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(Alliance News) - Lok'n Store Group PLC on Wednesday said that trading to date remains strong, as the firm continues to deliver on its promise to open more stores in the UK.
The Hampshire, England-based self storage company has completed a new lease for its existing Eastbourne store, which will run for 20 years. The lease includes a tenant-only break clause after five years, and benefits from being within the terms of the 1954 Landlord & Tenant Act, Lok'n Store said.
The company also celebrated signing a contract for a new store in Bromborough, Wirral. The 49,500 square foot site will be owned by an existing client, while Lok'n Store will receive one off fees for finding and securing the licence, development advice, and the use of its brand.
Further, the firm will also receive a recurring monthly management fee as a percentage of revenue, and an additional recurring performance fee once returns reach an agreed level. The store is expected to open in late 2024.
Additionally, Lok'n Store has been enjoying good trading at stores opened earlier in the year. In particular, it noted "excellent" early trading at its new Landmark store in Bedford, which was opened in February.
Referencing its performance more generally, Lok'n Store told investors that trading continues to be buoyant, with stores revenue for the first quarter up 13% year-on-year.
"Our secured pipeline is now 11 stores which will add considerable momentum to earnings growth in the coming years, and we are continually assessing more new sites," said Chair Andrew Jacobs.
"The transactions announced today, will add further value to the group, and demonstrates that Lok'n Store is well positioned to build and open more new stores in the under-supplied UK self-storage market."
Lok'n Store shares were trading 3.7% lower at 852.00 pence each in London on Wednesday morning.
By Holly Beveridge, Alliance News reporter
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