Lok N Store Regulatory News (LOK)

25 Jul 2005 07:00

Lok'n Store Group PLC25 July 2005 25th July 2005 Lok'nStore Group plc New £20 Million Bank Facility Highlights • Agreement of new £20m bank facility• Current trading brisk New Banking Facility Lok'nStore Group plc, ("the Group") the fast growing AIM listed self-storagecompany, is pleased to report that it has agreed a new £20 million revolvingcredit facility at a reduced cost for the Group. The new facility replaces theprevious £10 million facility and provides sufficient additional liquidity forthe Group's expansion plans. Interest payable on the loan is on improved terms,paying between 1.25% and 1.35% over LIBOR. The facility is secured on the existing self-storage portfolio, excluding theKingston and Reading properties. This ensures that the Group has fullflexibility to maximise the value of any exit or realisation of these tworedevelopment opportunities. Following the signing of this new facility,management is confident, that the Group is in a position to continue growing theself-storage operation, and to maximise any realisation value from theredevelopment assets. Current trading Current trading is brisk, with the newer stores filling up and turnover atestablished stores (over 250 weeks old) still growing at over 11% year to year.The Board is continuously evaluating potential new store opportunities, andcontractors are now on-site at Farnborough, with the new store due to be openedby the end of the calendar year. Andrew Jacobs, CEO of Lok'nStore Group plc said: "The increase of Lok'nStore's bank facility on a lower interest rate underlinesour strong cash flow and asset value growth. This new facility enables continuedexpansion of Lok'nStore's business while allowing the Board full flexibility tomaximise the proceeds from any sale of Kingston and Reading. The Board isevaluating whether to reinvest the proceeds from these two projects towardsfurther accelerating the growth of the business, or returning cash toshareholders. A decision as to the best route for shareholders will be made indue course." Ends For further information: Andrew Jacobs, Chief Executive, Lok'nStore Group plc 020 8547 2288Ray Davies, Finance Director, Lok'nStore Group plcJonathon Brill/Billy Clegg, Financial Dynamics 020 7269 7157Rupert Krefting, Paul Gray, Investec Securities 020 7597 5000 This information is provided by RNS The company news service from the London Stock Exchange