UK Self-Storage Company LoknStore Reports Financial Results for First Half of Fiscal 2015

U.K. self-storage company Lok'nStore Group PLC has reported a strong performance based on figures from the first half of its 2015 fiscal year, which ended Jan. 31. The company reported a 13.6 percent increase in group revenue and 15.9 percent increase in self-storage revenue compared to the first half of 2014. Occupancy was up 5.5 percent year over year, and average price per square foot increased 6.7 percent compared to the same period last year.

Total group revenue reached £7.63 million during the period, up from £6.7 million in 2014. Self-storage revenue was £6.71 million, an increase from £5.79 million in 2014. Revenue from records storage was £920,000 during the six months, a 4.3 percent increase year over year. The number of stored boxes increased 33.6 percent compared to the same period in 2014.

Store earnings before interest, tax, depreciation and amortization (EBITDA) rose 27.4 percent to £3.65 million. EBITDA margins increased 5 percent year over year to 54.6 percent. Funds from operations (FFO) increased 37.2 percent to £2.52 million compared to the first six months last year. FFO per share was 20.1 pence, an increase of 33.1 percent.

“With tight cost control, group EBITDA profit margins have expanded to 38.3 percent from 32.4 percent last year,” said Andrew Jacobs, CEO. “As well as increasing our turnover, margins and profits, we continue to invest in the future growth of the business.”

Lok'nStore opened a new facility in Reading, England, last October and sold an older asset in Reading for £2.9 million. The company has four other sites under development in Aldershot, Bristol, Chichester and Southampton, England. Aldershot is expected to open in May, while Chichester is scheduled to open later this year. The Bristol and Southampton projects are expected to open in 2016.

“The strength of the existing business, good asset management and Lok'nStore's conservative debt means that this major expansion can be financed out of cash flow and our existing bank facility,” Jacobs said. “This will enable the business to continue to deliver increasing dividends for our shareholders."

Lok’nStore builds, buys or leases large warehouses or industrial buildings and rents storage units to customers on a weekly basis. Around 60 percent of the company's 7,000 customers are residential and 40 percent are commercial. Lok’nStore has more than 920,000 square feet of net rentable space, which is evenly split between freehold and leasehold.