8th Jul 2014 09:51
LONDON (Alliance News) - Self-storage company Lok'nStore Group PLC Tuesday said trading in the second half of its financial year has been robust and its results for the year as a whole are in line with recently increased market expectations.
The company in April reported higher profit for the first half of year, as revenue grew on the back of higher prices and occupancy in its self-storage facilities.
"Trading in the second half of the financial year has also been robust. We are seeing clear signs of the continued strengthening of the economy and the steps that the company took to improve operating efficiency during the economic downturn ensure we are effectively locked into this upturn with the business responding strongly," it said in its statement Tuesday.
It expects like-for-like revenue in the self-storage business to be up 10.2% in the year to July 31, driven by a 9.6% increase in occupancy and a 6.4% increase in price per let square foot. It said ancillary sales had been particularly strong, with insurance sales up 17% and boxes and packaging sales up 25%.
Lok'nStore also said that net boxes stored are up over 8% on the year in its document storage business.
"Trading this year has been very strong, with occupancy, prices, revenue and profit all moving strongly ahead. Looking at our development pipeline, our new flagship store in Maidenhead opened in December and early trading has been robust, quickly reaching profitability," Chief Executive Andrew Jacobs said.
The company is now hoping to drive further growth by expanding, and is managing to pay for that expansion using its existing bank facilities.
"With our new store in Reading opening in October, followed by new stores in Aldershot, Southampton and Bristol, which are scheduled to open over the coming eighteen months, I am confident we will continue to deliver significant further growth in sales and profit," Jacobs added.
Lok'nStore shares were up 3.7% at 211 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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