17th Feb 2014 11:13
LONDON (Alliance News) - Lok'n'Store Group PLC said Monday it is trading in line with expectations in its first-half, with its core self-storage business recording a 7.8% revenue increase in during a traditionally slower trading period.
The AIM-listed self-storage firm said in its pre-close trading update to January 31 2014, covering its first-half, that trading is in line with current market expectations.
Lok'n'Store said trading in the first-half 2014 has remained buoyant, with particular strengthening in recent months, during its traditionally slower period for the business, following a good performance for the full-year 2013. The firm said, "We are seeing clear signs that the economy is improving and the steps that the Company took during the downturn to improve our operating efficiency ensures we are effectively locked into this upturn."
In its core self-storage division, first-half revenue was up 7.8% on a like-for-like, year-on-year basis, accelerating to 9.5% in January 2014. January business showed the largest monthly increase in revenue since June 2006, said the firm, with occupancy up 7.5% and price per let square foot up 2.9% at January 31 2014, compared to the same period 12 months ago.
Over the first-half enquiries are up 24% and move-ins are up 21.4% like-for-like, said Lok'n'Store.
Ancillary sales have been particularly strong with insurance sales up 20% and boxes and packaging up 25%. The firms' Saracen Document Storage business is also improving, after Lok'n'Store moved to a more customer facing marketing stance; net boxes stored increasing 16,000 in the first-half, up 15.1% annualised and tapes stored up 21.8% annualised.
The company notes that while revenue and profit levels will take time to respond to this volume growth, it is encouraged by the noticeable improvement.
Andrew Jacobs, CEO of Lok'nStore said, "Trading in the first half of our financial year has been strong, culminating in a buoyant January, normally our quieter period. It is especially encouraging that growth has been delivered in revenue, occupancy and price per sq. Looking at our development pipeline, our new flagship store in Maidenhead opened in December and early trading gives us significant optimism and confidence that the new stores in Reading, Aldershot, Southampton and Bristol which are opening over the coming eighteen months will add further impetus to sales and earnings.
"The strong growth of the existing business, good asset management and Lok'nStore's conservative debt ratios means that this major expansion can be financed out of our existing bank facility, which should provide enhanced returns for our shareholders," he added.
Shares in Lok'n'Store were trading up 6.33% at 210 pence per share Monday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Lok N Store