U.K. self-storage operator Big Yellow Group PLC recently released its audited results for the quarter ended March 31, which was also the end of the company's fiscal year. In its 2011-12 year, the company finished with an overall loss of £35.6 million (about $57.1 million), which company representatives are attributing to the prospects of a value-added tax (VAT).
The VAT will be been expanded to include self-storage in the fall, which will make self-storage units generally more expensive for U.K. customers. In the company's opinion, the tax has hurt demand for self-storage. Chief Executive James Gibson told The Independent the tax change will lead to average 10 percent increase in the cost to store items.
Aside from the overall loss, Big Yellow reported the following notable data:
- Annual store revenue increased by 8 percent to £64.3 million (about $100.6 million).
- Occupancy at wholly owned stores grew from 59.3 percent to 64.9 percent.
- Capacity grew to 328,000 square feet, up from 215,000 square feet.
- Full-year dividend of 10 pence (about 16 cents) per share declared, up from 9 pence (about 15 cents) last year.
- Because of the company's overall net loss, there is a basic loss per share of 27.7 pence (about 43 cents).
- In the previous year, shares each earned 5.3 pence (about 8 cents).
- Store revenue for the fourth quarter increased by 10 percent to £16.1 million (about $25.2 million) from £14.6 million (about $22.8 million) for the same quarter last year.
- Final dividend of 5.5 pence (about 9 cents) per share declared, up from 5 pence (about 8 cents) per share for the same quarter last year.
Big Yellow Self Storage operates 65 facilities in the United Kingdom, with most concentrated in Greater London.
- BigYellow.Hemiscottir.com: Audited Results for the Year and Quarter Ended March 31, 2012
- The Independent: Big Yellow in Red Over VAT Change