U.K. self-storage company Lok'nStore Group PLC has reported record earnings based on preliminary figures for its 2015 fiscal year, which ended July 31. The company reported a 10.9 percent increase in group revenue, and pretax profit reached £2.65 million for the year, up 34.6 percent. Self-storage revenue increased 11.6 percent compared to fiscal 2014. Occupancy was up 0.6 percent, and unit prices increased 4.2 percent year over year.
Total group revenue reached £15.42 million for the year, up from £13.91 million in 2014. Self-storage revenue was £13.47 million, an increase from £12.07 million last year. Revenue from records storage was £1.96 million during the 12 months, a 6.5 percent increase year over year. The number of stored boxes increased 36.2 percent compared to 2014. Ancillary sales, which includes the sale of boxes, moving and packing supplies, tenant insurance, and other items, increased 6.3 percent for the year and accounted for 10.8 percent of self-storage revenue.
Store earnings before interest, tax, depreciation and amortization (EBITDA) rose 18.6 percent to £7.19 million. EBITDA margins increased 3 percent year over year to 53.7 percent. Funds from operations (FFO) increased 25.2 percent to £4.98 million compared to the previous year. FFO per share was 19.6 pence, an increase of 22.1 percent.
“Trading this year has been strong with turnover, profits and assets increasing rapidly,” said Andrew Jacobs, CEO.
Lok'nStore continues to grow through development. It opened a new facility in Reading, England, last October and sold an older asset in Reading for £2.9 million. It also opened a new location in Aldershot, England, in May and sold a property in Swindon, England, earlier this month for £3.9 million. The company has three other sites under development in Bristol, Chichester and Southampton, England. Chichester is scheduled to open later this year, while the Bristol and Southampton projects are expected to open next spring.
“Our new store-development program continues to change the balance of our store portfolio. New and purpose-built stores will account for around 59 percent of the portfolio once this is completed,” Jacobs said. “The strong growth of the business and Lok'nStore's low level of debt means that this rapid development program can be financed from cash flow and existing bank facilities, while progressively increasing the dividend.”
The company has declared an annual dividend of 8 pence per share, up from 7 pence last year.
Lok’nStore builds, buys or leases large warehouses or industrial buildings and rents storage units to customers on a weekly basis. It operates 24 self-storage facilities and two records-storage locations in Southern England. The self-storage portfolio is comprised of 12 freehold or long-leasehold properties, eight leasehold sites and four locations under management. It owns 20 of its operating facilities. The company serves about 8,100 commercial and residential customers.
- Lokâ€™nStore: Preliminary Results for the Year Ended 31 July 2015
- MarketWatch: Lok'nStore Reports Record Full-Year Earnings