REG - Lok'nStore Group - Trading Update

Lok'n StoreAnnouncement

20/02/2024 07:00

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RNS Number : 6704D  Lok'nStore Group PLC  20 February 2024

20 February 2024

Lok'nStore Group plc

("Lok'nStore", the "Company", "We" or the "Group")

Trading update

"Continued revenue growth"

Lok'nStore, the AIM quoted self-storage company, is pleased to provide the
following update on trading for the six months to 31 January 2024.

Highlights:

·    Self-storage revenue up 4.9%

·    Price per square foot up 4.0%

·    Pipeline progress in period

o  New Landmark stores in Basildon and Kettering opened

o  New stores in Staines and Bromborough due to open in 2024

o  Further planning permission progress at Barking and Eastbourne

·    These four stores will add 211,600 sq. ft of trading space to the
portfolio

·    £10 million out of total debt of £43.7 million fixed at all-in cost
of 5.2%

 

Trading momentum continues

 

Building on the last three years of significant revenue growth, trading in the
six months to 31 January 2024 remains in line with the board's expectations
with self-storage revenue up 4.9% on the comparative period last year.
Occupied unit space at the end of the period was down by 22,639 sq. ft to
862,554 sq. ft (-2.9%) offset by Price per sq. ft. of occupied space up by
4.0% from the same point last year.

 

Further progress on new stores

 

Our new Landmark store in Basildon, Essex opened on 1(st) December 2023.
This 49,700 sq. ft. leasehold store has a total project cost of £3.8 million
and is our first ever purpose-built leasehold store.  The Basildon store
forms part of a large retail park and sits on top of a discount food retailer.
 Early trading at this newly opened store and our recently opened stores in
Bedford and Peterborough continues to be in line with expectations.

 

In Kettering, Northamptonshire, we opened a 45,900 sq. ft. managed store on
9(th) February 2024.

 

Fit-out work continues at our new Landmark store development in Staines,
Surrey (effective freehold) which is due to open in spring 2024.  Our 66,500
sq ft Staines store encompasses a discount food store which should drive
additional footfall to our store.

 

We are also on site in Bromborough, Wirral for a managed store client which is
due to open in the Autumn of 2024.

 

These four stores will add a further 211,600 sq. ft. of trading space to the
undersupplied UK self-storage market.

 

The Basildon and Staines owned stores will be independently valued as trading
assets for the first time at our FY24 year-end.

 

Further progress on planning permission for more new stores

 

We have now received formal planning permission for our new store in Barking,
Greater London.  At c.84,000 sq. ft, this freehold Landmark store will be our
biggest store to date, reflecting the continued strong demand we are seeing
for our product. We are currently working through the pre-commencement
conditions.

We are anticipating planning permission for a new Freehold store in Eastbourne
in the coming weeks.  This Landmark location, adjacent to supermarkets and
retail outlets is close to our existing leasehold store, which has been
trading since 2003.

Interest Rate fixed on £10 million of debt

In December 2023, the Group entered into five-year interest rate Swaps on
£10.0 million of its floating rate debt. The two separate swaps of £5.0
million each were executed at a Sonia swap rate of 3.51%, providing an all-in
effective rate payable on this swap of 5.2% and will result in estimated
saving of c. £0.2 million of interest payable in the coming year compared to
the Company's current cost of floating debt of 6.74% on its Revolving Credit
Facility.

Interim results for the period ending 31 January 2024 will be announced in the
2(nd) half of April 2024

Commenting on progress in the six months to 31 January 2024 Andrew Jacobs,
Chair of Lok'nStore, said:

"Trading in the first half of FY24 has been positive with self-storage revenue
up 4.9% on the same period last year.

We continue to deliver on our strategy of opening more new stores in the under
supplied self-storage market. We have made significant progress on our new
store pipeline with the Basildon store opening in December 2023, the Kettering
managed store in February 2024 and two more stores due to open in 2024 in
Staines and Bromborough. These new stores are anticipated to add further
momentum to sales, earnings and net asset growth."

-Ends-

 Enquiries:

 Lok'nStore                                                  01252 521 010

 Andrew Jacobs, Chair

 Ray Davies, Finance Director

 Neil Newman-Shepherd, Managing Director

 Cavendish Capital Markets Limited - Nomad and Joint Broker  020 7220 0500

 Julian Blunt/Seamus Fricker, Corporate Finance

 Sunila De Silva, Corporate Broking

 Peel Hunt LLP - Joint Broker                                020 7418 8900

 Capel Irwin/Carl Gough/Henry Nicholls

 Camarco - Financial PR                                        020 3757 4991

 Billy Clegg/Tom Huddart/Letaba Rimell

 

 

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