8th Feb 2016 10:58
LONDON (Alliance News) - Self-storage space provider Lok'nStore Group PLC said on Monday trading in the first half of its financial year has remained strong, as it built upon a strong performance the previous year.
Lok'nStore said like-for-like revenue for its core self-storage business was up 5.4% year-on-year in the six months ended January 31, whilst like-for-like self-storage occupancy was up 2.4% and price per let square foot increased 3.3% compared to the same period 12 months ago. These figures, the company said, stripped out the effect of the sale of its Swindon operations for GBP3.5 million in September 2015.
Lok'nStore added that its document storage business revenue and earnings before interest, tax, depreciation and amortisation had responded "rapidly" to the improved operating metrics reported in August, with revenue growing 25% against the same period last year and costs slightly down, resulting in a more than doubling of its earnings before interest, tax, depreciation and amortisation.
The number of boxes stored increased by 11% over the year, the company said.
"Following the receipt of the additional GBP2 million for the sale of the old site in Reading and the GBP3.5 million for the sale of the Swindon operation, debt and leverage remain low and the reduced interest margin on our new bank facility further reduces finance costs. The new bank facility underlines the financial strength of Lok'nStore with its modest gearing, valuable property assets and strong and growing cash flow. With its substantially improved terms and structure we are able to invest in the future growth of the business," Chief Executive Andrew Jacobs said in a statement.
"Trading at the new Reading, Maidenhead and Aldershot stores has been excellent underpinning our confidence that the new stores in Southampton, Bristol and Chichester opening over the coming few months will provide added impetus to sales and earnings growth," Jacobs added.
Lok'nStore, whose shares were trading 3.1% up at 329.90 pence on Monday morning, will publish its full interim results on April 25.
By Hannah Boland; [email protected]; @Hannaheboland
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