Lok ‘n’ Store revenue boosted by storage needs of householders

 
Kasmira Jefford
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Lok’n’Store saw a strong rise in sales and earnings (Source: Lok’n’Store)
Self-storage group Lok’n’Store said the improving economy and rising occupancy across its sites had helped it deliver a strong rise in sales and earnings last year.

The Aim-listed group, which has 24 bright orange-coloured stores across the country, said revenue increased by 7.2 per cent to £13.9m in the year to 31 July, with earnings up 11.6 per cent £4.62m compared with the same time last year.

Occupancy increased by 12.4 per cent while prices grew 5.8 per cent. Its adjusted net asset value per share was up 9.6 per cent at £2.71.

Chief executive, Andrew Jacobs, said: “We are sensitive to the change of rates of economic growth. From the end of the last calendar year when the economy picked up strongly our rate of growth also picked up quite notably.”

The group opened a new flagship store in Maidenhead in December and is set to open further sites in Reading, Aldershot, Southampton and Bristol in the next 18 months.

“Our new store pipeline is changing the balance of our portfolio with new and purpose built stores increasing from 39.6 per cent of the portfolio to 58 per cent of our lettable space,” Jacobs said.

Around a third of its space is let to business but Jacobs said that was gradually moving in favour of households. The average customer lets space for around a year and spends £1,000.

Shares in the company jumped 6.4 per cent to 214p on the back of the buoyant results, prompting house broker Finncap to upgrade its profit forecast for the current year by six per cent.

The group also increased its annual dividend by 16.7 per cent to 7p per share.