Big Yellow FY pre-tax profits lower as revenue rises

Self storage firm Big Yellow said full year pre-tax profits fell 11% to £99.8m due to a lower gain in the valuation of the group's investment properties.

Revenue for the year rose to £109.1m from £101.4 million), an increase of 8%. Like-for-like revenue growth was 6%.

Free cash flow after interest costs and pre working capital movements) increased by 10% to £58.3m. Operating profit before property revaluations increased by £5.5 million to £65.3m.

A final dividend of 14.1p a share was declared for a total of 27.6p a share, up 11%.

Executive chairman Nicholas Vetch said trading over the last few months had been better anticipated which was “encouraging as we head into our seasonally stronger summer trading period”.

“Nevertheless, these are uncertain times and we remain fully prepared for any economic reversals which could cause demand to fluctuate,” he said.

“We can expect to break through 80% occupancy this summer putting us within touching distance of our (for the time being) long held goal of 85%. Occupancy gain remains the primary point of focus.”

“As our vacant capacity reduces, it increases the imperative to create more. The tight supply of land in our core areas of activity, and a planning regime broadly focused on housing, remain very significant barriers for our competitors and ourselves.”

Vetch said Big Yellow had the ability to take necessary risks, a strong balance sheet and was prepared to take long term views.

“These factors work in our favour but unlocking new opportunities for new stores remains challenging,” he said.