Lok'nStore reports 'excellent' full year of trading

Self storage operator Lok'nStore said in an update on Monday that trading throughout its financial year just ended was “excellent”, with self-storage revenue up 20.9% year-on-year.

The AIM-traded firm said occupancy as a percentage of lettable area was up to 85.8% at the end of its 12-month period on 31 July, from 69.6% last year.

Average month-end occupied space was up 26% on the comparable period last year, with average month-end prices up 0.4%.

In terms of dynamic indicators, total occupied space at year-end was up by 35.3% from 31 July 2020, while year-end pricing was up 8.7%.

During the year, the company opened two new ‘landmark’ stores in Leicester and Salford, with early trading at both stores said to have been stronger than expected.

Lok’nStore said it was continuing to make “significant progress” on its new store pipeline, achieving five planning permissions during the year.

Its 13 pipeline stores would result in the group operating 38% more trading space from 50 stores when complete.

Building work was continuing at its new store developments in Warrington, Stevenage and Wolverhampton, all of which would be open in late 2021 or early 2022.

The pre-development works at Bedford, Staines and Basildon were progressing as well, with construction set to be underway at the three sites in 2021.

“Growth in occupied unit space, up 35.3% and price per sq foot let, up 8.7% are a forward indicator of continuing revenue and profit growth,” said executive chairman Andrew Jacobs.

“We expect this performance to feed into strong store valuations when we announce our preliminary results.”

Jacobs said the company had made “significant progress” on its new store pipeline, while remaining “conservatively geared”, with three stores currently under construction opening by early 2022 and three more about to go on-site.

“This pipeline of new stores, delivering 38% more space, will add considerable momentum to sales and earnings growth in the future.”

Lok’nStore said it would announce its preliminary results for the year ended 31 July on 1 November.

At 1225 BST, shares in Lok’nStore Group were up 3.47% at 786.4p.