Last checked at 28 Jul 2010 07:00
28 July 2010
Lok'nStore Group plc
("Lok'nStore" or the "Company")
Pre-Close Trading Update
Lok'nStore Group plc, the AIM listed self-storage company, is pleased to announce that since the first half results were reported in April, trading has been good and the Company's operating performance for the full year to 31 July 2010 is in line with market expectations.
The Board expects occupancy to have grown by 3% and prices for self storage per square foot to grow by 5% over the 12 month period. With our strategy of constraining capital expenditure and maintaining focus on the cash generation of the business, margins have improved year on year, and the cash position has increased to over £5 million (£3.9 million 31.01.10).
In addition to the emphasis on operating efficiency, the Board continues to examine the portfolio for asset management gains as demonstrated by its recent announcement extending the leases on two of the Company's stores on significantly improved terms.
Lok'nStore is expecting to announce its preliminary results for the year ended 31 July 2010 on Monday 8th November 2010.
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Enquiries
| Lok'nStore Group plc | 01252 521010 |
| Andrew Jacobs, Chief Executive Ray Davies, Finance Director
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| Arbuthnot | 020 7012 2000 |
| Nick Tulloch Ben Wells
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| Financial Dynamics | 020 7831 3113 |
| Billy Clegg Edward Westropp |
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Notes to Editors
Lok'nStore runs a high quality portfolio of 22 self-storage centres across the South East of England. All stores carry the distinctive bright orange and silver livery and are located in prominent locations adjacent to main roads and town centres. Total space available is 1.2 million sq ft, of which 64% is freehold and 36% leasehold. Lok'nStore has a pipeline of 2 new sites and 2 replacement sites, all of which have planning permissions.
As at 31st January 2010, adjusted net asset value was £2.10 per share with a loan-to-value ratio of 30.9% on £25m of net debt. Lok'nStore has a £40m facility with RBS which runs until 2012.
The UK self-storage market remains under-supplied with only 0.4 sq ft per person versus around 7 sq ft per person in the more mature US market. The UK market has been growing at 10-15% per annum for the last 10 years. (Source: The Self-Storage Association).