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LONDON (Alliance News) - AIM-listed self storage company Lok'nStore Group PLC Monday reported an increase in first-half profits and revenues boosted by its core self-storage business, and raised its dividend by 20%.
Lok'nStore reported a pretax profit of GBP916,000 for the six months ended January 31, compared with a a pretax profit of GBP771,000 a year earlier.
"The strong growth of the business, good asset management and Lok'nStore's low level of debt means that this major expansion can be financed out of our existing bank facilities, and will be achieved while progressively increasing profits and dividends," said Chief Executive Andrew Jacobs in a statement.
Signalling its confidence, the group declared an interim dividend of 2 pence per share, a 20% increase on last year.
Revenues for the period increased 2.5% to GBP6.7 million, up from GBP6.6 million the prior year, while group revenue was up 6.1% on a like-for-like basis, driven by its core self-storage business.
The company said its self-storage business, which is available to both household and business customers, reported an increase in earnings and margins for the period, boosted by good growth in unit pricing which was up 3.3%, and like-for-like unit occupancy which was up 8.1% year-on-year. Self-storage revenue for the period was GBP5.8 million, up 3.8% on the prior year.
Lok'nStore said that revenues and profit for its document storage business fell during the first-half, with revenue down 5.1% to GBP884,000.
Net boxes stored increased at an annualised rate of 15% in the first half, and tapes stored rose 22%.
"Although revenue and profit will take time to respond to this volume growth we are pleased to see this noticeable improvement," the firm said in a statement.
Lok'nStore is continuing to drive its store opening programme, with five new purpose built stores due to open over the next 18 months, including new stores in Reading, Aldershot, Southampton and Bristol, which it said will boost sales and earnings growth.
Shares in Lok'nStore were up 3.2% at 204.90 pence per share Monday early afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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