REG - Lok'nStore Group - Preliminary Results <Origin Href="QuoteRef">LOK.L</Origin> - Part 4

Lok'n StoreAnnouncement

19/10/2015 07:00

- Part 4: For the preceding part double click  ID:nRSS5935Cc 

shares   shares     shares     total       
                                Number   £        Number     £          £           
 31 July 2014 and 31 July 2015  623,212  499,910  2,466,869  3,741,036  4,240,946   
 
 
Lok'nStore Limited holds a total of 2,466,869 of Lok'nStore Group plc ordinary shares of 1p each for treasury with an
aggregate nominal value of £24,669 purchased for an aggregate cost of £3,741,036 at an average price of £1.503 per share.
These shares represent 8.7% (2014: 8.9%) of the Parent Company's called-up share capital. The maximum number of shares held
by Lok'nStore Limited in the year was 2,466,869. No shares were disposed of or cancelled in the year. 
 
The Group operates an Employee Benefit Trust (EBT) under a settlement dated 8 July 1999 between Lok'nStore Limited and
Lok'nStore Trustee Limited, constituting an employees' share scheme. 
 
Funds are placed in the trust by way of deduction from employees' salaries on a monthly basis as they so instruct for
purchase of shares in the Company. Shares are allocated to employees at the prevailing market price when the salary
deductions are made. 
 
As at 31 July 2015, the Trust held 623,212 (2014: 623,212) ordinary shares of 1 pence each with a market value of
£1,791,735 (2014: £1,290,049). No shares were transferred out of the scheme during the year (2014: nil). 
 
No dividends were waived during the year. No options have been granted under the EBT. 
 
24           Cash flows 
 
(a) Reconciliation of profit before tax to cash generated from operations 
 
                                                                              2015   2014       
                                                                              £'000  £'000      
 Profit before tax                                                            2,654  367        
 Depreciation                                                                 1,440  1,224      
 Amortisation of intangible assetsImpairment of development land asset        165-   165 1,604  
 Equity settled share based payments                                          211    119        
 Interest receivable                                                          (141)  (27)       
 Interest payable                                                             1,144  1,136      
 (Increase) / decrease in inventories                                         (10)   7          
 Decrease / (increase) in receivables                                         423    (484)      
 Increase in payables                                                         98     1,102      
 Cash generated from operations                                               5,984  5,241      
 
 
(b) Reconciliation of net cash flow to movement in net debt 
 
Net debt is defined as non-current and current borrowings, as detailed in note 17a less cash and cash equivalents. 
 
                                                     2015      2014      
                                                     £'000     £'000     
 Increase / (decrease) in cash in the year           257       (2,066)   
 Change in net debt resulting from cash flows        -         (914)     
 Movement in net debt in year                        257       (2,980)   
 Net debt brought forward                            (25,523)  (22,543)  
 Net debt carried forward                            (25,266)  (25,523)  
 
 
25           Commitments under operating leases 
 
At 31 July 2015 the total future minimum lease payments as a lessee under non-cancellable operating leases were as
follows: 
 
                                     Group   Group   
                                     2015    2014    
                                     £'000   £'000   
 Land and buildings                                  
 Amounts due:                                        
 Within one year                     1,546   1,543   
 Between two and five years          5,725   5,732   
 After five years                    8,054   8,740   
                                     15,325  16,015  
 
 
Operating lease payments represent rentals payable by the Group for certain of its properties.  Typically leases are
negotiated for a term of 20 years and rentals are fixed for an average of five years. 
 
26           Related party transactions 
 
The following balances existed between the Company and its subsidiaries at 31 July: 
 
                                                               2015   2014   
                                                               £'000  £,000  
 Net amount due from Lok'nStore Limited        2,965  2,285  
                                                                             
 
 
The amount due from Lok'nStore Limited is interest free. The balance is repayable on demand, however the Company has no
present intention to demand repayment within one year and so the amount has been presented as a non-current asset as at 31
July 2015. 
 
The Company provides share options for the employees of Lok'nStore Limited. The capital contributions arising from these
share-based payments are separately disclosed under investments in note 11. 
 
The aggregate remuneration of the Directors, who are the key management personnel of the Group, is set out below.  Further
information on the remuneration of individual Directors is found in note 6. 
 
                                                 2015   2014   
                                                 £'000  £'000  
 Short term employee benefits          988  822  
 Post-employment benefits              30   30   
 Share-based payments                            211    68     
 Total                                           1,229  920    
                                                                 
 
 
The Group uses Trucost plc, an environmental research company, to provide information and undertake performance assessment
of the environmental effect of its business activities. Trucost plc is a company in which Andrew Jacobs and Simon Thomas
have a beneficial interest. The total fees payable to Trucost plc in respect of its environmental assessment and reporting
for the year was £6,000 (2014: £6,000). The balance outstanding to Trucost plc at year-end was £nil (2014: £nil). 
 
During the year the Group had an agreement with Keith Jacobs, a brother of Andrew Jacobs and Colin Jacobs, for the
provision of marketing services and support on a consultancy basis. The fees payable to Keith Jacobs during the year under
this arrangement were £25,663 (2014: £23,256). This agreement has now been terminated. There were no amounts outstanding
due to Keith Jacobs at the year-end (2014: £nil). The maximum balance outstanding at any time during the year is £4,774 (ex
VAT) (2014: £3,789). 
 
27a         Capital commitments and guarantees 
 
The Group has capital expenditure contracted but not provided for in the financial statements of £3.03 million (2014: £3.85
million) relating to commitments on the Bristol and Southampton stores now under construction, remaining commitments on the
fitting at Reading and various other minor works. 
 
27b         Bank borrowings 
 
The Company has guaranteed the bank borrowings of Lok'nStore Limited, a subsidiary company. As at the year-end, that
company had gross bank borrowings of £27.7 million (2014: £27.7 million). 
 
28           Events after the reporting date 
 
a)            Additional £2 million received for sale of Reading site 
 
The Group has received an additional £2 million from the purchaser of the original Reading store site in return for
relinquishing any remaining rights to receive further payments in connection with the sale of the property. This sum is in
addition to the £2.9 million received from the purchaser on 31 October 2014, taking the total consideration to £4.9m. 
 
These additional proceeds will be recycled into the Group's opening programme of highly visible purpose-built new stores. 
 
b)            Sale and manage back of Swindon store 
 
On 30 September 2015 the Group completed the sale of its Swindon East store for £3.5 million in cash to an investment fund.
 Historically, the Group has operated two stores in Swindon, one leasehold and one freehold. Following the completion of
£0.5m of capital expenditure to increase capacity at its freehold store the two stores were consolidated into one. The
Swindon East store has now been sold. The two stores were valued at a total of £1.4 million at 31 July 2014. 
 
The Group will continue to manage the store as a branded Lok'nStore operation on behalf of the investor, and will receive
management and performance fees. 
 
The proceeds of this transaction will be recycled into projects such as the new stores currently under construction in
Southampton and Bristol. 
 
Our Stores 
 
Head office 
 
Lok'nStore plc 
 
112 Hawley Lane 
 
Farnborough 
 
Hampshire GU14 8JE 
 
Tel   01252 521010 
 
www.loknstore.co.uk 
 
www.loknstore.com 
 
Central Enquiries 
 
0800 587 3322 
 
info@loknstore.co.uk 
 
www.loknstore.co.uk 
 
Basingstoke, Hampshire 
 
Crockford Lane 
 
Chineham 
 
Basingstoke 
 
Hampshire RG24 8NA 
 
Tel   01256 474700 
 
Fax  01256 477377 
 
basingstoke@loknstore.co.uk 
 
Crayford, Kent 
 
Block B 
 
Optima Park 
 
Thames Road 
 
Crayford 
 
Kent DA1 4QX 
 
Tel   01322 525292 
 
Fax 01322 521333 
 
crayford@loknstore.co.uk 
 
Eastbourne, East Sussex 
 
Unit 4, Hawthorn Road 
 
Eastbourne 
 
East Sussex BN23 6QA 
 
Tel   01323 749222 
 
Fax  01323 648555 
 
eastbourne@loknstore.co.uk 
 
Fareham, Hampshire 
 
26 + 27 Standard Way 
 
Fareham Industrial Park 
 
Fareham 
 
Hampshire PO16 8XJ 
 
Tel   01329 283300 
 
Fax  01329 284400 
 
fareham@loknstore.co.uk 
 
Farnborough, Hampshire 
 
112 Hawley Lane 
 
Farnborough 
 
Hampshire GU14 8JE 
 
Tel   01252 511112 
 
Fax 01252 744475 
 
farnborough@loknstore.co.uk 
 
Harlow, Essex 
 
Unit 1 Dukes Park 
 
Edinburgh Way 
 
Harlow 
 
Essex CM20 2GF 
 
Tel   01279 454238 
 
Fax 01279 443750 
 
harlow@loknstore.co.uk 
 
Horsham, West Sussex 
 
Blatchford Road 
 
Redkiln Estate 
 
Horsham 
 
West Sussex RH13 5QR 
 
Tel   01403 272001 
 
Fax  01403 274001 
 
horsham@loknstore.co.uk 
 
Luton, Bedfordshire 
 
27 Brunswick Street 
 
Luton 
 
Bedfordshire LU2 0HG 
 
Tel   01582 721177 
 
Fax  01582 721188 
 
luton@loknstore.co.uk 
 
Maidenhead, Berkshire 
 
Stafferton Way 
 
Maidenhead 
 
Berkshire 
 
SL6 1AY 
 
Tel   01628 878870 
 
Fax  01628 620136 
 
maidenhead@loknstore.co.uk 
 
Milton Keynes, Buckinghamshire 
 
Etheridge Avenue 
 
Brinklow 
 
Milton Keynes 
 
Buckinghamshire MK10 0BB 
 
Tel   01908 281900 
 
Fax  01908 281700 
 
miltonkeynes@loknstore.co.uk 
 
Northampton Central 
 
16 Quorn Way 
 
Grafton Street Industrial Estate 
 
Northampton NN1 2PN 
 
Tel   01604 629928 
 
Fax 01604 627531 
 
nncentral@loknstore.co.uk 
 
Northampton Riverside 
 
Units 1-4 
 
Carousel Way 
 
Northampton 
 
Northamptonshire NN3 9HG 
 
Tel   01604 785522 
 
Fax  01604 785511 
 
northampton@loknstore.co.uk 
 
Poole, Dorset 
 
50 Willis Way 
 
Fleetsbridge 
 
Poole 
 
Dorset BH15 3SY 
 
Tel   01202 666160 
 
Fax  01202 666806 
 
poole@loknstore.co.uk 
 
Portsmouth, Hampshire 
 
Rudmore Square 
 
Portsmouth PO2 8RT 
 
Tel   02392 876783 
 
Fax  02392 821941 
 
portsmouth@loknstore.co.uk 
 
Reading, Berkshire 
 
251 A33 Relief Road 
 
Reading 
 
RG2 0RR 
 
reading@loknstore.co.uk 
 
Southampton, Hampshire 
 
Manor House Avenue 
 
Millbrook 
 
Southampton 
 
Hampshire SO15 0LF 
 
Tel   02380 783388 
 
Fax  02380 783383 
 
southampton@loknstore.co.uk 
 
Staines, Middlesex 
 
The Causeway 
 
Staines 
 
Middlesex TW18 3AY 
 
Tel   01784 464611 
 
Fax  01784 464608 
 
staines@loknstore.co.uk 
 
Sunbury on Thames, Middlesex 
 
Unit C, The Sunbury Centre 
 
Hanworth Road 
 
Sunbury 
 
Middlesex TW16 5DA 
 
Tel   01932 761100 
 
Fax  01932 781188 
 
sunbury@loknstore.co.uk 
 
Swindon Kembrey Park, Wiltshire 
 
Kembrey Street 
 
Elgin Industrial Estate 
 
Swindon 
 
Wiltshire SN2 8UY 
 
Tel   01793 421234 
 
Fax  01793 422888 
 
swindoneast@loknstore.co.uk 
 
Tonbridge, Kent 
 
Unit 6 Deacon Trading Estate 
 
Vale Road 
 
Tonbridge 
 
Kent TN9 1SW 
 
Tel   01732 771007 
 
Fax  01732 773350 
 
tonbridge@loknstore.co.uk 
 
Development locations 
 
Southampton, Hampshire 
 
Third Avenue 
 
Millbrook 
 
Southampton 
 
SO15 0JX 
 
North Harbour, Port Solent, Hampshire 
 
Southampton Road 
 
Portsmouth 
 
PO6 4RH 
 
Bristol 
 
Gallagher Trade Park 
 
Longwell Green 
 
Bristol 
 
BS30 
 
Managed stores 
 
Aldershot, Hampshire 
 
251, Ash Road 
 
Aldershot 
 
GU12 4DD 
 
Tel  0845 4856415 
 
aldershot@loknstore.co.uk 
 
Ashford, Kent 
 
Wotton Road 
 
Ashford 
 
Kent TN23 6LL 
 
Tel   01233 645500 
 
Fax 01233 646000 
 
ashford@loknstore.co.uk 
 
Crawley, West Sussex 
 
Sussex Manor Business Park 
 
Gatwick Road 
 
Crawley 
 
RH10 9NH 
 
Tel  01293 738530 
 
crawley@loknstore.co.uk 
 
Woking 
 
Marlborough Road 
 
Woking 
 
GU21 5JG 
 
Tel   01483 378323 
 
Fax  01483 722444 
 
woking@loknstore.co.uk 
 
Under Development 
 
Chichester 
 
(Plot) 17, Terminus Road, 
 
Chichester, 
 
PO19 8TX 
 
This information is provided by RNS
The company news service from the London Stock Exchange