Lok'nStore Group – Interim Results

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 2020

Good growth in the period. Robust capital structure and cash flow will help protect the business during this period of economic turbulence. Increased dividend.

Highlights:    

Strong trading

• Group Revenue (continued operations ¹ ) £8.97 million up 5.3% (31.1.2019: £8.51 million)
• Group Adjusted EBITDA² £4.72 million up 6.4% (31.1.2019: £4.44 million)

Cash flow growth supports interim dividend increase

• Cash available for Distribution (CAD) ⁴ £2.92 million up 4.8 % ( 31.1. 2019 : £ 2.78 million)
• Interim dividend 4 pence per share up 9% (31.1.2019: 3.67 pence per share)

Steady increase in asset value

• Adjusted Net Asset Value (NAV) per share⁶ up 10.1% to £5.32 (31.1.2019: £4.83) (31.7.2019: £5.31 million)
• Adjusted Total assets⁵ £213.9 million up 6.4% (31.1.2019: £201.1 million) (31.7.2019: £214.0 million)

Secure balance sheet  

• Net debt £31.9 million (31.1.2019: £31.2 million) (31.7.2019: £29.3 million)
• Loan to value ratio⁷17.2% (31.1.2019: 18.3%) (31.7.2019: 16.1%)
• Average cost of debt 2.21% (31.1. 2019: 2.13%) (31.7.2019: 2.11%)
• Capital expenditure £4.7 million (31.1.2019: £8.8 million) (31.7.2019: £15.1 million)
• Cash and committed undrawn credit facilities of £43.0 million

Consistent performance of self-storage business 

• Adjusted Store EBITDA ⁹  4.79 million up 5.5% LFL¹³ (31.1. 2019: £4.66 million)  
• Unit Occupancy up 7.9%
• Occupied units pricing flat

Healthy pipeline of new landmark stores ⁸

• New managed store opened in Gloucester (post period-end on 22 February 2020)
• 3 new sites acquired in Chester, Salford and Oldbury
• Site sharing agreement signed with Lidl for new Cheshunt store
• Flexible capital expenditure model can respond to economic circumstances

Coronavirus update – post period-end

As at the date of this Report:

• All stores remain open while maintaining social distancing measures
• Servicing many customers in essential services
• Paying all colleagues as normal – minimal use of government furlough scheme
• Trading to date resilient
• £11m cash at period-end increased to £14.0 million at the date of this report
• March self-storage revenue up 8.5% y-y

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

“Despite the current deeply unsettled circumstances Lok'nStore has a resilient business model and a flexible and conservative debt structure. Our results for the first half of the financial year are robust. We have created a strong platform with revenue, cash flow and asset values all moving ahead and we are raising the interim dividend by 9.0% to 4 pence per share. We continued to bolster our new store pipeline to 16 sites which will significantly increase operating space over the coming years.

“With a strong balance sheet and low gearing helped by capital recycling, we will adjust to the current turbulence caused by the pandemic and when the economy stabilises we will continue to build more landmark stores in an under-supplied market leading to an exciting period of growth. This positions the Group well for the future”.

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