Lok'n Store Group plc Interim Results for Six Months to 31st January 2022

LOK'NSTORE GROUP PLC

(“Lok'nStore” or “the Group”)

Lok'nStore Group Plc, the AIM listed self-storage Company announces interim results for the six months to 31 January 2022

• Strong growth in occupied space and achieved rate per square foot
• Significant increase in net asset value
• Increased dividend
• Pipeline driving future growth

Highlights:    

Strong trading

• Group revenue £13.38 million up 31.1% (31.1.2021: £10.21 million)
• Group adjusted EBITDA¹ £8.12 million up 46.5% (31.1.2021: £5.5 million)
• Achieved rate per sq. ft. of occupied space up 18.5% vs last year
• Unit occupied space up 6.0% yoy with £24.22 per sq.ft achieved (31.1.2021 £20.44)

Cash flow growth drives interim dividend increase

• Cash available for Distribution (CAD)³£5.58 million up 59.6% (31.1.2021: £ 49 million)
• Cash available for Distribution per share (annualised) 38.00 pence up 57.2% (31.1.2021: 24.17 pence)
• Interim dividend 5.0 pence per share up 15.5% (31.1.2021: 4.33 pence per share) – Eleventh consecutive year of increase

Significant increase in net asset value

• Adjusted Net Asset Value (NAV) per share up 4% to £8.43 (31.1.2021: £5.68)
  • and up 3% from 31 July 2021 (£7.31)

Disciplined use of capital leads to strong balance sheet and low net debt  

• Sale and manage back of four stores at a 22.8% premium to 31 July 2021 valuations. (£37.2 million) – proceeds will be re-cycled into new, faster growing Landmark stores
• £44.4 million cash at period-end (31.7.2021: £11.3 million)
• Net debt (excluding lease liabilities) £22.4 million (31.7.2021: £42.6 million)
• Loan to value ratio⁶3% (31.7.2021: 20.4%)

 Embedded future growth from dynamic pipeline⁸ of new landmark stores  

• New stores currently on site will add 16.8% of new trading space by July 2023
• Fully funded secured store pipeline⁹ total of 12 sites will add 35.5 % of new space over the coming years

Positive Outlook for Growth

• Trading remains buoyant with pricing up 1.5% and like for like occupied space up 0.9% in the two months since the 31 January 2022 period-end
• Seeing many more exciting new store opportunities

Commenting on the Group's results, Andrew Jacobs Executive Chairman of Lok'nStore Group said,  

“Trading in the six months to 31 January 2022 has been excellent. Revenue is up 31.1% against last year.  Our achieved rate per occupied square foot is up 18.5% yoy with unit occupied space up 6.0% driving strong growth of revenue and profits . The interim dividend is 5 pence up 15.5%. Demand for UK Self-Storage assets remains strong and this, combined with strong trading has driven our Net Asset Value per share forward by 48.4% over the last twelve months.

“Our new Warrington Store opened in January, our new store in Wolverhampton opened in March and Stevenage opens in the final week of April. We are on site at three further stores all of which will open within the next 15 months.  At 31 January 2022, our current fully funded secured pipeline of twelve new stores increases lettable owned space by 35.5 %. We are seeing many more exciting new store opportunities.

“Continuing this exciting period of growth, our objective is to build more Landmark stores in an under-supplied market, remaining conservatively geared delivering sustainable growth and consistently increasing dividends.

The Board is confident the Group will continue to thrive under its highly experienced management team and we look to the future with confidence. “