:£2.7million),reflectingthe receipt of £5.1 million from thesaleoftheGlasgow property. The transaction resulted in an accountinglossof£221,000, however represented a return of approximately £1.5 million on the Group's investment in the property.Thenetassetvalueper sharewas19.96p (H12025: 47.8p)principally reflecting the impairment, revaluation and disposal-related movements recognised during FY 2025, together with the loss for the Period.

These transactions form part of the Group’s ongoing strategy to improve cash flow, reduce indebtedness and strengthen the balance sheet. Following the Period end, £3.0 million of the Glasgow disposal proceeds was applied towards loan repayment, reducing gross bank debt to £10.7 million on 1 July 2026. The transactions are aligned with the Group’s medium and long-term strategy to expand its footprint across Europe, focusing on asset-light growth through franchising and leasehold structures.

OperationalReview

Reflecting management’s focus on price optimisation, Average Bed Rate ("ABR") increased by 8.3% year-on-year to £22.10 (H1 2025: £20.40). Occupancydeclined7.4 percentage pointsto60.8%(H12025:68.2%),andtotalbed nights declinedby 16% to 349,060 (H12025: 415,606).Asaresult, totalRevenue Per Available Bed (“RevPAB”) decreased to £15.70 (H1 2025: £16.40).

32.8% of bookings were made through direct and non-commissionable channels (H1 2025: 40.5%), whichcomparesfavourablywithaglobalaveragerateof26.3%(D-EDGEHotelDistributionReport2025) and represented 16.2% of total accommodation revenue.

Groupbookingsrepresented16.6%ofaccommodationsales(H12025:22%)reflectingsofterinbound tourism into the UK during the Period and internal prioritisation decisions following the announcement of potential property disposals in the UK. As a result, the reservations team reduced its focus on group sales for these properties, which impacted conversion and pipeline development.

In May, Safestay announced a strategic marketing partnership with Zostel, India's largest hostel network. Whilst both brands will remain fully independent, under the agreement, 82 Zostel hostels will feature on Safestay.com and 24 Safestay hostels will be listed on Zostel.com, creating a hostel alliance spanning more than 8,000 beds across Europe, the UK and India. The agreement reflects Safestay's strategy to expand its international reach and broaden its proposition to customers who wanttrusted,safe,greatvaluehostelexperiences.Thepartnershipisalsodesignedtocapturegrowing demand from travellers increasingly combining Europe and India in a single trip, while creating strongercross-referralopportunitiesandapotentialroutetomoredirectbookingsovertime.Safestay and Zostel also plan to develop a joint customer loyalty programme over the medium term.

In June, the Group served notice to terminate its lease at Safestay Berlin Kurfürstendamm ahead of its contractual expiry on 31 December 2026. The loss-making property was operated through Hotel Auberge GmbH, an indirect wholly owned subsidiary of Safestay plc. Following termination of the lease, Hotel Auberge GmbH will be liquidated. Exiting the site is expected to improve the Group's future cash profile and remove a loss-making operation from the portfolio.

Directoratechanges

InMay,SafestayannouncedtheappointmentofDavideCaschilitotheBoardasChiefOperatingOfficer with effect from 10 June 2026. Davide Caschili succeeded Peter Zielke in the role on that date.

Davide Caschili has more than 25years of hospitality experience, with a strong track record in hostel and hybrid hospitality operations across the UK, Italy and the US. He has held several senior operational leadership roles, most recently as Head of Operations UK & Ireland at Edyn Group and previously at Generator and Freehand Hotels, where he oversaw multi-site portfolios, led refurbishments and openings, and drove improvements in profitability, guest experience and operational performance.

OnbehalfoftheBoard,IwouldliketothankPeterforhiscommitmentandsignificantcontributionto Safestayoverthelastthreeyears.He hasplayedanimportantroleindeliveringseveralkeyoperational developments for the Group, includingestablishingour first franchise operationsanddevelopingour operational centre of excellence in Warsaw.

CurrentTrading&Outlook

The trading environment remains challenging with forward bookings currently lower year-on-year. As at 22 September 2026, forward bookings on a like-for-like basis were £3.7 million (H1 2025: £4.7 million), reflecting a reduction of 21%. These declines reflect a weaker consumer environment and tourist levies in certain markets.

However, the new operational management team is leading the implementation of a number of operational and investment initiatives across the portfolio. The addition of 20 further beds in Brussels is expected to be completed during H2 to cater for demand at that property and the Group is investing in its communal spaces across the portfolio, such as the introduction of a shuffleboard experience in Athens to enhance the guest experience, encourage repeat visits and increase ancillary spend.

The recent openings in Naples and Brighton are each performing well and the Board continues to evaluate further opportunities for growth.

Looking ahead, the Board remains mindful of continuing cost pressures, including VAT changes in Europe and higher business rates and employment costs in the UK, and remains focused on proactive cost control and pricing optimisation.

The Board also continues to consider various strategic options to crystallise value for shareholders and support the Group’s focus on expanding its European footprint through an increasingly asset-light model, including potential further disposals and sale and leasebacks, alongside growth through franchising and leasehold structures.

Notwithstanding the current challenging trading environment, the Board remains positive about Safestay's position as an established international operator in the significant and fragmented European hostel market.

Larry Lipman, Chairman

25 September 2026

CONSOLIDATEDINCOMESTATEMENT
Forthesix monthsended30June2026
		Halfyearto		Halfyearto		Yearto
		30-Jun		30-Jun		31December
		2026		2025		2025
		Unaudited		Unaudited		Audited
				Asrestated		Asrestated
		Total		Total		Total
	Note	£’000		£’000		£’000
Revenue	3	8,399		9,381		19,067
Costofsales		(1,548)		(1,337)		(3,620)
Gross profit		6,851		8,044		15,447
Otheroperatingincome / (expenses)	5	86		1,241		(6,862)
Administrativeexpenses		(7,856)		(7,444)		(15,960)
Operatingprofit / (loss)		(919)		1,841		(7,375)
Financeincomeandcosts		(1,227)		(1,405)		(3,128)
(Loss) / Profitbeforetax		(2,146)		436		(10,503)
Tax	6	353		(120)		7
(Loss) /Profitfortheperiodfromcontinuingoperations		(1,793)		316		(10,496)
(Loss) / Profitfromdiscontinued operations	4	(84)		155		442
(Loss) /Profitforthefinancialperiodattributabletoowners oftheparentcompany		(1,877)		471		(10,054)
Basicearnings/(loss)persharefromcontinuingoperations	7	(2.76p)		0.49p		(16.16p)
Basicearnings /(loss)pershare fromdiscontinuedoperations	7	(0.13p)		0.24p		0.68p
Dilutedearnings /(loss)persharefromcontinuingoperations	7	(2.76p)		0.46p		(16.16p)
Dilutedearnings /(loss)persharefromdiscontinued operations	7	(0.13p)		0.23p		0.65p

CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME

Forthesixmonthsended30June2026
	Halfyearto	Halfyearto	Yearto
	30June	30June	31December
	2026	2025	2025
	Unaudited	Unaudited	Audited
	Total	Total	Total
	£’000	£’000	£’000
Profit/(loss)fortheperiod	(1,877)	471	(10,054)
Exchangedifferences ontranslatingforeignoperations	416	(157)	64
Propertyrevaluation	-	-	(5,062)
Deferredtaxonpropertyrevaluation	-	-	1,362
Totalcomprehensive (expense)/income forthe period attributable to owners of the parent company	(1,461)	314	(13,690)

CONSOLIDATED STATEMENTOFFINANCIALPOSITION
Asat30June2026
		Note		30 June 2026 Unaudited		30 June 2025 Unaudited			31 December 2025 Audited
				£’000		£’000			£’000
Non-currentassets
Property,plantandequipment(includingrightofuseassets)		8		50,334		75,684			62,550
Intangibleassets				51		132			78
Goodwill		9		3,610		10,383			3,760
Leaseassets				-		72			-
Deferredtaxasset		10		4,435		4,199			4,635
Fairvalueoffinancialassets				16		24			-
Totalnon-currentassets				58,446		90,494			71,023
Currentassets
Inventory				42		40			41
Tradeandother receivables				1,803		1,008			1,233
Leaseassets				77		145			151
Currenttaxasset				116		59			141
Assetsheldforsale				6,567		-			-
Cashandcashequivalents				4,645		1,692			2,742
Totalcurrentassets				13,250		2,944			4,308
Totalassets				71,696		93,438			75,331
Currentliabilities
Borrowings		11		(176)		(3,949)			(490)
Leaseliabilities				(1,080)		(1,785)			(2,254)
Fairvalueoffinancialliabilities Liabilitiesdirectlyassociatedwithassetsheldforsale			(12) (7,347)			- -			(12) -
Tradeandother payables			(5,861)			(4,795)			(5,049)
Total currentliabilities			(14,476)			(10,529)			(7,805)
Non-currentliabilities
Borrowings	11		(20,650)			(22,601)			(20,821)
Leaseliabilities			(17,263)			(21,332)			(24,743)
Deferredtaxliabilities	10		(5,630)			(7,898)			(6,745)
FairvalueofFinancialliabilities			(713)			-			(792)
Totalnon-currentliabilities			(44,256)			(51,831)			(53,101)
Totalliabilities			(58,732)			(62,360)			(60,906)
Net assets			12,964			31,078			14,425
Equity
Sharecapital			649			649			649
Sharepremiumaccount			23,959			23,959			23,959
Othercomponentsofequity			15,566			21,125			16,719
Retainedearnings			(27,210)			(14,655)			(26,902)
Totalequity attributabletoownersoftheparentcompany			12,964			31,078			14,425

CONDENSEDCONSOLIDATEDSTATEMENTOFCHANGESINEQUITY

Forthesixmonthsended30June2026

	Share Capital	Share Premium Account	Other Components of Equity	Retained Earnings	Total Equity
	£000	£000	£000	£000	£000
Balanceat1January2026	649	23,959	16,719	(26,902)	14,425
ComprehensiveIncome Profit/(Loss)fortheperiod	-	-	-	(1,877)	(1,877)
Othercomprehensiveincome
DisposalofGlasgow	-	-	(1,569)	1,569	-
Movementintranslationreserve	-	-	416		416
Balanceat30June2026	649	23,959	15,566	(27,210)	12,964

	Share Capital	Share premium account	Other Componentsof Equity	Retained earnings	Total Equity
	£000	£000	£000	£000	£000
Balanceat1January2025	649	23,959	21,282	(15,126)	30,764
Comprehensiveincome Profit/(Loss)fortheperiod	-	-	-	471	471
Othercomprehensiveincome Movementintranslationreserve	-	-	(157)		- (157)
Balanceat30June2025	649	23,959	21,125	(14,655)	31,078

For the six months ended 30 June 2026, total equity contracted to £12.96 million (30 June 2025: £31.08 million). The reduction primarily reflects the reported loss of £1.88 million, which further weakened retained earnings. This was partially offset by a favourable translation reserve movement of £0.4 million. In addition, the disposal of the Glasgow property resulted in the derecognition of £1.57 million from the revaluation reserve, which was transferred to retained earnings in accordance with IFRS requirements. Share capital (£0.65 million) and share premium (£23.96 million) remained unchanged during the period.

CONSOLIDATEDSTATEMENTOFCASHFLOWS
Forthesixmonthsended30June2026
	Periodto	Periodto		Yearto
	30June	30June		31December
	2026	2025		2025
	Unaudited	Unaudited		Audited
	£’000	£’000		£’000
Cashflowfromoperatingactivities
(Loss)/Profitfortheperiod	(1,877)	471		(10,054)
Taxcharge	(353)	120		(7)
Depreciation andamortization	1,697	1,645		3,777
Netfinancecosts	1,227	1,405		3,128
Sharebasedpaymentcharge	-	-		(2)
Revaluationofassets	-	-		615
Impairmentcharges	-	-		5,995
FairValuemovementinfinancialassets	(94)	-		-
Lossonsalesoffixed assets	221	-		1,413
(Increase)/decreaseininventories	(1)	(1)		(2)
Decrease in lease assetdebtor	74	-		132
(Increase)/decreaseintradeandotherreceivables	(546)	38		(252)
Increase/(decrease)intradeandotherpayables	812	(101)		(35)
Cashgeneratedfromoperations	1,160	3,577		4,708
Incometaxreceived/(paid)	(92)	(190)		(189)
Totalnetcashinflowfromoperatingactivities	1,068	3,387		4,519
Cashflowfrominvesting activities
Purchasesofproperty, plantandequipment	(1,418)	(313)		(581)
Purchasesofintangibleassets	-	-		(1)
Saleofproperty,plantandequipment	5,100	-		7,983
Saleofintangibleassets	-	-		36
Interestreceived	4	10		2
Totalnetcashinflow/(outflow)frominvestingactivities	3,686	(303)		7,439
Cashflowfromfinancingactivities
Principal elementsoflease payments	(1,770)	(1,687)		(3,644)
Interestpaid	(444)	(718)		(1,436)
Loanrepayments	(517)	(200)		(5,520)
Loanreceived	-	-		-
FairValuemovementinfinancialassets		-		102
Totalnet cashoutflowfromfinancingactivities	(2,731)	(2,605)		(10,498)
Cashandcashequivalentsatbeginningofperiod	2,742	1,430		1,430
Netcashflowsgeneratedfromoperating,investingand	2,023	479		1,460
financingactivities
Differencesonexchange	(120)		(217)		(148)
Cashandcashequivalentsatendofperiod(including discontinuedoperations)	4,645		1,692		2,742

NOTES

1GeneralInformation

Safestay plc, the “Company” together with its subsidiaries, “the Group”, is a public limited company whoseshares arequotedonthe AlternativeInvestmentMarket(“AIM”)oftheLondon Stock Exchange and is incorporated and domiciled in the United Kingdom and registered in England and Wales. The registerednumberoftheCompanyis08866498anditsregisteredaddressis1aKingsleyWay,London,N2 0FW.

2BasisofPreparation

The consolidated interim financial information has been prepared in accordance with UK adopted International Financial Reporting Standards (“IFRS“) in conformity with the requirements of the Companies Act 2006.

TheGroup’sAnnualReportandAccountsfortheyearending31December2026areexpectedtobe prepared under IFRS.

The comparative information for the six months ended 30 June 2025 in this interim report does not constitute statutory accounts for that period under section 435 of the Companies Act 2006.

Statutory accounts for the year ended 31 December 2025 have been delivered to the Registrar of Companies.

The auditors’ report on the statutory accounts for the year ended 31 December 2025 was unqualified, did not draw attentiontoanymattersbywayofemphasis,anddidnotcontainastatementundersection498(2)or 498(3) of the Companies Act 2006.

SignificantAccountingPolicies

The consolidated interim financial information has been prepared in accordance with accounting policies that are consistent with the Group’s Annual Report and Accounts for the year ended 31 December2025,whichispublishedontheSafestay website,locatedat www.safestay.com.At thedate ofauthorisationofthisfinancialinformation,certainnewstandards,amendmentsandinterpretations to existingstandards applicable to the Grouphave beenpublishedbut are not yet effective andhave not been adopted early by the Group. The impact of these standards is not expected to be material.

In adopting the going concern basis for preparing these financial statements, the Directors have consideredthebusinessmodelandstrategies,aswellastakingintoaccountthecurrentcashposition and facilities.

Based on the Group’s cash flow forecasts, the Directors are satisfied that the Group will be able to operate within the level of its current facilities for the foreseeable future, a period of at least twelve months from the dateofthis report. Accordingly, theDirectorsconsider itappropriate fortheGroup to adopt the going concern basis in preparing these financial statements.

Financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 ("the Act"). The statutory accounts for the year ended 31 December 2025 have been filed with the Registrar of Companies.

Thefinancialinformationforthesixmonthsended30June2026and30June2025isunaudited.

These condensed interim financial statements have not been audited, do not include all the information required for full annual financial statements and should be read in conjunction with the Group’s consolidated annual financial statements for the year ended 31 December 2025.

The financial statements have been presented in sterling, prepared under the historical cost convention, except for the revaluation of freehold properties, right of use assets and fair value of derivative financial assets and liabilities.

The accounting policies have been applied consistently throughout all periods presented in these financialstatements.Theseaccountingpolicies complywitheachIFRSthat ismandatory foraccounting periods ending on 31 December 2026.

Newstandardsandinterpretationseffectiveintheyear

Nonewstandardshavebeenimplementedthisyearthathaveamaterialimpactonthebusiness.

3SEGMENTALANALYSIS
Forthesixmonthsended30June2026
	Unaudited		Unaudited		Audited
	6monthsto30 June		6monthsto30 June		Yearto31 December
	2026		2025		2025
	£000		£000		£000
Hostelaccommodation	7,080		7,831		16,191
FoodandBeverages sales	953		1,107		1,957
Other income	366		443		919
TotalIncomefromContinuingoperations	8,399		9,381		19,067

Grouprevenuefrom continuingoperations forthesix months ended30June2026was £8.4million(H12025: £9.4 million), reflecting a year‑on‑year decrease of £1.0 million. Hostel accommodation contributed £7.1 million (H1 2025: £7.8 million), impacted by lower occupancy. Food and beverage sales declined to £1.0 million (H1 2025: £1.1 million), while other income decreased to £0.4 million (H1 2025: £0.4 million).

Unaudited6monthsto30June2026	UK	Spain	Europe	Shared services	Discontinued Operations	Total
	£’000	£’000	£’000	£’000	£'000	£’000
Revenue	2,293	2,860	3,222	24	690	9,089
Profit/ (loss)beforetax	284	26	(493)	(1,963)	(84)	(2,230)
Addback:Financecosts	96	215	159	757	-	1,227
Addback:Depreciation&Amortisation	203	737	649	54	54	1,697
EBITDA	583	978	315	(1,152)	(30)	694
Lossondisposalofassets	-	-	-	-	221	221
Fairvaluemovementsofderivatives	-	-	-	(94)	-	(94)
Exceptional&Sharebasedpaymentexpense		(3)	4	-	(27)	(26)
AdjustedEBITDA	583	975	319	(1,246)	164	795
Totalassets	28,784	12,982	13,105	16,825	-	71,696
Totalliabilities	(13,850)	(12,321)	(8,508)	(24,053)	-	(58,732)

Adjusted EBITDA from continuing operations is calculated as total Adjusted EBITDA of £795,000 (H1 2025: £2.344 million), less Adjusted EBITDA from discontinued operations of £164,000 (H1 2025: £226,000).

Unaudited6monthsto30June2025(Asrestated)	UK	Spain	Europe	Shared services	Discontinued operations	Total
	£’000	£’000	£’000	£’000	£'000	£’000
Revenue	3,467	2,678	3,236	-	689	10,070
Profit/ (loss)beforetax	864	125	364	(917)	155	591
Addback: Financeincomeandcosts	60	364	134	847	-	1,405
Addback:Depreciation&Amortisation	212	642	508	212	71	1,645
EBITDA	1,136	1,131	1,006	142	226	3,641
Lossondisposalofassets	-	-	-	44	-	44
Exceptional&Sharebasedpaymentexpense	-	(28)	40	(1,353)	-	(1,341)
AdjustedEBITDA	1,136	1,103	1,046	(1,167)	226	2,344
Totalassets	45,174	16,044	17,700	14,520	-	93,438
Totalliabilities	(13,697)	(10,478)	(7,148)	(31,037)	-	(62,360)

Audited12monthsto31December2025(Asrestated)	UK £’000	Spain £’000	Europe £’000	Shared services £’000	Discontinued operations £'000	Total £’000
Revenue	6,949	5,186	6,925	7	1,519	20,586
Profit/(loss)beforetax	(1,105)	(4,627)	227	(4,998)	442	(10,061)
Addback: Financeincomeandcosts	389	629	273	1,835	2	3,128
Addback:Depreciation&Amortisation	719	1,388	1,165	353	152	3,777
EBITDA	3	(2,610)	1,665	(2,810)	596	(3,156)
Impairment	-	3,703	2,292	-	-	5,995
Lossondisposalofassets	-	-	-	1,413	-	1,413
Revaluationoffixedassets	-	615	-	-	-	615
Fairvaluemovementsofderivatives	-	-	-	102	-	102
Exceptional&Sharebasedpaymentexpense	-	-	40	(1,304)	-	(1,264)
AdjustedEBITDA	3	1,708	3,997	(2,599)	596	3,705
Totalassets	33,056	11,549	15,791	14,935	-	75,331
Totalliabilities	(13,771)	(12,666)	(8,509)	(25,960)	-	(60,906)

4DISCONTINUEDOPERATIONS

FollowingthedisposalofGlasgowinJune2026,theoperationalperformancewasclassifiedasdiscontinued.

	Halfyearto 30-Jun 2026 Unaudited		Halfyearto 30-Jun 2025 Unaudited		Yearto 31December 2025 Audited
	Total £’000		Total £’000		Total £’000
Revenue	690		689		1,519
Costofsales	(148)		(150)		(331)
Grossprofit	542		539		1,188
Otheroperatingincomeandexpenses	(248)		-		-
Administrativeexpenses	(378)		(384)		(746)
Operatingprofit Financeincomeand costs	(84) -		155 -		442 -
(Loss)/Profitbeforetax Tax	(84) -		155 -		442 -
(Loss)/Profitfortheperiodfordiscontinuing operations	(84)		155		442

	Periodto	Periodto		Yearto
	30June 2026	30June 2025		31December 2025
	Unaudited	Unaudited		Audited
	£’000	£’000		£’000
Cashflowfromoperatingactivities
(Loss)/Profitfortheperiod	(84)	155		442
Taxcharge	-	-		-
Depreciation,amortization	54	71		152
Loss/(Profit)onsalesoffixed assets	221	-		-
(Increase)/decreaseininventories	-	(1)		-
(Increase)/decreaseintradeandotherreceivables	(5,111)	(6)		56
Increase/(decrease)intradeandotherpayables	(182)	(214)		(492)
NetCashusedin/generatedfromoperationsattributableto discontinuedoperations	(5,102)	5		158
Cashflowfrominvesting activities
Purchasesofproperty, plantandequipment	-		(77)		(78)
Saleofproperty,plantandequipment	5,148		-		-
Interestreceived	-		-		-
Net cashgeneratedfrom/(usedin)discontinuedinvestingactivities	5,148		(77)		(78)
Cashflowfromfinancingactivities
Interestpaid	-		-		(2)
Netcashusedindiscontinuedfinancingactivities	-		-		(2)
Cashandcashequivalentsatbeginningofperiod	39		38		38
Netcashflowsgeneratedfrom/(usedin)operating, investingandfinancingactivities	46		(72)		78
Differencesonexchange	(59)		60		(77)
Cashandcashequivalentsatendofperiod	26		26		39

5OTHEROPERATINGINCOMEANDEXPENDITURE
Forthesixmonthsended30June2026
	Halfyearto	Halfyearto		Yearto
	30-Jun	30-Jun		31 December
	2026	2025		2025
	Unaudited	Unaudited		Audited
	Total	Total		Total
	£’000	£’000		£’000
LegalcostsandCovidinsuranceincome	-	1,365		1,263
Fairvaluemovementsofderivatives	94	-		-
Totalotheroperatingincome	94	1,365		1,263
Otheroperatingexpenditure
One-offlegal/professionalfees(Covidrelatedadvice)	-	42		-
RentdeferralRe:Covid	-	28		-
Legalfees	8	-		-
Fairvaluemovementsofderivatives	-	-		102
Revaluationoffixedassets	-	-		615
Impairmentorwrite-downsoffixed/right-of-useassets	-	10		5,995
Lossonsaleofassets	-	44		1,413
Totalotheroperatingexpenditure	8	124		8,125
Netotheroperating income /(expenditure)from
continuingoperations	86	1,241		(6,862)

1. TAXATION

(forthesixmonthsended30June2026,forSafestayplc,Group)

TheGrouptaxchargeismadeupasfollows:
	Periodto	Periodto	Yearto
	30June 2026	30June 2025	31December 2025
	Unaudited	Unaudited	Audited
	£’000	£’000	£’000
Corporationtaxonprofits fortheyear	12	65	168
Adjustmentsforcorporationtaxonpriorperiods	-	-	-
Otherlocaltaxes	-	-	-
Totalcurrenttax	12	65	168
Deferred tax	(365)	57	(175)
Adjustmentsfordeferredtaxonpriorperiods	-	(2)	0
Totaltaxcharge	(353)	120	(7)

TheGrouprecordedatax credit forthesix months ended30June2026 of £353,000(H12025: chargeof£120,000; FY 2025: credit of£7,000). Thecreditreflects theUK corporationtax rateof25%, adjustedforfixedasset timingdifferences, non-deductibleexpenses andforeignexchangemovements.

Thetaxcreditfortheperiodcanbereconciledtotheprofitpertheconsolidatedincomestatementasfollows:

	Periodto	Periodto	Yearto
	30June 2026	30June 2025	31December 2025
	Unaudited	Unaudited	Audited
	£’000	£’000	£’000
Profitbeforetax	(2,230)	591	(10,061)
Taxat thestandardUKcorporationtaxrateof25%(2025: 25%)	(557)	148	(2,515)
Fixedassetdifferences	(274)	103	331
Othertaxadjustments,reliefsandtransfers	5	-	-
Adjustmentfortaxonpriorperiods-deferredtax	-	(2)	17
Deferredtaxnotrecognised	(85)	(37)	499
Factorsaffecting the tax credit fortheperiod
Timingdifferencenotrecognisedinthecomputation	-	-	17
Non-deductibleitemsandothertimedifferences	117	(68)	1,466
Chargeablegains/ (losses)	431	0	186
Foreignexchangedifferences	10	(24)	(8)
Grouptaxcharge	(353)	120	(7)

1. EARNINGSPERSHARE

Basicprofit/(loss)persharehasbeencalculatedbydividingthelossattributabletoshareholdersbytheweightedaverage number of shares in issue during the Period.

Forthesixmonthsended30June2026
	Periodto		Periodto	Yearto
	30June 2026		30June 2025	31December 2025
	Unaudited		Unaudited	Audited
	£’000		£’000 Asrestated	£’000 Asrestated
Basicprofit/ (loss)persharefrom:
ContinuingOperations	(2.76p)		0.49p	(16.16p)
DiscontinuedOperations	(0.13p)		0.24p	0.68p
Dilutedprofit/(loss)persharefrom:
ContinuingOperations	(2.76p)		0.46p	(16.16p)
DiscontinuedOperations	(0.13p)		0.23p	0.65p

Dilutedprofit/(loss)persharehasbeencalculatedafteradjustingtheweightedaveragenumberofsharesusedinthebasic calculationtoassumetheconversionofall potentially dilutiveshares, suchas shareoptionawards.

Thenumberofsharesusedincalculatingbasicanddilutedprofit/ (loss)persharearereconciledbelow:

		30 June		30 June		31 December
		2026		2025		2025
Weighted average number of ordinary shares (000s) for the purposes of basic earnings per share		64,935		64,935		64,935
Effect of dilutive potential ordinary shares (000s)		3,259		3,441		3,259
Weighted average number of ordinary shares (000s) for the purposes of diluted profit/(loss) per share		68,194		68,376		68,194

Forthesix months ended30June2026, theGroupreportedabasic anddilutedloss persharefromcontinuingoperations of (2.76p),comparedwithaprofitof0.49p(basic)and0.46p(diluted)inH12025.Fromdiscontinuedoperations,theGrouprecorded abasic anddilutedloss pershareof(0.13p), versus aprofit of0.24p(basic)and0.23p(diluted)inH12025, arisingfrom disposalactivity.Theweightedaveragenumberofordinary sharesusedinthebasiccalculationremainedat64.9million,while the diluted calculation adjusted forpotentially dilutive share options totalled 68.2 million shares.

8FIXED ASSETS
	Freeholdland	RightofUse	Leasehold	Leasehold	Fixtures,	Assetsunder	Total
	andbuildings	Assets	land and	improvements	fittingsand	construction
			buildings		equipment
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At1Jan2026	15,224	21,579	22,259	2,617	548	323	62,550
Transfers	-	-	-	-	-	-	-
Additions	-	-	1,086	-	291	41	1,418
Disposal and reclassification as held for sale	(5,091)	(6,163)	(352)	-	(108)	-	(11,714)
Depreciation	(72)	(1,143)	(93)	(167)	(222)	-	(1,697)
IFRS16LeaseModification	-	-	-	-	-	-	-
ExchangeDifferences	(149)	(205)	(3)	56	127	(49)	(223)
Revaluation	-	-	-	-	-	-	-
At30June2026	9,912	14,068	22,897	2,506	636	315	50,334
At1Jan2025	22,857	20,393	26,556	2,904	1,344	2,453	76,507
Transfers	-	-	-	-	-	-	-
Additions	-	-	13	-	182	118	313
Depreciation	(196)	(1,013)	(165)	-	(257)	-	(1,631)
IFRS16LeaseModification	-	-	-	-	-	-	-
ExchangeDifferences	155	280	(141)	-	205	(4)	495
Revaluation	-	-	-	-	-	-	-
At30June2025	22,816	19,660	26,263	2,904	1,474	2,567	75,684
At1Jan2025	22,857	20,393	26,556	2,904	1,344	2,453	76,507
Transfers	-	-	-	-	-	-	-
Reclassificationasheldforsale	-	-	-	-	-	-	-
Additions	21	2,174	-	14	234	312	2,755
Disposal	(6,325)	-	-	-	(174)	(2,469)	(8,968)
Depreciation	(266)	(2,238)	(187)	(330)	(719)	-	(3,740)
Impairment	-	(1,983)	-	-	-	-	(1,983)
IFRS16LeaseModification	-	3,239	-	-	-	-	3,239
Revaluation	(1,567)	-	(4,110)	-	-	-	(5,677)
ExchangeDifferences	504	(6)	-	29	(137)	27	417
At31December2025	15,224	21,579	22,259	2,617	548	323	62,550

TheGroup’sproperty,plantandequipment,includingright‑of‑useassets,stoodat£50.3millionat30June2026comparedwith £75.7millionat30June2025,representinga£25.5millioncontraction.Thisreductionwasdrivenbydisposalsof£5.1million relating to Glasgowand £6.4 millionforEdinburgh,a year‑end revaluationadjustmentof£5.6 million,and depreciationchargesof £1.7million.Inaddition,right‑of‑useassetsassociatedwithHolland ParkwerereclassifiedtoassetsheldforsaleinaccordancewithIFRS5, comprising£352kfromleaseholdbuildings,£51kfromfixturesandfittings,and£6.1millionrelatingtotheHolland Parklease,allofwhich weremovedoutoftheROUcategoryandpresentedseparatelyasassetsheldforsale.DepreciationontheseROUassetsceased fromthedateofclassification.Othermovementsincludedexchangedifferencesandlimitedadditionsof£1.4million,mainly attributable to leasehold buildings and fixtures.

9GOODWILL

Goodwillasat30June2026amountedto£3.6million(31December2025:£3.7million;30June2025:£10.4 million). The balance has remained unchanged since the year end, with the only movement arising from exchange rate conversion. The year-on-year decrease compared to June 2025 primarily reflects the impairmentchargeof£6.6millionbookedagainstgoodwillintheprioryear,togetherwithforeignexchange translation differences.

Goodwill represents the excess of the consideration transferred over the fair value of the Group’s share of the identifiable net assets of acquired subsidiaries at the acquisition date. It is not amortised but is subject to annual impairment testing, or more frequently when indicators of impairment exist.