Lok’nStore Group PLC – Interim Results

Lok’nStore Group PLC – Interim Results

Lok’nStore Group Plc, the fast growing AIM listed self-storage company announces interim results for the six months to 31 January 2019  

“Growing cash flows and recycling of capital deliver increased dividends and an exciting pipeline of new landmark stores 

Highlights:    

Strong trading

  • Group Revenue (continued operations1) £8.51 million up 11.5% (31.1.2018: £7.64 million)
  • Group Adjusted EBITDA3 £3.80 million up 8.6% (31.1.2018: £3.49 million)
  • Net profit £2.08 million up 22.7% (31.1.2018: £1.70 million)

Cash flow growth supports 10.2% interim dividend increase

  • Cash available for Distribution (CAD) 4 £2.78 million up 4.5% (31.1.2018: £2.67 million)
  • Interim dividend 3.67 pence per share up 10.2% (31.1.2018: 3.33 pence per share) 

Steady increase in asset value,

  • Adjusted Net Asset Value (NAV) per share5 up 16.1% to £4.85 (31.1.2018: £4.18)
  • Total assets6 £188.1 million up 21.7% (31.1.2018: £154.5 million)

Secure balance sheet, capital recycling 

  • Net debt £31.19 million (31.1.2018: £23.45 million) (31.7.2018: £32.3 million)
  • Loan to value7 ratio 17.9% (31.1.2018: 16.8%) (31.7.2018: 19.7%)
  • Average cost of debt 2.13% (31.1.2018: 1.72%) (31.7.2018: 1.85%)
  • Capital expenditure £8.8 million (31.1.2018: £10.9 million) (31.7.2018: £21.7 million)
  • Disposal of document storage business for £7.6 million cash
  • Post period-end:
    – Sale and manage back of Crayford site for £7.52 million cash resulting in:
    – Net debt reducing further to £23.66 million (31.1.2018: £23.45 million) (31.7.2018: £32.3 million)
    – Loan to value6 ratio down to 14.2% (31.1.2018: 16.8%) (31.7.2018: 19.7%)
    – Bank facility increased by £25 million to £75 million with accordion to £100 million 

Consistent performance of self-storage business – both occupancy and pricing up

  • Adjusted Store EBITDA8  £4.66 million up 8.6% (31.1.2018: £4.29 million)  
  • Unit Occupancy up 8.0%
  • Occupied units pricing up 1.4%  

Healthy pipeline of new landmark stores8

  • New stores opened in Dover, Cardiff (post period-end), Exeter (post period-end)
  • Acquisition of an existing trading store in Hedge End, Southampton
  • 2 new sites acquired in Stevenage and Wolverhampton
  • Current Pipeline10 of 8 contracted stores will add 27% of extra trading space to the overall portfolio, 32% to our owned portfolio and 10% to the managed portfolio
  • 2 more sites are progressing with lawyers

Commenting on the Group’s results, Andrew Jacobs CEO of Lok’nStore Group said, 

“Lok’nStore’s trading is strong and our outlook remains confident. With low gearing helped by capital recycling, we will continue to build more landmark stores in a structurally under-supplied market. In the first half of this year we opened a new store, acquired an existing operation and added two more sites to our pipeline. We have opened two more sites since the period-end and two more sites are currently with lawyers.

“Our objective is to open more landmark stores while remaining conservatively geared delivering sustainable growth and consistently increasing dividends.”

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