BYG26 Mar 2012 08:57
Pre-close statement for the year ended 31 March 2012
Following last week's budget announcement on the proposed changes to the VAT status of self storage from 1 October 2012, the Board of Big Yellow Group PLC (the "Group") believes it is appropriate to update shareholders on the Group's progress by way of a pre-close statement this year. As we stated in last week's announcement, it is our intention to actively engage in the consultation process with HMRC.
The Group is pleased to announce, with six trading days remaining in the final quarter of its financial year, that for the first time since the onset of the economic downturn in 2007, the occupancy in the Group's wholly owned store portfolio is above the high enjoyed in the previous September, thus recouping all the normal seasonal occupancy losses incurred in the December quarter. We now look forward to our traditionally busiest trading period from a new all-time high of occupied space.
Growth in the quarter to date across our 53 wholly owned stores is 86,000 sq ft, compared to 41,000 sq ft for the same quarter last year. The occupancy of our 32 established store portfolio is currently 74.0%, and, excluding our newly opened store at New Cross, wholly owned store occupancy is 64.0%, compared to 63.4% at 30 September 2011 and 59.3% at 31 March 2011. The 12 stores within Big Yellow Limited Partnership have grown in occupancy by 21,000 sq ft in the quarter to date, and are now 42.6% occupied.
We expect full year earnings to be in line with market expectations.
The proposed changes to the VAT status is an industry wide issue and this, together with the current levels of demand we are experiencing, gives us increased confidence that our previously articulated strategy of wholly or substantially mitigating the impact of those changes has a reasonable chance of success.