Big Yellow forecasts return to EPS growth in second half

The group reported an adjusted pre-tax profit of £54.9m for the first half ended 30 September on revenues of £103m – both up 3% on the previous year.

However, EPRA earnings per share were down 3% at 28p, as a result of higher operating costs and additional shares in issue following a placing last October, which should only impact the first half of the year.

"The impact of higher operating costs has continued to wash through into this first half of the year particularly property taxes, energy costs and wages," said chairman Nicholas Vetch.

"We do however expect our store expense growth to moderate in the second half of the year and into next year as the impact of inflation reduces and as we benefit from lower energy costs and our investment into solar energy."

First-half results were also supported by a reduced level of debt – the net debt-to-EBITDA ratio fell to 2.9 from 3.8 a year earlier – and the interest rate reductions in August and November should benefit the company more in the second half and into the following year along with any further reductions in short term interest rates, Vetch said.

Big Yellow declared an interim dividend of 22.6p per share, unchanged from the previous year.

Shares were down 4.7% at 1,100p by 0915 GMT, having now fallen more than 10% over the past month.