Lok'nStore indicates positive growth in first half

Lok'nStore Group's growth strategy was paying off, as the company indicated positive movement in the six months to 31 January, ahead of its interim results.

The AIM-traded self-storage business with 25 locations in the South East of England said on Monday that, following a solid performance in full year 2015, trading in the first half of 2016 remained strong.

In its core self-storage business, like-for-like revenue was up 5.4% year-on-year, while like-for-like storage occupancy was up 2.4% and price per let square foot was up 3.3% compared to 12 months prior.

Lok'nStore's document storage business saw revenue and EBITDA respond rapidly to previously-reported improved operating metrics, with revenue growing by 14.7% over a year earlier and lower costs resulting in a more than doubling of EBITDA.

The number of boxed stores increased by 11% in the six months to the end of January 2016.

"Following the receipt of an additional £2m for the sale of the old site in Reading and the £3.5m for the sale of the Swindon operation, debt and leverage remain low and the reduces interest margin on our new bank facility further reduces finance costs" said Lok'nStore CEO Andrew Jacobs.

"Trading at the new Reading, Maidenhead and Aldershot stores has been excellent, underpinning our confidence that the new stores in Southampton, Bristol and Chichester opening over the coming few months will provide added impetus to sales and earnings growth", he added.

The company's interim results were due to be announced on 25 April. At 1140 GMT, shares in the company were up 2.34% to 327.5p.