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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Lok'n Store Group Plc | LSE:LOK | London | Ordinary Share | GB0007276115 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
10.00 | 0.90% | 1,125.00 | 1,105.00 | 1,125.00 | 1,125.00 | 1,105.00 | 1,115.00 | 10,682 | 11:49:06 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Business Services, Nec | 28.96M | 4.69M | 0.1420 | 79.23 | 371.78M |
TIDMLOK
RNS Number : 5033W
Lok'nStore Group PLC
26 April 2021
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 2021
Unprecedented growth in occupied space drives strong trading performance, robust cash flow and an increased dividend
Highlights:
Strong trading
-- Group revenue GBP10.21 million up 13.9% (31.1.2020: GBP8.97 million) -- Group adjusted EBITDA(1) profit GBP5.5 million up 17.3% (31.1.2020: GBP4.7 million)
Cash flow growth drives interim dividend increase
-- Cash available for Distribution (CAD)(3) GBP3.49 million up 19.7% (31.1.2020: GBP 2.92 million)
-- Interim dividend 4.33 pence per share up 8.25% (31.1.2020: 4 pence per share)
Increasing net asset value
-- Adjusted Net Asset Value (NAV) per share(5) up 6.8% to GBP5.68 (31.1.2020: GBP5.32)
(31.7.2020: GBP5.56)
Secure balance sheet
-- GBP11.3 million cash at period-end (31.7.2020: GBP13.1 million) -- Net debt (excluding lease liabilities) GBP42.6 million (31.7.2020: GBP38.3 million) -- Loan to value ratio(6) 20.4% (31.7.2020: 19.3%) -- Average cost of debt 1.55 % (31.7. 2020: 1.69%)
Unprecedented occupancy growth
-- Occupied space up 24.7% since January 2020 -- Occupancy up from 67.1% to 81.6% of available space -- Store EBITDA Margins increased from 55.8% to 58.5% -- Store management fees GBP0.74 million up 87.5 % (31.1.2020: GBP0.39 million)
Active pipeline of new landmark stores (7)
-- Store pipeline of 13 sites will add 38% of new space over coming years -- 2 new stores opened (including Salford post-balance sheet) -- 2 new stores acquired (plus Basildon post-balance sheet) -- Building 4 new stores -- Chichester Managed Store acquired.
Commenting on the Group's results, Andrew Jacobs Chairman of Lok'nStore Group said,
"We continue to build our pipeline of prominent Landmark storage centres tapping in to deep latent demand for storage in the U.K and our store team members have worked tirelessly to provide great service to our customers. As a result, we have achieved an unprecedented growth in occupied space of 24.7% in the period and this has driven strong growth of revenue and profits" .
"We have added to our new store pipeline which increases operating space by 38% to over 2.5 million sq. ft. over the coming years. We opened our new Leicester store in August and our new Salford store after the period end. Construction is underway at our sites in Warrington, Stevenage and Wolverhampton . Continuing this exciting period of growth, our objective is to build more Landmark stores in an under-supplied market while remaining conservatively geared delivering sustainable growth and consistently increasing dividends. We are raising the interim dividend by 8.25% to 4.33 pence per share."
Enquiries: Lok'nStore: Andrew Jacobs, Chairman / Ray Davies, Finance Director 01252 521 010 finnCap Ltd Julian Blunt / Giles Rolls, Corporate Finance / Alice Lane, ECM 020 7220 0500
Camarco: Billy Clegg / Tom Huddart 0203 757 4980
Key Performance Indicators (KPIs))
What we mean when we say... (and why we use these Key Performance Indicators)
1. Group Adjusted EBITDA - Earnings before interest, tax, depreciation and amortisation - This measure strips away non-cash charges, finance charges and tax and now also reflects the removal of operating lease costs from operating expenses as a result of the implementation of IFRS 16. Group Adjusted EBITDA is defined as EBITDA before losses or profits on disposal, share-based payments, acquisition costs, exceptional items, finance income, finance costs and taxation.
2. Other income and expenditure items - refers to one-off items of a non-operational nature which arose during the year, often relating to asset disposals, and are unlikely to be recurring. (Refer Note 3(c) of the Interim Financial Statements).
3. CAD - Cash Available for Distribution - is calculated as Adjusted EBITDA less total net finance cost, less capitalised maintenance expenses, New Works Team costs and current tax. This measure is designed to give clarity to the capacity of the business to generate ongoing net operating cash that can be used to pay dividends to shareholders or pay down debt. The calculation of the Cash available for Distribution is set out in the Business and Financial Review.
4. Adjusted Total Assets - The value of adjusted total assets of GBP235.9 million (31.01.2020: GBP 213.9 million) (31.07.2020: GBP229.4 million) is calculated by adding the independent valuation of the leasehold
properties of GBP16.7 million (31.01.2020: 18.7 million) (31.07.2020: GBP16.7 million) less their corresponding net book value (NBV) GBP 3.5 million (31.01.2020: GBP3.8 million) (31.07.2020: GBP3.7 million) to the total assets in the Statement of Financial Position of GBP222.7 million (31.01.2020: GBP 199.0 million) (31.07.2020: GBP216.4 million). This provides clarity on the significant value of the leasehold stores as trading businesses which under accounting rules on operating leases are only presented at their book values within the Statement of Financial Position.
5. NAV - Net Asset Value per share - Adjusted net asset value per share is the net assets adjusted for the valuation of leasehold stores (properties held under property leases) and deferred tax divided by the number of shares at the year-end. The shares held in the Group's employee benefits trust and treasury shares are excluded from the number of shares. The calculation of the Net Asset Value per share is set out in the Business and Financial Review.
6. LTV - Loan to Value Ratio - measures the debt of the business expressed as a percentage of total property assets giving a perspective on the gearing of the business. The calculation is based on net debt (excluding IFRS 16 lease liabilities) of GBP42.6 million as set out in note 15 (31.01.2020: GBP31.9 million) (31.07.2020: GBP38.3 million) as a percentage of the total properties independently valued by JLL, the Directors valuation placed on the new Leicester store, and including development land assets all totalling GBP209.2 million (31.01.2020: GBP 185.6 million) (31.07.2020: GBP198.3 million) as set out in the Business and Financial Review in the Analysis of Total Property Value table.
7. Pipeline Sites - means sites for new stores that we have either exchanged contracts on or have agreed heads of terms and are progressing with our lawyers towards completion. We now have 13 pipeline sites of which 11 are contracted and 2 are currently with lawyers.
8. Adjusted Store EBITDA is Group Adjusted EBITDA (see 1 above) before the deduction of central and head office costs. Unlike Group Adjusted EBITDA this measure excludes the impact of IFRS16 and includes leasing charges as normal operating costs of each store. The measure is designed to give clarity on the recurring operating cash flow of the business and provides important information on the underlying performance of the trading stores and shows the cash generating core of the business. Use of this metric enables us to provide additional information on store EBITDA contributions (after leasing costs) and the margins analysed between freehold and leasehold stores and according to the age of the stores. This analysis is set out in a table in the Business and Financial Review .
9. Gearing - refers to the level of a company's debt related to its equity capital, usually expressed in percentage form. It is a measure of a company's financial leverage and shows the extent to which its operations are funded by lenders versus shareholders. Gearing can be measured by a number of ratios and we use the debt-to-equity ratio in this document. The calculation of the gearing percentage, also referred to as the net debt to equity ratio is set out in Note 15 of the Interim Financial Statements.
10. Group Adjusted EBITDAR - EBITDAR is Earnings before interest, tax, depreciation amortisation and rent. The measure is designed to give clarity on the effect of the rent payable by leasehold stores and how its elimination enables an analytical comparison between freehold stores operating performance (which do not pay rent) and leasehold stores operating performance. This analysis is set out in a table in the Business and Financial Review on page.
11. Cost Ratio - calculates the ratio of the total operating costs of the business as set out on page -- of the Business and Financial Review, expressed as a percentage of total group revenue (note 2), giving a perspective on the cost efficiency of the business when compared to the cost ratio of the previous year.
12. LFL- Like for Like - This measure is used to give transparency on improvements in the operating business unrelated to the opening of new stores or closure of old stores therefore giving visibility of the true trading picture. The like for like key performance measure is only used where its use is particularly relevant to illustrate a performance metric not otherwise apparent.
Chairman's Statement
I want to report to you on the excellent first half of the financial year to 31 January 2021.
The first half-year results can be summarised as:-
-- Unprecedented growth of occupied space across our stores -- Strong operating performance resulting in strong revenue and profit growth -- Store pipeline will increase trading space by 38% to 2.5 million sq.ft. -- Increased dividend
This is an impressive set of results with Lok'nStore continuing to deliver on our commitment to sustainable growth. The continued investor interest in the self-storage sector together with the corresponding market transactions underpins the value of our assets and our strategy to open more landmark stores.
The detail behind these results is discussed further in our Business and Financial Review.
Increased Dividend
Lok'nStore's dividend payments to shareholders reflect the growth in the underlying Cash Available for Distribution (CAD) which is up 20.0% on an annualised basis.
At this interim stage we will pay one third of the previous year's total annual dividend which equates to 4.33 pence per share, up 8.25 % on the 4 pence per share interim dividend last year. The increase in the interim dividend follows a consistent pattern of dividend growth reflecting the continued growth of the Group. The interim dividend will be paid on 11 June 2021 to shareholders on the register on 7 May 2021 . The ex-dividend date will be 6 May 2021. The final deadline for Dividend Reinvestment Election by investors is 21 May 2021. The final dividend will be declared when the Group's full year results are announced in late October 2021.
Investment in our stores
While we invested GBP9.6 million in sites and store development in this period, we are able to report a period end loan-to-value (LTV) ratio of only 20.4% (31.1.2020: 17.2%) (31.7.2020: 19.3%) and net debt of GBP42.6 million (31.1.2020: GBP31.9 million) (31.7.2020: GBP38.3 million).
The Group continues to find high quality sites for new Landmark stores. Trading at our new stores has been strong and t his underpins our confidence that our pipeline will add further momentum to sales and earnings growth, adding 38% more high quality trading space to our portfolio. We are on-site at four stores, all of which will be trading by the end of 2021.
Managed Stores
Our strategy includes increasing the number of stores we manage for third party owners. This enables the Group to earn revenue without having to commit capital, to amortise fixed central costs over a wider operating base and drive further traffic to our website which benefits our entire operation. We generated managed store income of GBP0.74 million this period, up 87.5% from the previous period supported by GBP0.3 million of supplementary non-recurring fees (Refer analysis of Management fees in the table below). Second half income will also benefit from additional fees from managed store development and planning success.
Managed store income is generated from our existing platform and central management, resulting in an effective margin from this activity of 100%. Our current pipeline of managed stores includes an additional 5 stores which will take the total number of managed stores to 16.
Our Objectives
Our strategic and operational objectives are to:
-- Steadily increase cash available for distribution (CAD) per share enabling a predictable growth of the dividend from a strong asset base with conservative levels of debt
-- Fill existing stores and improve pricing -- Acquire more sites to build new landmark stores -- Increase the number of stores we manage for third parties
Our People
We rely on the dedication of our people to deliver these impressive results and even more so now in these difficult circumstances. During the Covid-19 pandemic the dedication of our colleagues has shone through more than ever, allowing us to support our customers during this unprecedented period.
We will continue to invest in training to develop and deepen their skills. We have reviewed our pay levels to ensure that all of our employees are paid fairly and we continue to promote equity ownership to our colleagues via our Share Investment Plan and the granting of options.
We do this because it makes business sense and rewards staff for the contribution they make to our strategic and operational objectives.
Robust Capital Structure and Cash Flow
At 31 January 2021 the Group had cash balances of GBP11.3 million (31.7.2020: GBP13.1 million). The Group has a GBP75 million five year revolving credit facility which runs until April 2025. This provides sufficient liquidity for the Group's current needs. Undrawn committed facilities at the period-end amounted to GBP21.1 million. The Group is not obliged to make any repayments prior to its expiration in April 2025.
Cash inflow from operating activities before investing and financing activities was GBP6.6 million in the six months to 31 January 2021, up 9.8% from GBP6.2 million over the same period last year.
Debt, IFRS 16 and Bank Covenants
The average cost of bank debt on drawn facilities for the period was 1.55%. All of the Group's total drawn bank debt of GBP53.9 million is unhedged, which means we have benefited from the low bank lending rates.
Proforma interest cover based on the most recent quarter is in excess of 9 times. The banking covenants are set at 2.5 times. At the period end our loan-to-value ratio (LTV) based on net bank debt was 20.4% versus a bank covenant limit of 60% providing a large cushion against any potential falls in the valuation of the portfolio.
Both the Loan to Value and Senior Interest covenants continue to be tested excluding the effects of IFRS 16.
For this purpose, debt / LTV will continue to exclude Right of Use Assets and corresponding lease liabilities created by IFRS 16. Property lease costs (rents) will continue to be a deduction in the calculation of EBITDA, in accordance with the accounting principles in force prior to 1 January 2019, when testing the Senior Interest covenant.
Positive Outlook for Growth over short, medium and long term
Our first half results are very good and trading since the period end has remained very strong. The excellent occupancy gains gives us significant embedded pricing and margin opportunities over the second half and beyond. Our new store pipeline will add 38% more trading space over coming years.
With Lok'nStore's resilient business model and flexible and conservative debt structure the Board is confident the Group will continue to thrive under its proven and highly experienced management team and staff. We look to the future with confidence.
Andrew Jacobs
Executive Chairman
23 April 2021
Business and Financial Review
The Performance of our Stores
-- Self-storage revenue GBP9.5 million up 11.0% (31.1.2020: GBP8.5 million) -- Adjusted Store EBITDA GBP5.5 million up 17.3% (31.1.2020: GBP4.8 million) -- Unit occupied space increased 24.7% year on year -- Occupied units pricing decreased 2.6%
With operating costs under control, revenue growth translates into healthy profit growth. Total adjusted store EBITDA in the self-storage business, a key performance indicator of profitability and cash flow of the business, increased 17.3 % to GBP 5.5 million (31.01.2020: GBP 4.8 million).
Over the course of the year unit occupied space rose by a substantial 24.7 %, with occupancy rising from 67.1% to 81.6%.
In supporting our customers, we chose not to implement price increases to our existing customers throughout this period and unit pricing was down 2.6%. However, the strong occupancy gains realised in the first half gives us significant embedded pricing leverage and margin opportunity going forward.
The overall adjusted EBITDA margin across all stores increased to 58.5% from 55.8%.
As we build the Current Pipeline we will be operating from 53.2% freehold space, leasehold space will decline to 17.0% of space and managed stores will increase to 29.8% of total space operated. This shifting tenure structure will also have the effect of increasing overall margins.
Portfolio Analysis and Performance Breakdown
When Fully Developed Portfolio Analysis Number % of Property % of Adjusted % lettable Number Total and Performance of stores Valuation Adjusted Store space of stores % lettable Breakdown Store EBITDA space EBITDA Margin (%) ----------- -------------- ---------- --------- ----------- ----------- ------------ As at 31 January 2021 ----------- -------------- ---------- --------- ----------- ----------- ------------ Freehold Stores 16 77.7 77.4 64.4 48.8 23 53.2 ----------- -------------- ---------- --------- ----------- ----------- ------------ Leaseholds Stores 9 8.6 22.6 44.6 22.4 9 17.0 ----------- -------------- ---------- --------- ----------- ----------- ------------ Managed Stores 11 100.0 28.8 15 29.8 ----------- -------------- ---------- --------- ----------- ----------- ------------ Total stores trading 36 47 ----------- -------------- ---------- --------- ----------- ----------- ------------ Pipeline Stores (secured) ----------- -------------- ---------- --------- ----------- ----------- ------------ Owned 7 13.7 ----------- -------------- ---------- --------- ----------- ----------- ------------ Managed 4 ----------- -------------- ---------- --------- ----------- ----------- ------------
Total Stores 47 100 100 58.5 100 - 100 ---------------------- ----------- -------------- ---------- --------- ----------- ----------- ------------
In the Operating Performance table below, we show how the performance breaks down across the stores, based on the age of store. Older stores have had more time to fill-up and produce higher EBITDA returns.
As the business develops the balance of the stores continues to shift towards Landmark freehold stores and managed stores which have a higher than average adjusted store EBITDA margin. The impact of this will be to continue to increase the average store margin of the Group overall, and this effect is accentuated by operating more stores from a relatively fixed central cost base.
In this context the new stores in the pipeline will make a larger than average contribution to Group profits as they become established trading units.
Operating Performance at a glance (Lok'nStore freehold and leasehold stores only) *
Weeks Old Secured Under 100 to over 250 Total Pipeline 100 250 Six months ended 31 January 2021 ---------- ------- -------- --------- ---------- Sales GBP000 224 1,391 7,900 9,515 ---------- ------- -------- --------- ---------- Stores Adjusted EBITDA GBP'000 (10) 909 4,668 5,567 ---------- ------- -------- --------- ---------- Adjusted EBITDA Margin (4.4 (%) %) 65.3 % 59.1 % 58.5 % ---------- ------- -------- --------- ---------- Stores Adjusted EBITDAR GBP'000 (10) 909 5,435 6,334 ---------- ------- -------- --------- ---------- Adjusted EBITDAR Margin (4.4) (%) % 65.3 % 68.8 % 66.6 % ---------- ------- -------- --------- ---------- As at 31 January 2021 (sq. ft.) ---------- ------- -------- --------- ---------- Maximum Net Area 392,700 97,724 225,980 970,926 1,687,330 ---------- ------- -------- --------- ---------- Freehold ('000 sq. ft.) 392,700 97,724 225,980 536,315 1,252,719 ---------- ------- -------- --------- ---------- Short Leasehold (sq. ft.) - - - 434,611 434,611 ---------- ------- -------- --------- ---------- Number Stores ---------- ------- -------- --------- ---------- Freehold 7 2 4 10 23 ---------- ------- -------- --------- ---------- Short Leasehold - - - 9 9 ---------- ------- -------- --------- ---------- Total Stores 7 2 4 19 32 ----------------------------- ---------- ------- -------- --------- ----------
*Table excludes Managed Stores.
In respect of the Farnborough Store (over 250 weeks) the total store revenue includes a GBP50,000 contribution receivable from Group Head Office.
Ancillary Sales
Ancillary sales consisting of boxes, packaging materials, insurance and other sales increased to GBP1.1 million an increase of 15.5% year on year (31.01.20: GBP0.96 million) accounting for 11.7% of self-storage revenues.
Providing an important service to our Customers
Many of our customers are providing critical services distributing medical and other essential supplies. We include the NHS, GP surgeries, care and home support services and government departments amongst our customers. Storage, logistics and transport are important parts of the distribution network and as such were not selected for closure by the Government. All of our stores have remained open throughout the Pandemic.
Measures taken
At Lok'nStore the health and safety of our customers and colleagues is our principal priority.
Existing customers are able to access their storage without any face to face contact with our team members. Customers can still communicate with our friendly teams by telephone, email or live chat. New customers can access our reception area one at a time to ensure strict social distancing guidelines are followed.
Self-Storage is a service business but our facilities are not used intensively. Customer footfall is always comparatively low and our stores have few people in them at any given time.
Store properties and Net Asset Value
-- Adjusted total assets GBP235.9 million up 10.3% (31.1.2020: GBP213.9 million) -- Net Assets GBP123.4 million (31.1.2020: GBP116.7 million) -- Adjusted net asset value GBP 5.68 per share up 6.8 % (31.1.2020: GBP5.32) -- Investment in new stores GBP 9.6* million (31.1.2020: GBP4.7 million)
*Excludes capitalised Interest
At the period-end Lok'nStore had 36 freeholds, leasehold and managed stores trading. Of these, 25 stores are owned with 16 freeholds, 9 leasehold and 11 further sites operate under management contracts.
The average unexpired term of the Group's operating leaseholds is approximately 9 years as at 31 January 2021. All of our leasehold stores are inside the Landlord and Tenant Act providing us with a strong degree of security of tenure.
Growth from new stores and more new landmark stores to come
Lok'nStore's strong operating cash flow, solid asset base, and tactical approach to its store property portfolio provide the Group with opportunities to improve the terms of its property usage in all stages of the economic cycle. Our focus on the trading business gives us many opportunities and our property decisions are always driven by the requirements of the trading business.
-- 2 new stores acquired in period -- 2 new store opportunities identified and are progressing with lawyers
-- Total Pipeline of 13 stores (including 2 with lawyers) adds 37.9% of extra trading space to the overall portfolio, 34.3% to our owned portfolio and 46.8% to the managed portfolio.
Analysis of Stores No of Stores Stores Pipeline Pipeline Pipeline Trading Trading With As at 31 Jan 2021 Stores Lok'nStore Managed Total Secured lawyers --------------------------- ---------- ------------ --------- --------- --------- ------------- Freeholds 16 16 Leaseholds 9 9 Pipeline (Freehold) 7 7 7 Pipeline (Leasehold) 1 1 1 Managed Stores (Trading) 11 11 Managed Stores (Pipeline) 5 5 4 1 Total No. 49 25 11 13 11 2 ---------- ------------ --------- --------- --------- MLA sq. ft. 2,506,712 1,294,630 522,724 689,358 587,358 102,000 --------------------------- ---------- ------------ --------- --------- --------- -------------
Current contracted pipeline:
Basildon - Contract exchanged for a landmark leasehold store with planning permission granted above a major discount food retailer - Post balance sheet
Bedford - Planning application in process
Bournemouth - We have a Local Authority resolution to grant planning permission
Cheshunt - Planning application in process. We have signed an agreement to share this site with a discount food retailer mitigating our development costs and generating excellent footfall for the site.
Chester - Planning application in process
Kettering - Design in process
Peterborough - Design in progress
Salford - Opened 1(st) April 2021 post balance sheet
Stevenage - On site. Target opening date December 2021
Warrington - On site. Target opening date November 2021
Wolverhampton - On site. Target opening date December 2021
Other transactions
Chichester and Wolverhampton
On 29 January 2021, the Managed Store in Chichester was purchased by the Group for GBP4.025 million and the development site in Wolverhampton was simultaneously sold on a sale and manage-back for GBP1.52 million. (Refer Note 24).
Southampton
Our vacant property in Southampton, Hampshire was sold for GBP1.69 million eliminating over GBP150,000 p.a of residual costs.
Managed Stores
Our strategy includes increasing the number of stores we manage for third party owners. This enables the Group to earn revenue without having to commit our capital, to amortise fixed central costs over a wider operating base and drive further traffic to our website which benefits our entire operation.
During the period the Group purchased the Chichester Managed Store, following which we have eleven stores under management contracts trading as at 31 January 2021. Development works have commenced at Stevenage and Wolverhampton, with Chester and Kettering in the design stage.
For managed stores Lok'nStore receives a standard monthly management fee, a performance fee based on certain objectives and fees on a successful exit. We also charge acquisition, planning and branding fees. This allows Lok'nStore to earn revenue from our expertise and knowledge of the self-storage industry without committing our capital. We can amortise various fixed central costs over a wider operating base and drive more visits to our website moving it up the internet search rankings and benefitting all of the stores we both own and manage.
This strategy improves the risk adjusted return of the business by increasing the operating footprint, revenues and profits without committing capital. There is a strong correlation between the total management fee income and the number of stores under management
We generated managed store income of GBP737,946 in this period, up 87.5% compared to the same period last year. (31.01.2020: GBP393,459). We expect this to continue increasing steadily over the coming years as more managed stores are opened. Recurring fees increased by 10.5% over last year. Second half income will include additional fees from store opening and planning success. Managed store income is generated from our existing platform and central management, resulting in an effective margin from this activity of 100%.
Percentage Group Group Group Management fees Increase Period ended Period ended Year ended 31 January 31 January 31 July 2021 2020 2020 % GBP GBP GBP ------------------------------- ----------- -------------- ---------------- ------------ Recurring fees Base management fees 257,072 237,581 434,345 Administration and compliance fees 31,000 25,000 53,638 Enhanced Management fees 146,547 130,878 243,315 ----------- -------------- ---------------- ------------ Recurring fees - Sub-total 10.5% 434,619 393,459 731,298 Construction & Advisory fees - - 45,000 Supplementary fees 303,327 - 215,000 ------------------------------- ----------- -------------- ------------ Non-recurring fees 303,327 - 260,000 ------------------------------- ----------- -------------- ---------------- ------------ Total management fees 87.5% 737,946 393,459 991,298 ------------------------------- ----------- -------------- ---------------- ------------
Summary - Flexible approach to site acquisition
We continue our strategy of actively managing our portfolio to ensure we are maximising both trading potential and asset value. This includes strengthening our distinctive brand, increasing the size and number of our stores and replacing stores or sites where it will increase shareholder value. We prefer to own freeholds if possible, and where opportunities arise, we will seek to acquire the freehold of our leasehold stores. However, we are happy to take leases on appropriate terms and benefit from the advantages of a lower entry cost, with further options to create value later. Our most important consideration is always the trading potential of the store rather than the type of property tenure.
We have 13 new stores in our Current Pipeline (7) . All are in prominent locations with large catchment areas and little established competition and demonstrate the Company's ability to source high quality sites adding to future sales and earnings growth. Once developed, these eye-catching buildings, with their distinctive orange Lok'nStore branded livery and prominent signage, create highly visible landmarks, which continue to be a significant source of new customers.
Financial results
-- Group Revenue GBP10.21 million up 13.9% (31.1.2020: GBP8.97 million) -- Group Adjusted EBITDA(1) GBP5.5 million up 17.3% (31.1.2020: GBP4.72 million) -- Loan to value (net of cash) 20.4% (31.1.2020: 17.2%) (31.7.2020: 19.3%)
-- Cash available for Distribution (CAD)(3) GBP3.49 million up 19.7% (31.1.2020: GBP 2.92 million)
-- Interim dividend up 8.25% to 4.33 pence per share (31.1.2020: 4.0 pence per share) -- Cash balance GBP11.3 million (31.1.2020: GBP11.0 million) (31.7.2020: GBP13.1 million)
Lok'nStore is a robust business which generates an increasing cash flow from its strong asset base with a low LTV of 20.4% and a low average cost of debt of 1.55%. The value of the Group's assets underpins a flexible business model with stable and rising cash flows and low credit risk giving the business a firm base for growth.
Management of interest rate risk
-- Average cost of debt 1.55% (31.1.2020: 2.21%) (31.7.2020: 1.69%)
With GBP 53.9 million of gross debt currently drawn against the GBP 75 million bank facility the Group is not committed to enter into hedging instruments but continues to keep the matter under review. It is not the intention of the Group to enter into an interest rate hedging arrangement at this time given our low level of net debt, low loan to value ratio and high interest cover and the Group has continued to benefit from low lending rates.
Taxation
The Group has made a current tax provision against earnings in this period of GBP0.58 million (31.1.2020: GBP0.40 million) based on a corporation tax rate of 19% ( 31.1.2020: 19%). The deferred tax provision which is calculated at forward corporation tax rates of 19% and is substantially a tax provision against the potential crystallisation (sales) of revalued properties and past 'rolled over' gains amounts to GBP27.0 million ( 31.1.2020: GBP22.5 million) (31.7.2020: GBP26.8 million). (See Note 17).
Earnings per share
Basic earnings per share were 7.89 pence ( 31.1.2020: 5.74 pence per share) and diluted earnings per share were 7.76 pence (31.1.2020: 5.63 pence per share).
Six months Six months ended ended Year ended 31 January 2021 31 January 31 July 2020 Unaudited 2020 Audited Unaudited ------------------------------------------- ------------ --------------- Basic Total basic earnings per share 7.89p 5.74p 10.26p ----------------------------------- ------ ------------ --------------- Diluted Total diluted earnings per share 7.76p 5.63p 10.08p ----------------------------------- ------ ------------ ---------------
Costs - Continuing Operations
-- Group operating costs (excluding retail cost of sales) amounted to GBP4.57 million for the period (31.1.2020: GBP4.16 million).
-- Cost ratio(11) reduced further to 44.8% (31.1.2020: 46.4%) (31.7.2020: 45.8%)
We have a strong record of disciplined control of our group operating costs. In the period operating costs were up 9.9% year on year as we opened new landmark stores and paid substantial performance related bonuses to the store teams for rapid occupancy growth. We provide a breakdown below. Overall, the cost ratio continues to decrease as we grow revenue and bear down on costs.
Future cost increases are likely to be driven by the expansion of the business in the areas of rates, staffing and marketing. Overall cost increases are mainly driven by the expansion of the business and we are seeing little other cost pressures.
Property costs which mainly constitute rent and rates have risen in recent years as we felt the effects of higher rates bills and as we opened our new landmark stores.
Staff costs increased by 12.7% as we staffed the new stores and paid performance bonuses to all our store colleagues resulting from the excellent revenue growth. We also incurred additional national insurance costs arising on these performance bonuses and the exercise of employee share options.
Group Operations Increase Six months Six months Year (decrease) ended 31 ended 31 ended 31 in costs Jan Jan July % 2021 2020 2020 GBP'000 GBP'000 GBP'000 ------------------------- ------------ ----------- ----------- ---------- Property costs 7.1% 2,309 2,157 4,392 Adjustment for property lease rentals 6.7% (769) (720) (1,467) ------------------------- ------------ ----------- ----------- ---------- Restated property and premises costs 7.2% 1,540 1,437 2,925 Staff costs 12.7% 2,424 2,151 4,196 Overheads 6.3% 608 572 1,139 Total 9.9% 4,572 4,160 8,260 ------------------------- ------------ ----------- ----------- ----------
Cash flow and financing
At 31 January 2021 the Group had cash balances of GBP11.3 million ( 31.1.2020: GBP11.0 million) (31.7.2020: GBP13.1 million). Cash inflow from operating activities before investing and financing activities was GBP6.6 million (31.1.2020: GBP6.2 million).
As well as using cash generated from operations to fund some capital expenditure, the Group has a GBP75 million five year revolving credit facility which runs until April 2025. This provides sufficient liquidity for the Group's current needs. Undrawn committed facilities at the period-end amounted to GBP21.1 million ( 31.1.2020: GBP32.0 million) (31.7.2020: GBP23.7 million).
Cash plus undrawn committed facilities amounts to GBP32.4 million leaving the business with plenty of headroom to keep acquiring and building new landmark stores. The bank facility has a further GBP25 million accordion not yet committed.
Cash available for Distribution (CAD) up 19.7 %
Cash available for Distribution (CAD) provides a clear picture of ongoing cash flow available for dividends or debt repayment. The CAD was up 19.7 % in the period compared to the corresponding period last year.
Cash available for Distribution (CAD) per share (annualised) was up 20% to 24.17 pence ( 31.1. 2020 : 20.15 pence).
To illustrate this fully the table below shows the calculation of CAD.
Analysis of Cash Available for Distribution (CAD) Period ended Period ended Year ended 31 January 31 January 31 July 2020 2021 2020 GBP'000 GBP'000 GBP'000 ------------------- -------------- Group Adjusted EBITDA (per Statement of Comprehensive Income) 5,540 4,723 9,654 Adjustment for property lease rentals (769) (720) (1,468) Net finance costs paid(1) (484) (560) (1,046) Capitalised maintenance expenses (169) (80) (110) New Works Team (42) (41) (89) Current tax (note 7) (583) (403) (768) ------------------- -------------- --------------- Total deductions (2,047) (1,804) (3,481) ------------------- -------------- --------------- Cash Available for Distribution 3,493 2,919 6,173 ------------------- -------------- --------------- Increase in CAD over last year 19.7% 4.8% 12.5% Number Number Number Closing shares in issue (less shares held in EBT and treasury) 28,903,100 28,970,001 29,010,078 CAD per share (annualised) 24.17p 20.15p 21.28p Increase in CAD per share over last year 20.0% 4.7% 12.3% ----------------------------------- ------------------- -------------- ---------------
(1) Net finance costs represent finance costs paid per the cash flow statement of GBP0.48 million less bank interest received to give the true cash flow effect.
Gearing 9 ( excluding IFRS16 lease liabilities)
At 31 January 2021 the Group had GBP53.9 million of gross bank borrowings ( 31.1.2020: GBP43.0 million) (31.7.2020: GBP51.3 million) representing gearing of 34.9% (31.1.2020: 27.2%) (31.7.2020: 31.3%) on net debt of GBP42.6 million (31.1.2020: GBP31.9 million) (31.7.2020: GBP38.3 million). After adjusting for the uplift in value of short leaseholds which are stated at depreciated historic cost in the statement of financial position, gearing is 32.5% (31.1.2020: 24.2%) (31.7.2020: 28.3%). After adjusting for the deferred tax liability carried at period end of GBP27.0 million gearing drops to 27.0% (31.1.2020: 20.7%) (31.7.2020: 23.6%).
Gearing 9 ( including IFRS16 lease liabilities)
At 31 January 2021 the Group had GBP53.9 million of gross bank borrowings ( 31.1.2020: GBP43.0 million) (31.7.2020: GBP51.3 million) and GBP11.8 million of lease liabilities (31.1.2020: GBP12.3 million) (31.7.2020: GBP12.5 million) representing gearing of 44.6% (31.1.2020: 37.9%) (31.7.2020: 41.8%) on net debt of GBP54.5 million (31.1.2020: GBP44.2 million) (31.7.2020: GBP50.7 million). After adjusting for the uplift in value of short leaseholds which are stated at depreciated historic cost in the statement of financial position, gearing is 41.8 % (31.1.2020: 33.6%) (31.7.2020: 37.7%). After adjusting for the deferred tax liability carried at period end of GBP27.0 million gearing drops to 34.6% (31.1.2020: 28.7%) (31.7.2020: 31.5%).
Capital expenditure
The Group has an active new store development programme. The Group has grown through a combination of building new stores, existing store improvements and relocations. We have concentrated on extracting value from existing assets and developing through collaborative projects and management contracts.
Capital expenditure during the period totalled GBP9.8 million ( 31.1.2020: GBP4.9 million). This was primarily the purchase of the Warrington site, the purchase of the existing Chichester managed store for GBP4.0 million and exchange contract deposits paid on the Peterborough site, together with ongoing construction and fit out works at our sites in Salford, and Warrington, final costs on Leicester prior to opening, as well as planning and pre-development works at our Bedford, Bournemouth, Chester and Cheshunt sites. The figure includes GBP190,655 of capitalised interest (31/01/20: GBP223,163) (31/07/20: GBP382,190).
Market Valuation of Freehold and Operating Leasehold Land and Buildings
On 31 July 2020 professional valuations were prepared by Jones Lang LaSalle (JLL) for fifteen freeholds and eight operating leasehold properties. This valuation has been adopted for the 31 January 2021 period-end after adjusting for additions and disposals since the 31 July 2020 year-end. The valuation was prepared in accordance with the RICS Valuation - Professional Standards, published by The Royal Institute of Chartered Surveyors (the "Red Book"). The valuation has been provided for accounts purposes and, as such, is a Regulated Purpose Valuation as defined in the Red Book.
Although the Board did not commission an external valuation at this interim period-end it is mindful of the need to accord with the measurement principles of International Financial Reporting Standards. Accordingly, after consulting with our external valuers, the Directors considered that the self-storage transactional market has shown good levels of liquidity and continued investor interest and whilst there has been continued market activity in the self-storage sector since July 2020, the Directors considered that there had not been such a material movement in market yields that warranted a modification to the position as at 31 January 2021 in respect of our properties externally valued at 31 July 2020. The Directors therefore consider that it is appropriate to maintain the portfolio's external valuation without modification pending a comprehensive external valuation at our 31 July 2021 year-end.
The new Leicester store
We opened the new Leicester Store in early August 2020. Since it was not open at the Group's previous year-end, in accordance with the group's policy it was not independently valued at 31 July 2020. The 57,500 sq. ft. store is in a highly prominent location opposite a major food retailer in the heart of Leicester's busy retail district and the store's early trading has been strong. Accordingly, and in line with the requirement to fair value the group's store assets the Directors' have used the group's internal valuation model to uplift the current book value of GBP7.4 million to a fair value of GBP10.0 million resulting in a GBP2.6 million uplift. (Refer table below).
The Model assumptions are as follows:
-- Revenue inputs come from our standard budget model -- Costs have been derived from an average of P&L costs.
-- A standard 6% central management fee is applied, which is consistent with the central management fees applied by JLL in their valuation model
-- We have applied our standard 6% exit yield and 8% discount rate within our model for new Landmark stores. This is broadly in line with exit yield and discount rate applied by JLL at July 2020 for similar stores
Valuations
A deferred tax liability arises on the revaluation of the properties and on the rolled-over gain arising from the disposal of some properties. It is not envisaged that any tax will become payable in the foreseeable future on these disposals due to the availability of rollover relief.
It is not the intention of the Directors to make any significant disposals of trading stores, although individual disposals may be considered where it is clear that value can be added by recycling the capital into other opportunities. The Board will continue to commission independent valuations on its trading stores annually to coincide with its year-end reporting.
The valuations of our freehold property assets are included in the Statement of Financial Position at their fair value. The value of our leasehold stores in the valuation totals GBP16.7 million (31.1.2020: GBP18.7 million) but are held at cost in the Statement of Financial Position.
We have reported by way of a note the underlying value of these leasehold stores in revaluations and adjusted our Net Asset Value (NAV) calculation accordingly to include their value. This ensures comparable NAV calculations .
Analysis of Total Property Value
No No of 31 Jan 2021 of 31 Jan No of 31 July stores Valuation stores 2020 Valuation stores 2020 Valuation /sites GBP'000 /sites GBP'000 /sites GBP'000 -------- ------------ -------- ---------------- -------- ---------------- Freehold and long leasehold (3) valued by JLL (1) 15 151,675 15 144,000 15 151,675 Leasehold valued by JLL (2) 8 16,725 8 18,725 8 16,725 Chichester Leasehold valued by JLL (3) 1 4,025 - - - - -------- ---------------- -------- ---------------- Subtotal 24 172,425 23 162,725 23 168,400 Sites in development at cost (4) 10 26,787 10 22,846 10 29,885 -------- ------------ -------- ---------------- -------- ---------------- Subtotal 34 199,212 33 185,571 33 198,285 Freehold store at Director valuation (5) 1 10,000 - - - - -------- ------------ -------- ---------------- -------- ---------------- Subtotal (6) 35 209,212 33 185,571 33 198,285 Freehold land & Buildings at Director valuation - - 1 2,467 1 1,931 Total 35 209,212 34 188,038 34 200,216 -------- ------------ -------- ---------------- -------- ---------------- (1) Includes related fixtures and fittings (refer note 10)
(2) The eight leaseholds valued by JLL are all within the terms of the Landlord and Tenant Act (1954) giving a degree of security of tenure. The average length of the leases on the leasehold stores valued was 9 years and 7 months at the date of the 2020 valuation.
(3) Chichester store acquired during the period at JLL valuation of GBP4.025 million.
(4) Includes GBP 190,655 of capitalised interest during the period. (31/01/20: GBP223,163) (31/07/20: GBP382,190).
(5) Leicester store opened during the period and valued at a Directors' valuation of GBP10.0 million.
(6) Loan to value calculation based on these property values.
Total freehold properties account for 9 0.1 % of all property values (31.1.2020: 90.0%).
Adjusted Net Asset Value per Share
Adjusted net assets per share are the net assets of the Group adjusted for the valuation of leasehold stores and deferred tax divided by the number of shares at the period-end. The shares currently held in the Group's employee benefits trust (own shares held) and in treasury are excluded from the number of shares.
At 31 January 2021 the adjusted net asset value per share increased to GBP5.68 from GBP5.32 year on year, up 6.8%. This increase is a result of cash generated from operations , offset in part by dividend payments and an increase in the shares in issue due to the exercise of share options during the year.
31 Jan 31 Jan 31 July 2021 2020 2020 Analysis of net asset value (NAV) GBP'000 GBP'000 GBP'000 Unaudited Unaudited Audited ------------------------------------------ ------------ ----------- ----------- Net assets 123,432 116,746 121,382 Adjustment to include operating/short leasehold stores at valuation Add: JLL leasehold valuation 16,725 18,725 16,725 Deduct: leasehold properties and their fixtures and fittings at NBV (3,571) (3,851) (3,707) ------------------------------------------ ------------ ----------- ----------- 136,586 131,620 134,400 ------------------------------------------ ------------ ----------- ----------- Deferred tax arising on revaluation of leasehold properties(1) (2,500) (2,529) (2,473) ------------------------------------------ ------------ ----------- ----------- Adjusted net assets 134,086 129,091 131,927 ------------------------------------------ ------------ ----------- ----------- Number Number Number Shares in issue '000 '000 '000 ------------------------------------------ ------------ ----------- ----------- Opening shares in issue 29,633 29,584 29,584 Shares issued for the exercise of options 20 9 49 ------------------------------------------ ------------ ----------- ----------- Closing shares in issue 29,653 29,593 29,633 Shares held in EBT (623) (623) (623) Shares held in treasury (127) - - ------------------------------------------ ------------ ----------- ----------- Closing shares for NAV purposes 28,903 28,970 29,010 ------------------------------------------ ------------ ----------- ----------- Adjusted net asset value per share GBP4.64 GBP4.46 GBP4.55 after deferred tax provision ------------------------------------------ ------------ ----------- ----------- Adjusted net asset value per share before deferred tax provision Adjusted net assets 134,086 129,091 131,927 Deferred tax liabilities and assets recognised by the Group 27,479 22,487 26,760 Deferred tax arising on revaluation of leasehold properties(1) 2,500 2,529 2,473 ------------------------------------------ ------------ ----------- ----------- Adjusted net assets before deferred tax 164,065 154,107 161,160 ------------------------------------------ ------------ ----------- ----------- Closing shares for NAV purposes 28,903 28,970 29,010 ------------------------------------------ ------------ ----------- ----------- Adjusted net asset value per share GBP5.68 GBP5.32 GBP5.56 before deferred tax provision ------------------------------------------ ------------ ----------- -----------
(1) A deferred tax adjustment in respect of the uplift in the value of the leasehold properties has been included. Although this is a memorandum adjustment as leasehold properties are included in the Group's financial statements at cost and not at valuation, this deferred tax adjustment is included in the adjusted net asset value calculation in order to maintain a consistency of tax treatment between freehold and leasehold properties.
Corporate and Social Responsibilities
Lok'nStore conducts its business in a manner that reflects honesty, integrity and ethical conduct. We believe that the long-term success of the business is best served by respecting the interests of all our stakeholders. Management of social, environmental and ethical issues is of high importance to Lok'nStore. These issues are dealt with on a day-to-day basis by the Group's managers with principal accountability lying with the Board of Directors. We look for opportunities to address our responsibility to the environment, and we pay close attention to our energy use, carbon dioxide emissions, water use and waste production. At each year-end Lok'nStore commissions a full assessment of the Group's environmental impact.
Customers
We believe in clarity and transparency towards our customers. Brochures and literature are written in plain English, explaining clearly our terms of business without hiding anything. We are open and honest about our products and services and do not employ pressure selling techniques or attempt to take advantage of any vulnerable groups. If we make a mistake, we acknowledge it, deal with the problem quickly, and learn from our error. We listen to our customers as we know that they can help us improve our service to them.
Covid-19 events continue to move at a fast pace but our objective is to continue to keep our stores open so that our business customers in particular can continue to operate. Many of them are providing critical services distributing medical and other essential supplies. We include the NHS, GP surgeries, care and home support services and government departments amongst our customers. All of our stores remain open.
Neil Newman Ray Davies Managing Director Finance Director
Consolidated Statement of Comprehensive Income
For the six months ended 31 January 2021
Notes Six months Six months Year ended ended ended 31 July 31 January 31 January 2020 2021 20120 Audited Unaudited Unaudited GBP'000 GBP'000 GBP'000 -------------------------------------- ------ ------------ ------------ ----------- Revenue 2 10,211 8,966 18,041 Total property, staff, distribution and general costs 3a (4,671) (4,243) (8,387) -------------------------------------- ------ ------------ ------------ ----------- Adjusted EBITDA(1) 5,540 4,723 9,654 -------------------------------------- ------ ------------ ------------ ----------- Depreciation 6 (1,900) (1,829) (3,779) Equity settled share based payments (67) (41) (88) -------------------------------------- ------ ------------ ------------ ----------- (1,967) (1,870) (3,867) Loss on sale of land 3(c) (135) - - -------------------------------------- ------ ------------ ------------ ----------- (2,102) (1,870) (3,867) Operating profit 3,438 2,853 5,787 Finance income 4 - 16 29 Finance cost 5 (510) (563) (1,126) -------------------------------------- ------ ------------ ------------ ----------- Profit before taxation 2,928 2,306 4,690 Income tax expense 7 (642) (642) (1,716) Profit for the period 2,286 1,664 2,974 -------------------------------------- ------ ------------ ------------ ----------- Profit attributable to: Owners of the parent 20 2,286 1,664 2,974 Other Comprehensive Income Items that will not be reclassified to profit and loss Increase in property valuation 3,596 631 8,849 Deferred tax relating to change in property valuation (683) (107) (3,602) ----------- 2,913 524 5,247 Items that may be subsequently reclassified to profit and loss Other comprehensive income 2,913 524 5,247 -------------------------------------- ------ ------------ ------------ ----------- Total comprehensive income for the period 5,199 2,188 8,221 -------------------------------------- ------ ------------ ------------ ----------- Attributable to owners of the parent 5,199 2,188 8,221 -------------------------------------- ------ ------------ ------------ -----------
Consolidated Statement of Comprehensive Income
For the six months ended 31 January 2021
Earnings per share attributable Six months Six months Year to owners of the Parent ended ended ended 31 January 31 January 31 July 2021 2020 2020 Notes Unaudited Unaudited Audited ---------------------------------- -------- ------------ ------------------------------------------- --------- Earnings per share Basic Total basic earnings per share 9 7.89p 5.74p 10.26p ---------------------------------- -------- ------------ ------------------------------------------- --------- Earnings per share Diluted Total diluted earnings per share 9 7.76p 5.63p 10.08p ---------------------------------- -------- ------------ ------------------------------------------- ---------
Consolidated Statement of Changes in Equity
For the six months ended 31 January 2021
Attributable to owners of the Parent
Share Share Other Revaluation Retained Total capital premium reserves reserve earnings equity GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- 1 August 2019 - Audited 296 10,490 8,357 71,106 26,301 116,550 Profit for the period - - - - 1,771 1,771 Other comprehensive income Increase in property valuation net of deferred tax - - - 524 - 524 Total comprehensive income for the year - - - 524 1,771 2,295 ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Transactions with Owners Dividend paid - - - - (2,413) (2,413) Share based payments - - 41 - - 41 Transfers in relation to share based payments - - (5) - 5 - Deferred tax credit relating to share options - - 245 - - 245 Exercise of share options - 28 - - - 28 ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Total transactions with owners - 28 281 - (2,408) (2,099) ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Reserve transfer on disposal of assets - - - - - - Transfer additional dep'n on revaluation net of deferred tax - - - (154) 154 - 31 January 2020 - Unaudited 296 10,518 8,638 71,476 25,818 116,746 ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Profit for the period (restated) - - - - 1,203 1,203 Other comprehensive income Increase in property valuation net of deferred tax - - - 4,723 - 4,723 ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Total comprehensive income for the year - - - 4,723 1,203 5,926 ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Transactions with Owners Dividend paid - - - - (1,159) (1,159) Share based payments - - 47 - - 47 Transfers in relation to share based payments - - (9) - 9 - Deferred tax credit relating to share options - - (221) - - (221) Exercise of share options 1 42 - - - 43 ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Total transactions with owners 1 42 (183) - (1,150) (1,290) ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Reserve transfer on disposal - - - of assets - - - Transfer additional dep'n on revaluation net of deferred - tax - - - (224) 224 -
------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- 31 July 2020 - Audited 297 10,560 8,455 75,975 26,095 121,382 ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Profit for the period - - - - 2,286 2,286 Other comprehensive income Increase in property valuation net of deferred tax - - - 2,913 - 2,913 ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Total comprehensive income for the year - - - 2,913 2,286 5,199 ------------------------------------ ------------ --------- ---------- ------------ Transactions with Owners Dividend paid - - - - (2,612) (2,612) Share based payments - - 67 - - 67 Transfers in relation to share - - - - - based payments - Deferred tax credit relating to share options - - 24 - - 24 Purchase of shares for treasury - - - - (693) (693) Exercise of share options - 65 - - - 65 Total transactions with owners - 65 91 - (3,305) (3,149) ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- Transfer additional dep'n on revaluation net of deferred tax - - - (189) 189 - ------------------------------------ ------------ --------- ---------- ------------ ---------- -------------- 31 January 2021 - Unaudited 297 10,625 8,546 78,699 25,265 123,432 ------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Consolidated Statement of Financial Position
31 January 2021
31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited Notes GBP'000 GBP'000 GBP'000 ------------------------------- ------ ------------------- -------------------------------- ----------- Assets Non-current assets Property, plant and equipment 10 196,107 173,245 187,258 Financial assets 361 361 361 Right of use assets 11 11,137 11,750 11,764 ------------------------------- ------ ------------------- -------------------------------- ----------- 207,605 185,356 199,383 ------------------------------- ------ ------------------- -------------------------------- ----------- Current assets Inventories 12 335 363 270 Trade and other receivables 13 3,514 2,301 3,628 Cash and cash equivalents 11,297 11,023 13,066 ------------------------------- ------ ------------------- -------------------------------- ----------- Total current assets 15,146 13,687 16,964 ------------------------------- ------ ------------------- -------------------------------- ----------- Total assets 222,751 199,043 216,347 ------------------------------- ------ ------------------- -------------------------------- ----------- Liabilities Current liabilities Trade and other payables 14 (6,034) (4,728) (4,676) Lease liabilities (1,335) (1,257) (1,298) Taxation (583) (402) (368) (7,952) (6,387) (6,342) ------------------------------- ------ ------------------- -------------------------------- ----------- Non-current liabilities Borrowings 16a (53,398) (42,398) (50,705) Lease liabilities 16b (10,490) (11,025) (11,158) Deferred tax 17 (27,479) (22,487) (26,760) ------------------------------- ------ ------------------- -------------------------------- ----------- (91,367) (75,910) (88,623) ------------------------------- ------ ------------------- -------------------------------- ----------- Total liabilities (99,319) (82,297) (94,965) ------------------------------- ------ ------------------- -------------------------------- ----------- Net assets 123,432 116,746 121,382 ------------------------------- ------ ------------------- -------------------------------- ----------- Equity Equity attributable to owners of the parent Called up share capital 18 297 296 297 Share premium 10,625 10,518 10,560 Other reserves 19 8,546 8,638 8,455 Retained earnings 20 25,265 25,818 26,095 Revaluation reserve 78,699 71,476 75,975 ------------------------------- ------ ------------------- -------------------------------- ----------- Total equity 123,432 116,746 121,382 ------------------------------- ------ ------------------- -------------------------------- -----------
Approved by the Board of Directors and authorised for issue on 23 April 2021 and signed on its behalf by:
Andrew Jacobs Ray Davies Executive Chairman Finance Director
Consolidated Statement of Cash Flows
For the six months ended 31 January 2021
Six months Six months Year ended ended ended 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited Notes GBP'000 GBP'000 GBP'000 --------------------------------------------- ------ ----------------- --------------------- ----------- Operating activities Cash generated from operations 22a 6,777 6,172 9,700 Income tax paid (225) (475) (893) ----------- Net cash from operating activities 6,552 5,697 8,807 Investing activities Proceeds of sale of development 1,509 - - land (net of disposal costs) Proceeds of sale of land at Southampton 1,676 - - (net of disposal costs) Purchase of property, plant and equipment 10 (9,627) (4,671) (11,628) Interest received - 16 29 --------------------------------------------- ------ --------------------- ----------- Net cash used in investing activities (6,442) (4,655) (11,599) --------------------------------------------- ------ ----------------- --------------------- ----------- Financing activities Proceeds of bank borrowings utilised for store development 2,614 - 8,351
Finance costs paid on bank refinancing - - (113) Finance costs paid (484) (576) (1,074) Lease liabilities paid (769) (720) (1,467) Equity dividends paid (2,612) (2,413) (3,572) Purchase of shares for treasury (693) - - Proceeds from issuance of ordinary shares (net) 65 28 71 Net cash (used in) / from financing activities (1,879) (3,681) 2,196 Net decrease in cash and cash equivalents in the period (1,769) (2,639) (596) Cash and cash equivalents at beginning of the period 13,066 13,662 13,662 --------------------------------------------- ------ ----------------- --------------------- ----------- Cash and cash equivalents at end of the period 11,297 11,023 13,066 --------------------------------------------- ------ ----------------- --------------------- -----------
Accounting Policies
General Information
Lok'nStore Group plc is an AIM listed company incorporated and domiciled in England and Wales. As required, further information is available in the investor section of the Company's website at http://www.loknstore.co.uk.The address of the registered office is One Fleet Place, London, EC4M 7WS, UK. Copies of this Interim Report and Accounts may be obtained from the Company's head office at 112 Hawley Lane, Farnborough, Hants, GU14 8JE or from the investor section of the Company's website at http://www.loknstore.co.uk .
Basis of preparation
The interim results for the six months ended 31 January 2021 have been prepared on the basis of the accounting policies expected to be used in the 2021 Lok'nStore Group Plc Annual Report and Accounts and in accordance with the recognition and measurement principles of International Accounting Standards in conformity with the requirements of the Companies Act 2006.
The interim financial statements present the Statement of Comprehensive Income, Statement of Financial Position, financial performance and cash flows of the Group as a significant lessee in respect of our leased stores. The right to use the property lease is recognised as a Right of Use Asset and there is a corresponding financial liability to pay rentals on all of the property lease contracts. This is summarised in note 1 of the financial statements below.
The same accounting policies, presentation and methods of computation are followed in these interim condensed set of financial statements as have been applied in the Group's latest annual audited financial statements.
The interim results, which were approved by the Directors on 23 April 2021, are unaudited. The interim results do not constitute statutory financial statements within the meaning of section 434A of the Companies Act 2006.
Comparative figures for the year ended 31 July 2020 have been extracted from the statutory accounts for the Group for that period, which carried an unqualified audit report, did not include a reference to any matters to which the auditor drew attention by way of emphasis of matter, did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and have been delivered to the Registrar of Companies.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (and its subsidiaries). Control is achieved where the Company has power over the investee, exposure or rights to variable returns from the investee and the ability to use its power to vary those returns.
Intra-group transactions, balances, and unrealised gains and losses on transactions between Group companies are eliminated on consolidation, except to the extent that intra-group losses indicate an impairment.
Going concern
The Directors can report that, based on the Group's budgets and financial projections, they have satisfied themselves that the business is a going concern. The Board has a reasonable expectation that the Company and the Group have adequate resources and facilities to continue in operational existence for the foreseeable future based on Group cash balances and cash equivalents of GBP11.3 million (31.07.2020: GBP11.0 million), undrawn committed bank facilities at 31 January 2021 of GBP21.1 million (31.07.2020: GBP 32.0 million), and cash generated from operations in the period to 31 January 2021 of GBP6.8 million (31.01.2020: GBP6.2 million) (31.07.2020: GBP9.7 million).
The Group currently operates a GBP75 million five year revolving credit facility with Royal Bank of Scotland plc and Lloyds Bank plc with a further GBP25 million accordion at the Banks' option taking the facility to GBP100 million which will provide funding for new landmark site acquisitions and working capital to support the Group's ambitious growth plans .
The Group is fully compliant with all bank covenants and undertakings and is not obliged to make any repayments prior to expiration. The facility expires in April 2025.
The robust capital structure, cash flow and financing and the performance of the business are reported in the Chairman's Statement . The interim financial statements are therefore prepared on a going concern basis.
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) is defined as profits from operations before all depreciation and amortisation charges, share-based payments and other non-recurring costs, finance income, finance costs and taxation.
Notes to the Financial Statements
For the six months ended 31 January 2021
1 The Group's Property Leases
IFRS 16 was adopted in the year ended 31 July 2020 using the full retrospective method.
The Group accounts for the value of its property leases on the balance sheet by the recognition of a Right of Use Asset (the right to use the leased item) and a corresponding financial liability to pay rentals due under the property lease term. This treatment relates to the Groups property leases. The Group has no leases on any other types of assets.
IFRS 16 has resulted in the recognition of Right of Use Assets (ROU) of GBP11.1 million at 31 January 2021 and total lease liabilities of GBP11.8 million, with depreciation charges of GBP0.63 million and interest charges of GBP0.14 million.
Detailed analysis is provided in the tables below:-
Group Group Group 31 January 31 January 31 July 2021 2020 2020 GBP'000 GBP'000 GBP'000 -------------------------------------- ------------ ------------ --------- Total rents payable under property leases 769 720 1,467 -------------------------------------- ------------ ------------ --------- Group Group Group Statement of Financial Position (extract) 31 January 31 January 31 July 2021 GBP'000 2020 2020 GBP'000 GBP'000 Right of Use Asset (ROU) 11,137 11,750 11,764 Current Lease Liability Amounts due within one year 1,335 1,257 1,298 Non-current Lease Liability Amounts due in one to two years 1,202 1,285 1,327 Amounts due in three to five years 2,726 2,749 2,881 Amounts due in more than five years 6,562 6,991 6,950 --------------------------------------------- -------------- ------------ --------- Non-current Lease Liability 10,490 11,025 11,158 --------------------------------------------- -------------- ------------ --------- Total lease liability 11,825 12,282 12,456 --------------------------------------------- -------------- ------------ --------- Statement of Comprehensive Income Group Group Group (extract) 31 January 31 January 31 July 2021 2020 2020 GBP'000 GBP'000 GBP'000 Property lease expense 769 720 1,467 Depreciation of Right of Use Asset (ROU) (627) (609) (1,254) Interest charged on lease liability (139) (143) (296) Impact on Comprehensive Income (3) (32) (83) ------------------------------------- ------------ ------------ --------- Comparative Analysis of the effect Group Group Group within the Statement of Comprehensive 31 January 31 January 31 July Income prior to IFRS 16 202 GBP'000 2020 2020 GBP'000 GBP'000 Increase in EBITDA 769 720 1,467 Increase / (decrease) in operating profit 142 111 213
---------------------------------------- ------------- ------------ --------- Decrease in profit before tax (3) (32) (83) ---------------------------------------- ------------- ------------ ---------
The Group has applied a single discount rate equivalent to its effective cost of debt. For more detailed information on the Groups Commitments under property leases refer to note 23 (Commitments under property leases).
2 Revenue
Analysis of the Group's revenue from continuing operations is shown below:
Six months Six months Year ended ended ended 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited Stores trading GBP'000 GBP'000 GBP'000 ---------------------------------------------- ------------ ------------ ---------- Self-storage revenue 8,361 7,571 15,126 Insurance revenue 966 844 1,663 Retail sales 139 112 201 Sub-total - self-storage revenue - owned stores 9,466 8,527 16,990 Ancillary store rental revenue - - 4 Management fees - managed stores 738 393 991 ---------------------------------------------- ------------ ------------ ---------- Sub-total 10,204 8,920 17,985 Non-storage income 7 46 56 ---------------------------------------------- ------------ ------------ ---------- Total revenue per statement of comprehensive income 10,211 8,966 18,041 ---------------------------------------------- ------------ ------------ ---------- 3a Property, staff, distribution, general Six months Six months Year costs and ended ended ended retail cost of sales 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Property and premises costs 2,309 2,157 4,392 Property lease rental payments (769) (720) (1,467) ---------------------------------------------- Net property and premises costs 1,540 1,437 2,925 Staff costs 2,424 2,151 4,196 General overheads 608 572 1,139 ---------------------------------------------- ------------ ------------ --------- Sub total - operating costs 4,572 4,160 8,260 Retail products cost of sales 99 83 127 ---------------------------------------------- ------------ ------------ --------- Total property, staff, distribution, general costs and retail cost of sales 4,671 4,243 8,387 ---------------------------------------------- ------------ ------------ --------- 3b Cost of sales of retail products
Cost of sales represents the direct costs associated with the sale of retail products such as boxes and packaging and, the ancillary sales of insurance cover for customer goods, all of which fall within the Group's ordinary activities.
Six months Six months Year ended ended ended 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ---------------------------------------- ------------ ------------ --------- Retail 56 54 98 Insurance 14 13 13 Other 29 16 16 ---------------------------------------- ------------ ------------ --------- Total cost of sales of retail products 99 83 127 ---------------------------------------- ------------ ------------ --------- 3c Other Income and costs Six months Six months Year ended ended ended 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ---------------------------------------- ------------ ------------ --------- Profit on sale of land at Wolverhampton 265 - - (1) Loss on sale of land at Southampton (2) (400) - - (135) - - ---------------------------------------- ------------ ------------ ---------
(2021) (:)
(1 Profit on sale of land at Wolverhampton:) (During the period development land with the benefit of planning permission was sold on a sale and manage-back.)
(2) In December 2020, we completed the sale of our vacant property in Southampton, Hampshire for GBP1.6 million (net of disposal costs). (Net Book Value c. GBP2 million) eliminating over GBP150,000 p.a of residual costs.
4 Finance income Six months Six months ended ended Year ended 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ---------------------- ------------- ------------ ----------- Bank interest - 16 29 Total finance income - 16 29 ---------------------- ------------- ------------ ----------- 5 Finance costs Six months Six months ended ended 31 Year ended 31 January January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Bank interest 228 255 510 Non-utilisation fees and amortisation of bank loan arrangement fees 64 165 183 Bank loan arrangement fees 79 - 137 Interest on lease liabilities 139 143 296 ------------------------------------------ ------------ ----------- ----------- Total finance cost 510 563 1,126 ------------------------------------------ ------------ ----------- -----------
Most interest payable arises on bank loans classified as financial liabilities measured at amortised cost.
6 Profit before taxation Six months Six months ended ended 31 Year ended 31 January January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP '000 Profit before taxation is stated after charging: Depreciation of plant, property and equipment - owned assets (Note 10) 1,273 1,220 2,565 Depreciation of right of use assets (Note 11) 627 609 1,254 ---------------------------------------------------- ------------ ----------- ----------- 1,900 1,829 3,779 ---------------------------------------------------- ------------ ----------- ----------- 7 Taxation Six months Six months Year ended 31 ended 31 ended 31 January January July 2021 2020 2020
Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Current tax: UK corporation tax 583 403 920 --------------------------------------------------- ----------- ----------- ---------- Deferred tax: Origination and reversal of temporary differences 59 239 730 Adjustments in respect of prior periods - - 66 --------------------------------------------------- ----------- ----------- ---------- Total deferred tax charge 59 239 796 --------------------------------------------------- ----------- ----------- ---------- Income tax expense for the period/year 642 642 1,716 --------------------------------------------------- ----------- ----------- ----------
The charge for the period can be reconciled to the profit for the period as follows:
Six months Six months Year ended 31 ended 31 ended 31 January January July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Profit before tax 2,928 2,306 4,690 Tax on ordinary activities at the standard effective rate of corporation tax in the UK of 19% 556 468 931 Expenses not deductible for tax purposes - - - Depreciation of non-qualifying assets 74 206 229 Share based payment charges in excess of corresponding tax deduction 12 8 17 Impact of change in tax rate on timing differences - (19) 806 Adjustments in respect of prior periods - - 66 Impact of change of tax rate on timing differences - (21) (157) Write-back of overprovision - - (153) Other - - (23) ---------------------------------------------------- ----------- ----------- ------------------- Income tax expense for the period/year 642 642 1,716 ---------------------------------------------------- ----------- ----------- ------------------- Effective tax rate 21.9% 27.5% 36% ---------------------------------------------------- ----------- ----------- ------------------- 8 Dividends Six months Six months ended 31 ended 31 Year ended January January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ----------------------------------------------- ----------- ----------- ------------- Amounts recognised as distributions to equity holders in the year: Final dividend for the year ended 31 July 2019 (8.33 pence per share) - 2,413 2,413 Interim dividend for the six months to 31 July 2020 (4.00 pence per share) - - 1,159 Final dividend for the year ended 31 July 2020 (9.00 pence per share) 2,612 - - ----------------------------------------------- ----------- ----------- ------------- 2,612 2,413 3,572 ----------------------------------------------- ----------- ----------- -------------
In respect of the current period the Directors propose that an interim dividend of 4.33 pence per share will be paid to the shareholders. The total estimated dividend to be paid is GBP1.25 million based on the number of shares currently in issue as adjusted for shares held in the Employee Benefits Trust and shares held in treasury. This interim dividend is an on-account payment of a final annual dividend and is ultimately subject to approval by shareholders at the 2020 Annual General Meeting and has not been included as a liability in these financial statements. The ex-dividend date will be 6 May 2021; the record date 7 May 2021 with an intended payment date of 11 June 2021. The final deadline for Dividend Reinvestment Election is 21 May 2021.
9 Earnings per share
The calculations of earnings per share are based on the following profits and numbers of shares.
Six months Six months Year ended ended ended 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Total profit for the financial year attributable to owners of the parent 2,286 1,664 2,974 --------------------------------------- ---------------- ---------------- ---------------- No. of shares No. of shares No. of shares --------------------------------------- ---------------- ---------------- ---------------- Weighted average number of shares For basic earnings per share 28,965,774 28,965,672 28,976,967 Dilutive effect of share options 505,832 565,846 517,257 --------------------------------------- ---------------- ---------------- ---------------- For diluted earnings per share 29,471,606 29,531,518 29,494,224 --------------------------------------- ---------------- ---------------- ----------------
623,212 shares (31.01.2020: 623,212) are held in the Employee Benefit Trust and 126,855 shares are held in Treasury and are both excluded from the above calculation.
Earnings per share attributable to owners Six months Six months Year of the Parent ended ended ended 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited ------------------------------------------- ------------------- ------------ --------------- Earnings per share Basic Basic earnings per share 7.89p 5.74p 10.26p ------------------------------------------- ------------------- ------------ --------------- Earnings per share Diluted Total diluted earnings per share 7.76p 5.63p 10.08p ------------------------------------------- ------------------- ------------ --------------- 10 Property, plant and equipment Fixtures, Development fittings property Land and Short leasehold and Motor assets buildings improvements equipment vehicles at cost at valuation at cost at cost at cost Total Group GBP'000 GBP '000 GBP'000 GBP'000 GBP'000 GBP'000 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- Net book value at 31 January 2020 - Unaudited 22,846 133,745 1,824 14,813 17 173,245 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- Net book value at 31 July 2020 - Audited 29,885 141,366 1,728 14,279 - 187,258 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- Cost or valuation 1 August 2019 18,442 133,531 3,968 26,554 30 182,525 Additions 4,404 125 29 336 - 4,894 Revaluations - 89 - - - 89 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- 31 January 2020
Unaudited 22,846 133,745 3,997 26,890 30 187,508 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- Depreciation 1 August 2019 - - 2,078 11,497 12 13,587 Depreciation - 543 95 580 1 1,219 Revaluations - (543) - - - (543) -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- 31 January 2020 Unaudited - - 2,173 12,077 13 14,263 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- Net book value at 31 January 2020 - Unaudited 22,846 133,745 1,824 14,813 17 173,245 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- Cost or valuation 1 February 2020 22,846 133,745 3,997 26,890 30 187,508 Additions 7,039 24 - 53 - 7,116 Disposals - - - - (20) (20) Revaluations - 7,597 - - - 7,597 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- 31 July 2020 - Audited 29,885 141,366 3,997 26,943 10 202,201 -------------------------- Depreciation 1 February 2020 - - 2,173 12,077 13 14,263 Depreciation - 621 96 587 1 1,305 Disposals - - - - (4) (4) Revaluations - (621) - - - (621) -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- 31 July 2020 - Audited - - 2,269 12,664 10 14,943 -------------------------- Net book value at 31 July 2020 - Audited 29,885 141,366 1,728 14,279 - 187,258 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- Cost or valuation 1 August 2020 29,885 141,366 3,997 26,943 10 202,201 Additions 5,534 92 3,312 879 - 9,817 Transfers (7,389) 5,893 - 1,496 - - Disposals (1,243) (1,758) - (1,301) - (4,302) Revaluations - 2,991 - - - 2,991 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- 31 January 2021 Unaudited 26,787 148,584 7,309 28,017 10 210,707 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- Depreciation 1 August 2020 - - 2,269 12,664 10 14,943 Depreciation - 605 96 572 - 1,273 Disposals - (261) - (750) - (1,011) Revaluations - (605) - - - (605) -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- 31 January 2021 Unaudited - (261) 2,365 12,486 10 14,600 -------------------------- ------------ -------------- ---------------- ----------- ---------- ---------- Net book value at 31 January 2021 - Unaudited 26,787 148,584 4,944 15,532 - 196,107 -------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
The Group has an active store development programme and in accordance with IAS 23 has material qualifying assets that take a substantial period of time to develop from acquisition to ultimate store opening. Accordingly borrowing costs of GBP190,655 (six months ended 31.1.2020: GBP223,163: year ended 31.07.20 GBP382,190) have been capitalised in the current period that are directly attributable to the acquisition, construction and fit-out of these qualifying store assets. GBP190,655 of the total amount is carried in development property assets.
Capital expenditure during the period totalled GBP9.6 million (excluding capitalised interest) ( 31.1.2020: GBP4.9 million). This was primarily the purchase of the Warrington site, the purchase of the Chichester store for GBP4.0 million and exchange contract deposit paid on the Peterborough sites, together with ongoing construction and fit out works at our site in Salford, Chester and Warrington, final costs on Leicester prior to opening, as well as planning and pre-development works at our Bedford, Bournemouth, and Cheshunt sites.
Property, plant and equipment (non-current assets) with a carrying value of GBP193.5 million (31.1.2020: GBP173.2 million) are pledged as security for bank loans (see note 15a).
Market Valuation of Freehold and Operating Leasehold Land and Buildings
Following the comprehensive external valuation at 31 July 2020 by JLL, the freehold and leasehold properties have not been externally valued at 31 January 2021, although in accordance with the Group's established policy it is the intention to do so at the next year end at 31 July 2021.
Although the Board did not commission an external valuation at this interim period-end it is mindful of the need to accord with the measurement principles of International Financial Reporting Standards. Accordingly, after consulting with our external valuers, the Directors considered that the self-storage transactional market has shown good levels of liquidity and continued investor interest and whilst there has been continued market activity in the self-storage sector since July 2020, the Directors considered that there had not been such a material movement in market yields that warranted a modification to the position as at 31 January 2021 in respect of our properties externally valued at 31 July 2020. The Directors therefore consider that it is appropriate to maintain the portfolio's external valuation without modification pending a comprehensive external valuation at our 31 July 2021 year-end.
The new Leicester store
We opened the new Leicester Store in early August 2020. Since it was not open at the Group's previous year-end, in accordance with the Group's policy it was not independently valued at 31 July 2020. The 57,500 sq. ft. store is in a highly prominent location opposite a major food retailer in the heart of Leicester's busy retail district and the store's early trading has been strong. Accordingly, and in line with the requirement to fair value the group's store assets the Directors' have used the group's internal valuation model to uplift the current book value of GBP7.4 million to a fair value of GBP10.0 million resulting in a GBP2.6 million uplift.
The internal model valuation assumptions are as follows:
-- Revenue inputs come from our standard budget model -- Costs have been derived from an average of P&L costs.
-- A standard 6% central management fee is applied, which is consistent with the central management fees applied by JLL in their valuation model
-- We have applied our standard 6% exit yield and 8% discount rate within our model for new Landmark stores. This is broadly in line with exit yield and discount rate applied by JLL at July 2020 for similar stores
11 Right of Use assets (ROU) Group Group Group Group property leases 31 January 31 January 31 July 2021 2020 2020 GBP'000 GBP'000 GBP'000 Right of Use Asset (ROU) - opening balance 11,764 12,359 13,018 Depreciation of Right of Use Asset (ROU) (627) (609) (1,254) Right of Use Asset (ROU) - closing balance 11,137 11,750 11,764 ------------------------------------ ------------ ------------ ---------
The Right of use Asset (ROU) relates to the Groups property leases. The Group has no leases on any other types of assets.
The right-of-use asset is depreciated on a weighted depreciation charge based on the individual lease term of the separate property leases.
12 Inventories 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ---------------------------------- ----------- ----------- --------- Consumables and goods for resale 335 363 270 ---------------------------------- ----------- ----------- ---------
The amount of inventories recognised as an expense during the period was GBP55,820 (31.1.2020: GBP54,472).
13 Trade and other receivables 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 -------------------------------- ----------- ------------- ---------- Trade receivables 993 798 746 Other receivables 1,665 1,007 2,451 Prepayments and accrued income 856 496 431 3,514 2,301 3,628 -------------------------------- ----------- ------------- ----------
Trade receivables
In respect of its self-storage business the Group does not typically offer credit terms to its customers and hence the Group is not exposed to significant credit risk. All customers are required to pay in advance of the storage period. Late charges are applied to a customer's account if they are more than 10 days overdue in their payment.
The Group provides for receivables based upon sales levels and estimated recoverability. There is a right of lien over the customers' goods, so if they have not paid within a certain time frame the Company has the right to sell the items they store to cover the debt owed by the customer. Trade receivables that are overdue are provided for based on estimated irrecoverable amounts, determined by reference to expected credit losses.
For individual self-storage customers, the Group does not perform credit checks. However, this is mitigated by the fact that all customers are required to pay in advance, and also to pay a deposit of four weeks' storage income. Before accepting a new business customer who wishes to use a number of the Group's stores, the Group uses an external credit rating to assess the potential customer's credit quality and defines credit limits by customer. There are no customers who represent more than 5% of the total balance of trade receivables.
There has not been a significant change in credit quality in the Group's trade receivables and the amounts are still considered recoverable. The Group holds a right of lien over its self-storage customers' goods if these debts are not paid.
14 Trade and other payables 31 January 31 January 2021 2020 31 July Unaudited Unaudited 2020 GBP'000 GBP'000 Audited GBP'000 ------------------------------------ ----------- ----------- ----------------- Trade payables 1,083 768 1,275 Taxation and social security costs 1,379 763 137 Other payables 751 887 777 Accruals and deferred income 2,821 2,310 2,487 ------------------------------------ ----------- ----------- ----------------- 6,034 4,728 4,676 ------------------------------------ ----------- ----------- -----------------
The Directors consider that the carrying amount of trade and other payables and accruals approximates fair value.
15 Capital management and gearing
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The gearing ratio at the period-end is as follows:
Gearing - Bank Borrowings 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Gross debt (53,935) (42,972) (51,322) Cash and cash equivalents 11,297 11,023 13,066 ------------------------------ ----------- ----------- --------- Net debt (42,638) (31,949) (38,255) --------- Total equity - balance sheet 123,432 116,746 121,382 --------- Net debt to equity ratio 34.5% 27.2% 31.3% ------------------------------ ----------- ----------- --------- Total Gearing - Bank Borrowings 31 January 31 January 31 July and lease liabilities 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Gross debt - bank borrowings (53,935) (42,972) (51,322) Gross debt - lease liabilities (11,825) (12,283) (12,455) Cash and cash equivalents 11,297 11,023 13,066 ---------------------------------- ----------- ----------- --------- Net debt (54,463) (44,232) (50,711) --------- Total equity - balance sheet 123,432 116,746 121,382 --------- Net debt to equity ratio 44.1% 37.9% 41.8% ---------------------------------- ----------- ----------- ---------
Cash balances held in current accounts attract no interest but surplus cash is transferred daily to a treasury deposit account which earns interest at the prevailing money market rates(1) . All amounts are denominated in Sterling. The balances at 31 January 2021 are as follows:
31 January 31 January 2021 2020 31 July Unaudited Unaudited 2020 GBP'000 GBP'000 Audited GBP'000 -------------------------------------- ----------- ----------- ----------------- Variable rate treasury deposits(1) 9,812 9,635 11,608 SIP trustee deposits 63 63 63 Cash in operating current accounts 1,413 1,316 1,385 Other cash and cash equivalents 9 9 10 -------------------------------------- ----------- ----------- ----------------- Total cash and cash equivalents 11,297 11,023 13,066 -------------------------------------- ----------- ----------- -----------------
(1) Money market rates for the Group's variable rate treasury deposit track Royal Bank of Scotland plc base rate. The rate attributable to the variable rate deposits at 31 January 2021 was 0.01%.
16a) Borrowings 31 January 31 January 31 July 2021 Unaudited 2020 Unaudited 2020 Bank borrowings GBP'000 GBP'000 Audited GBP'000 ----------------------------------- ---------------- ---------------- ----------------- Non-current Bank loans repayable in more than two years but not more than five years Gross 53,935 42,972 51,322 Deferred financing costs (537) (574) (617) ----------------------------------- ---------------- ---------------- ----------------- Net bank borrowings 53,398 42,398 50,705 ----------------------------------- ---------------- ---------------- ----------------- Non-current borrowings 53,398 42,398 50,705 ----------------------------------- ---------------- ---------------- -----------------
The Group has a joint GBP75 million five year revolving credit facility banking facility with Lloyds Bank and Royal Bank of Scotland plc. The facility provides an accordion GBP25 million which can take the facility to GBP100 million and runs to April 2025 with an option of a further one year extension.
The interest rate is set at the London Inter-Bank Offer Rate (LIBOR) plus a 1.50%-1.75% margin based on a loan to value covenant test. T he all in debt cost on GBP53.9 million drawn averaged 1.55% in the period. The Group is not obliged to make any repayments prior to its expiration in April 2025.
The Group currently has GBP53.9 million drawn against its existing GBP75 million revolving credit facility which is secured with RBS and Lloyds jointly by legal charges and debentures over the freehold and leasehold properties and other tangible assets of the business with a net book value of GBP196.1 million (31.01.2020: GBP173.2 million: / 31.07.2020 GBP187.3 million) together with cross-company guarantees from Group companies.
16b) Lease liabilities
Lease liabilities attributable to 31 January 31 January 31 July Right of Use assets 2021 Unaudited 2020 Unaudited 2020 GBP'000 GBP'000 Audited GBP'000 Current lease liabilities Amounts due within one year 1,335 1,257 1,298 Non-current lease liabilities Amounts due in one to two years 1,202 1,285 1,326 Amounts due in three to five years 2,726 2,749 2,881 Amounts due in more than five years 6,562 6,991 6,950 ------------------------------------- -------------------- ------------------ -------------------------- Non-current lease liabilities 10,490 11,025 11,157 ------------------------------------- -------------------- ------------------ -------------------------- Total lease liabilities 11,825 12,282 12,455 ------------------------------------- -------------------- ------------------ -------------------------- Lease liabilities attributable to 31 January 31 January 31 July Right of Use assets 2021 Unaudited 2020 Unaudited 2020 GBP'000 GBP'000 Audited GBP'000 Balance B/Fwd 12,455 12,860 13,626 Lease repayments (769) (720) (1,467) Lease interest (non-cash) 139 142 296 Total lease liabilities 11,825 12,282 12,455 ----------------------------------- -------------------- -------------------- -------------------------- 17 Deferred tax 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited Deferred tax liability GBP'000 GBP'000 GBP'000 --------------------------------------- ------------------- ---------------------- --------------------------- Liability at start of period/year 26,760 22,385 22,385 Charge to income for the period/year 59 239 796 Tax charged / credited directly to other comprehensive income 683 (137) 3,602 Credit to share based payment reserve (23) - (23) Liability at end of period/year 27,479 22,487 26,760 --------------------------------------- ------------------- ---------------------- --------------------------- 18 Share capital 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ------------------------------------------ ------------- ------------- ------------- Authorised: 35,000,000 ordinary shares of 1 pence each 350 350 350 ------------------------------------------ ------------- ------------- ------------- Called up, Called up, Called up, allotted allotted allotted and and and fully paid fully paid fully paid Number Number Number ------------------------------------------ ------------- ------------- ------------- Number of shares at start of period/year 29,633,290 29,583,786 29,583,786 Options exercised during period/year 19,877 9,427 49,504 ------------------------------------------ ------------- ------------- ------------- Balance at end of period/year 29,653,167 29,593,213 29,633,290 ------------------------------------------ ------------- ------------- ------------- Allotted, issued and fully paid ordinary GBP GBP GBP shares ------------------------------------------ ------------- ------------- ------------- Balance at start of period/year 296,333 295,838 295,932 Options exercised during period/year 199 94 401 ------------------------------------------ ------------- ------------- ------------- Balance at end of period/year 296,532 295,932 296,333 ------------------------------------------ ------------- ------------- -------------
The Company has one class of ordinary shares which carry no right to fixed income
19 Other reserves Other Capital Share-based Merger reserve redemption payment reserve reserve reserve Total Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------------------- -------- -------- ----------- -------------- -------- 1 August 2019 - Audited 6,295 1,294 34 734 8,357 Equity share based payments - - - 41 41 Transfer to retained earnings in relation to share based payments - - - (5) (5) Tax credit relating to share options - - - 245 245 ------------------------------- -------- -------- ----------- -------------- -------- 31 January 2020 - Unaudited 6,295 1,294 34 1,015 8,638 ------------------------------- -------- -------- ----------- -------------- -------- Equity share based payments - - - 47 47 Transfer to retained earnings in relation to share based payments - - - (9) (9) Tax credit relating to share options - - - (221) (221) ------------------------------- -------- -------- ----------- -------------- -------- 31 July 2020 - Audited 6,295 1,294 34 832 8,455 ------------------------------- -------- -------- ----------- -------------- -------- Equity share based payments - - - 67 67 Tax credit relating to share options - - - 24 24 ------------------------------ ------ ------ --- ---- ------ 31 January 2021 - Unaudited 6,295 1,294 34 923 8,546 ------------------------------ ------ ------ --- ---- ------
Merger reserve
The merger reserve represents the excess of the nominal value of the shares issued by Lok'nStore Group plc over the nominal value of the share capital and share premium of Lok'nStore Limited as at 31 July 2001.
Other reserves
The other distributable reserve and the capital redemption reserve arose in the year ended 31 July 2004 from the purchase of the Company's own shares and a cancellation of share premium.
Share based payment reserve
Under IFRS 2 there is the option to make transfers from the share based payment reserve to retained earnings in respect of accumulated share option charges where the options have either been exercised or have lapsed post-vesting. The total amounts calculated and accordingly transferred to retained earnings in the period amounted to GBP nil (31.1.2020: GBP5,191).
20 Retained earnings Retained earnings Retained before deduction Own shares earnings of own shares (note 21) Total Group GBP'000 GBP'000 GBP'000 1 August 2019 - Audited 26,801 ( 500 ) 26,301 Profit for the financial period- restated 1,771 - 1,771 Transfer from revaluation reserve 154 - 153 Transfer from share based payment reserve (Note 19) 5 - 5 Dividend paid (2,413) - (2,413) ------------------------------------- ---------------------------- ----------- ---------------------------- 31 January 2020 - Unaudited 26,318 ( 500 ) 25,818 ------------------------------------- ---------------------------- ----------- ---------------------------- 1 February 2020 - Unaudited Profit for the financial period 1,203 - 1,203 Transfer from revaluation reserve 224 - 224 Transfer from share based payment reserve (Note 19) 9 - 9 Dividend paid (1,159) - (1,159) 31 July 2020 - Audited 26,595 ( 500 ) 26,095 ------------------------------------- ---------------------------- ----------- ---------------------------- 1 August 2020 - Audited Profit for the financial period 2,286 - 2,286 Transfer from revaluation reserve 189 - 189 Purchase of shares for treasury (693) - (693) Dividend paid (2,612) - (2,612) ------------------------------------- ---------------------------- ----------- ---------------------------- 31 January 2021 - Unaudited 25,765 ( 500 ) 25,265 ------------------------------------- ---------------------------- ----------- ----------------------------
The transfer from revaluation reserve represents the additional depreciation charged on revalued assets net of deferred tax. The Own Shares Reserve represents the cost of shares in Lok'nStore Group plc purchased in the market and held in the Employee Benefit Trust to satisfy awards made under the Group's share incentive plan.
21 Own shares ESOP ESOP Treasury Treasury Own shares shares shares shares shares total Number GBP Number GBP GBP -------------------------- -------- -------- --------- --------- ----------- 1 August 2019 - Audited 623,212 499,910 - - 499,910 -------------------------- -------- -------- --------- --------- ----------- 31 January 2020 - Unaudited 623,212 499,910 - - 499,910 -------------------------- -------- -------- --------- --------- ----------- 31 July 2020 - Unaudited 623,212 499,910 - - 499,910 -------------------------- -------- -------- --------- --------- ----------- Purchase of shares for treasury - - 126,855 693,250 693,250 -------------------------- -------- -------- --------- --------- ----------- 31 January 2021 - Unaudited 623,212 499,910 126,855 693,250 1,193,160 -------------------------- -------- -------- --------- --------- -----------
Shares purchased for treasury
The Group made the following purchases of its own shares, which will be held in treasury:-
Date of Trade No. of Price Treasury Account shares GBP (including dealing costs and commission) GBP 25 September 2020 8,000 GBP5.19 41,728 ----------------- -------- ----------------------- 2 October 2020 29,972 GBP5.18 155,882 ----------------- -------- ----------------------- 11 December 2020 88,883 GBP5.55 495,640 ----------------- -------- ----------------------- 126,855 693,250 ---------------- ----------------- -------- -----------------------
The Group operates an Employee Benefit Trust (EBT) under a settlement dated 8 July 1999 between Lok'nStore Limited and Lok'nStore Trustee Limited, constituting an employees' share scheme. Funds are placed in the trust by way of deduction from employees' salaries on a monthly basis as they so instruct for purchase of shares in the Company. Shares are allocated to employees at the prevailing market price when the salary deductions are made.
As at 31 January 2021, the Trust held 623,212 (31.01.2020: 623,212) ordinary shares of 1 pence each with a market value of GBP4,269,002 (31.01.2020: GBP 4,468,430 ). No shares were transferred out of the scheme during the period (2020: Nil). No options have been granted under the EBT.
22 Cash flows (a) Reconciliation of profit before tax to cash generated from operations Six months Six months Year ended ended ended 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Group profit before tax 2,928 2,306 4,690 Depreciation 1,900 1,829 3,779 Equity settled share based payments 67 41 88 Loss on disposal of land 135 - - Interest receivable - (16) (29) Interest payable - bank borrowings 371 420 830 Interest payable - lease liabilities 139 143 296 (Increase) / decrease in inventories (65) (66) 28 Decrease in receivables 114 1,406 79 Increase / (decrease) in payables 1,188 109 (61) ---------------------------------------- ------------ ------------ --------- Cash generated from operations 6,777 6,172 9,700 ---------------------------------------- ------------ ------------ ---------
(b) Reconciliation of net cash flow to movement in net debt
Net debt is defined as non-current and current borrowings, as detailed in note 16 less cash and cash equivalents.
Six months Six months Year ended ended ended 31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 Decrease / increase in cash in the period/year (1,769) 2,639 (596) Change in net debt resulting from cash flows (2,614) - (8,350) ---------------------------------- ------------ ------------ --------- Movement in net debt in period (4,383) (2,639) (8,946) ( 29,310 Net debt brought forward (38,255) ) (29,310) ---------------------------------- ------------ ------------ --------- Net debt carried forward (42,638) (31,949) (38,255) ---------------------------------- ------------ ------------ --------- 23 Commitments under property leases
At 31 January 2021 the total future minimum lease payments as a lessee under non-cancellable property leases were as follows:
31 January 31 January 31 July 2021 2020 2020 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ----------- ----------- --------- Land and buildings Amounts due: Within one year 1,605 1,517 1,575 Between two and five years 4,836 5,082 5,041 After five years 7,292 7,677 7,811 ------------------------- ----------- ----------- --------- 13,733 14,276 14,427 ---------------------- ----------- ----------- ---------
Property lease payments represent rentals payable by the Group for certain of its properties. Typically, leases are negotiated for a term of 20 years and rentals are fixed for an average of five years.
The Group's property leases are recognised as a 'right of use asset' and as a corresponding liability at the year-end. This is explained in Note 1 of the financial statements.
24 Related party events
On 29 January 2021, Lok'nStore acquired the managed store in Chichester ("the Chichester Store") from Gypsy Moth Storage Limited (formerly Chichester Storage Limited). On the same date Lok'nStore sold to GMS its freehold development site at Pantheon Park, Wolverhampton.
The five-year old Chichester Store was acquired for GBP4.025 million as independently valued by Jones Lang LaSalle Limited (JLL). The Group paid in aggregate GBP4.16 million in cash with associated costs and stamp duty. The acquisition was funded from the Group's existing bank facilities.
Lok'nStore sold its freehold land site at Pantheon Park, Wolverhampton to GMS, with the full benefit of the planning permission and all accumulated planning and design work for a new storage services facility for a total cash consideration of GBP1.523 million, (excluding VAT) reflecting the purchase price of the Wolverhampton site, plus planning and other costs and fees incurred by the Group through to completion. The sales proceeds were used to offset the cost of the acquisition of the Chichester Store.
Following this sale Lok'nStore entered into a new Management Services Agreement ("MSA") and Development and Advisory Agreement ("DAA") with GMS in respect of the Wolverhampton Site pursuant to which the Group will provide property and construction advice during the building of the Wolverhampton Store as well as ongoing operational management services of the facility once built.
The MSA and DAA are each in substantially the same form and commercial terms as other agreements to which the Group is party in respect of its other managed facilities. Store development is underway and once developed the Wolverhampton facility will comprise a 52,600 ft purpose built landmark store featuring Lok'nStore's distinctive branding and is located in an excellent location adjacent to a busy retail park. The store is expected to open by Q1 2022.
This transaction demonstrates the Group's ongoing desire to build a balanced portfolio of owned and managed stores. The sale to GMS is consistent with this strategy and enables the site to be developed in a capital-efficient manner. The acquisition of the Chichester store provides the Group with a mature cash generative asset which will be a welcome addition to the Group's portfolio of owned stores which are driving Group Cash Available for Distribution (CAD) and dividends. The reduction in ongoing management fees from the Chichester Store will be replaced by fees earned under the new DAA and MSA management and development agreements referred to above.
GMS is a private company which was incorporated in 2014 to develop and own the Chichester storage services operation, under the management of the Group. Andrew Jacobs, Executive Chairman of Lok'nStore Group holds 17.6% of the share capital of Lok'nStore and also holds 19.4% of the share capital of GMS. GMS has one director, Ray Davies appointed on 20 September 2019, who is also Group Finance Director of Lok'nStore. Accordingly, GMS is deemed to be a related party of Lok'nStore within the meaning of the AIM Rules and the above transactions constituted related party transactions within the meaning of the AIM Rules. Due process was followed at the time of the transaction with full consideration provided by the Independent Directors of Lok'nStore, being the Board excluding Andrew Jacobs and Ray Davies, having consulted with finnCap (as the Company's nominated adviser) in accordance with the AIM Rules .
25 Events after the Reporting Date
Exchange of contracts - Basildon
Lok'nStore have entered into a conditional agreement to lease a purpose built self-storage building in a landmark location in the prominent retail and commercial area of Miles Gray Road and Cranes Farm Road, Basildon. The landmark site, which has planning permission, will be leased once complete, and will be above and adjacent to new retail provision to complement the already busy commercial area. Once complete and fitted the store will provide 57,000 sq.ft. of storage space.
Glossary
Abbreviation
APM Alternative performance measures
Adjusted EBITDA Earnings before all depreciation and amortisation charges, losses or profits on disposal, share-based payments, acquisition costs, and non-recurring professional costs, finance income, finance costs and taxation
Adjusted Store EBITDA Adjusted EBITDA (see above) but before central and head office costs AGM Annual General Meeting APD Auditing Practices Bps Basis Points CAC Contributory asset charges CAD Cash available for Distribution Capex Capital Expenditure CGU Cash generating units CO2 e Carbon Dioxide Equivalents CSOP Company Share Option Plan EBT Employee Benefit Trust (eKPIs) Environmental key performance indicators EMI Enterprise Management Incentive Scheme ESOP Employee Share Option Plan EU European Union GHG Greenhouse gas HMRC Her Majesty's Revenue & Customs IAS International Accounting Standard
IFRIC International Financial Reporting Interpretations Committee
IFRS International Financial Reporting Standards ISA International Standards on Auditing JLL Jones Lang LaSalle LIBOR London Interbank Offered Rate LFL Like for like LTV Loan to Value Ratio MWh Megawatt Hour NAV Net Asset Value NBV Net Book Value Operating Profit Earnings before interest and tax (EBIT) PPP Partnership Performance Plan PV Photovoltaic QCA Quoted Companies Alliance RICS Royal Institution of Chartered Surveyors SIP Share Incentive Plan SME Small and medium sized enterprises Sq.ft. Square Feet tCO2e Tonnes of carbon dioxide equivalent TVR Total voting rights VAT Value Added Tax
Our Stores
Head Office - Lok'nStore Central Enquiries plc 0800 587 3322 112 Hawley Lane info@loknstore.co.uk Farnborough www.loknstore.co.uk Hampshire GU14 8JE Tel 01252 521010 www.loknstore.co.uk www.loknstore.com
Owned Trading Stores
Basingstoke, Hampshire Bristol, Gloucestershire Cardiff, Glamorgan Chichester, West Crockford Lane Longwell Green 234, Penarth Road Sussex Chineham Trade Park Cardiff 17, Terminus Road Basingstoke Aldermoor Way Wales Chichester Hampshire Bristol CF11 8LR West Sussex RG24 8NA Gloucestershire Tel 0292 022 1901 PO19 8TX Tel 01256 474700 BS30 7ET Cardiff @loknstore.co.uk Tel 01243 771840 basingstoke@loknstore.co.uk Tel 0117 967 7055 chichester@loknstore.co.uk Bristol@loknstore.co.uk Eastbourne, East Fareham, Hampshire Farnborough, Hampshire Gillingham, Kent Sussex 26 + 27 Standard 112 Hawley Lane Courteney Road Unit 4, Hawthorn Way Farnborough Gillingham
Road Fareham Industrial Hampshire Kent Eastbourne Park GU14 8JE ME8 0RT East Sussex Fareham Tel 01252 511112 Tel 01634 366044 BN23 6QA Hampshire farnborough@loknstore.co.uk gillingham@loknstore.co.uk Tel 01323 749222 PO16 8XJ eastbourne@loknstore.co.uk Tel 01329 283300 fareham@loknstore.co.uk ---------------------------- ---------------------------- ---------------------------- Harlow, Essex Hedge End, Southampton Horsham, West Ipswich, Suffolk Edinburgh Way Units 2 and 3 Sussex 7a Futura Park Temple Fields Waterloo Industrial Blatchford Road Ipswich Harlow Estate Flanders Redkiln Estate Suffolk Essex Rd Horsham IP3 9QH CM20 2GF Hedge End West Sussex Tel 01473 794940 Tel 01279 882366 Southampton RH13 5QR ipswich@loknstore.co.uk harlow@loknstore.co.uk SO30 2QT Tel 01403 272001 Tel 01489 787005 horsham@loknstore.co.uk HedgeEnd@loknstore.co.uk ---------------------------- ---------------------------- ---------------------------- Leicester, East Luton, Bedfordshire Maidenhead, Berkshire Milton Keynes, Midlands 27 Brunswick Street Stafferton Way Buckinghamshire Part of land forming Luton Maidenhead Etheridge Avenue part of Freemens Bedfordshire Berkshire Brinklow Common Road Leicester LU2 0HG SL6 1AY Milton Keynes LE2 7SL Tel 01582 721177 Tel 01628 878870 Buckinghamshire Tel: 0116 497 0785 luton@loknstore.co.uk maidenhead@loknstore.co.uk MK10 0BB leicester@loknstore.co.uk Tel 01908 281900 miltonkeynes@loknstore.co.u k ---------------------------- ---------------------------- ---------------------------- Northampton Central, Northampton Riverside, Poole, Dorset Portsmouth, Hampshire Northamptonshire Northamptonshire 50 Willis Way Rudmore Square 16 Quorn Way Units 1-4, Carousel Fleetsbridge Portsmouth Grafton Street Industrial Way Poole Hampshire Estate Northampton Dorset PO2 8RT Northampton Northamptonshire BH15 3SY Tel 02392 876783 Northamptonshire NN3 9HG Tel 01202 666160 portsmouth@loknstore.co.uk NN1 2PN Tel 01604 785522 poole@loknstore.co.uk Tel 01604 629928 northampton@loknstore.co.uk nncentral@loknstore.co.uk ---------------------------- ---------------------------- ---------------------------- Reading, Berkshire Salford, Lancashire Southampton, Hampshire Sunbury, Middlesex 251 A33 Relief Road North Phoebe Street Third Avenue Unit C, The Sunbury Reading Salford, Southampton Centre Berkshire Manchester, Hampshire Hanworth Road RG2 0RR M5 4EA SO15 0JX Sunbury on Thames Tel 01189 588999 Tel 0161 676 5903 Tel 02380 783388 Middlesex TW16 5DA reading@loknstore.co.uk salford@loknstore.co.uk southampton@loknstore.co.uk Tel 01932 761100 sunbury@loknstore.co.uk ---------------------------- ---------------------------- ---------------------------- Tonbridge, Kent Wellingborough, Unit 6 Deacon Trading Northamptonshire Estate 19/21 Whitworth Vale Road Way Tonbridge Wellingborough Kent Northamptonshire TN9 1SW NN8 2EF Tel 01732 771007 Tel 01634 366044 tonbridge@loknstore.co.uk wellingborough@loknstore.co.uk Development locations - Lok'nStore Owned Stores Bedford , Bedfordshire Bournemouth, Dorset Cheshunt, Hertfordshire Peterborough, Northamptonshire 69 Cardington Road Land at Wessex Land lying on Land at Maskew Avenue Bedford Field the South Side Peterborough NK42 0BQ Deansleigh Road of Halfhide Lane Bournemouth Turnford Dorset Hertfordshire BH7 7DU EN8 0FH Staines, Surrey Stevenage, Hertfordshire Warrington, Cheshire Plot C Part of Land at Land at Winwick Lovett Road Plot 2000 Road, Warrington Staines Stevenage Business Cheshire TW18 3AZ Park Gunnels Wood WA2 7PF Road Stevenage Hertfordshire SG1 2BL ------------------------- ------------------------ -------------------------------
Managed stores - Trading
Aldershot, Hampshire Ashford, Kent Broadstairs, Kent Crawley, West Sussex 251, Ash Road Wotton Road Unit 2, Pyramid Sussex Manor Business Aldershot Ashford Business Park, Park Hampshire Kent Poorhole Lane, Gatwick Road GU12 4DD TN23 6LL Broadstairs, Crawley Tel 0845 4856415 Tel 01233 645500 Kent West Sussex aldershot@loknstore.co.uk ashford@loknstore.co.uk CT10 2PT RH10 9NH Tel 01843 863253 Tel 01293 738530 broadstairs@loknstore.co.uk crawley@loknstore.co.uk Crayford, Kent Dover, Kent Exeter, Devon Gloucester, Gloucestershire Block B, Optima Honeywood Parkway 1 Matford Park Metz Way Park Whitfield Road Gloucester Thames Road Dover Exeter GL1 1AH Crayford CT16 3FJ Devon Tel: 01452 938082 Kent Tel 01304 827353 EX2 8ED gloucester@loknstore.co.uk DA1 4QX dover@loknstore.co.uk Tel 01392 823989 Tel 01322 525292 exeter@loknstore.co.uk crayford@loknstore.co.uk ------------------------- Hemel Hempstead, Oldbury, West Midlands Swindon, Wiltshire Hertfordshire 6 Churchbridge, Kembrey Street Fortius Point, Oldbury, Elgin Industrial 47, Maylands Avenue West Midlands Estate Hemel Hempstead B69 2AP Swindon Hertfordshire Tel 0121 5446309 Wiltshire HP2 7DE Oldbury@loknstore.co.uk SN2 8UY Tel 01442 240768 Tel 01793 421234 hemelhempstead@loknstore.co.uk swindoneast@loknstore.co.uk -------------------------
Managed stores - Under Development
Chester, Cheshire Kettering, Northamptonshire Wolverhampton, 58-64 Sealand Road, Site between Pytchley Staffordshire Chester Lane and Pytchley Land at Pantheon CH1 4LD Road, Park Wednesfield Kettering Way NN15 6XB Wolverhampton Staffordshire WV11 3DR
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April 26, 2021 02:00 ET (06:00 GMT)
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