Lok'nStore posts 'solid' first half
Self-storage company Lok'nStore provided an update on its trading in the first half of the financial year to 31 January on Monday.
The AIM-traded firm said, building on the positive momentum of FY2016, trading in the first half of FY2017 remained solid.
In its core self-storage business the first half revenue was up 3.9% year-on-year, and at 31 January 2017, self-storage unit occupancy was up 4.6% and price per let square foot was unchanged compared to the same date 12 months prior.
In the serviced document storage business, revenue grew by 8.8% against the same period last year, while the number of boxes stored increased by 8% and the number of tapes increased by 27% over the twelve months to the end of January.
In November, in response to demand for the company's shares and to improve liquidity the company sold 1,975,000 shares from treasury, raising £7.9m to further strengthen the balance sheet.
In January, Lok’nStore signed a two year extension to its existing £40m bank facility.
The facility, which was due to expire in January 2021, would now run for the next six years until January 2023 providing funding for more landmark site acquisitions and working capital.
Lok’nStore said it was continuing its new store opening programme and had commenced development on all four of the new sites acquired in the last financial year.
It said interim results will be announced on 24 April.
“We have built on the solid turnover and profits growth of last year in the first half of our financial year 2017 with a 3.9 % growth in revenue in our core self-storage business,” said CEO Andrew Jacobs.
“We are now on site in all four of our pipeline stores in Broadstairs, Gillingham, Hemel Hempstead and Wellingborough.
“All four should be open by the end of our 2017 financial year and will provide added impetus to sales and earnings growth.”
Jacobs said the recently-announced two year extension on the company’s existing banking facility with its “extremely competitive” terms and flexible structure further highlighted the financial strength of Lok'nStore.
“With our modest gearing, valuable property assets and strong and growing cash flow the Group will continue to execute its current successful growth strategy.”