Lok'nStore describes strong year of trading

Self-storage operator Lok'nStore updated the market on its trading for the financial year just ended on Monday, reporting robust revenue growth amid its ongoing expansion.

The AIM-traded company recorded a 12.1% increase in same-store self-storage revenue in the 12 months ended 31 July, indicating a solid uptick in demand and consumer interest.

Additionally, total self-storage revenue saw a 5.3% rise, reflecting the firm’s overall growth trajectory.

The company revealed a notable 6.8% increase in pricing per square foot of occupied space, which it attributed to the sustained strong demand for self-storage services.

It said the 2023 financial year saw a 9.7% expansion in owned lettable space, underlining Lok'nStore's commitment to increasing its operational capacity.

That growth aligned with the company's strategic objective of catering to the evolving needs of its customer base.

Notably, the year also marked the successful fundraising of £20.5m - a move aimed at supporting Lok'nStore's ongoing expansion initiatives.

In terms of occupancy rates, the company said closing occupancy for stores over three years old was 80.6%, down from 82.9% in the prior year, when accounting for the newly added space during the period.

The total occupied unit space still remained consistent with the previous year's figures.

Lok'nStore said it also made significant progress in its new store pipeline.

In the course of the fiscal year, the company unveiled two new ‘landmark’ stores in Bedford and Peterborough, contributing to a portfolio now totaling 42 stores.

Initial trading in the recently-opened locations was described as promising.

Additionally, the company said it had been actively engaged in construction work for three new landmark store developments.

The forthcoming sites, in Staines, Basildon, and Kettering, were expected to be operational within the next 12 months.

Lok’nStore said its ongoing expansion endeavours were set to increase trading space by 162,100 square feet.

As of 31 January this year, Lok'nStore's remaining capital expenditure stood at £13.7m.

The company said its preliminary results for the year ended 31 July were set for release on 30 October.

“Revenue momentum in the year to 31 July has been robust with same-store self-storage revenue up 12.1% against last year driven by continued strong demand,” said chairman Andrew Jacobs.

“We continue to deliver on our strategy of opening more new stores in the undersupplied self-storage market, adding 9.7% to our owned available space in the last 12 months.”

Jacobs added that the firm was onsite at three further new stores, all of which would open in the 2024 financial year, while it had a secured pipeline of a further eight.

“These new stores will accelerate our growth in cash flows to fund more dividends to shareholders and more growth of the business.”

At 0834 BST, shares in Lok’nStore Group were up 1.33% at 741.7p.

Reporting by Josh White for Sharecast.com.