19th Jul 2019 10:00
(Alliance News) - Self storage company Big Yellow Group PLC said Friday that first quarter revenue rose year-on-year, albeit at a slower rate than last year due to Brexit uncertainty.
The company said revenue in the quarter ended June 30 rose 3.7% year-on-year to GBP31.1 million from GBP30.0 million. On a like-for-like basis, it rose 4.4% to GBP30.9 million from GBP29.6 million.
There was a 125,000 feet increase in occupancy during the quarter resulting in a closing occupancy of 84% compared to 83.4% last year. First quarter like-for-like occupancy levels closed at 85.1%, up from last year's 83.1%.
Chief Executive James Gibson said: "The like-for-like growth in revenue this quarter of 4.4% was affected by the more muted occupancy performance in the final quarter of last year, given the heightened uncertainty in the run-up to 29 March, the UK's original proposed exit date from the EU. We remain focused on our core objective of 90% like-for-like occupancy across the portfolio."
"We are pleased to have reported a further increase in like-for-like occupancy to 85%, up from 83%, with growth of 125,000 squared feet in the quarter. This occupancy performance was helped by a recovery in prospect numbers to more normal levels over the quarter," Gibson added.
The company said its "core objective" is to achieve "90% like-for-like occupancy across the portfolio".
The company's 24-store Armadillo portfolio had a quarterly rise of 7% year-on-year to GBP3.9 million from GBP3.7 million. The company said Armadillo's like-for-like revenue, which excludes the recent acquisitions in Grimsby and Daventry, rose 4% year-on-year.
The 60,000 squared feet Water Street store in Manchester was opened in May and the company said the first two months of trading have been "encouraging".
Big Yellow has also begun construction of a new store in Camberwell, London, due to open in April.
Its new Battersea, London, and Bracknell, Berkshire, stores are scheduled to open next summer, the firm said.
Shares in Big Yellow were up 0.7% at 1,024.00 pence each in London on Friday morning.
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