TOP NEWS: Big Yellow half-year profit improves over 20%

(Alliance News) - Big Yellow Group PLC on Monday reported an increase in half-year earnings, and the self-storage operator noted a recent improvement in occupancy.

Big Yellow said pretax profit in the six months to September 30 climbed 22% to GBP145.8 million from GBP1119.6 million. Revenue improved 3.4% to GBP103.0 million from GBP99.6 million.

"Although it is pleasing that we expect to return to earnings per share growth in the second half, we have always been more focussed on the longer term. We will grow revenue through incrementally increasing occupancy levels from our existing store platform, alongside driving efficiencies across the business through investment in automation. Furthermore, and critically, we are fully committed to capturing the opportunity of the revenue and earnings growth from our store pipeline, most of which is now in the construction phase," Executive Chair Nicholas Vetch said.

"In addition, we expect to see more opportunities to acquire land and replenish our development pipeline in our core areas of operation."

The occupancy rate as of the end of the half-year was 80.5%, easing from 81.4% a year prior.

"Since the period end we have seen some improvement in year-on-year occupancy performance," it added, however.

Big Yellow declared a 22.6 pence interim dividend, unmoved from a year prior.

Shares in the company closed 1.8% lower at 1,152.42 pence each in London on Monday.

By Eric Cunha, Alliance News news editor

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