Big Yellow Reports Shares Drop, Store Revenue Up

James Gibson, CEO for British operator Big Yellow Self Storage, revealed this week the company's share prices have dropped 3 percent, and he doesn't expect a recovery until the economy and real estate market show notable improvement.

However, the company's March-April adjusted pre-tax profit rose to £20.2 million from £16.5 million for March-April 2010. Total revenue rose 7 percent to £61.9 million, with store revenue up 8 percent to £59.6 million. The company also raised its final dividend by 25 percent to 5 pence a share, bringing the full-year dividend to 9 pence a share. 

Gibson along with other analysts fear high unemployment, negative real income growth, high-debt levels and difficulties in obtaining credit will affect the housing market and, thus, movers' demand for self-storage. He considers movers among the company's biggest customers.

Despite Big Yellow's drop in share price, the company still plans to expand. The company plans to open three new stores this year and is on the lookout for more acquisitions.

Big Yellow currently has 63 stores in the United Kingdom with seven in development.

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