LOK’NSTORE GROUP PLC
(” Lok’nStore ” or “the Group “)
Preliminary Results for the year ended 31 July 2022
Lok’nStore, the fast-growing AIM listed self-storage company, is pleased to announce its Preliminary Results for the year ended 31 July 2022.
Highlights
v Record revenue and profits
v Significant increase in net asset value per share
v 15% in crease in dividend
v Dynamic new store opening schedule driving future growth
v Low debt and LTV
Strong revenue and profit growth
ü Group Revenue £26.9 million up 22.9% (2021: £21.9 million)
ü Group Adjusted EBITDA1 £16.4 million up 37.5% (2021: £11.9 million)
ü Operating Profit before non-underlying items £11.4 million up 49.8% (2021: £7.6 million)
ü Operating Profit after non-underlying items £17.2 million up 130.0% (2021: £7.5 million)
Driven by solid operating metrics
ü Achieved rate on occupied space up 13 % to £ 25.6 per sq. ft (2021: £22.7 per sq. ft)
ü Managed store revenue £2.8 million up 107%
ü Cost Ratio13 reduced to 38.5% (2021: 44.9%)
Cash flow growth drives eleventh consecutive year of dividend increase
ü Cash Available for Distribution (CAD) 3 per share up 36.6% to 38.7 pence (2021: 28.4 pence)
ü Annual dividend increased by 2.25 pence to 17.25 pence per share up 15% (2021: 15 pence per share) – covered 2.24 times by CAD
Significant increase in net asset value
ü Adjusted Net Asset Value5 per share up 33% to £9.72 per share (2021: £7.31 per share)
Disciplined use of capital leads to strong balance sheet and low debt
ü Sale and manage back of four stores at a 22.8% premium to 31 July 2021 valuations delivering £37.9 million of net sale proceeds in cash
ü £46.5 million cash at year-end (2021: £9.1 million)
ü Net debt (excluding lease liabilities and deferred finance costs) reduced to £20.3 million (2021: £56.3 million)
ü Loan to value ratio6 down to 6.6% (2021: 21.0%)
ü £25 million accordion executed – increases bank facility to £100 million
ü Bank facility extended by one year to April 2026
Dynamic pipeline 8 of new Landmark stores will deliver further growth
ü 4 new stores currently on site will add over 218,000 sq. ft of new trading space
ü Secured store pipeline9 total of 10 sites will add 44.1% to owned new space over the coming years
Well positioned for the future
ü New store openings and rate increases will lead to further revenue and profit growth
ü Trading momentum continues post year end with same-store revenue up 13.6% for August and September 2022 compared to the same period last year.
ü Strategy unchanged – increase revenue from existing stores and open more new Landmark stores
ü Flexibility to respond to market circumstances
For all of the definitions of the terms used in the highlights above refer to the notes section below.
Commenting on the Group’s results, Andrew Jacobs, Executive Chairman of Lok’nStore Group said,
“Lok’nStore’s business has moved ahead significantly with revenue up 22.9% and EBITDA up 37.5% on last year . Demand for UK self-storage assets remains strong, and this has driven our Net Asset Value per share up by 33% to £9.72. Trading since the year-end has been good .
“We are on site at four new Landmark stores which will open within the next 12 months and can be completed using cash on hand. At 31 July 2022, our secured pipeline of ten new sites increases owned space by 44.1%. This pipeline of new stores will add further momentum to sales and earnings growth. We have reduced our net debt to £20.3 million and our business model enables us to build out the pipeline as market circumstances dictate.
“We aim to build more Landmark stores in the under-supplied UK market. We are growing the business from a strong financial platform that gives us great flexibility to respond to market circumstances. We have multiple levers to allocate our capital in ways which are most accretive to our shareholders through the economic cycle, and we are confident that we will continue to increase net assets, cash flows and dividends.”
Enquiries:
| Lok’nStore:Andrew Jacobs, Executive ChairmanRay Davies, Finance Director | 01252 521 010 |
| finnCap LtdJulian Blunt / Seamus Fricker, Corporate FinanceAlice Lane, ECM | 020 7220 0500 |
| Peel HuntCarl Gough, Capel Irwin, Henry Nicholls | 020 7418 8900 |
| CamarcoBilly Clegg / Tom Huddart | 0203 757 4980 |