26th Mar 2020 09:46
(Alliance News) - Big Yellow Group PLC said Thursday it will be looking to conserve cash amid the ongoing Covid-19 spread but said it will make a decision on the distribution of its 2019 final dividend in "due course".
The self-storage firm said its demand has increased in the past week, particularly from domestic and student customers urgently needing storage, as a result of the lockdown measures introduced.
"Although we have seen new business customers move in, that has been outweighed by some businesses directly affected by the closures choosing to move out," Big Yellow added.
The company also noted it has been agreeing to rent holidays or deferrals on a case by case basis for some customers, principally businesses.
Big Yellow's current like-for-like occupancy across its portfolio is 81.6% across 56,000 customers.
"Self-evidently given the levels of distress in the economy it would not be appropriate to make judgements about future trading until we have better visibility," the storage company added.
Big Yellow currently has cash and available undrawn committed facilities of GBP38 million.
The company also noted it is winding down construction on three sites - Camberwell, Bracknell and Battersea - with a view to them being shut down safely in the next couple of weeks.
The cost to complete of these three stores will be about GBP13 million, of which only GBP3 million will be payable in respect of works completed prior to the temporary close down. All further capital expenditure is entirely discretionary, Big Yellow said.
The company added: "As shareholders would expect, the board is considering a number of initiatives to conserve cash in the short term, including as stated a halt on discretionary capital expenditure. We will see how our trading patterns develop and a decision about the final dividend will be made in due course."
Shares in Big Yellow were up 0.3% in London on Thursday morning at 933.00 pence each.
By Paul McGowan; [email protected]
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