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Interim Results

27 Apr 2020 07:00

RNS Number : 8859K
Lok'nStore Group PLC
27 April 2020
 

 

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 2020

 

Good growth in the period. Robust capital structure and cash flow will help protect the business during this period of economic turbulence. Increased dividend.

 

Highlights:   

 

Strong trading

· Group Revenue (continued operations1) £8.97 million up 5.3% (31.1.2019: £8.51 million)

· Group Adjusted EBITDA2 £4.72 million up 6.4% (31.1.2019: £4.44 million)

 

Cash flow growth supports interim dividend increase

· Cash available for Distribution (CAD) 4 £2.92 million up 4.8% (31.1.2019: £2.78 million)

· Interim dividend 4 pence per share up 9% (31.1.2019: 3.67 pence per share)

 

Steady increase in asset value

· Adjusted Net Asset Value (NAV) per share6 up 10.1% to £5.32 (31.1.2019: £4.83) (31.7.2019: £5.31 million)

· Adjusted Total assets5 £213.9 million up 6.4% (31.1.2019: £201.1 million) (31.7.2019: £214.0 million)

 

Secure balance sheet  

· Net debt £31.9 million (31.1.2019: £31.2 million) (31.7.2019: £29.3 million)

· Loan to value ratio7 17.2% (31.1.2019: 18.3%) (31.7.2019: 16.1%)

· Average cost of debt 2.21% (31.1.2019: 2.13%) (31.7.2019: 2.11%)

· Capital expenditure £4.7 million (31.1.2019: £8.8 million) (31.7.2019: £15.1 million)

· Cash and committed undrawn credit facilities of £43.0 million

 

Consistent performance of self-storage business

· Adjusted Store EBITDA9 £4.79 million up 5.5% LFL13 (31.1.2019: £4.66 million)

· Unit Occupancy up 7.9%

· Occupied units pricing flat

 

Healthy pipeline of new landmark stores8

· New managed store opened in Gloucester (post period-end on 22 February 2020)

· 3 new sites acquired in Chester, Salford and Oldbury

· Site sharing agreement signed with Lidl for new Cheshunt store

· Flexible capital expenditure model can respond to economic circumstances

 

Coronavirus update - post period-end

As at the date of this Report:

· All stores remain open while maintaining social distancing measures

· Servicing many customers in essential services

· Paying all colleagues as normal - minimal use of government furlough scheme

· Trading to date resilient

· £11m cash at period-end increased to £14.0 million at the date of this report

· March self-storage revenue up 8.5% y-y

 

 

Commenting on the Group's results, Andrew Jacobs CEO of Lok'nStore Group said, 

 

"Despite the current deeply unsettled circumstances Lok'nStore has a resilient business model and a flexible and conservative debt structure. Our results for the first half of the financial year are robust. We have created a strong platform with revenue, cash flow and asset values all moving ahead and we are raising the interim dividend by 9.0% to 4 pence per share. We continued to bolster our new store pipeline to 16 sites which will significantly increase operating space over the coming years.

 

"With a strong balance sheet and low gearing helped by capital recycling, we will adjust to the current turbulence caused by the pandemic and when the economy stabilises we will continue to build more landmark stores in an under-supplied market leading to an exciting period of growth. This positions the Group well for the future".

"Our long term objective is to open more landmark stores while remaining conservatively geared delivering sustainable growth and consistently increasing dividends."

 

 

Enquiries:

 

Lok'nStore:

Andrew Jacobs, CEO

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

 

 

 

 

 

 

Notes - What we mean when we say … (and why we use these key performance indicators (KPIs))

 

1. Continuing Operations - The Group's document storage business was sold on 31 January 2019 and its disposal constitutes a discontinued operation. Separate reporting of discontinued operations is important in providing users of financial statements with the information necessary to determine the effects of a disposal on the ongoing continuing operations of our business. To ensure a clear separation of the financial performance of Continuing Operations, Discontinued Operations are shown separately on the Statement of Comprehensive Income as a profit on disposal (after tax) which combines operating profit with the profit arising on its disposal. The profit on discontinued operations is then aggregated with profit on continuing operations in determining the Group's total net profit.

 

2. 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.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.

 

3. Exceptional 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).

 

4. 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 on page 15.

 

5. Adjusted Total Assets - The value of adjusted total assets of £213.9 million (31.01.2019: £201.1 million) (31.07.2019: £214.0 million) is calculated by adding the independent valuation of the leasehold properties of £18.7 million (31.01.2019: £18.2 million) (31.07.2019: £18.7 million) less their corresponding net book value (NBV) £3.8 million (31.01.2019: £3.8 million) (31.07.2019: £4.0 million) to the total assets in the Statement of Financial Position of £199.0 million (31.01.2019: £186.7 million) (31.07.2019: £199.3 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. Total assets now include the Right of Use Assets as a result of the implementation of IFRS16 of £11.75 million. The comparative periods have been adjusted accordingly (31.1.1019: £12.97 million) (31.07.2019: £12.36 million).

 

6. 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 operating 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 on page 17.

 

7. 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 £31.9 million as set out in note 15 (31.01.2019: £31.2 million) (31.07.2019: £29.3 million) as a percentage of the total properties independently valued by JLL and including development land assets totalling £185.6 million (31.01.2019: £170.0 million) (31.07.2019: £181.2 million) as set out in the Business and Financial Review on page 12.

 

8. 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 16 pipeline sites of which 11 are contracted and 5 are currently with lawyers.

 

9. Adjusted Store EBITDA is Group Adjusted EBITDA (see 2 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 on page 9.

 

10. 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.

 

11. 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 10.

 

12. Cost Ratio - calculates the ratio of the total operating costs of the business as set out on page 13 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.

 

13. 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.

 

 

See also the glossary on page ●

 

 

 

Chairman's Statement

 

 

Before I address the current situation regarding the Covid 19 virus I want to report to you on the excellent first half of the financial year to 31 January 2020. I will return to the current unsettled situation at the end of my statement.

 

The first half-year results can be summarised as:

 

· Strong operating performance resulting in turnover and adjusted EBITDA profit growth

· Increase in pipeline to 16 stores

· Growing asset value 

· Increased dividend

· Continuing to invest in our landmark store opening programme

 

This is a solid set of results with Lok'nStore continuing to deliver on our commitment to sustainable growth.

 

The detail behind these results is discussed further in our Business and Financial Review on pages 9 to 18.

 

The continued investor interest in this sector together with the corresponding market transactions of self-storage stores underpins the Board's confidence in the value of our assets.

 

Increased Dividend

 

Lok'nStore's dividend payments to shareholders reflect the growth in the underlying cash generated from operations as reflected in the cash available for distribution (CAD) which is up 4.8% period to period.

 

At interim stage we will pay one third of the previous year's total annual dividend which equates to 4 pence per share, up 9% on the 3.67 pence per share interim dividend last year. The increase in the interim dividend follows a consistent pattern of dividend growth reflecting the sustained growth of the Group. The interim dividend will be paid on 12 June 2020 to shareholders on the register on 11 May 2020.  The ex-dividend date will be 7 May 2020. The final deadline for Dividend Reinvestment Election by investors is 22 May 2020. The final dividend will be declared when the Group's full year results are announced in late October 2020.

 

Clearly the dividend is well covered by the cash available for distribution. In addition, the Company has cash reserves that could be used in support of the dividend for some considerable time going forward.

 

IFRS 16

The Group has applied IFRS 16 for the first time in this period. IFRS 16 introduces new requirements with respect to lease accounting. It introduces significant changes to lessee accounting by removing the distinction between operating and finance leases and requiring the recognition of a right-of-use asset and a corresponding lease liability in the Statement of Financial Position.

 

The prior period financial comparatives contained within these statements have been restated to reflect the first-time adoption of IFRS 16 which changes previously reported EBITDA, interest and depreciation numbers in the Statement of Comprehensive Income. Further details of these restatements can be found in note 1.

 

Lok'nStore will continue to report on CAD which aims to look through the statutory accounts and give a clear picture of the ongoing ability of the Company to generate positive cash flow from the operating business that can be used to pay dividends or pay down debt. As mentioned above this was up 4.8% period to period.

 

Investment in our stores

 

In the previous financial year, we completed the strategic disposal of our document storage business generating £7.64 million in cash (gross) while the sale and manage back of our Crayford store generated a further £7.42 million in cash. These proceeds are being reinvested back into our pipeline of new faster growth landmark stores.

 

While we invested £4.7 million in sites and store development in this period, as a result of this recycling of capital we are able to report a period end loan-to-value (LTV) ratio of only 17.2% (31.1.2019: 18.3%) (31.7.2019: 16.1%) and net debt of only £31.9 million (31.1.2019: £31.2 million) (31.7.2019: £29.3 million).

 

The Group is still finding high quality sites for new landmark stores. Our store development programme has led to an increase in new and purpose built space to 59% of our owned portfolio and will rise to 67% following development of our Current Pipeline8. Trading at our new stores has been reassuring and this underpins our confidence that our strong secured pipeline of eleven more landmark stores will add further momentum to sales and earnings growth. They will add 39.5% more trading space to our owned portfolio. The timing of these developments will become clearer as the situation with the pandemic evolves.

 

Managed Stores

Our growth strategy includes increasing the number of stores we manage for third party owners. This enables the Company 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. We generated managed store income of £393,459 this period, up 2% from the previous period. Second half income will be stronger due to 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%. Our current pipeline includes an additional 3 managed stores which will take the total number of managed stores to 14.

 

Committed 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 directly contributes to our strategic and operational objectives which 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

 

Coronavirus update - post period end

After the period end on 11 March 2020 the World Health Organization declared a global pandemic which has radically altered the business landscape. The Board outlines below the likely effect on the Lok'nStore Group.

 

Health and Safety of the Lok'nStore team and our Customers

At Lok'nStore the health and safety of our customers and colleagues is our principal priority. To date the majority of our team members have remained well. Of the small number of colleagues who have self-isolated because either they or someone they live with have shown symptoms, all have recovered and are back at work. No colleagues have been hospitalised.

 

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 and we are proud to serve them at this difficult time.

 

Storage, logistics and transport are important parts of the distribution network and as such have not been selected for closure by the Government. Events are unfolding at a rapid pace but our objective is to keep our stores open so that our business customers in particular can continue to operate. All of our stores remain open at time of writing.

Measures taken

 

We have taken note of the Self-Storage Association guidelines. Existing customers are still able to access their storage during our temporarily reduced opening hours 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.

 

Most of our team members come to our stores by car, by bike or walking. For the small number of colleagues who rely on public transport we have worked with them to find alternative methods. We are continuing to pay our team members and directors as normal with minimal use of the government furlough scheme. To date only 8 out of 150 staff have been furloughed.

 

 

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, even under normal circumstances.

 

We remain vigilant with our daily cleaning programme and our staff have intensified cleaning of the most commonly touched areas and of shared equipment such as trolleys.

 

We are in regular communication with our store colleagues, updating them on the latest advice from Public Health England and the Government. We have also put in place contingency plans around reduced staffing levels to cope with increased absences as a result of self isolation or illness.

 

Recent trading

We have seen some new business customers move in, but this has been modestly outweighed by some businesses directly affected by the closures choosing to move out. We do expect trading to soften as move-ins have tailed off but this will only impact our numbers in the fourth quarter of our financial year. Given the levels of distress in the economy and the uncertainty surrounding what is a fast-moving situation it is too early to make judgements about future trading until we have more visibility.

 

Where a customer has approached us with a short-term financial burden, we have worked with them to find a mutual solution. To further support our customers from the 20th March 2020 no new storage rate reviews will be issued to customers until further notice.

 

Robust Capital structure, and cash flow

At 31 January 2020 the Group had cash balances of £11.0 million, which has since increased to £14.0m at the date of this Report. The Group has a £75 million five year revolving credit facility which runs until April 2024. This provides sufficient liquidity for the Group's current needs. Undrawn committed facilities at the period-end amounted to £32.0 million. The Group is not obliged to make any repayments prior to its expiration in April 2024.

 

Cash inflow from operating activities before investing and financing activities was £6.2 million in the six months to 31 January 2020, and as of March 2020 we continue to trade cash positively. March self-storage turnover was up 8.5% y-y. Despite the challenges of the Covid-19 pandemic the Group has a resilient business model strong cash flows and a flexible and conservative debt structure and is able to continue to trade effectively through this period.

 

Debt, IFRS 16 and bank covenants

The average cost of bank debt on drawn facilities for the period was 2.2%. All of the Group's total drawn bank debt of £43.0 million is unhedged, which means we have benefited immediately from the recent reductions in base lending rate. Following these reductions, the Group's all-in cost of debt is running at 1.74% with effect from April 2020, an annualised cash saving of approximately £200,000.

 

The net effect is that proforma interest cover based on the current quarter is in excess of 7 times. The Group banking covenants are set at 2.5 times. At the period end our loan-to-value ratio based on net bank debt was 17.2% versus a covenant 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. Operating lease costs 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.

 

Capital Expenditure

 

Self-storage benefits from the short lead time between breaking ground and store opening of only around 12 months. Despite our expanding pipeline of new stores, we are only on site in two locations and we have high degree of flexibility regarding start dates for further building. The government is encouraging the construction industry to keep working so we are continuing to build at the two sites which are nearing completion in Leicester and Oldbury with a view to them being opened within the next few months. We recognise that this may change should we encounter supply issues with materials. The capital cost to complete these two stores is approximately £1.9 million.

 

We are also committed to the purchase and fit-out of the new store in Salford for an outlay of around £6.9 million. Subject to planning we will also purchase land in Warrington and Chester for £4.7 million. Our project in Cheshunt requires an additional net expenditure of £1m also subject to planning. Therefore, total anticipated capital expenditure amounts to a maximum of £14.5 million which compares favourably to cash and committed undrawn credit facilities of £43.5 million.

 

All further capital expenditure is entirely discretionary providing a high degree of optionality. We remain committed to the acquisition of our pipeline of new Landmark sites but will only proceed with future construction when the economic picture is much clearer.

 

Dividend

In the previous financial year CAD per share was 18.95 pence compared with a dividend level of 12 pence per share. In the interim reporting period the cash available for distribution (CAD) amounted to £2.92 million versus the cash cost of the interim dividend of £1.2 million so there is a comfortable cushion of headroom. In addition to which we have ample liquid resources with which to meet the distribution.

 

In the light of the Coronavirus pandemic we have undertaken a rigorous and thorough analysis of the business incorporating stress testing based on the current trading performance since the lock down began as well as the Group's experience during the financial crisis of 2008. Even in scenarios where the Company takes no mitigating measures, the output of this process shows the business to be able to continue operating with more than sufficient liquidity and covenant compliance for the foreseeable future.

 

Whilst acknowledging that the after-effects of the Covid-19 pandemic may prove to be very different to those experienced after the global financial crisis, the Board is confident in the strength of the business and capacity of the management team to trade effectively through this period, and accordingly has felt it appropriate to continue to pursue the Group's progressive dividend policy. Accordingly, we will be paying the interim dividend of 4 pence, an increase of 9% over last year's interim.

 

Positive Outlook for Growth over medium to long term

Our results for the first half of the financial year are robust. Despite the current deeply unsettled circumstances Lok'nStore has a resilient business model and a flexible and conservative debt structure. We expect the Company to continue to thrive and grow in the medium and long term once the pandemic has passed.

 

 

 

Simon G Thomas

Chairman

24 April 2020

 

 

 

Business and Financial Review

 

The Performance of our Stores

 

· Self-storage revenue £8.58 million up 6.1% (31.1.2019: £8.08 million)

· Adjusted Store EBITDA £4.8 million up 5.5% LFL (31.1.2019: £4.66 million)

· Unit occupancy increased 7.9 % year on year LFL

· Occupied units pricing level

 

With operating costs under control, steady 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 2.8% to £4.8 million, and by 5.5% LFL (31.01.2019: £4.66 million). Over the course of the year unit occupancy rose by a healthy 7.9% and unit pricing was level. The overall adjusted EBITDA margin across all stores was 55.8% rising to 57.9% on a like for like basis.

 

The table below shows that 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 (61.3% and 100% respectively versus 55.8% across all stores). The impact of this will be to continue to increase the average store EBITDA 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.

 

As we build out the Current Pipeline we will be operating from 55.1% freehold space, leasehold space will decline to 18.0% of space and managed stores will increase to 26.9% of total space operated.

 

At the end of January 2020, 33.4% of Lok'nStore's self-storage revenue was from business customers (31.1.2019: 33.8%) with the remainder from household customers. By number of customers 18% of our customers were business customers (31.1.2019: 18.5%) with the remainder from household customers.

 

 

Portfolio Analysis and Performance Breakdown 

 

 

 

 

 

When Fully Developed

Portfolio Analysis and Performance Breakdown

Number of stores

% of Property

Valuation

% of Adjusted Store EBITDA

Adjusted Store

EBITDA Margin (%)

% lettable space

Lok Owned

Number of stores

Total % lettable space

 

As at 31 January 2020

 

 

 

 

 

 

 

Freehold Stores

15

89.9

76.1

61.3

65.6

23

55.1

 

Operating Leaseholds stores

8

10.1

23.9

43.5

34.4

8

18.0

Managed Stores

 11

 

 

100

 

14

26.9

Total stores trading

34

 

 

 

 

45

 

Pipeline stores

 

 

 

 

 

 

 

Owned

8

 

 

 

 

 

 

Managed

3

 

 

 

 

 

 

Total Self Storage

45

100

100

55.8

100

45

100

 

 

 

Operating Performance at a glance (Lok'nStore freehold and leasehold stores only) *

 

Weeks Old

Contracted

Pipeline

Under 100

100 to 250

over 250

Total

Six months ended 31 January 2020

 

 

 

 

 

Sales £000

 

322

842

7,413

8,577

Stores Adjusted EBITDA £'000

 

(9)

541

4,257

4,789

Adjusted EBITDA Margin (%)

 

(2.9%)

64.3%

57.4%

55.8%

Stores Adjusted EBITDAR £'000

 

322

541

4,978

5,509

Adjusted EBITDAR Margin (%)

 

(2.9%)

64.3%

67.1%

64.2%

As at 31 July 2019 ('000 sq. ft.)

 

 

 

 

 

Maximum Net Area

469

132

110

945

1,656

Freehold ('000 sq. ft.)

469

132

110

537

1,248

Short Leasehold ('000 sq. ft.)

-

-

-

408

408

Number Stores

 

 

 

 

 

Freehold

8

3

2

10

23

Short Leasehold

-

-

-

8

8

Total Stores

8

3

2

18

31

 

\* Table excludes Managed Stores.

 

In respect of the Farnborough Store (over 250 weeks) the total store revenue includes a £50,000 contribution receivable from Group Head Office.

 

Ancillary Sales

Ancillary sales consisting of boxes, packaging materials, insurance and other sales increased to £957,222 an increase of 8.4% year on year (31.01.19: £883,241) accounting for 11.2% of self-storage revenues.

 

Store properties and Net Asset Value

 

· Adjusted total assets £213.9 million up 6.4% (31.1.2019: £201.1 million)

· Net Assets £116.7 million (31.1.2019: £105.5 million)

· Adjusted net asset value £5.32 per share up 10.1% (31.1.2019: £4.83)

· Investment in new stores £4.7 million (31.1.2019: £8.8 million)

 

At the period-end Lok'nStore had 34 freehold, leasehold and managed stores trading. Of these, 23 stores are owned with 15 freehold, 8 leasehold and 11 further sites operate under management contracts.

 

The average unexpired term of the Group's operating leaseholds is approximately 10 years and 6 months as at 31 January 2020 (10 years and 7 months: 31 January 2019). 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.

 

· 5 new store opportunities identified and are progressing with lawyers

 

· Current Pipeline of 11 contracted stores adds 36.4% of extra trading space to the overall portfolio, 39.5% to our owned portfolio and 28.5% to the managed portfolio

 

 

 

Development of new stores 

 

Bedford

The planning process for a 55,000 sq. ft. purpose built store is progressing. The site is in a prominent location next to a retail park on the south east side of Bedford.

 

Bournemouth

An 80,000 sq. ft. purpose built store has been designed for this site in Castle Lane. The site is in a highly prominent location adjacent to a major food retailer and Bournemouth Hospital. Subject to planning, we aim to open what will be our largest store yet in the late summer of 2021.

 

Cheshunt

In Cheshunt, Hertfordshire, the Company acquired a 2.2-acre development site in a prominent location facing the busy A10 and in the vicinity of a major retail park. A 60,000 sq. ft. landmark store is schedule for submission to planning shortly with a target opening date of end of 2021. On 16 December 2019 we signed an agreement to share this site with a discount food retailer mitigating our development costs and generating footfall for the site.

 

Leicester

On 17 August 2018, planning permission for a 60,000 sq. ft. store was granted. The Store is in a highly prominent location opposite a major food retailer in the heart of Leicester's busy retail district. Store development is at advanced stage with fit-out commenced. The store is expected to open in summer 2020.

 

Stevenage

In December 2018 we exchanged contracts on the site in Gunnels Wood Road in Stevenage, Hertfordshire. The site is in a prominent location in an established commercial and retail area. The 60,000 sq. ft. store is currently proceeding through the planning process. Subject to planning we aim to be onsite in summer 2020 with a target opening date of late summer 2021.

 

Wolverhampton

Planning permission for a 50,000 sq. ft. store has been granted for a store in Wolverhampton. The site is opposite a busy retail park on the North East of Wolverhampton. We aim to be onsite in summer 2020 with a target opening date of late summer 2021.

 

Salford - near Manchester

The site sits strategically on the key arterial route of the Regent Road (A57) into the west of Manchester at the end of the M602. The site benefits from its location between the growing residential, business and media hub of Salford Docks and the ever-spreading West Manchester residential expansion.

 

The Lok'nStore building once developed will be highly prominent from the main road on this busy dual carriageway. Subject to a change of use permission we aim to be onsite in May/June 2020 with a target opening date of end of 2020.

 

Chester

In December 2019 we exchanged contracts subject to planning on a prominent site fronting the entrance to the main commercial and retail estate of Sealand Road in Chester. Design and planning for a 40,000 sq.ft. storage centre is at an advanced stage before submission and subject to planning we aim to be onsite in October 2020 with a target opening date of winter 2021.

 

Warrington

In June 2019 we exchanged contracts subject to planning on a landmark site at a key interchange junction on Winwick Road (A49), Warrington. The main route in and out of the town centre to the North and opposite an established supermarket and leisure facility. Planning has been submitted for a striking 55,000 sq. ft. storage centre and is at an advanced stage, subject to planning we aim to be onsite in August 2020 with a target opening date of late summer 2021.

 

Managed Stores

Our growth strategy includes increasing the number of stores we manage for third party owners. This enables the Company 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.

 

We now have fourteen stores under management contracts with eleven of these open at 31 January 2020 and Gloucester having opened post period end in February 2020. Oldbury is currently under development. Chester is 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.

 

We generated managed store income of £393,459 this period, up 2% from the previous period. We expect this to continue increasing steadily over the coming years as more managed stores are opened. Recurring fees increased rapidly by 85.7% over the same period last year. Second half income will be stronger due to 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%.

 

 

Management fees

 

 

Percentage Increase

Six months ended

31 January 2020

Unaudited

Six months ended

31 January 2019

Unaudited

Year ended

31 July 2019

Audited

 

%

£

£

£

Recurring fees

 

 

 

 

Base management fees

 

237,581

160,898

352,814

Administration and compliance fees

 

25,000

17,000

40,500

Enhanced Management fees

 

130,878

33,986

168,362

Sub-total

85.7%

393,459

211,884

561,676

Construction & Advisory fees

 

-

25,000

55,000

Supplementary fees

 

-

150,000

200,000

Non-recurring fees

 

-

175,000

255,000

Total management fees

1.7%

393,459

386,884

816,676

 

Stores being developed under management contracts

 

· Oldbury - Scheduled to open Summer 2020

· Gloucester - Opened 22 February 2020 (Post period-end)

 

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 11 new stores in our secured Current Pipeline8. 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. These eye-catching buildings, with their distinctive orange Lok'nStore branded livery and prominent signage, create highly visible landmarks, which continue to be a big source of new customers.

 

Financial results

 

· Group Revenue (continued operations) £8.97 million up 5.3% (31.1.2019: £8.51 million)

· Group Adjusted EBITDA2 £4.72 million up 6.4% (31.1.2019: £4.44 million)

· Loan to value 17.2% (31.1.2019: 17.9%) (31.7.2019: 16.1%)

· Cash available for Distribution (CAD)3 £2.92 million up 4.8% (31.1.2019: £2.78 million)

· Interim dividend up 9% to 4.0 pence per share (31.1.2019: 3.67 pence per share)

· Cash balances £11.0 million (31.1.2019: £11.2 million) (31.7.2019: £13.6 million)

 

 

Lok'nStore is a robust business which generates an increasing cash flow from its strong asset base with a low LTV of 17.2% and a low average cost of debt of 2.21%. The value of the Group's property 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 2.21% (31.1.2019: 2.13%) (31.7.2019: 2.11%)

 

With £43.0 million of gross debt currently drawn against the £75 million bank facility the Group is not committed to enter into hedging instruments but will 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.

 

All of the Group's total drawn debt of £43.0 million is unhedged so the Group has quickly benefited from the recent reductions in base lending rate. Following these reductions, the Group's all-in cost of debt in April 2020 is 1.74%.

 

Taxation

The Group has made a current tax provision against earnings in this period of £0.40 million (31.1.2019: £0.47 million) based on a corporation tax rate of 19% (31.1.2019: 19%). The deferred tax provision which is calculated at forward corporation tax rates of 17% and is substantially a tax provision against the potential crystallisation (sales) of revalued properties and past 'rolled over' gains amounts to £22.49 million. (31.1.2019: £20.05 million) (31.7.2019: £22.39 million). (See Note 16).

 

Earnings per share

Basic earnings per share were 5.74 pence (31.1.2019: 14.30 pence per share - restated) and diluted earnings per share were 5.63 pence (31.1.2019: 14.03 pence per share - restated).

 

On a normalised basis stripping out the contribution from the Saracen business and the corresponding profit on disposal Basic earnings per share for the continuing operations were 5.74 pence (31.1.2019: 6.79 pence per share) and diluted earnings per share were 5.63 pence (31.1.2019: 6.68 pence per share - restated).

 

Six months

 ended

31 January 2020

Unaudited

 

Six months

 ended

31 January 2019

Unaudited

Restated

 

Year ended

31 July 2019

Audited

Restated

Basic

 

 

 

 

Continuing operations

 

5.74p

6.79p

11.12p

Discontinued operations

 

-

7.51p

7.55p

Total basic earnings per share

 

5.74p

14.30p

18.67p

Diluted

 

 

Continuing operations

 

5.63p

6.68p

10.93p

Discontinued operations

 

-

7.35p

7.42p

Total diluted earnings per share

 

5.63p

14.03p

18.35p

 

Costs - Continuing Operations

 

· Group operating costs amounted to £4.16 million for the period (31.1.2019: £3.98 million) up modestly by 1.8% LFL

· Cost ratio12 reduced further to 46.4% (31.1.2019: 46.7%) (31.7.2019: 47.3%)

 

We have a strong record of disciplined control of our group operating costs. In the period operating costs (stripping out the IFRS 16 effect of the operating lease costs) were up 4.6% year on year as we opened new stores. On a like for like basis stripping out the costs of new stores, Group operating costs amounted to £4.05 million for the period, a 1.8% increase year on year (31.1.2019: £3.98 million) and we provide a breakdown below.

 

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. On a LFL basis rents have remained broadly static decreasing by 0.7%.

 

Staff costs increased by 6.1% (1.6% LFL) as we staffed the new stores and paid performance bonuses to all our store colleagues. We also incurred additional national insurance costs arising on these performance bonuses and the exercise of employee share options.

The principal decrease in overhead costs are due to a lower level of legal and professional costs related to work on rent reviews, corporate tax and compliance work and costs arising on aborted store acquisitions compared to the previous period.

 

 

Group- Continuing Operations

Increase (decrease)

in costs %

 

Six months

ended 31 Jan

2020

£'000

Six months

ended 31 Jan

2019

£'000

Restated

 

Year

ended 31 July

2019

£'000

Restated

Property costs

9.4%

 

2,157

1,971

 

 4,022

IFRS 16 restatement - operating leases

11.5%

 

(720)

(646)

 

(1,356)

Restated property and premises costs

8.4%

 

1,437

1,325

 

2,666

Staff costs

6.1%

 

2,151

2,027

 

4,111

Overheads

 (8.5%)

 

572

625

 

1,244

Total

4.6%

 

4,160

3,977

 

8,021

 

 

 

Group-Continuing Operations

Like for Like

Increase (decrease)

in costs %

 

Six months

ended 31 Jan

2020

£'000

Restated

Six months

ended 31 Jan

2019

£'000

Restated

 

Property costs

3.7%

 

2,045

1,971

 

IFRS 16 restatement - operating leases

(7.2%)

 

(599)

(646)

 

Restated property and premises costs

9.1%

 

1,446

1,325

 

Staff costs

1.6%

 

2,059

2,027

 

Overheads

(12.9%)

 

545

625

 

Total

1.8%

 

4,050

3,977

 

 

Cash flow and financing

At 31 January 2020 the Group had cash balances of £11.0 million (31.1.2019: £11.2 million) (31.7.2019: £13.6 million). Cash inflow from operating activities before investing and financing activities was £6.2 million (31.1.2019: £6.0 million).

 

As well as using cash generated from operations to fund some capital expenditure, the Group has a £75 million five year revolving credit facility which runs until April 2024. This provides sufficient liquidity for the Group's current needs. Undrawn committed facilities at the period-end amounted to £32.0 million (31.1.2019: £7.6 million) (31.7.2019: £32.0 million).

 

Cash available for Distribution (CAD) up 4.8% from Continuing Operations

Cash available for Distribution (CAD) provides a clear picture of ongoing cash flow available for dividends or debt repayment. The CAD was up 4.8% in the period compared to the corresponding period last year. 

 

Cash available for Distribution (CAD) per share (annualised) was up 4.7% to 20.15 pence (31.1.2019: 19.24 pence).

 

 

 

 

To illustrate this fully the table below shows the calculation of CAD.

 

Analysis of Cash Available for Distribution (CAD)

Based on Continued Operations

 

 

 

 

Period ended

31 January 2020

 

£'000

Period ended

31 January 2019

Restated

£'000

Year ended

31 July 2019

Restated

£'000

Group Adjusted EBITDA

(per Statement of Comprehensive Income)

 

4,723

4,441

8,749

IFRS 16 restatement - operating leases

(720)

(646)

(1,356)

Less: Net finance costs paid1

(560)

(439)

(903)

Capitalised maintenance expenses

(80)

(55)

(99)

New Works Team

(41)

(47)

(90)

Current tax (note 7)

(403)

(470)

(811)

Total deductions

(1,804)

(1,657)

(3,259)

Cash Available for Distribution

2,919

2,784

5,490

 

 

 

 

Increase in CAD over last year

4.8%

4.5%

9.2%

 

 

 

 

 

Number

Number Number

Closing shares in issue (less shares held in EBT)

28,970,001

28,927,707

28,960,574

CAD per share (annualised)

20.15p

19.24p

18.95p

Increase in CAD per share over last year

4.7%

3.8%

8.8%

     

 

1 Net finance costs represent finance costs paid per the cash flow statement of £0.58 million less bank interest received to give the true cash flow effect.

 

Gearing10 (excluding IFRS16 lease liabilities)

At 31 January 2020 the Group had £43.0 million of gross bank borrowings (31.1.2019: £42.4 million) representing gearing of 27.2% (31.1.2019: 29.5%) on net debt of £31.9 million (31.1.2019: £31.2 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 24.2% (31.1.2019: 25.9%). After adjusting for the deferred tax liability carried at period end of £22.5 million gearing drops to 20.7% (31.1.2019: 22.2%).

 

Gearing10 (including IFRS16 lease liabilities)

At 31 January 2020 the Group had £43.0 million of gross bank borrowings (31.1.2019: £42.4 million) and £12.3 million of lease liabilities (31.1.2019: £13.4 million) representing gearing of 37.9% (31.1.2019: 42.3%) on net debt of £44.2 million (31.1.2019: £44.6 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 33.6% (31.1.2019: 50.3%). After adjusting for the deferred tax liability carried at period end of £22.5 million gearing drops to 28.7% (31.1.2019: 41.0%).

 

Capital expenditure

The Group has an active 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 £4.9 million (31.1.2019: £8.8 million). This was primarily the purchase of the Stevenage site and deposits paid on the Salford (Manchester), Warrington and Chester sites, together with ongoing construction and fit out works at our sites in Leicester as well as planning and pre-development works at our Wolverhampton, Oldbury, Bedford, Bournemouth, and Cheshunt sites. The figure includes £0.22 million of capitalised interest.

 

Clearly, we will carefully evaluate the ongoing economic and trading position before making any further capital commitments.

 

Market Valuation of Freehold and Operating Leasehold Land and Buildings

On 31 July 2019 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 2020 period-end after adjusting for additions and disposals since the 31 July 2019 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 as adopted by the European Union. Accordingly after consulting with our external valuers, whilst there has been continued market activity in the self-storage sector since July 2019, 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 2020 in respect of our properties externally valued at 31 July 2019. 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 2020 year-end.

 

Novel Coronavirus (COVID-19)

 

Since the reporting date of 31 January 2020, the outbreak of the Novel Coronavirus (COVID-19) has been declared a "Global Pandemic" by the World Health Organisation on the 11 March 2020. This has impacted global financial markets.

 

Market activity is being affected in many sectors and Jones Lang LaSalle (JLL) in common with other external valuers have subsequently introduced material uncertainty provisions into their valuation reports for valuations conducted on or after 11 March 2020. For valuations after the 11 March 2020, JLL have confirmed that they are unable to provide an estimate of the financial effect that this event would have on the value of the properties for the time being.

 

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 £18.7 million (31.1.2019: £18.2 million). We have reported by way of a note the underlying value of these leasehold stores in future revaluations and adjusted our Net Asset Value (NAV) calculation accordingly to include their value. This ensures comparable NAV calculations which now include the Right of Use Assets as a result of the implementation of IFRS16.

 

Analysis of Total Property Value

 

 

No of stores

/sites

31 Jan 2020 Valuation

£'000

No of stores

/sites

31 Jan 2019 Valuation

£'000

No of stores

/sites

31 July 2019 Valuation

£'000

 

Freehold and long leasehold3 valued by JLL 1

 

15

 

144,000

 

14

 

128,000

 

15

 

144,000

Leasehold valued by JLL 2

8

18,725

7

 18,200

8

18,725

Freehold land and buildings at Director valuation 3

1

2,467

1

3,051

1

2,509

Leasehold land and buildings at Director valuation

-

-

1

1,236

-

-

Subtotal

24

165,192

23

150,487

24

165,234

Sites in development at cost 4

10

22,846

9

23,830

30

18,442

Total

34

188,038

32

174,317

30

183,676

 

 

1  Includes related fixtures and fittings (refer note 10a)

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 11 years and 0 months at the date of the 2019 valuation (2018 valuation: 11 years and 1 month).

3 For more details refer note 10a - Directors valuation

4 Includes £223,163 of capitalised interest during the period.

 

 

Total freehold properties account for 90.0% of all property values (31.1.2019: 88.9%).

 

Adjusted Net Asset Value per Share

Adjusted net assets per share is 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 2020 the adjusted net asset value per share increased to £5.32 from £4.83 year on year, up 10.1%. This increase is a result of higher property values on our existing stores as well as the maiden valuations at 31 July 2019 on our new stores in Cardiff, Ipswich and Hedge End as the strength of our landmark stores is recognised, combined with 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.

 

 

 

Analysis of net asset value (NAV)

31 Jan

2020

£'000

Unaudited

 

31 Jan

2019

£'000

Unaudited

Restated

31 July

2019

£'000

Audited

Restated

 

Net assets

Adjustment to include operating/short leasehold stores at valuation

Add: JLL leasehold valuation

Deduct: leasehold properties and their fixtures and fittings at NBV

 

116,746

 

18,725

(3,851)

 

105,452

 

18,200

(3,813)

 

 

116,657

 

18,725

(3,905)

 

131,620

119,839

131,477

 

Deferred tax arising on revaluation of leasehold properties1

 

(2,529)

 

(2,446)

 

(2,519)

 

Adjusted net assets

 

129,091

 

117,393

 

128,958

 

 

 

 

 

Shares in issue

Number

'000

Number

'000

Number

'000

 

 

 

 

Opening shares in issue

Shares issued for the exercise of options

29,584

9

29,499

52

29,499

85

Closing shares in issue

Shares held in EBT

29,593

(623)

29,551

(623)

29,584

(623)

 

Closing shares for NAV purposes

 

28,970

 

28,928

 

28,961

 

Adjusted net asset value per share after deferred tax provision

£4.46

 

£4.05

 

£4.45

 

Adjusted net asset value per share before deferred tax provision

 

 

 

Adjusted net assets

129,091

117,393

128,958

Deferred tax liabilities and assets recognised by the Group

22,487

20,046

22,385

Deferred tax arising on revaluation of leasehold properties1

2,529

2,446

2,519

 

Adjusted net assets before deferred tax

 

154,107

 

139,885

 153,862

 

Closing shares for NAV purposes

 

28,970

 

28,928

 

28,961

 

Adjusted net asset value per share before deferred tax provision

 

£5.32

 

£4.83

 

£5.31

 

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.

 

 

 

Andrew Jacobs Ray Davies

Chief Executive Officer Finance Director

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 31 January 2020

 

 

Notes

Six months

 ended

31 January 2020

Unaudited

 

£'000

Six months

 ended

31 January 2019

Unaudited

(Restated**)

£'000

Year ended

31 July 2019

Audited

(Restated**)

£'000

Revenue

2

 

8,966

 

8,512

16,950

 

 

 

 

 

Total property, staff, distribution and general costs

3a

 

(4,243)

 

(4,071)

(8,201)

 

Adjusted EBITDA1

 

 

4,723

 

4,441

8,749

Amortisation of intangible assets

 

 

-

 

(83)

(83)

Depreciation

6

(1,829)

(1,677)

 (3,424)

Equity settled share based payments

 

(41)

(11)

(46)

 

 

(1,870)

(1,771)

(3,553)

Profit on sale of land at store

3(c)

-

296

295

Costs of sale & manage-back of Crayford store

3(c)

-

-

(54)

Deferred financing on bank loan written off

3(c)

-

-

(133)

 

 

-

296

108

 

 

(1,870)

(1,475)

(3,445)

Operating profit

 

 

2,853

 

2,966

5,304

 

 

 

 

Finance income

4

16

10

31

Finance cost

5

(563)

(408)

(909)

 

 

 

 

 

Profit before taxation

 

2,306

2,568

4,426

Income tax expense

7

(642)

(602)

(1,211)

Profit for the period from continuing operations

 

1,664

1,966

3,215

Profit for the period from discontinued operations

11

-

2,169

2,182

 

 

 

 

 

Profit for the period

 

1,664

4,135

5,397

 

 

 

 

 

Profit attributable to:

 

 

 

 

Owners of the parent

20

1,664

4,135

5,397

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

Items that will not be reclassified to profit and loss

 

 

 

 

Increase in property valuation

 

 631

655

13,765

Deferred tax relating to change in property valuation

 

 

(107)

(122)

 

(2,327)

 

524

533

11,438

Items that may be subsequently reclassified to profit and loss

 

 

 

 

Other comprehensive income

 

524

533

11,438

 

 

 

 

 

Total comprehensive income for the period

 

2,188

4,668

16,835

 

Attributable to:

Owners of the parent

 

 

2,188

 

4,668

 

16,835

 

** details of the restatements following the adoption of IFRS 16 are made in note 1 to the financial statements.

 

 

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 31 January 2020

 

 

Earnings per share attributable to owners of the Parent

 

 

 

 

Basic

9

 

 

 

Continuing operations

 

 5.74p

6.79p

11.12p

Discontinued operations

 

-

7.51p

7.55p

Total basic earnings per share

 

5.74p

14.30p

18.67p

 

 

 

 

 

Diluted

9

 

Continuing operations

 

5.63p

6.68p

10.93p

Discontinued operations

 

-

7.35p

7.42p

Total diluted earnings per share

 

5.63p

14.03p

18.35p

 

1  Adjusted EBITDA is defined in the accounting policies section of the notes to the interim report.

 

 

Consolidated Statement of Changes in Equity

For the six months ended 31 January 2020

 

 

 

Attributable to owners of the Parent

 

Share

capital

£'000

Share

premium

£'000

Other

reserves

£'000

Revaluation

reserve

£'000

Retained

earnings

£'000

Restated

Total

equity

£'000

Restated

 

1 August 2018 - Audited

295

10,350

8,363

64,899

19,344

103,251

Effect of new accounting standard - IFRS 16

-

-

-

-

(336)

(336)

As at 1 August 2018 - Audited restated

295

10,350

8,363

64,899

19,008

102,915

 

Profit for the period (restated)

-

-

-

-

4,135

4,135

Other comprehensive income:

 

 

 

 

 

 

Increase in property valuation net of deferred tax

-

-

-

533

-

533

Total comprehensive income for the year

-

-

-

533

4,135

4,668

Transactions with Owners

 

 

 

 

 

 

Dividend paid

-

-

-

-

(2,217)

(2,217)

Share based payments

-

-

11

-

-

11

Transfers in relation to share based payments

-

-

(27)

-

27

-

Deferred tax credit relating to share options

-

-

(15)

-

-

(15)

Exercise of share options

1

89

-

-

-

90

Total transactions with owners

1

89

(31)

-

(2,190)

(2,131)

Reserve transfer on disposal of assets

-

-

-

(500)

500

-

Transfer additional dep'n on revaluation net of deferred tax

-

-

-

(151)

151

-

 

31 January 2019 - Unaudited (restated)

296

10,439

8,332

64,781

21,604

 

105,452

Profit for the period (restated)

-

-

-

-

1,262

1,262

Other comprehensive income

 

 

 

 

 

 

Increase in property valuation net of deferred tax

-

-

-

10,905

-

10,905

Total comprehensive income for the year

-

-

-

10,905

1,262

12,167

Transactions with Owners

 

 

 

 

 

 

Dividend paid

-

-

-

-

(1,062)

(1,062)

Share based payments

-

-

35

-

-

35

Transfers in relation to share based payments

-

-

(24)

-

24

-

Deferred tax credit relating to share options

-

-

14

-

-

14

Exercise of share options

-

51

-

-

-

51

Total transactions with owners

-

51

25

-

(1,038)

(962)

Reserve transfer on disposal of assets

-

-

-

(4,427)

4,427

-

Transfer additional dep'n on revaluation net of deferred tax

 

-

 

-

-

(153)

153

 

-

 

31 July 2019 - Audited (restated)

296

10,490

8,357

71,106

26,408

116,657

Profit for the period

-

-

-

-

1,664

1,664

Other comprehensive income

 

 

 

 

 

 

Increase in property valuation net of deferred tax

-

-

-

524

-

524

Total comprehensive income for the year

-

-

-

524

1,664

2,188

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)

Transfer additional dep'n on revaluation net of deferred tax

 

-

 

-

-

 

(154)

 

154

 

-

 

31 January 2020 - Unaudited (restated)

 

296

 

10,518

 

8,638

 

71,476

 

25,818

 

116,746

 

 

Consolidated Statement of Financial Position

31 January 2020

 

Notes

 

31 January

2020

Unaudited

 

£'000

 

31 January

2019

Unaudited

(Restated**)

£'000

31 July

2019

Audited

(Restated**)

 £'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

10a

173,245

158,774

168,938

Financial assets

 

361

361

361

Right of use assets

10b

11,750

12,968

12,359

 

 

185,356

172,103

181,658

Current assets

 

 

 

 

Inventories

12

363

275

298

Trade and other receivables

13

2,301

3,074

3,707

Cash and cash equivalents

 

11,023

11,236

13,662

 

Total current assets

 

 

13,687

 

14,585

 

17,667

Total assets

 

199,043

186,688

199,325

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

14

 

(4,728)

 

(5,066)

 (4,753)

Lease liabilities

 

(1,257)

(1,138)

(1,161)

Taxation

 

(402)

(503)

(339)

 

 

(6,387)

(6,707)

(6,253)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

16a

(42,398)

(42,200)

(42,331)

Lease liabilities

16b

(11,025)

(12,283)

(11,699)

Deferred tax

17

(22,487)

(20,046)

(22,385)

 

 

(75,910)

(74,529)

(76,415)

 

Total liabilities

 

(82,297)

(81,236)

 

(82,668)

 

Net assets

 

116,746 

 

105,452

 

116,657

Equity

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

Called up share capital

18

296

296

296

Share premium

 

10,518

10,439

10,490

Other reserves

19

8,638

8,332

8,357

Retained earnings

20

25,818

21,604

26,408

Revaluation reserve

 

71,476

64,781

71,106

 

Total equity

 

 

116,746

 

105,452

116,657

      

** details of the restatements following the adoption of IFRS 16 are made in note 1 to the financial statements.

 

Approved by the Board of Directors and authorised for issue on 24 April 2020 and signed on its behalf by:

 

 

Andrew Jacobs Ray Davies

Chief Executive Officer Finance Director

 

 

 

Consolidated Statement of Cash Flows

For the six months ended 31 January 2020

 

 

 

Notes

Six months ended

31 January

2020

Unaudited

 

£'000

 

Six months

ended

31 January

2019

Unaudited

(Restated**)

£'000

Year

ended

31 July

2019

Audited

(Restated**)

 £'000

Operating activities

 

 

 

 

Cash generated from operations

22a

6,172

6,000

9,545

Income tax paid

 

(475)

(450)

(955)

 

Net cash from operating activities

 

 

5,697

5,550

8,590

 

Investing activities

 

 

 

 

Proceeds from disposal of discontinued operation

(net of disposal costs and cash included in sale)

 

-

 

6,866

6,849

Proceeds of sale of land (net of disposal costs)

 

-

796

796

Proceeds of sale of store

 

-

-

7,418

Purchase of property, plant and equipment

10a

(4,671)

(7,526)

(14,029

Acquisition of subsidiary (net of cash acquired)

 

-

(1,136)

(1,069)

Interest received

 

16

10

31

Net cash used in investing activities

 

(4,655)

(990)

(4)

 

 

 

 

 

Financing activities

 

 

Proceeds from drawdown of new bank facility

-

 

-

 

42,971

Repayment of bank borrowings on retiring bank facility

 

-

-

(42,395)

Proceeds of bank borrowings utilised for store development

 

 

-

 

5,030

 

5,653

Finance costs paid on bank refinancing

 

-

-

(593)

Finance costs paid

 

(576)

 

(449)

 

(934)

Lease liabilities paid

 

(720)

(768)

(1,478)

Equity dividends paid

 

 (2,413)

(2,217)

(3,279)

Proceeds from issuance of ordinary shares (net)

 

28

90

141

 

Net cash (used in) / from financing activities

 

 

(3,681)

 

1,686

86

Net (decrease) / increase in cash and cash equivalents in the period

 

 

(2,639)

 

6,246

8,672

 

Cash and cash equivalents at beginning of the period

 

 

 

13,662

 

 

4,990

 

 

4,990

 

Cash and cash equivalents at end of the period

 

 

11,023

 

11,236

 

13,662

 

** details of the restatements following the adoption of IFRS 16 are made in note 1 to the financial statements.

 

 

 

 

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 2020 have been prepared on the basis of the accounting policies expected to be used in the 2020 Lok'nStore Group Plc Annual Report and Accounts and in accordance with the recognition and measurement principles of International Financial Reporting Standards ('IFRS') and the International Financial Reporting Interpretations Committee ('IFRIC') as adopted by the European Union ('EU').

 

The 2020 Lok'nStore Group Plc Annual Report and Accounts will cover the implementation of IFRS 16. IFRS 16 represents a significant change to the way that the Group prepares its financial statements. The effective date of adoption is for accounting periods commencing after 1 January 2019. IFRS 16 will therefore apply to Lok'nStore's financial statements for the year ended 31 July 2020 and accordingly IFRS 16 has been applied in these interim condensed set of financial statements.

 

The interim financial statements present the effects of IFRS 16 on 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. IFRS 16 primarily affects the accounting by lessees and results in the recognition of all leases on the balance sheet. The standard removes the previous distinction between operating and financing leases and requires recognition of an asset (the right to use the leased item) and a financial liability to pay rentals for virtually all lease contracts. Unless otherwise stated, the prior period financial comparatives contained within these statements have been restated to reflect the first-time adoption of IFRS 16 using the full retrospective method. The implementation and the resulting effects on the financial statements are discussed in detail in note 1 of the financial statements below.

 

Subject to the implementation of IFRS 16 in these interim financial statements, 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 24 April 2020, 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 2019, prior to the restatements for the adoption of IFRS16, 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 £11.0 million (31.07.2019: £13.7 million), undrawn committed bank facilities at 31 January 2020 of £32.0 million (31.07.2019: £32.0 million), and cash generated from operations in the period to 31 January 2020 of £6.2 million (31.01.2019: £6.0 million) (31.07.2019: 9.5 million).

 

The Group currently operates a £75 million five year revolving credit facility with Royal Bank of Scotland plc and Lloyds Bank plc with a further £25 million accordion option taking the facility to £100 million and 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 2024.

 

The robust capital structure, cash flow and financing and its effect on trading are reported in the Chairman's Statement and provide a great deal of resilience against the impact of COVID-19. 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.

 

Discontinued operations

The results of discontinued operations are presented in a single line in the Consolidated Statement of Comprehensive Income and the comparative information has been re-stated accordingly.

 

 

 

Notes to the Financial Statements

For the six months ended 31 January 2020

 

 

1 Implementation of IFRS 16 - Leases

 

IFRS 16 represents a significant change to the way that the Group prepares its financial statements. The effective date of adoption is for accounting periods commencing after 1 January 2019 and the standard will therefore apply to Lok'nStore's financial statements for the year ended 31 July 2020 and has been applied in these interim financial statements using the full retrospective approach.

 

IFRS 16 primarily affects the accounting by lessees and results in the recognition of the value of almost all leases on the balance sheet. The standard removes the current distinction between operating and financing leases and requires recognition of an asset (the right to use the leased item) and a financial liability to pay rentals.

 

The application of IFRS 16 relates to the Groups property leases. The Group has no leases on any other types of assets.

 

The Statement of Financial Position: The Group's operating leases on its leased stores are recognised as a 'right of use asset' and as a corresponding liability at the year-end. Each lease payment is allocated between the liability element and the finance cost element. The finance costs are charged to profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining liability for the period. The right-of-use asset is depreciated on a weighted depreciation charge based on the individual lease term of the separate operating leases. Assets and liabilities arising from a lease will initially be measured on a present value basis which will include the fixed rental payments less any lease incentives receivable. If the interest rate implicit in the lease cannot be readily determined the lease payments will be discounted by the Group's incremental borrowing rate (cost of debt) to obtain an asset of similar value over a similar term with similar security. Right of use assets will be measured at cost comprising the initial measurement of the lease liability plus any initial direct costs (if any). The Groups current operating lease commitments are reported in Note 23.

 

The Statement of Profit or Loss: This is affected because the total expense is typically higher in the earlier years of a lease and lower in later years. Additionally the rent operating expense that would usually be reported in these financial statements at £0.72 million (31.01.2019: £0.72 million) is replaced with interest and depreciation as a consequence of the 'capitalisation effect' of the leases, so the Group's key metric of Adjusted EBITDA increases significantly by the removal of the rent expense from the operating profit and loss. Other performance measures including Operating Profit also increase although reported interest and depreciation will be higher. Accordingly, the key metrics and Alternative Performance Measures (APM's) have been updated for IFRS16 in the KPI's section above.

 

The Consolidated Statement of Cash Flows: While overall underlying cash flow is unaffected by the changes the presentation within the Consolidated Statement of Cash Flows will change. Reported operating cash flows will be higher as cash payments for the principal portion of the lease liability are classified within financing activities.

 

The effect on financial ratios such as gearing or leverage causes them to rise as the lease liability now forms part of net debt.

 

To give a broad overview of the numerical effect on the implementation of IFRS 16 as it would apply to the current period and comparative numbers we have:

 

 

 

Group

31 January

2020

£'000

Group

31 January

2019

£'000

Group

31 July

2019

£'000

 

Continuing operations

Rents payable under operating leases

720

 

646

 

1,356

 

Discontinued operations

Rents payable under operating leases

-

 

122

 

122

 

Total rents payable under operating leases

720

 

768

 

1,478

 

 

To ensure consistency and effective comparison with prior periods, the Group has elected to apply the full retrospective implementation approach with reinstatement of the comparative information. The transition date of initial application is therefore 1 August 2018. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the leases. Where this cannot be readily determined the Present Value of all future operating lease payments is calculated using 2.2% as an effective cost of debt as the discount rate. This calculates an opening Right of Use Asset (ROU) as at 1 August 2018 of £14.87 million. Correspondingly this is also the opening value of the lease liability following the capitalisation of the leases.

 

After the application of a weighted depreciation charge based on the individual lease term of the separate operating leases and the imputation of an interest charge at 2.2% as part of the amortisation of the lease liability a reconciliation of the total operating leases to the IFRS lease liability is shown below:

 

 

 

Continuing Operations

Statement of Financial Position (extract)

 

Group

31 January

2020

£'000

Group

31 January

2019

£'000

Group

31 July

2019

£'000

Group

31 July

2018

transition£'000

 

IFRS 16

IFRS 16

IFRS 16

IFRS 16

 

Restated

Restated

Restated

Restated

Right of Use Asset (ROU)

11,750

12,968

12,359

13,577

 

 

 

 

 

Equity - accumulated effect of restatement

532

453

501

336

 

12,282

13,421

12,860

13,913

 

 

 

 

 

Current Lease Liability

 

 

 

 

Amounts due within one year

1,257

1,138

1,161

1,052

Non-current Lease Liability

 

 

 

 

Amounts due in one to two years

1,285

1,257

1,257

1,161

Amounts due in three to five years

2,749

3,224

3,224

3,584

Amounts due in more than five years

6,991

7,802

7,218

8,116

Non-current Lease Liability

11,025

12,283

11,699

12,861

Total lease liability

12,282

13,421

12,860

13,913

 

 

Statement of Comprehensive Income (extract)

Group

31 January

2020

£'000

Group

31 January

2019

£'000

Group

31 July

2019

£'000

Group

31 July

2018

transition £'000

 

IFRS 16

IFRS 16

IFRS 16

IFRS 16

 

Restated

Restated

Restated

Restated

Operating lease expense

720

646

1,356

1,191

 

 

 

 

 

Depreciation of Right of Use Asset (ROU)

(609)

(608)

(1,217)

(1,218)

Interest charged on lease liability

(143)

(155)

(304)

(309)

 

 

 

 

 

Impact on Comprehensive Income

(32)

(117)

(165)

(336)

 

Analysis of the effect within the Statement of Comprehensive Income

Group

31 January

2020

£'000

Group

31 January

2019

£'000

Group

31 July

2019

£'000

Group

31 July

2018

transition £'000

 

IFRS 16

IFRS 16

IFRS 16

IFRS 16

 

Restated

Restated

Restated

Restated

Increase in EBITDA

720

646

1,356

1,191

 

 

 

 

 

Increase / (decrease) in operating profit

111

38

139

(27)

Increase / (decrease) in PBT

(32)

(117)

(165)

(336)

 

 

The Group has applied a single discount rate equivalent to its effective cost of debt. For more detailed information on the Groups Commitments under operating leases refer to note 23 (Commitments under operating leases).

 

 

 

Reconciliation of the impact of IFRS16 on the previously reported

Consolidated Statement of Comprehensive Income

For the six months ended 31 January 2019

 

 

Notes

Six months

 ended

31 January2019

Unaudited

 

£'000

Impact of

 IFRS 16

 

 

 

£'000

Six months ended

31 January 2019

Unaudited

(Restated**)

£'000

Revenue

2

 

8,512

 

-

 

8,512

 

 

 

 

 

Total property, staff, distribution and general costs

3a

 

(4,717)

 

646

 

(4,071)

 

Adjusted EBITDA1

 

 

3,795

 

646

 

4,441

Amortisation of intangible assets

 

 

(83)

 

-

 

(83)

Depreciation

 

(1,069)

(608)

(1,677)

Equity settled share based payments

 

(11)

-

(11)

 

 

(1,163)

(608)

(1,771)

Profit on sale of land at store

3(c)

296

-

296

Costs of sale & manage-back of Crayford store

3(c)

-

-

-

Deferred financing on bank loan written off

3(c)

-

-

-

 

 

296

-

296

 

 

(867)

(608)

(1,475)

Operating profit

 

 

2,928

 

38

 

2,966

 

 

 

 

Finance income

4

10

-

10

Finance cost - bank borrowings

5

(253)

-

(253)

Finance cost - lease liabilities

5

-

(155)

(155)

 

 

 

 

 

Profit before taxation

 

2,685

(117)

2,568

Income tax expense

7

(602)

-

(602)

Profit for the period from continuing operations

 

2,083

(117)

1,966

Profit for the period from discontinued operations

11

2,169

-

2,169

 

 

 

 

 

Profit for the period

 

4,252

(117)

4,135

 

 

 

 

 

Profit attributable to:

 

 

 

 

Owners of the parent

20

4,252

(117)

4,135

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

Items that will not be reclassified to profit and loss

 

 

 

 

Increase in property valuation

 

655

-

655

Deferred tax relating to change in property valuation

 

 (122)

-

(122)

 

533

-

533

Items that may be subsequently reclassified to profit and loss

 

 

 

 

Other comprehensive income

 

533

-

533

 

 

 

 

 

Total comprehensive income for the period

 

4,785

-

4,668

 

Attributable to:

Owners of the parent

 

 

4,785

 

(117)

 

4,668

 

Reconciliation of the impact of IFRS16 on the previously reported

Consolidated Statement of Comprehensive Income

For the six months ended 31 January 2019

 

 

Earnings per share attributable to owners of the Parent

 

Six months

 ended

31 January 2019

Unaudited

 

£'000

Impact of

 IFRS 16

 

 

 

£'000

Six months ended

31 January 2019

Unaudited

(Restated**)

£'000

Basic

9

 

 

 

Continuing operations

 

7.21p

 (0.42p)

6.79p

Discontinued operations

 

7.51p

-

7.51p

Total basic earnings per share

 

14.72p

 (0.42p)

14.30p

 

 

 

 

 

Diluted

9

Continuing operations

 

7.05p

(0.37p)

6.68p

Discontinued operations

 

7.35p

-

7.35p

Total diluted earnings per share

 

14.40p

(0.37p)

14.03p

 

1  Adjusted EBITDA is defined in the accounting policies section of the notes to the interim report.

 

 

 

Reconciliation of the impact of IFRS16 on the previously reported

Consolidated Statement of Comprehensive Income

For the year ended 31 July 2019

 

 

Notes

Year ended

31 July

 2019

Unaudited

 

£'000

Impact of

 IFRS 16

 

 

 

£'000

Year ended

31 July 2019

Unaudited

(Restated**)

£'000

Revenue

2

16,950

 

-

16,950

 

 

 

 

 

Total property, staff, distribution and general costs

3a

(9,557)

 

1,356

(8,201)

 

Adjusted EBITDA1

 

7,393

 

1,356

8,749

Amortisation of intangible assets

 

(83)

 

-

(83)

Depreciation

 

 (2,207)

(1,217)

 (3,424)

Equity settled share based payments

 

(46)

-

(46)

 

 

(2,336)

(1,217)

(3,553)

Profit on sale of land at store

3(c)

295

-

295

Costs of sale & manage-back of Crayford store

3(c)

(54)

-

(54)

Deferred financing on bank loan written off

3(c)

(133)

-

(133)

 

 

108

-

108

 

 

(2,228)

(1,217)

(3,445)

Operating profit

 

5,165

 

139

5,304

 

 

 

 

Finance income

4

31

-

31

Finance cost - bank borrowings

5

(605)

-

(605)

Finance cost - lease liabilities

5

-

(304)

(304)

 

 

574

(304)

878

Profit before taxation

 

4,591

(165)

4,426

Income tax expense

7

(1,211)

-

(1,211)

Profit for the period from continuing operations

 

3,380

(165)

3,215

Profit for the period from discontinued operations

11

2,182

 

-

2,182

 

 

 

 

 

Profit for the period

 

5,562

(165)

5,397

 

 

 

 

 

Profit attributable to:

 

5,562

(165)

5,397

Owners of the parent

20

 

 

 

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

Items that will not be reclassified to profit and loss

 

 

 

 

Increase in property valuation

 

13,765

-

13,765

Deferred tax relating to change in property valuation

 

 

(2,327)

-

 

(2,327)

 

11,438

-

11,438

Items that may be subsequently reclassified to profit and loss

 

 

 

 

Other comprehensive income

 

11,438

-

11,438

 

 

 

 

 

Total comprehensive income for the period

 

17,000

(165)

16,835

 

Attributable to:

Owners of the parent

 

 

17,000

 

 (165)

 

16,835

 

 

 

Reconciliation of the impact of IFRS16 on the previously reported

Consolidated Statement of Comprehensive Income

For the six months ended 31 July 2019

 

 

Earnings per share attributable to owners of the Parent

 

Year ended

31 July

 2019

Unaudited

 

£'000

Impact of

 IFRS 16

 

 

 

£'000

Year ended

31 July 2019

Unaudited

(Restated**)

£'000

Basic

9

 

 

 

Continuing operations

 

11.69p

 (0.57p)

11.12p

Discontinued operations

 

7.55p

-

7.55p

Total basic earnings per share

 

19.24p

 (0.57p)

18.67p

 

 

 

 

 

Diluted

9

 

 

Continuing operations

 

11.50p

(0.57p)

10.93p

Discontinued operations

 

7.42p

-

7.42p

Total diluted earnings per share

 

18.92p

 (0.57p)

18.35p

 

1  Adjusted EBITDA is defined in the accounting policies section of the notes to the interim report.

 

 

 

Reconciliation of the impact of IFRS16 on the previously reported

Consolidated Statement of Financial Position

31 January 2019

 

Notes

 

31 January

2019

Unaudited

 

£'000

 

Impact of

 IFRS 16

 

£'000

31 January

2019

Unaudited

(Restated**)

 £'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

10a

158,774

-

158,774

Financial assets

 

361

-

361

Right of use assets

 

-

12,968

12,968

 

 

159,135

12,968

172,103

Current assets

 

 

 

 

Inventories

12

275

-

275

Trade and other receivables

13

3,074

-

3,074

Cash and cash equivalents

 

11,236

-

11,236

 

Total current assets

 

 

14,585

 

-

 

14,585

Total assets

 

173,720

12,968

186,688

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

14

 

(5,066)

 

-

 

(5,066)

Lease liabilities

 

-

(1,138)

(1,138)

Taxation

 

(503)

-

(503)

 

 

(5,569)

(1,138)

(6,707)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

16a

(42,200)

-

(42,200)

Lease liabilities

16b

-

(12,283)

(12,283)

Deferred tax

17

(20,046)

-

(20,046)

 

 

(62,246)

(12,283)

(74,529)

 

Total liabilities

 

(67,815)

(13,421)

(81,236)

 

Net assets

 

 

105,905

 

(453) 

 

105,452

Equity

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

Called up share capital

18

296

-

296

Share premium

 

10,439

-

10,439

Other reserves

19

8,332

-

8,332

Retained earnings

20

22,057

(453)

21,604

Revaluation reserve

 

64,781

-

64,781

 

Total equity

 

 

105,905

 

(453)

 

105,452

      

 

 

Reconciliation of the impact of IFRS16 on the previously reported

Consolidated Statement of Financial Position

31 July 2019

 

Notes

 

31 July

2019

Audited

 

£'000

 

Impact of

 IFRS 16

 

£'000

31 July

2019

Audited

(Restated**)

 £'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

10a

168,938

-

168,938

Financial assets

 

361

-

361

Right of use assets

 

-

12,359

12,359

 

 

169,299

12,359

181,658

Current assets

 

 

 

 

Inventories

12

298

-

298

Trade and other receivables

13

3,707

-

3,707

Cash and cash equivalents

 

13,662

-

13,662

 

Total current assets

 

 

17,667

 

-

 

17,667

Total assets

 

186,966

12,359

199,325

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

14

 (4,753)

 

-

 (4,753)

Lease liabilities

 

-

(1,161)

(1,161)

Taxation

 

(339)

-

(339)

 

 

(5,092)

(1,161)

(6,253)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

16a

(42,331)

-

(42,331)

Lease liabilities

16b

-

(11,699)

(11,699)

Deferred tax

17

(22,385)

-

(22,385)

 

 

(64,716)

(11,699)

(76,415)

 

Total liabilities

 

(69,808)

(12,860)

 

(82,668)

 

Net assets

 

 

117,158

 

(501)

 

116,657

Equity

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

Called up share capital

18

296

-

296

Share premium

 

10,490

-

10,490

Other reserves

19

8,357

-

8,357

Retained earnings

20

26,909

(501) 

26,408

Revaluation reserve

 

71,106

-

71,106

 

Total equity

 

117,158

 

(501)

116,657

      

 

 

Reconciliation of the impact of IFRS16 on the previously reported

Consolidated Statement of Cash Flows

For the six months ended 31 January 2019

 

 

Notes

Six months ended

31 January

2019

Unaudited

 

£'000

 

Impact of

 IFRS 16

 

 

£'000

Six months

ended

31 January

2019

Unaudited

(Restated**)

 £'000

Cash flows from operating activities

 

 

 

 

 

Profit before tax - continuing operations

 

 

 

2,685

 

(117)

 

2,568

Profit before tax - discontinued operations

 

 

209

(2)

207

Total profit before tax

 

 

2,894

(119)

2,775

Depreciation

 

 

1,118

710

1,828

Amortisation of intangible assets

 

 

83

-

83

Equity settled share based payments

 

 

11

-

11

Profit on sale of land at store

 

 

(296)

-

(296)

Interest receivable

 

 

(10)

-

(10)

Interest payable - bank borrowings

 

 

250 

-

250

Interest payable - lease liabilities

 

 

-

177

177

(Increase) in inventories

 

 

(18)

-

(18)

Decrease in receivables

 

 

1,402

-

1,402

Decrease in payables

 

 

(202)

-

(202)

Cash generated from operations

 

 

5,232

768

6,000

Income tax paid

 

 

(450)

-

(450)

 

Net cash from operating activities

 

4,782

768

5,550

 

Investing activities

 

 

 

 

Proceeds from disposal of discontinued operation

(net of disposal costs and cash included in sale)

 

6,866

 

-

6,866

 

Proceeds of sale of land (net of disposal costs)

 

796

-

796

Purchase of property, plant and equipment

10a

(7,526)

-

(7,526)

Acquisition of subsidiary (net of cash acquired)

 

(1,136)

-

(1,136)

Interest received

 

10

-

10

Net cash used in investing activities

 

(990)

-

(990)

 

 

 

 

 

Financing activities

 

 

 

Proceeds of bank borrowings utilised for store development

 

 

5,030

 

-

 

5,030

Finance costs paid

 

 

(449)

 

-

 

(449)

Lease liabilities paid

 

-

(768)

(768)

Equity dividends paid

 

(2,217)

-

(2,217)

Proceeds from issuance of ordinary shares (net)

 

90

-

90

 

Net cash from financing activities

 

 

2,454

 

(768)

 

1,686

Net (decrease) / increase in cash and cash equivalents in the period

 

 

6,246

 

-

 

6,246

 

Cash and cash equivalents at beginning of the period

 

 

 

4,990

 

-

 

 

4,990

 

Cash and cash equivalents at end of the period

 

 

11,236

-

 

11,236

       

Reconciliation of the impact of IFRS16 on the previously reported

Consolidated Statement of Cash Flows

For the six months ended 31 July 2019

Cash flows from operating activities

Notes

Year ended 31 July 2019

Audited

 

£'000

 

Impact of

 IFRS 16

 

 

£'000

Year ended

31 July 2019

Audited

(Restated**)

 £'000

 

Profit before tax - continuing operations

 

 

 

4,590

 

(165)

 

4,426

Profit before tax - discontinued operations

 

 

2,175

(2)

2,173

Total profit before tax

 

 

6,765

(167)

6,590

Depreciation

 

 

2,256

1,319

3,575

Amortisation of intangible assets

 

 

83

-

83

Equity settled share based payments

 

 

46

-

46

Profit on sale of land at store

 

 

(296)

-

(296)

Profit on disposal of Saracen business

 

 

(1,967)

-

(1,967)

Costs of sale and manage-back - Crayford store

 

 

54

-

54

Deferred financing on bank loan written off

 

 

133

-

133

Interest receivable

 

 

(31)

-

(31)

Interest payable - bank borrowings

 

 

605

-

605

Interest payable - lease liabilities

 

 

-

326

326

(Increase) in inventories

 

 

(41)

-

(41)

Decrease in receivables

 

 

768

-

768

Decrease in payables

 

 

(313)

-

(313)

Cash generated from operations

 

 

8,067

1,478

9,545

Income tax paid

 

(955)

-

(955)

 

Net cash from operating activities

 

7,112

 

1,478

8,590

 

Investing activities

 

 

 

 

Proceeds from disposal of discontinued operation

(net of disposal costs and cash included in sale)

 

6,849

 

-

6,849

 

Proceeds of sale of land (net of disposal costs)

 

796

-

796

Proceeds of sale of store

 

7,418

-

7,418

Purchase of property, plant and equipment

10a

(14,029)

-

(14,029)

Acquisition of subsidiary (net of cash acquired)

 

(1,069)

-

(1,069)

Interest received

 

31

-

31

Net cash used in investing activities

 

(4)

-

(4)

Financing activities

 

 

Proceeds from drawdown of new bank facility

 

42,971

 

-

 

42,971

Repayment of bank borrowings on retiring bank facility

 

(42,395)

-

(42,395)

Proceeds of bank borrowings utilised for store development

 

 

5,653

 

-

 

5,653

Finance costs paid on bank refinancing

 

(593)

-

(593)

Finance costs paid

 

(934)

-

(934)

Lease liabilities paid

 

-

(1,478)

(1,478)

Equity dividends paid

 

(3,279)

-

(3,279)

Proceeds from issuance of ordinary shares (net)

 

141

-

141

Net cash (used in) / from financing activities

 

1,564

(1,478)

86

Net (decrease) / increase in cash and cash equivalents in the period

 

 

8,672

 

-

 

 8,672

Cash and cash equivalents at beginning of the period

 

 

4,990

 

-

 

4,990

Cash and cash equivalents at end of the period

 

13,662

-

13,662

       

 

 

 

2 Revenue

Analysis of the Group's revenue from continuing operations is shown below:

 

 

Six months

ended

31 January

2020

Unaudited

Six months

ended

31 January

2019

Unaudited

 Year

ended

31 July

2019

Audited

Stores trading

£'000

£'000

£'000

 

Self-storage revenue

 

7,571

 

7,146

14,235

Insurance revenue

844

763

1,533

Retail sales

112

118

241

Sub-total - self-storage revenue - owned stores

8,527

8,027

16,009

Ancillary store rental revenue

-

-

44

Management fees - managed stores

393

386

817

Sub-total

8,920

8,413

16,870

Non-storage income

46

99

80

Total revenue per statement of comprehensive income

8,966

8,512

16,950

 

 

3a Property, staff, distribution, general costs and

retail cost of sales

Six months ended

31 January

2020

Unaudited

£'000

Six months

ended

31 January

2019

Unaudited

£'000

Year

ended

31 July

2019

Audited

£'000

 

 

Restated

Restated

Property and premises costs

2,157

1,971

4,022

IFRS 16 restatement - operating leases

(720)

(646)

(1,356)

Restated property and premises costs

1,437

1,325

2,666

Staff costs

2,151

2,027

4,111

General overheads

572

625

1,244

Sub total - operating costs

4,160

3,977

8,021

Retail products cost of sales

83

94

180

Total property, staff, distribution, general costs and retail cost of sales

4,243

4,071

8,201

 

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 ended

31 January

2020

Unaudited

£'000

Six months

ended

31 January

2019

Unaudited

£'000

Year

ended

31 July

2019

Audited

£'000

Retail

54

62

121

Insurance

13

15

26

Other

16

17

33

Total cost of sales of retail products

 

83

94

180

 

3c Other Income and costs

 

Six months ended

31 January

2020

Unaudited

£'000

Six months

ended

31 January

2019

Unaudited

£'000

Year

ended

31 July

2019

Audited

£'000

 

 

 

 

Profit on sale of land at store 1

-

(295)

(295)

Costs of sale and manage-back - Crayford store 2

-

-

54

Deferred financing on bank loan written off 3

-

-

133

 

-

(295)

(108)

 

 

 

2019:

1 Profit on sale of land at store: During the year land at the rear of our Southampton store with a fair value of £500,000 was sold for £800,000. There was £4,043 of associated costs of sale.

2 Costs of sale & manage-back Crayford store: On 28th February 2019 the Crayford store was sold at its fair value to an investment fund for £7.52 million in cash. Lok'nStore will continue to manage the store maintaining the operational footprint of the business and will receive management and performance fees. Legal and professional costs associated with this transaction amounted to £54,483.

3 Deferred financing on bank loan written off. In April 2019, the Group executed a new bank facility increasing facilities available by £25 million to £75 million, with a further £25 million accordion option taking the facility to £100 million. The deferred element of the original financing costs of £133,307 was accordingly written off.

 

4 Finance income

 

Six months ended

31 January

2020

Unaudited

£'000

Six months ended

31 January

2019

Unaudited

£'000

Year ended

31 July

2019

Audited

£'000

Bank interest

16

7

24

Other interest

-

3

7

Total finance income

16

10

31

 

 Interest receivable arises on cash and cash equivalents (see note ·).

5 Finance costs

 

Six months ended

31 January

2020

Unaudited

£'000

Six months ended 31 January

2019

Unaudited

£'000

Year ended

31 July

2019

Audited

£'000

 

 

Restated

Restated

 

Bank interest

 

255

 

206

 

452

Non-utilisation fees and amortisation of bank loan arrangement fees

165

47

153

Interest on lease liabilities

143

155

304

Total finance cost

563

408

909

 

 Most interest payable arises on bank loans classified as financial liabilities measured at amortised cost.

 

6 Profit before taxation

 

Six months ended

31 January

2020

Unaudited

£'000

Six months

ended 31 January

2019

Unaudited

£'000

Year ended

31 July

2019

Audited

£ '000

 

 

Restated

Restated

 

Profit before taxation is stated after charging:

 

 

 

 

Depreciation of plant, property and equipment - owned assets (Note 10)

 

1,220

 

1,069

 

2,207

Depreciation of right of use assets (IFRS 16) (Note 1)

609

 608

1,217

 

1,829

1,677

3,424

Amortisation of intangible assets

-

83

83

 

1,829

1,760

3,507

 

7 Taxation

 

Six months ended 31 January

2020

Unaudited

£'000

Six months

ended 31 January

2019

Unaudited

£'000

Year

ended 31 July

2019

Audited

£'000

Current tax:

 

 

 

UK corporation tax

403

470

811

Deferred tax:

 

 

 

Origination and reversal of temporary differences

239

132

400

Total deferred tax charge

239

132

400

Income tax expense for the period/year

642

602

1,211

 

The charge for the period can be reconciled to the profit for the period as follows:

 

 

Six months ended 31 January

2020

Unaudited

£'000

Six months

ended 31 January

2019

Unaudited

£'000

Year

ended 31 July

2019

Audited

£'000

 

Profit before tax

2,338

2,685

4,591

Tax on ordinary activities at the standard effective rate of corporation tax in the UK of 19%

 

 

468

 

 

454

880

Expenses not deductible for tax purposes

-

-

18

Depreciation of non-qualifying assets

206

195

355

Share based payment charges in excess of corresponding tax deduction

 

8

 

2

2

Impact of change in tax rate on timing differences

(19)

(28)

(17)

Other timing differences

(21)

22

 (27)

Small companies Relief

-

(43)

-

Income tax expense for the period/year

 642

602

1,211

Effective tax rate

27.5%

22.5%

26 %

 

8 Dividends

 

Six months ended 31 January 2020

Unaudited

£'000

Six months ended 31 January 2019

Unaudited

£'000

 

Year ended 31 July

2019

Audited

£'000

Amounts recognised as distributions to equity holders in the year:

 

 

 

Final dividend for the year ended 31 July 2018 (7.67 pence per share)

-

2,217

2,217

Interim dividend for the six months to 31 January 2019 (3.67 pence per share)

 

-

 

-

 

1,062

Final dividend for the year ended 31 July 2019 (8.33 pence per share)

2,413

-

-

 

2,413

2,217

3,279

 

In respect of the current period the Directors propose that an interim dividend of 4.0 pence per share will be paid to the shareholders. The total estimated dividend to be paid is £1.16 million based on the number of shares currently in issue as adjusted for shares held in the Employee Benefits Trust. 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 7 May 2020; the record date 11 May 2020 due to the Early May Bank Holiday; with an intended payment date of 12 June 2020. The final deadline for Dividend Reinvestment Election is 22 May 2020.

 

9 Earnings per share

 

The calculations of earnings per share are based on the following profits and numbers of shares.

 

 

 

 

Six months

ended

31 January

2020

Unaudited

£'000

Six months

ended

31 January

2019

Unaudited

£'000

Year

ended

31 July

2019

Audited

£'000

 

 

Restated

Restated

Profit for the financial year attributable to continuing operations

1,664

1,966

3,215

Profit for the financial year attributable to discontinued operations

-

2,169

2,182

Total profit for the financial year attributable to owners of the parent

1,664

4,135

5,397

 

 

No. of shares

 

No. of shares

 

No. of shares

Weighted average number of shares

 

 

 

For basic earnings per share

28,965,672

28,894,795

28,921,229

Dilutive effect of share options

565,846

621,082

481,848

For diluted earnings per share

29,531,518

29,515,877

29,403,077

 

623,212 shares (31.01.2019: 623,212) are held in the Employee Benefit Trust and are excluded from the above calculation.

 

  

Earnings per share attributable to owners of the Parent

Six months

ended

31 January

2020

Unaudited

 

Six months

ended

31 January

2019

Unaudited

Restated

Year

ended

31 July

2019

Audited

Restated

Earnings per share

Basic

 

 

 

Continuing operations

5.74p

6.79p

11.12p

Discontinued operations

-

7.51p

7.55p

 

Total basic earnings per share

5.74p

14.30p

 

18.67p

Earnings per share

Diluted

 

 

 

Continuing operations

5.63p

6.68p

10.93p

Discontinued operations

-

7.35p

7.42p

Total diluted earnings per share

5.63p

14.03p

18.35p

 

 

10a) Property, plant and equipment

 

Group

Development

property assets

at cost

£'000

Land and

buildings

at valuation

£ '000

Long leasehold land and buildings

at valuation

£'000

Short leasehold

improvements

at cost

£'000

Fixtures,

fittings and

equipment

at cost

£'000

Motor

vehicles

at cost

£'000

Total

£'000

Net book value at 31 July 2018 - Audited

 

16,570

 

108,486

 

11,438

 

669

 

15,414

 

3

 

152,580

 

Net book value at 31 January 2019 - Unaudited

 

23,830

 

108,262

 

11,475

 

1,819

 

13,367

 

21

 

158,774

 

Net book value at 31 July 2019 - Audited

 

18,442

 

133,531

 

-

 

1,890

 

15,057

 

18

 

168,938

 

Cost or valuation

 

 

 

 

 

 

 

1 August 2018

16,570

108,486

11,438

2,648

27,186

17

166,345

Additions

7,254

148

3

-

101

20

7,526

Additions - Acquisition of subsidiary

-

-

-

1,238

-

-

1,238

Disposals

-

(500)

-

-

-

-

(500)

Disposals - discontinued operations

-

-

-

(84)

(2,696)

(7)

(2,787)

Transfers

6

(6)

-

-

-

-

-

Revaluations

-

134

34

-

-

-

168

31 January 2019 Unaudited

23,830

108,262

11,475

3,802

24,591

30

171,990

Depreciation

 

 

 

 

 

 

 

1 August 2018

-

-

-

1,979

11,772

 14

13,765

Depreciation

-

425

63

60

519

2

1,069

Disposals - discontinued operations

-

-

-

(56)

(1,067)

(7)

(1,130)

Revaluations

-

(425)

(63)

-

-

-

(488)

31 January 2019 Unaudited

-

-

-

1,983

11,224

9

13,216

Net book value at 31 January 2019 - Unaudited

 

23,830

 

108,262

 

11,475

 

1,819

 

13,367

 

21

 

158,774

 

Cost or valuation

 

 

 

 

 

 

 

1 February 2019

23,830

108,262

11,475

3,802

24,591

30

171,990

Additions

-

2,656

1,490

162

2,643

-

6,951

Additions - Acquisition of subsidiary

-

-

-

4

-

-

4

Reclassification

(4,185)

17,116

(12,931)

-

-

-

-

Disposals

(1,203)

(7,558)

-

-

(1,109)

-

(9,870)

Disposals - discontinued operations

-

-

-

-

429

-

422

Revaluations

-

13,055

(34)

-

-

-

13,021

31 July 2019 - Audited

18,442

133,531

-

3,968

26,554

30

182,525

Depreciation

 

 

 

 

 

 

 

1 February 2019

-

-

-

1,983

11,224

9

13,216

Depreciation

-

579

-

95

572

3

1,249

Disposals

-

-

-

-

(726)

-

(726)

Disposals - discontinued operations

-

(428)

-

-

427

-

(1)

Revaluations

-

(151)

-

-

-

-

(151)

31 July 2019 - Audited

-

-

-

2,078

11,497

12

13,587

Net book value at 31 July 2019 - Audited

 

18,442

 

133,531

 

-

 

1,890

 

15,057

 

18

 

168,938

 

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

         

 

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 £223,163 (six months ended 31.1.2019: £217,970 : year ended 31.07.19 £430,321) have been capitalised in the current period that are directly attributable to the acquisition, construction and fit-out of these qualifying store assets. £223,163 of the total amount is carried in development property assets.

 

Capital expenditure during the period totalled £4.9 million (31.1.2019: £8.8 million). This was primarily the purchase of the Stevenage and exchange contract deposits paid on the Salford (Manchester), Warrington and Chester sites, together with ongoing construction and fit out works at our sites in Leicester as well as planning and pre-development works at our Wolverhampton, Oldbury, Bedford, Bournemouth, and Cheshunt sites.

 

Property, plant and equipment (non-current assets) with a carrying value of £173.2 million (31.1.2019: £158.8 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 2019 by JLL, the freehold and leasehold properties have not been externally valued at 31 January 2020, although in accordance with the Group's established policy it is the intention to do so at the next year end at 31 July 2020.

 

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 as adopted by the European Union. Accordingly after consulting with our external valuers, whilst there has been continued market activity in the self-storage sector since July 2019, 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 2020 in respect of our properties externally valued at 31 July 2019. 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 2019 year-end. 

 

Events after the reporting date - Novel Coronavirus (COVID-19)

Since the reporting date of 31 January 2020, the outbreak of the Novel Coronavirus (COVID-19) has been declared a "Global Pandemic" by the World Health Organisation on the 11th March 2020. This has impacted global financial markets and travel restrictions have been implemented by many countries.

 

Market activity is being affected in many sectors and JLL in common with other external valuers have subsequently introduced material uncertainty provisions into their valuation reports for valuations conducted on or after 11th March 2020. For valuations after the 11 March 2020, JLL have confirmed that they are unable to provide an estimate of the financial effect that this event would have on the value of the properties for the time being.

 

10 b) Right of Use assets (ROU)

 

Continuing Operations

Group property leases

 

Group

31 January

2020

£'000

Group

31 January

2019

£'000

Group

31 July

2019

£'000

Group

31 July

2018

transition £'000

 

IFRS 16

IFRS 16

IFRS 16

IFRS 16

 

Restated

Restated

Restated

Restated

Right of Use Asset (ROU) - IFRS 16 restatement on transition

-

-

-

14,795

Right of Use Asset (ROU) - opening balance

12,359

13,577

13,577

-

 

 

 

 

 

Depreciation of Right of Use Asset (ROU)

(609)

(609)

(1,218)

(1,218)

Right of Use Asset (ROU) - closing balance

11,750

12,968

12,359

13,577

 

The application of IFRS 16 relates to the Groups property leases. The Group has no leases on any other types of assets.

 

To ensure consistency and effective comparison with prior periods, the Group has elected to apply the full retrospective implementation approach with reinstatement of the comparative information. The transition date of initial application is therefore 1 August 2018. The Present Value of all future operating lease payments is calculated using 2.2% as an effective cost of debt as the single discount rate. This calculates an opening Right of Use Asset (ROU) as at 1 August 2018 of £14.79 million.

 

The right-of-use asset is depreciated on a weighted depreciation charge based on the individual lease term of the separate operating leases.

11 Disposal of Saracen Datastore Limited

 

In the previous year, on 31st January 2019 Lok'nStore disposed of its document storage business Saracen Datastore Limited ("Saracen") for £7.64 million in cash against its Net Book Value as at 31 July 2018 of £5.4 million.

 

For comparative purposes only, key amounts relating to the discontinued operation are as follows;

 

 

31 January

2020

Unaudited

£'000

 

31 January

2019

Unaudited

£'000

31 July

2019

Audited

£'000

 

 

 

(Restated**)

(Restated**)

Revenue

-

 

1,156

1,156

Expenses

-

 

(780)

(780)

EBITDA

-

 

376

376

Depreciation

-

 

(150)

(150)

Finance income /costs

-

 

(19)

(19)

Profit before tax

-

 

207

207

Tax

-

 

 (27)

 8

Profit after tax

-

 

180

215

Profit on disposal of subsidiary

-

 

2,009

1,967

After tax disposal profit

-

 

2,009

1,967

Total profit on discontinued operations

-

 

2,169

2,182

 

** details of the restatements following the adoption of IFRS 16 are made in note 1 to the financial statements.

 

The profit on disposal is included in profit on discontinued operations in the consolidated statement of comprehensive income.

 

The Group believes that Substantial Shareholder Relief would be available on the gain made on the disposal of the shares. Proceeds from disposal of discontinued operation (net of disposal costs and cash included in sale) is presented as an investing activity in the consolidated statement of cash flow.

12 Inventories

 

 

31 January

2020

Unaudited

£'000

31 January

2019

Unaudited

£'000

31 July

2019

Audited

£'000

Consumables and goods for resale

363

275

298

 

The amount of inventories recognised as an expense during the period was £54,472 (31.1.2018: £62,045).

 

13 Trade and other receivables

 

31 January

2020

Unaudited

£'000

 

31 January

2019

Unaudited £'000

 

31 July

2019

Audited £'000

Trade receivables

798

1,664

1,055

Other receivables

1,007

599

2,270

Prepayments and accrued income

496

811

382

 

2,301

3,074

3,707

 

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.

 

In respect of its document storage business, customers are invoiced typically monthly in advance for the storage of their boxes, tapes and files. The provision of additional services, such as document boxes or tape collection and retrieval from archive, typically are invoiced monthly in arrears.

 

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

2020

Unaudited

£'000

31 January

2019

Unaudited £'000

31 July

2019

Audited£'000

Trade payables

768

1,519

640

Taxation and social security costs

763

259

388

Other payables

887

1,278

1,115

Accruals and deferred income

2,310

2,010

2,610

 

4,728

5,066

4,753

 

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

2020

Unaudited £'000

31 January

2019

Unaudited £'000

31 July

2019

Audited£'000

 

 

Restated

Restated

Gross debt

(42,972)

(42,424)

(42,972)

Cash and cash equivalents

11,023

11,236

13,662

Net debt

(31,949)

(31,188)

(29,310)

Total equity - balance sheet

116,746

105,452

116,657

IFRS restatement

536

453

501

Adjusted total equity

117,282

105,905

117,158

Net debt to equity ratio

27.2%

29.4%

25.0%

 

Total Gearing - Bank Borrowings and lease liabilities

31 January

2020

Unaudited £'000

31 January

2019

Unaudited £'000

31 July

2019

Audited £'000

 

 

Restated

Restated

Gross debt - bank borrowings

(42,972)

(42,424)

(42,972)

Gross debt - lease liabilities

(12,283)

(13,421)

(12,860)

Cash and cash equivalents

11,023

11,236

13,662

Net debt

(44,232)

(44,609)

(42,170)

Total equity - balance sheet

116,746

105,452

116,657

Net debt to equity ratio

37.9%

42.3%

36.1%

 

 

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 rates1. All amounts are denominated in Sterling. The balances at 31 January 2020 are as follows:

 

 

31 January

2020

Unaudited £'000

31 January

2019

Unaudited £'000

31 July

2019

Audited £'000

 

Variable rate treasury deposits1

9,635

10,256

 

12,232

SIP trustee deposits

63

60

63

Cash in operating current accounts

1,316

910

1,357

Other cash and cash equivalents

9

10

10

Total cash and cash equivalents

11,023

11,236

13,662

 

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 July 2019 was 0.3%.

 

16a) Borrowings

Bank borrowings

31 January

2020 Unaudited

£'000

31 January

2019 Unaudited

£'000

31 July

2019

Audited £'000

Non-current

 

 

 

Bank loans repayable in more than two years

 

 

 

 but not more than five years

 

 

 

Gross

42,972

42,424

42,972

Deferred financing costs

(574)

(224)

(641)

Net bank borrowings

42,398

42,200

42,331

Non-current borrowings

42,398

42,200

42,331

 

The Group has a joint £75 million five year revolving credit facility banking facility with Lloyds Bank and Royal Bank of Scotland plc. The facility provides an accordion £25 million which can take the facility to £100 million and runs to April 2024 with an option of two one year extensions. 

 

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. The all in debt cost on £43.0 million drawn averaged 2.21% in the period. The Group is not obliged to make any repayments prior to its expiration in April 2024.

 

The Group currently has £43.0 million drawn against its existing £75 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 £173.2 million (31.01.2019: £158.8: / 31.07.2019 £168.9 million) together with cross-company guarantees from Group companies.

 

 

16b) Lease liabilities

 

Lease liabilities attributable to Right of Use assets

31 January

2020 Unaudited

£'000

31 January

2019 Unaudited

£'000

31 July

2019

Audited

£'000

 

 

Restated

Restated

 

 

 

 

Current lease liabilities

 

 

 

Amounts due within one year

1,257

1,138

1,161

 

 

 

 

Non-current lease Liabilities

 

 

 

Amounts due in one to two years

1,285

1,257

1,257

Amounts due in three to five years

2,749

3,224

3,224

Amounts due in more than five years

6,991

7,802

7,218

Non-current lease liabilities

11,025

12,283

11,699

Total lease liabilities

12,282

13,421

12,860

 

 

Lease liabilities attributable to Right of Use assets

31 January

2020 Unaudited

£'000

31 January

2019 Unaudited

£'000

31 July

2019

Audited

£'000

 

 

Restated

Restated

Balance B/Fwd

12,860

13,912

13,912

Lease repayments

(720)

(646)

(1,356)

Lease interest (non-cash)

142

155

304

Total lease liabilities

12,282

13,421

12,860

 

 

17 Deferred tax

Deferred tax liability

31 January 2020

Unaudited

£'000

31 January 2019

Unaudited

£'000

31 July

2019

Audited

£'000

 

Liability at start of period/year

 

22,385

 

19,735

 

19,735

Charge to income for the period/year -continued operations

 

239

 

132

 

400

Charge to income for the period/year - discontinued operations

 

-

 

18

 

32

Total charge to income for the year

239

150

432

 

 

 

 

Tax charged directly to other comprehensive income

(137)

122

2,327

Tax credited - disposal of subsidiary

 

-

-

 

(134)

Initial recognition on acquisition of subsidiary

-

24

24

Credit to share based payment reserve

-

15

1

Liability at end of period/year

22,487

20,046

22,385

 

 

 

 

 

18 Share capital

 

31 January 2020

Unaudited

£'000

31 January 2019

Unaudited

£'000

31 July

2019

Audited

£'000

Authorised: 35,000,000 ordinary shares of 1 pence each

350

350

350

 

 

Called up,

 

Called up,

 

Called up,

 

allotted and

allotted and

allotted and

 

fully paid

fully paid

fully paid

 

Number

Number

Number

Number of shares at start of period/year

29,583,786

29,498,615

29,498,615

Options exercised during period/year

9,427

52,304

85,171

Balance at end of period/year

29,593,213

29,550,919

29,583,786

 

 

 

 

 

Allotted, issued and fully paid ordinary shares

£

£

 £

Balance at start of period/year

295,838

294,986

294,986

Options exercised during period/year

94

543

852

Balance at end of period/year

295,932

295,509

295,838

 

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

£'000

£'000

£'000

£'000

£'000

 

1 August 2018 - Audited

 

6,295

 

1,294

 

34

 

740

 

8,363

Equity share based payments

-

-

-

11

11

Transfer to retained earnings in relation to share based payments

-

-

-

(27)

(27)

Tax credit relating to share options

-

-

-

(15)

(15)

 

31 January 2019 - Unaudited

 

6,295

 

1,294

 

34

 

709

 

8,332

Equity share based payments

-

-

-

35

35

Transfer to retained earnings in relation to share based payments

-

-

-

(24)

(24)

Tax credit relating to share options

-

-

-

14

14

31 July 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

 

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. 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 £5,191 (31.1.2019: £27,140).

 

 

 

20 Retained earnings

 

 

 

Retained earnings before

 

 

Retained

 

 

 

deduction of

Own shares

earnings

 

 

 

own shares

(note 20)

Total

Group

 

 

£'000

£'000

£'000

 

 

 

Restated

 

Restated

1 August 2018 - Audited

 

 

19,844

(500)

19,344

Effect of new accounting standard - IFRS 16

 

 

(336)

-

(336)

As at 1 August 2018 - restated

 

 

19,508

(500)

19,008

Profit for the financial period - restated

 

 

4,135

-

4,135

Transfer from revaluation reserve

 

 

151

-

151

Transfer from share based payment reserve (Note 19)

 

 

27

-

27

Asset disposal

 

 

500

-

500

Dividend paid

 

 

(2,217)

-

(2,217)

31 January 2019 - Unaudited

 

 

21,104

(500)

21,604

Profit for the financial period- restated

 

 

1,262

-

1,262

Transfer from revaluation reserve

 

 

153

-

153

Transfer from share based payment reserve (Note 19)

 

 

24

-

24

Reserve transfer on disposal of assets

 

 

4,427

-

4,427

Dividend paid

 

 

(1,062)

-

(1,062)

1 August 2019 - Audited

 

 

25,908

(500)

26,408

Profit for the financial period

 

 

1,664 

-

1,664 

Transfer from revaluation reserve

 

 

154

-

154

Transfer from share based payment reserve (Note 19)

 

 

5

-

5

Dividend paid

 

 

(2,413)

-

(2,413)

31 January 2020 - Unaudited

 

 

25,318

(500)

25,818

 

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

£

Number

£

£

1 August 2018 - Audited

623,212

499,910

-

-

499,910

31 January 2019 - Unaudited

623,212

499,910

-

-

499,910

31 July 2019 - Audited

623,212

499,910

-

-

499,910

31 January 2020 - Unaudited

623,212

499,910

-

-

499,910

 

 

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 2020, the Trust held 623,212 (31.01.2019: 623,212) ordinary shares of 1 pence each with a market value of £4,468,430 (31.01.2019: £2,508,428). No shares were transferred out of the scheme during the period (2019: 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

ended

31 January

2020

Unaudited

£'000

Six months

ended

31 January

2019

Unaudited

£'000

Year

ended

31 July

2019

Audited

£'000

 

 

 

 

Restated

Restated

 

Profit before tax - continuing operations

 

 

 

2,306

 

2,568

 

4,426

Profit before tax - discontinued operations

 

 

-

207

2,173

Total profit before tax

 

 

2,306

2,775

6,590

Depreciation

 

 

1,829

1,828

3,575

Amortisation of intangible assets

 

 

-

83

83

Equity settled share based payments

 

 

41

11

46

Profit on sale of land at store

 

 

-

(296)

(296)

Profit on disposal of Saracen business

 

 

-

-

(1,967)

Costs of sale and manage-back - Crayford store

 

 

-

-

54

Deferred financing on bank loan written off

 

 

-

-

133

Interest receivable

 

 

(16)

(10)

(31)

Interest payable - bank borrowings

 

 

420

250

605

Interest payable

 

 

143

177

326

(Increase) in inventories

 

 

(66)

(18)

(41)

Decrease in receivables

 

 

1,406

1,402

768

Increase / (decrease) in payables

 

 

109

(202)

(313)

Cash generated from operations

 

 

6,172

6,000

9,545

 

(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

ended

31 January

2020

Unaudited

£'000

Six months

ended

31 January

2019

Unaudited

£'000

Year

ended

31 July

2019

Audited

£'000

 

Increase in cash in the period/year

 

 

 

2,639

 

6,246

 

8,672

Change in net debt resulting from cash flows

 

 

-

(5,089)

(5,637)

Movement in net debt in period

 

 

(2,639)

1,157

3,035

Net debt brought forward

 

 

(29,310)

(32,345)

(32,345)

Net debt carried forward

 

 

(31,949)

(31,188)

(29,310)

 

23 Commitments under operating leases

 

At 31 January 2020 the total future minimum lease payments as a lessee under non-cancellable operating leases were as follows:

 

 

 

 

31 January 2020

Unaudited

£'000

31 January 2019

Unaudited

£'000

31 July

2019

Audited

£'000

 

Land and buildings

 

 

 

 

 

 

Amounts due:

 

 

 

 

 

 

Within one year

 

 

 

1,517

1,247

1,517

 

Between two and five years

 

 

 

 

5,082

 

4,989

 

5,358

After five years

 

 

 

7,677

5,550

8,165

 

 

 

 

14,276

11,786

15,040

 

Operating 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.

 

Under the first-time adoption of IFRS 16, the Group's operating leases on its leased stores are now recognised as a 'right of use asset' and as a corresponding liability at the year-end. This is fully explained in Note 1 of the financial statements.

 

 

24 Events after the Reporting Date

 

Events after the reporting date - Novel Coronavirus (COVID-19)

 

Since the reporting date of 31 January 2020, the outbreak of the Novel Coronavirus (COVID-19) has been declared a "Global Pandemic" by the World Health Organisation on the 11th March 2020.

 

We have reported comprehensively on the up to date COVID 19 position and this is contained within the Chairman's Statement.

 

Gloucester

The new managed store in Gloucester opened on 22 February 2020. This prominent store opposite Morrisons is managed by Lok'nStore on behalf of a third party investor under a managed services agreement.

 

Lok'nStore will receive management and performance fees for managing the store on behalf of its new owners.

 

 

 

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 plc

112 Hawley Lane

Farnborough

Hampshire

GU14 8JE

Tel 01252 521010

www.loknstore.co.uk

www.loknstore.com

Central Enquiries

0800 587 3322

info@loknstore.co.uk

www.loknstore.co.uk

 

 

Owned Trading Stores

Basingstoke, Hampshire

Crockford Lane

Chineham

Basingstoke

Hampshire

RG24 8NA

Tel 01256 474700

basingstoke@loknstore.co.uk

 

Bristol, Gloucestershire

Longwell Green Trade Park

Aldermoor Way

Bristol

Gloucestershire

BS30 7ET

Tel 0117 967 7055

Bristol@loknstore.co.uk

 

Cardiff, Wales

234, Penarth Road

Cardiff

Wales

CF11 8LR

Tel 0292 022 1901

Cardiff @loknstore.co.uk

Eastbourne, East Sussex

Unit 4, Hawthorn Road

Eastbourne

East Sussex

BN23 6QA

Tel 01323 749222

eastbourne@loknstore.co.uk

 

Fareham, Hampshire

26 + 27 Standard Way

Fareham Industrial Park

Fareham

Hampshire

PO16 8XJ

Tel 01329 283300

fareham@loknstore.co.uk

Farnborough, Hampshire

112 Hawley Lane

Farnborough

Hampshire

GU14 8JE

Tel 01252 511112

farnborough@loknstore.co.uk

Gillingham, Kent

Courtney Road

Gillingham

Kent

ME8 0RT

Tel 01634 366044

gillingham@loknstore.co.uk

Harlow, Essex

Edinburgh Way

Temple Fields

Harlow

Essex

CM20 2GF

Tel 01279 882366

harlow@loknstore.co.uk

 

Hedge End, Southampton

Units 2 & 3

Waterloo Industrial Estate Flanders Rd

Hedge End

Southampton

SO30 2QT

Tel 01489 787005

HedgeEnd@loknstore.co.uk

 

Horsham, West Sussex

Blatchford Road

Redkiln Estate

Horsham

West Sussex

RH13 5QR

Tel 01403 272001

horsham@loknstore.co.uk

Ipswich

Part of Site 7

Futura Park

Ipswich

IP3 9QH

Tel 01473 794940

exeter@loknstore.co.uk

Luton, Bedfordshire

27 Brunswick Street

Luton

Bedfordshire

LU2 0HG

Tel 01582 721177

luton@loknstore.co.uk

Maidenhead, Berkshire

Stafferton Way

Maidenhead

Berkshire

SL6 1AY

Tel 01628 878870

maidenhead@loknstore.co.uk

Milton Keynes, Buckinghamshire

Etheridge Avenue

Brinklow

Milton Keynes

Buckinghamshire

MK10 0BB

Tel 01908 281900

miltonkeynes@loknstore.co.uk

 

Northampton Central

16 Quorn Way

Grafton Street Industrial Estate

Northampton

Northamptonshire

NN1 2PN

Tel 01604 629928

nncentral@loknstore.co.uk

 

Northampton Riverside

Units 1-4, Carousel Way

Northampton

Northamptonshire

NN3 9HG

Tel 01604 785522

northampton@loknstore.co.uk

Poole, Dorset

50 Willis Way

Fleetsbridge

Poole

Dorset

BH15 3SY

Tel 01202 666160

poole@loknstore.co.uk

Portsmouth, Hampshire

Rudmore Square

Portsmouth

Hampshire

PO2 8RT

Tel 02392 876783

portsmouth@loknstore.co.uk

Reading, Berkshire

251 A33 Relief Road

Reading

Berkshire

RG2 0RR

Tel 01189 588999

reading@loknstore.co.uk

Southampton, Hampshire

Third Avenue

Southampton

Hampshire

SO15 0JX

Tel 02380 783388

southampton@loknstore.co.uk

Sunbury, Middlesex

Unit C, The Sunbury Centre

Hanworth Road

Sunbury on Thames

Middlesex TW16 5DA

Tel 01932 761100

sunbury@loknstore.co.uk

 

Tonbridge, Kent

Unit 6 Deacon Trading Estate

Vale Road

Tonbridge

Kent

TN9 1SW

Tel 01732 771007

tonbridge@loknstore.co.uk

Wellingborough, Northamptonshire

19/21 Whitworth Way

Wellingborough

Northamptonshire

NN8 2EF

Tel 01634 366044

gillingham@loknstore.co.uk

 

 

 

 

 

 

 

Development locations - LNS Owned Stores

 

Bedford

69 Cardington Road

Bedford

NK42 0BQ

Bournemouth, Dorset

Land at Wessex Field

Deansleigh Road

Bournemouth

Dorset

BH7 7DU

 

Cheshunt, Hertfordshire

Land lying on the South Side of Halfhide Lane

Turnford

Hertfordshire

 

Leicester

Part of land forming part of Freemens Common Road Leicester

LE2 7SL

Stevenage, Hertfordshire

Part of Land at Plot 2000

Stevenage Business Park Gunnels Wood Road

Stevenage

Hertfordshire

SG1 2BL

 

Warrington, Cheshire

Land at Winwick Road, Warrington

Cheshire

WA2 7PF

Wolverhampton, Staffordshire

Land at Pantheon Park Wednesfield Way

Wolverhampton

Staffordshire

WV11 3DR

Salford, nr. Manchester

A57 Regent Road,

Salford,

Manchester,

M5 4EA

 

 

 

Managed stores - Trading

 

Aldershot, Hampshire

251, Ash Road

Aldershot

Hampshire

GU12 4DD

Tel 0845 4856415

aldershot@loknstore.co.uk

Ashford, Kent  

Wotton Road

Ashford

Kent

TN23 6LL

Tel 01233 645500

ashford@loknstore.co.uk

 

Broadstairs, Kent

Unit 2, Pyramid Business Park, Poorhole Lane,

Broadstairs,

Kent

CT10 2PT

Tel 01843 863253

broadstairs@loknstore.co.uk

Chichester, West Sussex

17, Terminus Road

Chichester

West Sussex

PO19 8TX

Tel 01243 771840

chichester@loknstore.co.uk

 

Crawley, West Sussex

Sussex Manor Business Park

Gatwick Road

Crawley

West Sussex

RH10 9NH

Tel 01293 738530

crawley@loknstore.co.uk

Crayford, Kent

Block B

Optima Park

Thames Road

Crayford

Kent

DA1 4QX

Tel 01322 525292

crayford@loknstore.co.uk

 

Dover, Kent

Honeywood Parkway

Whitfield

Dover

CT16 3FJ

Tel 01304 827353

dover@loknstore.co.uk

Exeter

1 Matford Park Road

Exeter

Devon

EX2 8ED

Tel 01392 823989

exeter@loknstore.co.uk

Hemel Hempstead, Hertfordshire

Fortius Point,

47, Maylands Avenue Hemel Hempstead

Hertfordshire

HP2 7DE

Tel 01442 240768

hemelhempstead@loknstore.co.uk

 

Swindon, Wiltshire

Kembrey Street

Elgin Industrial Estate

Swindon

Wiltshire

SN2 8UY

Tel 01793 421234

swindoneast@loknstore.co.uk

 

Woking, Surrey

Marlborough Road

Woking

Surrey

GU21 5JG

Tel 01483 378323

woking@loknstore.co.uk

 

 

Managed stores - Under Development

 

 

Gloucester

Land at Triangle Park

Metz Way

Gloucester

GL4

(Opened February 2020)

Oldbury

6 Churchbridge,

Oldbury,

B69 2AP

 

 

 

 

Chester

58-64 Sealand Road,

Chester

CH1 4LD

 

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR UNVARRVUSUUR
Date   Source Headline
20th Feb 20247:00 amRNSTrading Update
15th Jan 20241:14 pmRNSDirector/PDMR Shareholding
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