REG - Lok'nStore Group - Freehold site acquisition

Lok'n StoreAnnouncement

17/07/2023 07:00

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RNS Number : 1326G  Lok'nStore Group PLC  17 July 2023

17 July 2023

Lok'nStore Group plc

Freehold site acquisition

Following the Share Placing earlier this month which provided c.£19.8 million
(net) of funding, the Board of Lok'nStore Group plc, (AIM:LOK), a leading
company in the UK self-storage market is pleased to announce the first
deployment of this equity capital into a new freehold land acquisition.

Highlights

·    Unconditional contracts exchanged on new 60,000 sq.ft freehold
Landmark site in Eastbourne, Sussex

·    Building work continues at our new Landmark store developments in
Staines, Basildon and Kettering

·    Revenue momentum continues

New Freehold Landmark site

Contracts have been exchanged on a freehold site in Eastbourne, Sussex where
we intend to submit planning for a 60,000 sq.ft store shortly.  Completion is
due by the end of the year upon vacation of the current occupier.  This
Landmark location, adjacent to supermarkets and retail is close to our
existing leasehold store.  The initial land cost will be £5.53 million and
total net project costs are expected to be c.£12.0 million.

We recently announced the signing of a new lease at our existing Eastbourne
store which runs for twenty years.  We have the valuable opportunity to
improve profitability in the Eastbourne market via a tenant only break clause
after five years.  The current store has been trading successfully since its
opening in 2003.

Further new store pipeline progress

Following the Eastbourne freehold purchase our total secured pipeline of 11
secured new stores will result in the Group operating 52 stores. This pipeline
of new stores will add considerable momentum to sales and earnings growth once
developed.

Building work continues at 3 of our new Landmark store developments in
Staines, Basildon and Kettering (managed), all of which will be open in the
next 12 months and where the remaining capital expenditure as at 31(st)
January 2023 was £13.7 million, adding a further 162,100 sq. ft. of trading
space to the undersupplied UK self-storage market.

Lok'nStore's highly experienced management team continue to progress the new
store pipeline despite the planning system remaining lengthy and
unpredictable.

Revenue momentum continues

 

As announced last month, revenue continues to be buoyant with H2 stores
revenue expected to be up c.10.5% year on year.  Operating costs are in line
with the expectations set out in our interim results announced in April 2023.

 

We will announce a pre-close trading update on Monday 14(th) August 2023.

Commenting on the recent progress Andrew Jacobs, Chair, said:

"Following our share placing earlier this month which provided c.£19.8
million of funding we are pleased to announce the purchase of a strategic
Landmark freehold site in Eastbourne, Sussex.

"Revenue momentum continues to be strong in H2 and we continue to deliver on
our strategy to  open more new stores in the under-supplied UK self-storage
market. We have opened 2 stores in the current financial year and are onsite
at a further 3 stores.  These stores will add considerable momentum to
earnings growth in the coming years."

-Ends-

 Enquiries:

 Lok'nStore                                       01252 521 010

 Ray Davies, Finance Director

 Neil Newman, Group Managing Director
 finnCap Ltd                                      020 7220 0500

 Julian Blunt/Seamus Fricker, Corporate Finance

 Alice Lane, Corporate Broking
 Peel Hunt LLP                                    020 7418 8900

 Capel Irwin/Carl Gough/Henry Nicholls
 Camarco                                            020 3757 4991

 Billy Clegg/Tom Huddart/Letaba Rimell

 

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