REG - Lok'nStore Group - Interim results for the 6 months to 31 January 16 <Origin Href="QuoteRef">LOK.L</Origin> - Part 3
26/04/2016 17:06
- Part 3: For the preceding part double click ID:nRSY1296Wb
31 January2016 Unaudited£'000 31 January2015 Unaudited£'000 31 July2015 Audited £'000
Non-current
Bank loans repayable in more than two years
but not more than five years
Gross 28,816 27,701 27,701
Deferred financing costs (192) (204) (153)
Net bank borrowings 28,624 27,497 27,548
In January 2016, the Group announced the agreement of a new banking facility on improved terms with Royal Bank of Scotland
plc. The new £40 million five year revolving credit facility will replace the existing facility which was due to expire in
October 2016, and will provide funding for site acquisitions and working capital. The £40 million revolving credit facility
with Royal Bank of Scotland plc is secured by legal charges and debentures over the freehold and leasehold properties and
other assets of the business with a net book value of £98.7 million together with cross-company guarantees from Group
companies. The revolving credit facility is for a five-year term and expires on 14 January 2021. The Group is not obliged
to make any repayments prior to expiration. The loans bear interest at the London Inter-Bank Offer Rate (LIBOR) plus
1.40%-1.45% Royal Bank of Scotland plc margin based on a loan to value covenant test while the interest cover and loan to
value covenants are broadly in line with the previous facility.
15b Derivative financial instruments
Of the £28.8 million of gross debt currently drawn against the revolving credit facility, £20 million is at a fixed
interest rate with £10 million fixed rate swap at a fixed 1 month sterling LIBOR rate of 1.2% and £10 million swap at a
fixed 1 month sterling LIBOR rate of 1.15%. With 1 month LIBOR around 0.5%, this leaves a balance of £8.8 million floating
at a current all-in rate of around 2.8% and results in an overall weighted average rate of 3.25%. The £20 million fixed
rate is treated as an effective cash flow hedge and its fair value on a mark-to-market basis has fluctuated historically.
Under the new facility arrangements the Group is not committed to enter into hedging instruments going forwards but rather
to keep such matters under periodic review. Due to the relatively short unexpired term of the existing £20m of swaps these
will continue to be held by Lloyds Bank plc on a modest 'cash cover' basis until their expiration in October 2016.
Fair Value
Currency Principal£ Maturity date 31 Jan2016 Unaudited£'000 31 Jan2015 Unaudited£'000 31 July2015 Audited £'000
3032816LS Interest rate swap GBP 10,000,000 20/10/2016 (51) 98 (63)
3047549LS Interest rate swap GBP 10,000,000 20/10/2016 (48) 90 (56)
20,000,000 (99) 188 (119)
The movement in fair value of the interest rate swaps of £20,529 (31.1.2015: £137,033) has been recognised in other
comprehensive income in the period.
16 Deferred tax
Deferred tax liability 31 January 2016Unaudited£'000 31 January 2015Unaudited£'000 31 July 2015Audited£'000
Liability at start of period/year 12,252 10,870 10,870
Charge to income for the period/year 89 94 151
Tax charged directly to other comprehensive income (707) 2 1,540
Credit to share based payment reserve - - (309)
Liability at end of period/year 11,634 10,966 12,252
The following are the major deferred tax liabilities and assets recognised by the Group and the movements during the year:
AcceleratedCapitalAllowances£'000 Taxlosses£'000 Intangibleassets£'000 Othertemporarydifferences£'000 Revaluation ofproperties£'000 Rolledover gainon disposal£'000 ShareOptions£'000 Total£'000
At 1 August 2014 1,441 - 563 29 7,008 1,829 - 10,870
Charge/ (credit) to income for the period 111 - (17) - - - - 94
Charge to other comprehensive income - - - 28 (26) - - 2
At 31 January 2015 Unaudited 1,552 - 546 57 6,982 1,829 - 10,966
Charge/ (credit) to income for the period 156 - (16) 1 - (42) (42) 57
Charge to other comprehensive income - - - (66) 1,604 - - 1,538
Credit to share based payment reserve - - - - - - (309) (309)
At 31 July 2015 Audited 1,708 - 530 (8) 8,586 1,787 (351) 12,252
Charge/ (credit) to income for the period (62) - (68) 34 - 162 23 89
Charge to other comprehensive income - - - 10 (734) 11 6 (707)
At 31 January 2016 Unaudited 1,646 - 462 36 7,852 1,960 (322) 11,634
A deferred tax asset of £321,313 arises in respect of the share options in existence at 31 January 2016. No deferred tax
asset arises in relation to the remainder of the share options as at 31 January 2016 as the share price at the period-end
is below the exercise price of the options.
17 Share capital
31 January 2016 Unaudited£'000 31 January 2015Unaudited£'000 31 July 2015Audited£'000
Authorised: :35,000,000 ordinary shares of 1 pence each 350 350 350
Called up, Called up, Called up,
allotted and allotted and allotted and
fully paid fully paid fully paid
Number Number Number
Number of shares at start of period/year 28,446,749 27,809,108 27,809,108
Options exercised during period/year 517,328 443,086 637,641
Balance at end of period/year 28,964,077 28,252,194 28,446,749
Allotted, issued and fully paid ordinary shares £'000 £'000 £'000
Balance at start of period/year 284,467 278,091 278,091
Options exercised during period/year 5,175 4,430 6,376
Balance at end of period/year 289,640 282,521 284,467
The Company has one class of ordinary shares which carry no right to fixed income.
18 Other reserves
Cash flow Other Capital Share-based
hedge Merger reserve redemption payment
reserve reserve reserve reserve Total
Group £'000 £'000 £'000 £'000 £'000 £'000
1 August 2014 - Audited 33 6,295 1,294 34 939 8,595
Equity share based payments - - - - 112 112
Transfer to retained earnings - - - - (211) (211)
Cash flow hedge reserve net of tax 109 - - - - 109
Dividend paid - - (1,258) - - (1,258)
31 January 2015 - Unaudited 142 6,295 36 34 840 7,347
Equity share based payments - - - - 99 99
Transfer to retained earnings in relation to share based payments - - - - (87) (87)
Cash flow hedge reserve net of tax (241) - - - - (241)
Dividend paid - - 1,258 - - 1,258
Tax credit relating to share options - - - - 309 309
31 July 2015 - Audited (99) 6,295 1,294 34 1,161 8,685
Equity share based payments - - - - 93 93
Transfer to retained earnings in relation to share based payments - - - - (303) (303)
Cash flow hedge reserve net of tax 11 - - - - 11
Tax credit relating to share options (6) (6)
31 January 2016 - Unaudited (88) 6,295 1,294 34 945 8,480
The merger reserve represents the excess of the nominal value of the shares issued by Lok'nStore Group plc over the nominal
value of the share capital and share premium of Lok'nStore Limited as at 31 July 2001. The other distributable reserve and
the capital redemption reserve arose in the year ended 31 July 2004 from the purchase of the Company's own shares and a
cancellation of share premium.
Share based payment reserve
Under IFRS2 there is the option to make transfers from the share based payment reserve to retained earnings in respect of
accumulated share option charges where the options have either been exercised or have lapsed post-vesting. The total
amounts calculated and accordingly transferred to retained earnings in the period amounted to £302,804. (31.1.2015:
£210,749)
19 Retained earnings
Retained earnings before Retained
deduction of Own shares earnings
own shares (note 21) Total
Group £'000 £'000 £'000
1 August 2014 - Audited 12,298 (4,241) 8,057
Profit for the financial period 1,096 - 1,096
Transfer from non-controlling interest 107 - 107
Transfer from revaluation reserve 211 - 211
31 January 2015 - Unaudited 13,712 (4,241) 9,471
Profit for the financial period 872 - 872
Transfer from revaluation reserve (additional depreciation on revaluation) 142 - 142
Transfer from share based payment reserve (Note 19) 87 - 87
Dividend paid (1,847) - (1,847)
Transfer realised gain on asset disposal 421 - 421
31 July 2015 - Audited 13,387 (4,241) 9,146
Profit for the financial period 2,972 - 2,972
Transfer from revaluation reserve 128 - 128
Transfer from share based payment reserve (Note 19) 303 - 303
Dividend paid (1,456) - (1,456)
Transfer realised gain on asset disposal 1,668 - 1,668
31 January 2016 - Unaudited 17,002 (4,241) 12,761
The transfer from revaluation reserve represents the additional depreciation charged on revalued assets net of deferred
tax.
The Own Shares Reserve represents the cost of shares in Lok'nStore Group plc purchased in the market and held in the
Employee Benefit Trust to satisfy awards made under the Group's share incentive plan and shares purchased separately by
Lok'nStore Limited for Treasury Account. These treasury shares have not been cancelled and were purchased at an average
price considerably lower than the Group's adjusted net asset value. These shares may in due course be released back into
the market to assist liquidity of the Company's stock and to provide availability of a reasonable line of stock to satisfy
investor demand as and when required.
20 Own shares
ESOP ESOP Treasury Treasury Own shares
shares shares shares shares total
Number £ Number £ £
1 August 2014 - Audited 623,212 499,910 2,466,869 3,741,036 4,240,946
31 January 2015 - Unaudited 623,212 499,910 2,466,869 3,741,036 4,240,946
31 July 2015 - Audited 623,212 499,910 2,466,869 3,741,036 4,240,946
31 January 2016 - Unaudited 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 8.52% of the Parent Company's called-up share capital. The maximum number of shares held by
Lok'nStore Limited in the period 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 January 2016, the Trust held
623,212 (31.01.2015: 623,212) ordinary shares of 1 pence each with a market value of £2,003,627 (31.01.2015: £1,486,361).
No shares were transferred out of the scheme during the period (2015: nil).
No dividends were waived during the year. No options have been granted under the EBT.
21 Cash flows
(a) Reconciliation of profit before tax to cash generated from operations
Six months ended31 January2016Unaudited£'000 Six months ended31 January2015Unaudited£'000 Year ended31 July2015 Audited£'000
Profit before tax 1,849 1,483 2,654
Depreciation 735 681 1,440
Amortisation of intangible assets 83 83 165
Equity settled share based payments 93 112 211
Interest receivable (150) (26) (141)
Interest payable 564 575 1,144
Decrease/ (increase) in inventories 2 3 (10)
(Increase)/ decrease in receivables (221) (507) 423
(Decrease) / increase in payables (1,129) (1,024) 98
Cash generated from operations 1,826 1,388 5,984
(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 15a less cash and cash equivalents.
Six monthsended31 January2016Unaudited£'000 Six monthsended31 January 2015Unaudited£'000 Year ended31 July2015Audited£'000
Increase in cash in the period/year 575 1,219 257
Change in net debt resulting from cash flows (1,115) - -
Movement in net debt in period (540) 1,219 257
Net debt brought forward (25,266) (25,523) (25,523)
Net debt carried forward (25,806) (24,304) (25,266)
22 Events after the reporting date
There were no reportable events after the reporting date.
23 Capital commitments and guarantees
The Group has capital expenditure contracted but not provided for in the financial statements of £2.2 million (31.01.2015:
£1.6 million). The Company has no further capital commitments beyond final amounts due on its Reading store, the
outstanding build and fit-out commitments at its Bristol and Southampton stores which are currently under development, and
a further phase of racking fit-out at its Saracen Olney Warehouse.
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
Tel 0118 9588999
Fax 0118 9587500
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
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
Chichester, West Sussex
(Opened January 2016)
17, Terminus Road
Chichester
West Sussex
PO19 8TX
Tel 01243 771840
Fax 01243 775313
chichester@loknstore.co.uk
Crawley, West Sussex
Sussex Manor Business Park
Gatwick Road
Crawley
RH10 9NH
Tel 01293 738530
crawley@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
Woking
Marlborough Road
Woking
GU21 5JG
Tel 01483 378323
Fax 01483 722444
woking@loknstore.co.uk
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Lok'n Store
See all newsREG - Lok'nStore Group - Holding(s) in Company
AnnouncementREG - GWM Asset Management Lok'nStore Group - Form 8.3 - Lok'n Store Group plc
AnnouncementREG - Barclays PLC Lok'nStore Group - Form 8.3 - LOK'NSTORE GROUP PLC
AnnouncementREG-Samson Rock Capital LLP: Form 8.3 - Lok'n Store Group Plc
AnnouncementREG - City Asset Mngt PLC Lok'nStore Group - City Asset Mngt PLC- Form 8.3-Lok'NStore Group PLC
Announcement