1st Feb 2019 09:27
LONDON (Alliance News) - Self-storage company Lok'n Store Group PLC said on Friday it has sold its document storage business Saracen Datastore Ltd to records management company Iron Mountain UK PLC for GBP7.6 million in cash.
Proceeds from the sale are expected to reduce overall group borrowing and improve its key banking ratios. Also, the funds will go towards investing into Lok'n Store's development pipeline of new self-storage centres.
For the year to the end of July 2018, Saracen Datastore contributed GBP2.4 million to Lok'n Store's revenue and GBP660,000 in earnings before interest, taxes, deprecation, and amortisation.
"Executing this strategic disposal and making these further acquisitions continues our strategy of increasing the number of fast growing landmark self-storage centres. We are reallocating capital to enhance the efficiency and quality of our portfolio and expand our asset value whilst further strengthening our balance sheet," said Chief Executive Officer Andrew Jacobs.
Lok'n Store will release a trading statement on its interim period on February 11.
Shares in Lok'n Store were up 4.8% at 422.00 pence each on Friday.
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