REG - Lok'nStore Group - Interim Results <Origin Href="QuoteRef">LOK.L</Origin> - Part 1
RNS Number : 0435DLok'nStore Group PLC24 April 2017LOK'NSTORE GROUP PLC
("Lok'nStore" or "the Group")
Lok'nStore Group Plc, the fast growing self-storage company announces interim results for the six months to 31 January 2017
"Strong balance sheet fundsgrowth strategy and pipeline of 8 new landmark stores"
Highlights:
Strong trading and cash flow
Revenue 8.34 million up 4.5% (31.1.2016: 7.99 million)
Group Adjusted EBITDA1 3.31million up 0.5% (31.1.2016: 3.30 million)
Adjusted pre-tax profit2 2.1 million up 13.5%
Adjusted net profit2 1.9 million up 81.2%
Cash flow growth supports 12.4% dividend increase - progressive dividend policy
Cash available for Distribution (CAD) 3 2.62 million up 6.5% (31.1.2016: 2.46 million)
Interim dividend 3 pence per share up 12.4% (31.1.2016: 2.67 pence per share)
Significant growth in asset value,
Adjusted Net Asset Value (NAV) per share4 up 26.1% to 3.87 (31.1.2016: 3.07)
Total assets up to 142.65 million (31.1.2016: 113.4 million)
Strong balance sheet, efficient use of capital, low debt
Sale of 1.975 million Treasury shares raising circa 8 million at 400 pence per share (purchase cost 150.3 pence), a premium to NAV4
Net debt 16.7 million down 35.3% (31.1.2016: 25.8 million)
Loan to value ratio down to 14.4%6(31.1.2016: 26.2%)
Extension of existing bank facility by 2 years until January 2023
Effective cost of debt 1.65%
Rolling 12 month EBITDA 16.2 times net interest
Consistent performance in the self-storage business
Core self-storage revenue 7.0 million up 3.9% (31.1.2016: 6.74 million)
Adjusted Store EBITDA 3.857million up 0.1% (31.1.2016: 3.84 million)
Occupied units pricing up 1.0% LFL8
Unit Occupancy up 4.6% LFL8
Healthy pipeline of new landmark stores - 8 stores in pipeline
4 new stores to open in 2017 in Wellingborough, Gillingham, Hemel Hempstead and Broadstairs
Plus 4 further new sites identified
Current pipeline adds 30% of extra trading space to the overall portfolio, 18% to our owned portfolio and 70% to the managed portfolio
Following successful completion of Managed Store pipeline will have 10 stores under management .
Confident Outlook
The Group is well positioned for future growth
Commenting on the Group's results, Andrew Jacobs CEO of Lok'nStore Group said,
"With strong trading Lok'nStore's profits continue to grow, as interest costs and taxation also come down. We are investing in the future growth of the business building more new landmark stores. Our low debt allows this rapid development programme to be financed from cash flow and existing bank facilities, while progressively increasing the dividend.
"Our new store development programme continues to change the balance of our stores with new and purpose built stores accounting for 64% of the portfolio. The three new stores we opened in 2016 are all trading well and the 4 sites acquired last year for new stores will open in 2017 increasing space by a further 18% and adding impetus to sales and earnings growth.
"Our objective is to open more landmark self-storage centres while remaining conservatively leveraged to deliver robust, predictable growing cash flow and dividends from an expanding asset base."
Enquiries:
Lok'nStore:
Andrew Jacobs, CEO
Ray Davies, Finance Director
01252 521 010
finnCap Ltd
Julian Blunt / Giles Rolls, Corporate Finance
Alice Lane, Corporate Broking
020 7220 0500
Camarco
Billy Clegg / Tom Huddart
0203 757 4980
Notes - What we mean when we say (and why we use these key performance indicators (KPIs))
1. Group Adjusted EBITDA - Earnings before interest, tax, depreciation and amortisation -The measure is designed to give clarity on the operating cash flow of the business stripping away non-cash charges, finance charges and tax. Adjusted EBITDA is defined as EBITDA before losses or profits on disposal, share-based payments, acquisition costs, and exceptional items.
2. Adjustment of prior period exceptional sale - Reading
In 2016, the Group received an additional amount of sale proceeds (net of costs) of 1.94 million on the sale of its old Reading store. The increase in the adjusted profit before tax of 2.1 million (31.01.16: 1.85 million) and the increase in the adjusted net profit 1.87 million (31.01.16: 1.03 million) reported in the highlights above strip out the effect of this exceptional item.
3. CAD - Cash available for Distribution -is calculated as Adjusted EBITDA minus total net finance cost, less capitalised maintenance expenses, New Works Team costs and current tax. This measure is designed to give clarity to the capacity of the business to generate net operating cash that can be used to pay dividends to shareholders.
4. NAV - Net Asset Value per share - Adjusted net asset value per share is the net assets adjusted for the valuation of leasehold stores and deferred tax divided by the number of shares at the year-end. The shares held in the Group's employee benefits trust and treasury shares are excluded from the number of shares.
5. Total assets - Total assets of 142.6 million is calculated by adding the independent valuation of the leasehold properties (16.6 million) less their corresponding net book value (NBV) 3.0 million to the total assets in the balance sheet of 129.0 million.
6. LTV - Loan to value ratio - measures the debt of the business expressed as a percentage of total property assets giving a perspective on the gearing of the business. The calculation is based on net debt of 16.7 million (31.1.2016: 25.8 million) as a percentage of the total properties independently valued by JLL and including development land assets totalling 115.5 million (31.1.2016: 98.5 million) as set out in the Business and Financial Review.
7. StoreadjustedEBITDA is Adjusted EBITDA (see 3 above) before the deduction of central andheadofficecosts.
8. LFL- Like for like - This measure is used to give transparency on improvements in the operating business unrelated to the opening of new stores or closure of old stores therefore giving visibility of the true trading picture. During December 2016 and January 2017, Lok'nStore closed its store in Staines. Like-for-like (LFL) growth figures for the period strip out the effect of this closure.
9. Exceptional items - arose during the period from a further 14,390 of additional costs from the disposal of the old Portsmouth development site and 20,898 of costs relating to the closure of the Staines store.
10. Gearing-refers to the level of a company's debt related to its equity capital, usually expressed in percentage form. It is a measure of a company's financial leverage and shows the extent to which its operations are funded by lenders versus shareholders. Gearing can be measured by a number of ratios and we use the debt-to-equity ratio in this document.
11. Capex - capital expenditure
Glossary
Abbreviation
AdjustedEBITDA
Earningsbeforealldepreciation andamortisationcharges,lossesorprofitsondisposal,share-basedpayments, acquisitioncosts,andnon-recurringprofessional costs,financeincome,financecostsandtaxation
C&W
Cushman&Wakefield
CAD
Cash available for Distribution
Capex
CapitalExpenditure
CSOP
CompanyShareOptionPlan
EBT
EmployeeBenefitTrust
EMI
EnterpriseManagementIncentiveScheme
ESOP
EmployeeShareOptionPlan
EU
EuropeanUnion
HMRC
HerMajesty'sRevenue&Customs
IAS
InternationalAccountingStandard
IFRIC
InternationalFinancialReportingInterpretationsCommittee
IFRS
InternationalFinancialReportingStandards
JLL
Jones Lang LaSalle
LIBOR
LondonInterbankOfferedRate
LFL
Like for like
LTV
LoantoValueRatio
NAV
Net Asset Value
NBV
Net book value
OperatingProfit
Earningsbeforeinterestandtax(EBIT)
RICS
RoyalInstitutionofChartered Surveyors
sq.ft.
SquareFeet
StoreadjustedEBITDA
AdjustedEBITDA(seeabove)butbeforecentralandhead office costs
VAT
ValueAddedTax
Chairman's Statement
Healthy growth, increased dividend and active store opening programme
Lok'nStore Group continues to build on the successful implementation of all of our strategy objectives. Our focus is opening more landmark self-storage centres while remaining conservatively leveraged to deliver robust, predictable growing cash flow and dividends. Our expanding pipeline of new stores substantially increases the proportion of our store space which is new or purpose-built and will add further momentum to the growth of sales and profits.
Trading positive
For the half year period to January 2017 trading has been steady with revenue, profits and assets all increasing.
An increase in revenue of 4.5% to 8.34 million (31.1.2016: 7.99 million) resulted mainly from occupancy growth with prices holding steady.
Progressive Dividend
Dividend payments will reflect the growth in the underlying cash generated by the business as reflected in the cash available for distribution (CAD) which is up 6.5% in the period. As noted above this was balanced by an 8.5% increase in shares outstanding so CAD per share remained steady at an annualised 19 pence despite the significant reduction in risk as debt and LTV were brought down substantially.
At this interim stage we will pay one third of the previous year's total annual dividend which equates to 3.00 pence per share, up 12.4% on the 2.67 pence per share interim dividend last year. The ex-dividend date will be 11 May 2017; the record date 12 May 2017; with an intended payment date of 9 June 2017. The final dividend will be declared when the Group's full year results are announced.
Balance Sheet and financial platform strengthened to support Growth
Lok'nStore has worked to reduce debt, increase cash and increase the value of its trading assets. This shows through in our higher NAV and lower LTV metrics. Our Bank facilities have been extended and markedly lower interest costs are now feeding through into the Income Statement. Finance costs are 42.4% lower compared to the corresponding period last year. This is all reported in more detail in the remainder of the Statement.
Sale of Treasury Shares
In November 2016 Lok'nStore sold 1,975,000 ordinary shares of 1 pence each ("Ordinary Shares") held in treasury. This sale was undertaken to satisfy demand, and to improve liquidity in the Company's shares. The shares were sold to a range of institutional investors at a price of 400 pence per share. (The Company acquired the shares at an average price of 150.3 pence). We welcome the new shareholders to the register.
The sale of these shares from treasury will have no impact on earnings or taxable profits but has reduced debt, LTV and interest payable while increasing cash and current assets, so supporting the Company's growth strategy.
There remain 491,869 shares held in treasury. Following this transaction, the Company's total issued share capital was unchanged at 29,199,230 Ordinary Shares.
The growth of sales, profit and asset values combined with innovative asset management has allowed us to achieve a substantial reduction in the loan-to-value (LTV) ratio down to 14.4% (31.1.2016: 26.2%) and net debt down to 16.7 million (31.1.2016: 25.8 million) while we invested 2.8 million in store development in this period.
Rapid store development programme
Our rapid store development programme has led to an increase in new and purpose built space to 64% of our owned portfolio. Recently opened stores in Southampton, Bristol, Maidenhead, Reading, Aldershot and Chichester have plenty of capacity to continue contributing to growth during the coming years. We have 4 new landmark stores in Wellingborough, Gillingham, Hemel Hempstead and Broadstairs opening through 2017 which will increase space by a further 18% and we have identified 4 more sites taking our total pipeline to 8 stores.This strong pipeline will add further impetus to sales and earnings growth.
Our innovative approach to financing, our strong balance sheet and our growing cash flows means we are achieving all this while also reducing our gearing from its existing modest level and continually increasing dividends.
Operating Costs
We have a strong record of reducing our group operating costs each year however we cautioned at our 2016 year end results that although we maintain a disciplined approach to costs continuing to reduce them is increasingly challenging while delivering both strong revenue growth and an acceleration of our store opening programme. While overall costs have risen 7.6% and we provide a breakdown in the Business Review, the cost increases are driven by the expansion of the business in the areas of rates, staffing and advertising, and we are seeing little other cost pressures.
We will continue pushing Group margins up by building more landmark freehold stores and increasing the number of managed stores we operate from essentially an unchanged central cost platform.
Lok'nStore extends existing 40 million Banking Facility to six years
The Group has agreed a two year extension on its existing banking facility. The 40 million facility will now run until January 2023. Together with our 12.1 million of cash and 2.9 million cash generated from operations this will provide funding for more landmark site acquisitions and working capital.
The cost of our debt on 28.8 million drawn averaged 1.69% in the period.
Positive Outlook
Lok'nStore is a dynamic business with a robust platform for significant further growth. With a record of consistent profit growth and cash generation the Group is well positioned for the coming years. Recent strong trading will be reinforced by our programme of new landmark store openings.
With the high barriers to entry to the self-storage industry created by the strong demand for property in South-East England and the difficulties of the local planning process, we believe that Lok'nStore is creating a highly valuable asset in an attractive market.
Our main objective is to steadily increase the cash available for distribution (CAD) enabling a predictable growth of the dividend from a strong asset base and conservatively geared balance sheet.
In order to achieve this our focus will be on four key areas:
1. Fill stores and improve pricing to increase cash flow from the existing stores
2. Acquire sites to build more landmark stores
3. Increase the number of stores we manage for third parties
4. Grow our document storage business
Our current pipeline of 8 new stores will contribute to the achievement of these objectives.
Finally, I should like to thank all of our employees for the contribution they have made to the Group's success. With our experienced and dedicated staff we have built a firm base for the coming years and we are looking to the future with confidence.
Simon G Thomas
Chairman
24 April 2017
Business and Financial Review
The Performance of our Stores - Self-storage business steady
Self-storage revenue 7.0 million up 3.9% (31.1.2016: 6.74 million)
Adjusted Store EBITDA 3.85 million up 0.1% (31.1.2016: 3.84 million)
Unit occupancy increased 4.6% year on year on a like for like basis to 61.8% of current lettable area (CLA)
Occupied units pricing up 1.0% LFL
During the period self-storage revenues rose at a steady rate of 3.9% (4.5% LFL) and Store EBITDA edged ahead by 0.1% (1.1% LFL). This was a result of unit occupancy increasing 4.6% LFL over the period as pricing edged up 1% LFL. Store EBITDA growth was subdued as we absorbed the increased costs of the new landmark stores in Southampton and Bristol, and higher costs of internet search marketing.
As you can see from the table below as the business develops the balance of the stores continues to shift towards landmark freehold stores and managed stores which have a higher than average store EBITDA margin (62.9% and 100% respectively versus 54.5% across all stores). The impact of this is to continue to increase the average store EBITDA margin of the Group overall, and this effect is accentuated by operating more stores from a relatively fixed central cost base. In this context the 8 new stores in the pipeline will make a larger than average contribution to Group profits as they become established trading units.
At the end of January 2017 34.5% of Lok'nStore's self-storage revenue was from business customers (31.1.2016: 33.1%) with the remainder from household customers. By number of customers 19.7% of our customers were business customers (31.1.2016: 19.6%).
When Fully Developed
Portfolio Analysis and Performance Breakdown
Number of stores
% of Valuation
% of Adjusted Store EBITDA
Adjusted Store
EBITDA Margin (%)
% lettable space
Lok Owned
Number of stores
Total % lettable space
As at 31 January 2017
Freehold and long leasehold stores
12
86.0
70.6
62.9
63.9
15
49.8
Operating Leaseholds stores
7
14.0
29.4
41.3
36.1
8
25.7
Managed Stores
6
100
10
24.5
Pipeline stores
Owned
4
Managed
4
Total Self Storage
33
100
100
54.5
100
33
100
Document Storage
2
-
-
-
-
2
-
Total freeholds and long leasehold stores account for 86% of total property values (long leaseholds are those with over 50 years remaining term).
Ancillary Sales
Ancillary sales consisting of boxes and packaging materials, insurance and other sales increased 5.5% (31.1.2016: 3.5%) over the year accounting for 11.1% of self-storage revenues (31.1.2016: 10.9%). We continue to promote customer goods insurance to new customers with the result that 90% (31.1.2016: 91%) of our new customers purchased the product over the year. This has resulted in nearly 80% of our customers being insured through Lok'nStore.
Saracen - Document storage business
Revenue 1.15 million up 8.8% (2015: 1.06 million)
Adjusted EBITDA 0.25 million unchanged (2015: 0.25 million)
Boxes stored up 8.0%. Tapes stored up 27% over the 12 months to end of January 2017
Revenue has increased in our document storage business as operating metrics improve in response to the Company's more customer facing marketing stance. This approach has resulted in excellent customer feedback and puts us in a good position to win new business, with boxes stored increasing 8.0% and tapes stored up 27%. Initially EBITDA growth has been dampened as the increased volume of incoming items pushes up distribution and handling costs, but later in the storage cycle the profitability of these items will increase as handling is reduced.
Last year we completed the final stage of our phased fit-out of new warehouse racking in our site in Olney and we now have the capacity to significantly increase the number of boxes stored within our existing premises.
Stores Property review
Lok'nStore has 25 freehold, leasehold and managed stores trading. Of these, 19 stores are owned with 12 freehold or long leasehold, 7 leasehold and 6 further sites operate under management contracts.
The average unexpired term of the Group's operating leaseholds is approximately 11 years and 2 months as at 31 January 2017 (12 years and 2 months: 31 January 2016). All of our current leasehold stores are inside the Landlord and Tenant Act providing us with a strong security of tenure.
Closure of Staines Store
Our leasehold store in Staines was on a short lease outside of the Landlord and Tenant Act (1954) and has now been closed.
Around 50% of the existing customers were moved to other Lok'nStore stores. Of the approximately 50% of customers that did move the majority are longer term so we expect revenue from these customers to show little downturn. All of Staines operating costs has been removed so EBITDA profit is at least neutral if not slightly enhanced by the impact of this move. There were no dilapidations payments made to the landlord.
Because the Staines store was outside of LTA (1954) act and on a short lease it has never been valued as an asset in our accounts. The carrying book value in the financial statements was therefore de minimis.
It should be noted that the headline revenue and occupancy figures for December 2016 onwards will be negatively impacted to some degree by the influence of the closure, but for the sake of transparency and simplicity we have chosen not to show like-for-like figures stripping out this effect, except where it makes a qualitative difference.
Managed Store Service
Management fees from Managed Stores 0.18 million (31.1.2016: 0.19 million)
Over recent years we have been developing our management services to third party storage owners. We have eight stores under management with six of these open and trading and two in Hemel Hempstead and Broadstairs under development and scheduled to open in 2017.
In the case of managed stores Lok'nStore receives a standard monthly fee, a performance fee based on certain objectives and a fee on successful exit. In some cases we charge acquisition, planning and branding fees. This allows us to earn revenue from our expertise and knowledge of the self-storage industry without having to commit our capital, to amortise various fixed central costs over a wider operating base, and to drive more visits to our website moving it up the rankings and benefitting all the stores we both own and manage.
In this period we earned 0.18 million (31.1.2016: 0.19 million) in management fees. We expect this to increase steadily over the coming years. The comparative 2016 figure was enhanced by accrued fees prior to the period which could not be booked until period ended January 2016 as follows:
Six months
ended
31 January
2017
Unaudited
Six months
ended
31 January
2016
Unaudited
Management fees
Management Fees
180,881
155,446
Prior period accrued fees
-
34,390
Total management fees
180,881
189,836
Growth from new stores and more new landmark stores to come
Lok'nStore's strong operating cash flow, solid asset base, and tactical approach to its store property portfolio provide the Group with opportunities to improve the terms of its property usage in all stages of the economic cycle. Our focus on the trading business gives us many opportunities and our property decisions are always driven by the requirements of the trading business.
2016 store openings in Bristol, Southampton and Chichester trading well
4 new sites under development adding 18% more space
New and purpose built stores lettable space 64% of portfolio
4 further new store opportunities identified
Current pipeline adds 18% of extra space to our owned portfolio, 70% to the managed portfolio and 30% to the overall portfolio.
Development of two new landmark stores
Wellingborough and Gillingham
In September 2016 we received planning permission and completed the purchases of the sites in Gillingham and Wellingborough. We are now on site in both locations.
The sites are in prominent retail locations with large catchment areas and little established competition. The total capital investment of approximately 10 million will be financed from cash flow and our bank facility. The stores are scheduled to be open at the end of 2017. When developed these stores will add around 110,000 sq. ft. to the trading portfolio increasing the company's capacity of owned stores by 10%. They will take the proportion of Lok'nStore's space which is new or purpose built to 64%.
Two new stores to be developed under management contracts
Two new management contracts were signed in July 2016 to develop and operate two new stores in prominent retail locations in Hemel Hempstead and Broadstairs. Opening is scheduled for 2017. When developed, these will add around 70,000 sq. ft. to the trading portfolio.
Flexible and tactical approach to site acquisition
We continue our strategy of actively managing our store operating portfolio to ensure we are maximising both trading potential and asset value. This includes strengthening our distinctive brand, increasing the size and number of our stores and replacing stores or sites where it will increase shareholder value. We prefer to own freeholds if possible, and where opportunities arise we will seek to acquire the freehold of our leasehold stores. However we are happy to take leases on appropriate terms and benefit from the advantages of a lower entry cost, with further options to create value later. Our most important consideration is always the trading potential of the store rather than the type of property tenure.
With Wellingborough, Gillingham, Hemel Hempstead and Broadstairs set to open in 2017 this will increase the number of stores we operate to 29 and will capitalise on our efficient operating systems and growing internet marketing presence.
Store property assets and Net Asset Value
Total assets now 142.6 million (31.1.2016: 113.4 million)
Adjusted net asset value of 3.87 per share up 26.1% on last year
Financial results
Group Revenue 8.34 million up 4.5% (31.1.2016: 7.99 million)
Group Adjusted EBITDA 3.3million up 0.5% (31.1.2016: 3.3 million)
Forward cost of debt currently 1.65%
LTV down to 14.4%
Treasury share sale for 7.82m (net of costs)
CAD up 6.5%
Interim dividend up 12.4%
Cash balances 12.1 million (31.1.2016: 3.0 million)
Lok'nStore is a robust business which generates an increasing cash flow from its strong asset base. With a low LTV of 14.4% and low interest margins of 1.4% on its extended banking facility the business has a firm base for growth. The value of the Group's property assets underpins a flexible business model with stable and rising cash flows and low credit risk.
Management of interest rate risk
Of the 28.8 million of gross debt currently drawn against the 40 million revolving credit facility 20 million was 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%. Both swaps expired 20 October 2016 and the Group's all-in floating rate dropped to (currently) 1.65% on its entire gross debt.
Under the current bank facility the Group is not committed to enter into hedging instruments going forwards but rather to keep such matters under review. Given our low level of indebtedness, low Loan to Value and high interest cover, combined with the wider uncertainties within the economy of Brexit likely to produce low rates for longer, it is not the intention of the Group to enter into an interest rate hedging arrangement at this time.
Taxation
The Group has made a current tax provision against earnings in this period of 0.42 million based on a corporation tax rate of 20%. The deferred tax provision which is calculated at forward corporation tax rates of 17% and is substantially a tax provision against the potential crystallisation (sales) of revalued properties and past 'rolled over' gains amounts to 14.45 million. (31.1.2016: 11.63 million) (see Note 16).
Earnings per share
Basic earnings per share were 6.91pence (31.1.2016: 11.53 pence per share) and diluted earnings per share were 6.74 pence (31.1.2016: 11.26 pence per share).If 2016 figures are adjusted to eliminate the 2016 property sale gain of 1.94 million, the 2016 EPS is adjusted to 4.00 pence per share and the 2016 diluted EPS to 3.91 pence per share.
Six months
ended
31 January
2017
Unaudited
Six months
ended
31 January
2016
Unaudited
Year
ended
31 July
2016
Audited
Earnings per share (EPS)
'000
'000
'000
Profit for the Period
1,870
2,972
4,282
Exceptional Gain on sale of Reading
-
(1,940)
(1,940)
Adjusted earnings
1,870
1,032
2,342
No. of shares
No. of shares
No. of shares
Weighted average number of shares
For basic earnings per share
27,071,818
25,775,767
25,791,821
Dilutive effect of share options
651,347
626,082
577,882
For diluted earnings per share
27,723,165
26,401,849
26,369,643
Basic EPS
6.91
4.00
9.08
Diluted EPS
6.74
3.91
8.88
Operating costs
We have a strong record of reducing our group operating costs each year however we cautioned at our 2016 year end results that although we maintain a disciplined approach to costs continuing to reduce them is increasingly challenging while delivering both strong revenue growth and an acceleration of our store opening programme.
Group operating costs amounted to 4.87 million for the period, a 7.6% increase year on year (31.1.2016: 4.52 million) which derived from higher rates bills as we opened landmark stores, extra staffing in document storage and higher internet marketing costs.
Property costs which mainly constitute rent and rates have risen by 10.5% as we felt the effects of higher rates bills as we opened our new landmark stores at Southampton and Bristol and on our development site at Wellingborough. Rents remained static and utility costs rose modestly. Excluding these three categories (rent, rates and utilities) other minor property costs rose by only 2.2%.
Overhead costs while up 12.5% year on year are running lower for the full year 2017 on an annualised basis. The only significant increase in this category is the cost of internet marketing which has risen 70% year to year as we improve our search rankings. Excluding this expenditure other overhead expenditures were down 3.5% year to year.
Staff costs increased by 4% as we increase staffing at our serviced document storage unit to cope with increased volumes of incoming items. Across the rest of the Group there was no increase in staff costs.
Overall the cost increases are mainly driven by the expansion of the business and we are seeing little other cost pressures.
Group
Increase
in costs %
Six months
ended 31 Jan
2017
'000
Six months
ended 31 Jan
2016
'000
Year
ended 31 July
2016
'000
Property costs
10.5
2,087
1,889
3,913
Staff costs
4.0
2,156
2,074
4,232
Overheads
12.5
541
481
1,128
Distribution costs
6.3
83
78
170
Total
7.6
4,867
4,522
9,443
Cash flow and financing
At 31 January 2017 the Group had cash balances of 12.1million (31.1.2016: 3.0 million). Cash inflow from operating activities before investing and financing activities was 2.9 million (31.1.2016: 0.9 million), and the sale of the Treasury shares further added to our cash position. As well as using cash generated from operations to fund some capital expenditure, the Group has a six year revolving credit facility. This provides sufficient liquidity for the Group's current needs. Undrawn committed facilities at the period-end amounted to 11.2 million (31.1.2016: 11.2 million).
Gearing
At 31 January 2017 the Group had 28.8 million of gross borrowings (31.1.2016: 28.8 million) representing gearing of 20.7% (31.1.2016: 45.7%) on net debt of 16.7 million (31.1.2016: 25.8 million). After adjusting for the uplift in value of leaseholds which are stated at depreciated historic cost in the statement of financial position, gearing is 17.7% (31.1.2016: 38.0%). After adjusting for the deferred tax liability carried at period end of 14.4million gearing drops to 15.3% (31.1.2016: 32.5%).
Cash available for Distribution (CAD) up 6.5%
Cash available for Distribution (CAD) provides a clear picture of ongoing cash flow available for dividends. The CAD was up 6.5% in the period although at a per share level this was balanced by the increase in the number of shares outstanding resulting from the sale of the Treasury shares.
To illustrate this fully the table below shows the calculation of CAD.
Analysis of Cash Available for Distribution (CAD)
Six months ended 31 January 2017
'000
Six months ended 31 January 2016
'000
Year ended 31 July 2016
'000
Group Adjusted EBITDA
3,313
3,298
6,295
Less: Net finance costs (per Income Statement)
(151)
(415)
(735)
Capitalised maintenance expenses
(55)
(55)
(110)
New Works Team
(66)
(67)
(134)
Current tax
(424)
(303)
(606)
Total deductions
(696)
(840)
(1,585)
Cash Available for Distribution
2,617
2,458
4,710
Increase over last year
6.5%
Number
Number
Number
Number of shares in issue
28,084,149
25,873,896
26,019,241
CAD per share (annualised)
19p
19p
18p
Capital expenditure and capital commitments
The Group has grown through a combination of site acquisition, existing store improvements and relocations. It has concentrated on extracting value from its existing assets and developing through collaborative projects and management contracts. Capital expenditure during the period totalled 2.8million (31.1.2016: 4.6 million). This was primarily the purchase and subsequent construction works at our development sites in Gillingham and Wellingborough as well as completing fitting-out works at our Bristol store.
The Company has no further capital commitments beyond the build and fit-outs of the Gillingham and Wellingborough Stores and the refurbishment of the Old Southampton store for cruise parking totalling 5.4 million.
Market Valuation of Freehold and Operating Leasehold Land and Buildings
On 31 July 2016 professional valuations were prepared by Jones Lang LaSalle (JLL) in respect of eleven freeholds one long leasehold and seven operating leasehold properties. This valuation has been adopted for the 31 January 2017 period-end. The valuation was prepared in accordance with the RICS Valuation - Professional Standards, published by The Royal Institute of Chartered Surveyors (the "Red Book"). The valuation has been provided for accounts purposes and, as such, is a Regulated Purpose Valuation as defined in the Red Book.
A deferred tax liability arises on the revaluation of the properties and on the rolled-over gain arising from the disposal of some properties. It is not envisaged that any tax will become payable in the foreseeable future on these disposals due to the availability of rollover relief.
It is not the intention of the Directors to make any other significant disposals of trading stores, although individual disposals may be considered where it is clear that added value can be created by recycling the capital into other opportunities.
The Board will continue to commission independent valuations on its trading stores annually to coincide with its year-end reporting.
The valuations of our freehold property assets are included in the Statement of Financial Position at their fair value, but under applicable accounting standards, no value is included in respect of our leasehold stores to the extent that they are classified as operating leases. The value of our operating leases in the valuation totals 16.6 million (31.1.2016: 14.8 million). Instead we have reported by way of a note the underlying value of these leasehold stores in future revaluations and adjusted our Net Asset Value (NAV) calculation accordingly to include their value. This ensures comparable NAV calculations.
Analysis of Total Property Value
No ofstores/sites
31 Jan 2017 Valuation
'000
No of stores/sites
31 Jan 2016
Valuation
'000
No of stores/sites
31 July 2016 Valuation
'000
Freehold and long leasehold valued by JLL 1 (Jan 2016 C &W)
12
96,125
11
70,610
12
96,125
Leasehold valued by JLL 2 (Jan 2016 C & W)
7
16,575
7
14,760
71
16,575
Freehold land and buildings at Director valuation 3
1
3,000
-
-
1
3,000
Subtotal
20
115,700
18
85,370
20
115,700
Sites in development at cost
2
2,792
3
13,150
2
457
Total
22
118,492
21
98,520
22
116,157
1Includes related fixtures and fittings (refer note 10b)
2 The seven leaseholds valued by JLL are all within the terms of the Landlord and Tenant Act (1954) giving a degree of security of tenure. The average length of the leases on the leasehold stores valued was 11 years and 8 months at the date of the 2016 valuation (2015 valuation: 12 years and 8 months).
3For more details (refer note 10b - Directors valuation)
Total freeholds account for 86.0% of property values (31.1.2016: 85.0%).
Adjusted Net Asset Value per Share
Adjusted net assets per share is the net assets of the Group business adjusted for the valuation of leasehold stores and deferred tax divided by the number of shares at the period-end. The shares currently held in the Group's employee benefits trust (own shares held) and in treasury are excluded from the number of shares.
At January 2017 the adjusted net asset value per share increased to 3.87 from 3.07 year on year, up 26.1%. This substantial increase is a result of higher property values as our new valuers recognised the strength of our landmark stores, cash generated from operations, offset in part by an increase in the shares in issue due to the exercise of share options by management and staff during the period.
Analysis of net asset value (NAV)
31 Jan
2017
'000
31 Jan
2016
'000
31 July
2016
'000
Net assets
Adjustment to include operating/short leasehold stores at valuation
Add: JLL leasehold valuation
Deduct: leasehold properties and their fixtures and fittings at NBV
80,733
16,575
(3,006)
56,409
14,760
(3,296)
71,475
16,575
(3,065)
94,302
67,873
84,985
Deferred tax arising on revaluation of leasehold properties1
(2,307)
(2,063)
(2,432)
Adjusted net assets
91,995
65,810
82,553
Shares in issue
Number
Number
Number
Opening shares in issue
Shares issued for the exercise of options
29,109
90
28,447
517
28,447
662
Closing shares in issue
Shares held in treasury
Shares held in EBT
29,199
(492)
(623)
28,964
(2,467)
(623)
29,109
(2,467)
(623)
Closing shares for NAV purposes
28,084
25,874
26,019
Adjusted net asset value per share after deferred tax provision
3.28
2.54
3.17
Adjusted net asset value per share before deferred tax provision
Adjusted net assets
91,995
65,810
82,553
Deferred tax liabilities and assets recognised by the Group
14,446
11,634
15,361
Deferred tax arising on revaluation of leasehold properties1
2,307
2,063
2,432
Adjusted net assets before deferred tax
108,748
79,507
100,346
Closing shares for NAV purposes
28,084
25,874
26,019
Adjusted net asset value per share before deferred tax provision
3.87
3.07
3.86
1 A deferred tax adjustment in respect of the uplift in the value of the leasehold properties has been included. Although this is a memorandum adjustment as leasehold properties are included in the Group's financial statements at cost and not at valuation, this deferred tax adjustment is included in the adjusted net asset value calculation in order to maintain a consistency of tax treatment between freehold and leasehold properties.
Corporate and Social Responsibilities
Lok'nStore conducts its business in a manner that reflects honesty, integrity and ethical conduct. We believe that the long-term success of the business is best served by respecting the interests of all our stakeholders. Management of social, environmental and ethical issues is of high importance to Lok'nStore. These issues are dealt with on a day-to-day basis by the Group's managers with principal accountability lying with the Board of Directors. We look for opportunities to address our responsibility to the environment, and we pay close attention to our energy use, carbon dioxide emissions, water use and waste production. At each year-end Lok'nStore commissions a full assessment of the Group's environmental impact.
Customers
We believe in clarity and transparency towards our customers. Brochures and literature are written in plain English, explaining clearly our terms of business without hiding anything. We are open and honest about our products and services and do not employ pressure selling techniques or attempt to take advantage of any vulnerable groups. If we make a mistake we acknowledge it, deal with the problem quickly, and learn from our error. We listen to our customers as we know that they can help us improve our service to them.
Andrew Jacobs Ray Davies
Chief Executive Officer Finance Director
Consolidated Statement of Comprehensive Income
For the six months ended 31 January 2017
Notes
Six months
ended
31 January 2017
Unaudited
'000
Six months
ended
31 January 2016
Unaudited
'000
Year ended
31 July 2016
Audited
'000
Revenue
1
8,343
7,986
16,056
Total property, staff, distribution and general costs
2a
(5,030)
(4,689)
(9,761)
Adjusted EBITDA1
3,313
3,297
6,295
Amortisation of intangible assets
(83)
(84)
(165)
Depreciation
(897)
(735)
(1,537)
Equity settled share based payments
18
(48)
(93)
(182)
(1,028)
(912)
(1,884)
Store relocation costs
(21)
-
-
Net settlement proceeds
2c
-
1,940
1,940
Property disposal costs
(14)
(122)
(123)
(1,063)
906
(67)
Operating profit
2,250
4,203
6,228
Finance income
3
174
150
313
Finance cost
4
(325)
(564)
(1,048)
Profit before taxation
5
2,099
3,789
5,493
Income tax expense
6
(229)
(817)
(1,211)
Profit for the period
1,870
2,972
4,282
Profit attributable to:
Owners of the parent
19
1,870
2,972
4,282
Other Comprehensive Income
Items that will not be reclassified to profit and loss
Increase in property valuation
391
379
17,651
Deferred tax relating to change in property valuation
499
734
(2,387)
890
1,102
15,264
Items that may be subsequently reclassified to profit and loss
Increase in fair value of cash flow hedges
37
21
83
Deferred tax relating to cash flow hedges
-
(10)
(21)
37
11
62
Other comprehensive income
927
1,113
15,326
Total comprehensive income for the period
2,797
4,085
19,608
Attributable to:
Owners of the parent
2,797
4,085
19,608
Earnings per share attributable to owners of the Parent
Basic
8
6.91p
11.53p
16.60p
Diluted
8
6.74p
11.26p
16.24p
1 Adjusted EBITDA and operating profit are defined in the accounting policies section of the notes to the interim report.
Consolidated Statement of Changes in Equity
Share
capital
'000
Share
premium
'000
Other
reserves
'000
Revaluation
reserve
'000
Retained
earnings
'000
Total
equity
'000
1 August 2015 - Audited
285
2,614
8,685
32,239
9,146
52,969
Profit for the period
-
-
-
-
2,972
2,972
Other comprehensive income:
Increase in property valuation net of deferred tax
-
-
-
1,102
-
1,102
Decrease in fair value of cash flow hedges net of deferred tax
-
-
11
-
-
11
Total comprehensive income
-
-
11
1,102
2,972
4,085
Transactions with owners:
Dividend paid
-
-
-
-
(1,456)
(1,456)
Share based payments
-
-
93
-
-
93
Transfers in relation to share based payments
-
-
(303)
-
303
-
Deferred tax credit relating to share options
-
-
(6)
-
-
(6)
Exercise of share options
5
719
-
-
-
724
Total transactions with owners
Transfer realised gain on asset disposal
-
-
-
(1,668)
1,668
-
Transfer additional dep'n on revaluation net of deferred tax
-
-
-
(128)
128
-
31 January 2016 - Unaudited
290
3,333
8,480
31,545
12,761
56,409
Profit for the period
-
-
-
-
1,310
1,310
Other comprehensive income:
Increase in property valuation net of deferred tax
-
-
-
14,162
-
14,162
Decrease in fair value of cash flow hedges net of deferred tax
-
-
51
-
-
51
Total comprehensive income
-
-
51
14,162
1,310
15,523
Transactions with owners:
Dividend paid
-
-
-
-
(691)
(691)
Share based payments
-
-
89
-
-
89
Transfers in relation to share based payments
-
-
(98)
-
98
-
Deferred tax credit relating to share options
-
-
(90)
-
-
(90)
Exercise of share options
1
234
-
-
-
235
Total transactions with owners
1
234
(99)
-
(593)
(457)
Transfer realised gain on asset disposal
-
-
-
29
(29)
-
Transfer additional dep'n on revaluation net of deferred tax
-
-
-
(134)
134
-
31 July 2016 - Audited
291
3,567
8,432
45,602
13,583
71,475
Profit for the period
-
-
-
-
1,870
1,870
Other comprehensive income:
Increase in property valuation net of deferred tax
-
-
-
890
-
890
Decrease in fair value of cash flow hedges net of deferred tax
-
-
37
-
-
37
Total comprehensive income
-
-
37
890
1,870
2,797
Transactions with owners:
Dividend paid
-
-
-
-
(1,778)
(1,778)
Share based payments
-
-
48
-
-
48
Transfers in relation to share based payments
-
-
(66)
-
66
-
Deferred tax credit relating to share options
-
-
221
-
-
221
Sale of shares from treasury (net of costs)
-
4,704
-
-
3,117
7,821
Exercise of share options
1
148
-
-
-
149
Total transactions with owners
1
148
203
-
6,109
6,461
Transfer additional dep'n on revaluation net of deferred tax
-
-
-
(115)
115
-
31 January 2017 - Unaudited
292
8,419
8,672
46,377
16,973
80,733
Consolidated Statement of Financial Position
31 January 2017
Notes
31 January
2017
Unaudited
'000
31 January
2016
Unaudited
'000
31 July
2016
Audited
'000
Assets
Non-current assets
Intangible assets
3,509
3,674
3,593
Property, plant and equipment
9
106,628
88,494
104,363
Development loan capital
10
3,319
2,905
3,159
113,456
95,073
111,115
Current assets
Inventories
11
168
139
165
Trade and other receivables
12
3,271
3,677
4,952
Cash and cash equivalents
12,140
3,010
5,335
Total current assets
15,579
6,826
10,452
Total assets
129,035
101,899
121,567
Liabilities
Current liabilities
Trade and other payables
13
(4,522)
(4,839)
(5,794)
Taxation
(597)
(294)
(173)
Derivative financial instruments
15b
-
(99)
(37)
(5,119)
(5,232)
(6,004)
Non-current liabilities
Borrowings
15a
(28,737)
(28,624)
(28,727)
Deferred tax
16
(14,446)
(11,634)
(15,361)
(43,183)
(40,258)
(44,088)
Total liabilities
(48,302)
(45,490)
(50,092)
Net assets
80,733
56,409
71,475
Equity
Equity attributable to owners of the parent
Called up share capital
17
292
290
291
Share premium
8,419
3,333
3,567
Other reserves
18
8,672
8,480
8,432
Retained earnings
19
16,973
12,761
13,583
Revaluation reserve
46,377
31,545
45,602
Total equity
80,733
56,409
71,475
Approved by the Board of Directors and authorised for issue on 24 April 2017 and signed on its behalf by:
Andrew Jacobs Ray Davies
Chief Executive Officer Finance Director
Consolidated Statement of Cash Flows
For the six months ended 31 January 2017
Notes
Six months ended
31 January
2017
Unaudited
'000
Six months
ended
31 January
2016
Unaudited
'000
Year
ended
31 July
2016
Audited
'000
Operating activities
Cash generated from operations
21a
2,897
1,826
3,774
Income tax paid
-
(961)
(961)
Net cash from operating activities
2,897
865
2,813
Investing activities
Development loan capital
(160)
(126)
(380)
Purchase of property, plant and equipment
9
(2,770)
(4,589)
(6,988)
Net proceeds from disposal of property, plant and equipment
-
5,398
8,399
Interest received
18
135
14
Net cash (used in) / from investing activities
(2,912)
818
1,045
Financing activities
Repayment of borrowings
-
(27,701)
(27,701)
Proceeds from new borrowings
-
28,816
28,816
Loans granted to projects under management contracts
-
(978)
-
Loans repaid from projects under management contracts
944
-
-
Finance costs paid
(315)
(513)
(885)
Equity dividends paid
(1,778)
(1,456)
(2,147)
Proceeds from issuance of ordinary shares (net)
148
724
959
Proceeds from sale of treasury shares (net)
7,821
-
-
Net cash used in financing activities
6,820
(1,108)
(958)
Net increase in cash and cash equivalents in the period
6,805
575
2,900
Cash and cash equivalents at beginning of the period
5,335
2,435
2,435
Cash and cash equivalents at end of the period
12,140
3,010
5,335
Accounting Policies
General Information
Lok'nStore Group plc is an AIM listed company incorporated and domiciled in England and Wales. The address of the registered office is One London Wall, London EC2Y 5AB, UK. Copies of this Interim Report and Accounts may be obtained from the Company's head office at 112 Hawley Lane, Farnborough, Hants, GU14 8JE, or from the investor section of the Company's website at http://www.loknstore.co.uk.
Basis of preparation
The interim results for the six months ended 31 January 2017 have been prepared on the basis of the accounting policies expected to be used in the 2017 Lok'nStore Group Plc Annual Report and Accounts and in accordance with the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union ('EU') ('IFRS').
The same accounting policies, presentation and methods of computation are followed in these interim condensed set of financial statements as have been applied in the Group's latest annual audited financial statements.
The interim results, which were approved by the Directors on 24 April 2017, are unaudited. The interim results do not constitute statutory financial statements within the meaning of section 435 of the Companies Act 2006.
Comparative figures for the year ended 31 July 2016 have been extracted from the statutory accounts for the Group for that period, which carried an unqualified audit report, did not include a reference to any matters to which the auditor drew attention by way of emphasis of matter, did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and have been delivered to the Registrar of Companies.
Going concern
The Directors can report that, based on the Group's budgets and financial projections, they have satisfied themselves that the business is a going concern. The Board has a reasonable expectation that the Company and the Group have adequate resources and facilities to continue in operational existence for the foreseeable future based on Group cash balances and cash equivalents of 12.1 million (31.01.2016: 3.0 million), undrawn committed bank facilities at 31January 2017 of 11.2 million (31.01.2016: 11.4 million), and cash generated from operations in the period to 31 January 2017 of 2.9 million (31.01.2016: 0.8 million). The Group operates a 40 million five year revolving credit facility with Royal Bank of Scotland plc which provides funding for site acquisitions and working capital. The Group is fully compliant with all bank covenants and undertakings and is not obliged to make any repayments prior to expiration. The Group has recently agreed a two year extension on its existing banking facility with Royal Bank of Scotland plc and the facility which was due to expire in January 2021, will now run until January 2023 The financial statements are therefore prepared on a going concern basis.
Adjusted EBITDA
Earnings before interest, tax, depreciation and amortisation (EBITDA) is defined as profits from operations before all depreciation and amortisation charges, share-based payments and other non-recurring costs, finance income, finance costs and taxation.
Store adjusted EBITDA
Store adjusted EBITDA is defined as adjusted EBITDA (see above) but before central and head office costs.
Notes to the Financial Statements
For the six months ended 31 January 2017
1 Revenue
Analysis of the Group's revenue is shown below:
Six months
ended
31 January
2017
Unaudited
Six months
ended
31 January
2016
Unaudited
Year
ended
31 July
2016
Audited
Stores trading
'000
'000
'000
Self-storage revenue
6,225
6,004
11,931
Other storage related revenue
778
738
1,510
Ancillary store rental revenue
-
4
3
Sub-total - Self-storage revenue - owned stores
7,003
6,746
13,444
Management fees - managed stores
181
190
439
Sub-total
7,184
6,936
13,883
Stores under development
Non-storage income
8
(8)
-
Sub-total
7,192
6,928
13,883
Serviced archive and records management revenue
1,151
1,058
2,173
Total revenue per statement of comprehensive income
8,343
7,986
16,056
The segment information for the period ended 31 January 2017 and 2016 is as follows:
2016/2017 - Unaudited
Self-storage
six months ended
31 January
2017
'000
Serviced archive
and records management
six months ended
31 January
2017
'000
Total
six months ended
31 January 2017
'000
Self-storage
six months ended
31 January
2016
'000
Serviced archive
and records management
six months ended
31 January
2016
'000
Total
six months ended
31 January 2016
'000
Revenue from external customers
7,192
1,151
8,343
6,928
1,058
7,986
Segment adjusted EBITDA
3,064
249
3,313
3,045
252
3,297
Depreciation
Amortisation of intangible assets
(847)
-
(49)
(83)
(896)
(83)
(685)
-
(50)
(84)
(735)
(84)
Equity settled share based payments
(49)
-
(49)
(93)
-
(93)
Store relocation costs
(21)
-
(21)
-
-
-
Net settlement proceeds - Reading site
-
-
-
1,940
-
1,940
Costs of disposal
(14)
-
(14)
(122)
-
(122)
Segment profit/(loss)
2,133
117
2,250
4,085
118
4,203
Central costs not allocated to segments:
Finance income
174
150
Finance costs
(325)
(564)
Profit before taxation
2,099
3,789
Income tax expense
(229)
(817)
Consolidated profit for the financial period
1,870
2,972
2016 - Audited
Self-storage
year
ended
31 July
2016
'000
Serviced archive & records management
year
ended
31 July
2016
'000
Total
year
ended
31 July
2016
'000
Revenue from external customers
13,883
2,173
16,056
Segment adjusted EBITDA
Management charges
5,708
72
587
(72)
6,295
-
Segment adjusted EBITDA
5,780
515
6,295
Depreciation
(1,436)
(101)
(1,537)
Amortisation of intangible assets
-
(165)
(165)
Equity settled share based payments
(182)
-
(182)
Net settlement proceeds - Reading site
1,940
-
1,940
Net disposal costs - Swindon stores
(123)
-
(123)
Segment profit/(loss)
5,979
249
6,228
Central costs not allocated to segments:
Finance income
313
Finance costs
(1,048)
Profit before taxation
5,493
Income tax expense
(1,211)
Consolidated profit for the financial year
4,282
2017
Unaudited
Self-storage
31 January
2017
'000
Serviced archive & records management
31 January 2017
'000
Total
31 January
2017
'000
Self-storage
31 January
2016
'000
Serviced archive & records management
31 January 2016
'000
Total
31 January
2016
'000
Segment assets
122,935
6,100
129,035
95,913
5,986
101,899
Segment liabilities
(19,067)
(498)
(19,565)
(16,322)
(445)
(16,767)
Borrowings
(28,737)
(28,624)
Derivative financials
-
(99)
Total liabilities
(48,302)
(45,490)
Capital expenditure
2,768
2
2,770
4,449
140
4,589
2016
Audited
Self-storage
31 July
2016
'000
Serviced archive & records management
31 July 2016
'000
Total
31 July
2016
'000
Segment assets
115,253
6,314
121,567
Segment liabilities
(20,727)
(601)
(21,238)
Borrowings
Derivative financials
(28,727)
(37)
Total liabilities
(50,092)
Capital expenditure
6,629
359
6,988
2a Property, staff, distribution and general costs
Six months ended
31 January
2017
Unaudited
'000
Six months
ended
31 January
2016
Unaudited
'000
Year
ended
31 July
2016
Audited
'000
Property and premises costs
2,087
1,889
3,913
Staff costs
2,156
2,074
4,232
General overheads
542
481
1,128
Distribution costs
83
78
170
Retail products cost of sales
162
167
318
5,030
4,689
9,761
2b Cost of sales of retail products
Cost of sales represents the direct costs associated with the sale of retail products such as boxes and packaging and, the ancillary sales of insurance cover for customer goods, all of which fall within the Group's ordinary activities.
Six months ended
31 January
2017
Unaudited
'000
Six months
ended
31 January
2016
Unaudited
'000
Year
ended
31 July
2016
Audited
'000
Retail
67
55
118
Insurance
20
33
51
Van hire
-
1
1
Other
2
1
1
89
90
171
Serviced archive consumables and direct costs
73
77
147
162
167
318
2c Other Income and costs
Six months ended
31 January
2017
Unaudited
'000
Six months
ended
31 January
2016
Unaudited
'000
Year
ended
31 July
2016
Audited
'000
Net settlement proceeds
-
(1,940)
(1,940)
Property disposal costs
14
122
123
Store relocation costs
21
-
-
35
(1,818)
(1,817)
In the year ended 31 July 2017, the Group received an additional 2 million from the purchaser of the original Reading store site in return for the relinquishment of all remaining rights over the site. 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.
3 Finance income
Six months ended
31 January
2017
Unaudited
'000
Six months ended
31 January
2016
Unaudited
'000
Year ended
31 July
2016
Audited
'000
Bank interest
18
9
14
Other interest
156
141
299
174
150
313
4 Finance costs
Six months ended
31 January
2017
Unaudited
'000
Six months ended 31 January
2016
Unaudited
'000
Year ended
31 July
2016
Audited
'000
Bank interest
283
456
797
Non-utilisation fees and amortisation of bank loan arrangement fees
42
108
251
325
564
1,048
Most interest payable arises on bank loans classified as financial liabilities measured at amortised cost.
5 Profit before taxation
Six months ended
31 January
2017
Unaudited
'000
Six months
ended 31 January
2016
Unaudited
'000
Year ended
31 July
2016
Audited
'000
Profit before taxation is stated after charging:
Depreciation and amounts written off property, plant and equipment:
- owned assets
Amortisation of intangible assets
Operating lease rentals - land and buildings
897
83
764
735
84
762
1,535
165
1,529
6 Taxation
Six months ended 31 January
2017
Unaudited
'000
Six months
ended 31 January
2016
Unaudited
'000
Year
ended 31 July
2016
Audited
'000
Current tax:
UK corporation tax
424
728
606
Deferred tax:
Origination and reversal of temporary differences
71
468
976
Adjustments in respect of prior periods
-
(379)
75
Impact of change in tax rate on closing balance
(266)
-
(446)
Total deferred tax charge
(195)
89
605
Income tax expense for the period/year
229
817
1,211
The charge for the period can be reconciled to the profit for the period as follows:
Six months ended 31 January
2017
Unaudited
'000
Six months
ended 31 January
2016
Unaudited
'000
Year
ended 31 July
2016
Audited
'000
Profit before tax
2,098
3,789
5,493
Tax on ordinary activities at the standard effective rate of corporation tax in the UK of 20% (31.1.2016: 20.0%)
420
758
1,099
Expenses not deductible for tax purposes
2
1
3
Depreciation of non-qualifying assets
50
38
85
Share based payment charges in excess of corresponding tax deduction
10
19
36
Adjustments in respect of prior periods - deferred tax
-
(379)
75
Adjustments in respect of prior periods - corporation tax
-
3
-
Impact of change in tax rate on closing DT balance
(266)
-
(69)
Share option scheme
12
(12)
(22)
Deferred tax on rolled over gain
-
388
-
Other timing differences
1
1
4
Income tax expense for the period/year
229
817
1,211
Effective tax rate
10.9%
22.2%
22%
The UK's main rate of corporation tax reduced to 20% from 1 April 2015. The effective rate for this period is 10.9%. (31.01.2016: 22.2%). The effective rate is 23.6% after taking account of the effect of 266,091 arising from the reduction in forward deferred tax rates from 18% to 17%.
In addition to the amount charged to profit or loss for the period, deferred tax relating to the revaluation of the Group's properties of 84,445 (31.1.2016: 733,704) and the fair value of cash flow hedges of nil (31.1.2016: 19,648) has been recognised directly in other comprehensive income (see note 16 on deferred tax).
7 Dividends
Six months ended 31 January 2017
Unaudited
'000
Six months ended 31 January 2016
Unaudited
'000
Year ended 31 July
2016
Audited
'000
Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 31 July 2015 (5.67 pence per share)
-
1,456
1,456
Interim dividend for the six months to 31 January 2016 (2.67 pence per share)
-
-
691
Final dividend for the year ended 31 July 2016 (6.33 pence per share)
1,778
-
-
1,778
1,456
2,147
In respect of the current period the Directors propose that an interim dividend of 3.00 pence per share will be paid to the shareholders. The total estimated dividend to be paid is 842,524 based on the number of shares currently in issue as adjusted for shares held in the Employee Benefits Trust and for shares held on treasury. This interim dividend is an on-account payment of a final annual dividend and is ultimately subject to approval by shareholders at the 2017 Annual General Meeting and has not been included as a liability in these financial statements. The ex-dividend date will be 11 May 2017; the record date 12 May 2017; with an intended payment date of 9 June 2017.
8 Earnings per share
The calculations of earnings per share are based on the following profits and numbers of shares.
Six months
ended
31 January
2017
Unaudited
'000
Six months
ended
31 January
2016
Unaudited
'000
Year
ended
31 July
2016
Audited
'000
Profit for the financial period
1,870
2,972
4,282
No. of shares
No. of shares
No. of shares
Weighted average number of shares
For basic earnings per share
27,071,818
25,775,767
25,791,821
Dilutive effect of share options
651,347
626,082
577,822
For diluted earnings per share
27,723,165
26,401,849
26,369,643
623,212 (31.01.2016: 623,212) shares are held in the Employee Benefit Trust and 491,869 (31.01.2016: 2,466,869) shares are held in Treasury. Both are excluded from the above calculation.
Six months
ended
31 January
2017
Unaudited
Six months
ended
31 January
2016
Unaudited
Year
ended
31 July
2016
Audited
Earnings per share
Basic
6.91p
11.53p
16.60p
Diluted
6.74p
11.26p
16.24p
9 Property, plant and equipment
Group
Development
property assets
at cost
'000
Land and
buildings
at valuation
'000
Long leasehold land and buildings
at valuation
'000
Short leasehold
improvements
at cost
'000
Fixtures,
fittings and
equipment
at cost
'000
Motor
vehicles
at cost
'000
Total
'000
Net book value at 31 July 2015 - Audited
8,888
61,035
6,425
873
10,572
19
87,802
Net book value at 31 January 2016 - Unaudited
13,150
57,935
6,478
827
10,096
8
88,494
Net book value at 31 July 2016 - Audited
458
80,953
90,263
782
12,902
5
104,363
Cost or valuation
1 August 2016
458
80,953
9,263
2,563
22,758
17
116,012
Additions
2,334
(43)
-
36
443
-
2,770
Disposals
-
-
-
-
-
-
-
Reclassification
-
-
-
-
-
-
-
Revaluations
-
(45)
51
-
-
-
6
31 January 2016 - Unaudited
2,792
80,865
9,314
2,599
23,201
17
118,788
Depreciation
1 August 2016
-
-
-
1,781
9,856
12
11,649
Depreciation
-
323
63
49
461
1
897
Disposals
-
-
-
-
-
-
Revaluations
(323)
(63)
-
-
-
(386)
31 January 2017 Unaudited
-
-
-
1,830
10,317
13
12,160
Net book value at 31 January 2017 - Unaudited
2,792
80,865
9,314
769
12,884
4
106,628
Capital expenditure during the period totalled 2.8million (31.1.2016: 4.6 million). This was primarily the purchase and subsequent construction works at our development sites in Gillingham and Wellingborough as well as completing fitting-out works at our Bristol store.
Property, plant and equipment (non-current assets) with a carrying value of 106.6 million (31.1.2016: 88.5 million) are pledged as security for bank loans (see note 15a).
Market Valuation of Freehold and Operating Leasehold Land and Buildings
Following the comprehensive external valuation at 31 July 2016 by JLL, the freehold and leasehold properties have not been externally valued at 31 January 2017, although in accordance with the Group's established policy it is the intention to do so at the next year end at 31 July 2017.
Although the Board did not commission an external valuation at this interim period-end it is mindful of the need to accord with the measurement principles of International Financial Reporting Standards as adopted by the European Union. Accordingly after consulting with our external valuers, whilst there has been continued market activity in the self storage sector since July 2017, including the sale of the Big Box portfolio in October 2016 to US investors Storage Mart for in excess of 100m, as well as some sales of individual self storage assets, the Directors considered that there had not been such a material movement in market yields that warranted a modification to the position as at 31 January 2017 in respect of our properties externally valued at 31 July 2016. The Directors therefore consider that it is appropriate to maintain the portfolio's external valuation without modification pending a comprehensive external valuation at our 31 July 2017 year-end.
10 Development loan capital
In May 2015 Lok'nStore opened a new store in Aldershot, Hampshire to which it provided development loan capital. The store is managed for outside investors under the Lok'nStore brand. Lok'nStore has managed the building and subsequent operation of the store and will generate a return on 2.5 million of the total development capital committed to the project, and a management fee for the construction, operation and branding of the store.
31 January
2017
Unaudited
'000
31 January
2016
Unaudited
'000
31 July
2016
Audited
'000
Development loan capital
3,319
2,905
3,159
11 Inventories
31 January
2017
Unaudited
'000
31 January
2016
Unaudited
'000
31 July
2016
Audited
'000
Consumables and goods for resale
168
139
165
The amount of inventories recognised as an expense during the period was 81,005 (31.1.2016: 74,320).
12 Trade and other receivables
31 January
2017
Unaudited
'000
31 January
2016
Unaudited
'00031 July
2016
Audited
'000Trade receivables
1,414
1,344
2,027
Other receivables
857
1,511
1,910
Prepayments and accrued income
1,000
822
1,015
3,271
3,677
4,952
The Directors consider that the carrying amount of trade and other receivables and accrued income approximates their fair value.
13 Trade and other payables
31 January
2017
Unaudited
'000
31 January
2016
Unaudited
'00031 July
2016
Audited
'000Trade payables
593
864
887
Taxation and social security costs
666
884
1,369
Other payables
1,156
1,095
1,197
Accruals and deferred income
2,107
1,996
2,341
4,522
4,839
5,794
The Directors consider that the carrying amount of trade and other payables and accruals approximates fair value.
14 Capital management and gearing
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The gearing ratio at the period-end is as follows:
Capital Management
31 January
2017
Unaudited
'00031 January
2016
Unaudited
'00031 July
2016
Audited
'000Gross debt
(28,816)
(28,816)
(28,816)
Cash and cash equivalents
12,140
3,010
5,335
Net debt
(16,676)
(25,806)
(23,481)
Total equity
80,733
56,409
71,475
Net debt to equity ratio
20.7%
45.7%
32.8%
15a Borrowings
31 January
2017 Unaudited
'000
31 January
2016 Unaudited
'000
31 July
2016
Audited
'000Non-current
Bank loans repayable in more than two years
but not more than five years
Gross
28,816
28,816
28,816
Deferred financing costs
(79)
(192)
(89)
Net bank borrowings
28,737
28,624
28,727
The Group has agreed a two year extension on its existing banking facility with Royal Bank of Scotland plc. The 40 million five year revolving credit facility which was executed last year included an extension option which has now been implemented. The facility which was due to expire in January 2021, will now run until January 2023 providing funding for more landmark site acquisitions and working capital.
The 40 million five year revolving credit facility set the interest rate margin at the London Inter-Bank Offer Rate (LIBOR) plus 1.40%-1.65% based on a loan to value covenant test. This rate is 1.40% currently and the all in debt cost on 28.8 million drawn averaged 1.7% in the last five months. Bank covenants and margin are unaffected by this extension of term.
The 40 million revolving credit facility 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 125.5 million together with cross-company guarantees from Group companies. The Group is not obliged to make any repayments prior to expiration.
15b Derivative financial instruments
Of the 28.8 million of gross debt currently drawn against the revolving credit facility, 20 million was 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%.
The 20 million fixed rate was treated as an effective cash flow hedge and its fair value on a mark-to-market basis has fluctuated historically. Under current facility arrangements the Group is not committed to enter into hedging instruments going forwards but rather to keep such matters under periodic review. The fixed interest swaps expired on 20 October 2016 and the Groups entire 28.8 million of gross debt reverted to variable rate and results in an overall weighted average rate over the financial period of 1.74%. At the balance sheet date the effective cost of debt is 1.65 %
Fair Value
Currency
Principal
Maturity date
31 Jan
2017 Unaudited
'000
31 Jan
2016 Unaudited
'000
31 July
2016 Audited
'0003032816LS Interest rate swap
GBP
10,000,000
20/10/2016
-
(51)
(19)
3047549LS Interest rate swap
GBP
10,000,000
20/10/2016
-
(48)
(18)
20,000,000
-
(99)
(37)
The movement in fair value of the interest rate swaps of 37,850 (31.1.2016: 20,529) has been recognised in other comprehensive income in the period.
16 Deferred tax
Deferred tax liability
31 January 2017
Unaudited
'000
31 January 2016
Unaudited
'000
31 July 2016
Audited
'000
Liability at start of period/year
15,361
12,252
12,252
Charge to income for the period/year
(195)
89
605
Tax charged directly to other comprehensive income
(499)
(707)
2,408
Credit to share based payment reserve
(221)
-
96
Liability at end of period/year
14,446
11,634
15,361
The following are the major deferred tax liabilities and assets recognised by the Group and the movements during the year:
Accelerated
Capital
Allowances
'000
Tax
losses
'000
Intangible
assets
'000
Other
temporary
differences
'000
Revaluation of
properties
'000
Rolled
over gain
on disposal
'000
Share
Options
'000
Total
'000
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
Charge/ (credit) to income for the period
209
-
(15)
(23)
-
362
(17)
516
Charge to other comprehensive income
-
-
-
11
3,109
1
(6)
3,115
Charge to share based payment reserve
-
-
-
-
-
-
96
96
At 31 July 2016 - Audited
1,855
-
447
24
10,961
2,323
(249)
15,361
Charge/ (credit) to income for the period
(34)
-
(39)
(8)
-
(141)
27
(195)
Charge to other comprehensive income
-
-
-
-
(511)
12
-
(499)
Charge to share based payment reserve
-
-
-
-
-
-
(221)
(221)
At 31 January 2017 - Unaudited
1,821
-
408
16
10,450
2,194
(443)
14,446
17 Share capital
31 January 2017
Unaudited
'000
31 January 2016
Unaudited
'000
31 July 2016
Audited
'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
29,109,322
28,446,749
28,446,749
Options exercised during period/year
89,908
517,328
662,573
Balance at end of period/year
29,199,230
28,964,077
29,109,322
Allotted, issued and fully paid ordinary shares
Balance at start of period/year
291,093
284,467
284,467
Options exercised during period/year
899
5,175
6,626
Balance at end of period/year
291,992
289,640
291,093
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 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
Equity share based payments
-
-
-
-
89
89
Transfer to retained earnings in relation to share based payments
-
-
-
-
(98)
(98)
Cash flow hedge reserve net of tax
51
-
-
-
-
51
Tax credit relating to share options
(90)
(90)
31 July 2016 - Audited
(37)
6,295
1,294
34
846
8,432
Equity share based payments
-
-
-
-
48
48
Transfer to retained earnings in relation to share based payments
-
-
-
-
(66)
(66)
Cash flow hedge reserve net of tax
37
-
-
-
-
37
Tax credit relating to share options
-
-
-
-
221
221
31 January 2017 - Unaudited
-
6,295
1,294
34
1,049
8,672
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 65,570 (31.1.2016: 302,804).
19 Retained earnings
Retained earnings before
Retained
deduction of
Own shares
earnings
own shares
(note 21)
Total
Group
'000
'000
'000
1 August 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 18)
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
Profit for the financial period
1,310
-
1,310
Transfer from revaluation reserve
134
-
134
Transfer from share based payment reserve (Note 18)
98
-
98
Dividend paid
(691)
-
(691)
Transfer realised gain on asset disposal
(29)
-
(29)
31 July 2016 - Audited
17,824
(4,241)
13,583
Profit for the financial period
1,870
-
1,870
Transfer from revaluation reserve
115
-
115
Transfer from share based payment reserve (Note 18)
66
-
66
Dividend paid
(1,778)
-
(1,778)
Sale of Treasury shares
-
3,117
3,117
31 January 2017 - Unaudited
18,097
(1,124)
16,973
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 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
31 July 2016 - Audited
623,212
499,910
2,466,869
3,741,036
4,240,946
31 January 2017 - Unaudited
623,212
499,910
491,869
624,247
1,124,157
On 1 November 2016 the Group sold 1,975,000 ordinary shares of 1 pence each ("Ordinary Shares") held in treasury. This sale was undertaken to satisfy demand for the Company's shares, and to improve liquidity going forward. The Ordinary Shares were sold to a range of institutional investors at a price of 400 pence per share.
Lok'nStore Limited now holds a total of 491,869 (31.1.2016: 2,466,869) of Lok'nStore Group plc ordinary shares of 1p each for treasury with an aggregate nominal value of 4,919 purchased for an aggregate cost of 618,413 at an average price of 1.26 per share. These shares represent 1.68% 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.
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 2017, the Trust held 623,212 (31.01.2016: 623,212) ordinary shares of 1 pence each with a market value of 2,835,615 (31.01.2016: 2,003,627). No shares were transferred out of the scheme during the period (2016: 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
ended
31 January
2017
Unaudited
'000
Six months
ended
31 January
2016
Unaudited
'000
Year
ended
31 July
2016
Audited
'000
Profit before tax
2,099
1,849
5,493
Depreciation
897
735
1,535
Amortisation of intangible assets
83
83
165
Equity settled share based payments
49
93
182
Store relocation costs and site disposal costs
35
-
-
Net settlement proceeds - Reading site
-
-
(1,940)
Disposal costs
-
-
123
Interest receivable
(174)
(150)
(313)
Interest payable
325
564
1,048
(Increase)/decrease in inventories
(3)
2
(24)
Decrease/(increase) in receivables
736
(221)
(2,471)
Decrease in payables
(1,150)
(1,129)
(24)
Cash generated from operations
2,897
1,826
(3,774)
(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 months
ended
31 January
2017
Unaudited
'000
Six months
ended
31 January
2016
Unaudited
'000
Year
ended
31 July
2016
Audited
'000
Increase in cash in the period/year
6,805
575
2,900
Change in net debt resulting from cash flows
-
(1,115)
(1,115)
Movement in net debt in period
6,805
(540)
1,785
Net debt brought forward
(23,481)
(25,266)
(25,266)
Net debt carried forward
(16,676)
(25,806)
(23,481)
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 5.4 million (31.01.2016: 2.2 million). These relate to the build and fit-outs of the Gillingham and Wellingborough Stores and the refurbishment of the Old Southampton store for cruise parking.
Our Stores
Head office
Lok'nStore plc
112 Hawley Lane
Farnborough
Hampshire GU14 8JE
Tel 01252 521010
www.loknstore.co.uk
Central Enquiries
0800 587 3322
Basingstoke, Hampshire
Crockford Lane
Chineham
Basingstoke
Hampshire RG24 8NA
Tel 01256 474700
Fax 01256 477377
Bristol, Gloucestershire
Longwell Green Trade Park
Aldermoor Way
Bristol
BS30 7ET
Tel 0117 967 7055
Crayford, Kent
Block B
Optima Park
Thames Road
Crayford
Kent DA1 4QX
Tel 01322 525292
Fax 01322 521333
Eastbourne, East Sussex
Unit 4, Hawthorn Road
Eastbourne
East Sussex BN23 6QA
Tel 01323 749222
Fax 01323 648555
Fareham, Hampshire
26 + 27 Standard Way
Fareham Industrial Park
Fareham
Hampshire PO16 8XJ
Tel 01329 283300
Fax 01329 284400
Farnborough, Hampshire
112 Hawley Lane
Farnborough
Hampshire GU14 8JE
Tel 01252 511112
Fax 01252 744475
Harlow, Essex
Unit 1 Dukes Park
Edinburgh Way
Harlow
Essex CM20 2GF
Tel 01279 454238
Fax 01279 443750
Horsham, West Sussex
Blatchford Road
Redkiln Estate
Horsham
West Sussex RH13 5QR
Tel 01403 272001
Fax 01403 274001
Luton, Bedfordshire
27 Brunswick Street
Luton
Bedfordshire LU2 0HG
Tel 01582 721177
Fax 01582 721188
Maidenhead, Berkshire
Stafferton Way
Maidenhead
Berkshire
SL6 1AY
Tel 01628 878870
Fax 01628 620136
Milton Keynes, Buckinghamshire
Etheridge Avenue
Brinklow
Milton Keynes
Buckinghamshire MK10 0BB
Tel 01908 281900
Fax 01908 281700
Northampton Central
16 Quorn Way
Grafton Street Industrial Estate
Northampton NN1 2PN
Tel 01604 629928
Fax 01604 627531
Northampton Riverside
Units 1-4
Carousel Way
Northampton
Northamptonshire NN3 9HG
Tel 01604 785522
Fax 01604 785511
Poole, Dorset
50 Willis Way
Fleetsbridge
Poole
Dorset BH15 3SY
Tel 01202 666160
Fax 01202 666806
Portsmouth, Hampshire
Rudmore Square
Portsmouth PO2 8RT
Tel 02392 876783
Fax 02392 821941
Reading, Berkshire
251 A33 Relief Road
Reading
RG2 0RR
Southampton, Hampshire
Third Avenue
Southampton
Hampshire SO15 0JX
Tel 02380 783388
Fax 02380 783383
Staines, Middlesex
The Causeway
Staines
Middlesex TW18 3AY
Tel 01784 464611
Fax 01784 464608
Sunbury on Thames, Middlesex
Unit C, The Sunbury Centre
Hanworth Road
Sunbury
Middlesex TW16 5DA
Tel 01932 761100
Fax 01932 781188
Tonbridge, Kent
Unit 6 Deacon Trading Estate
Vale Road
Tonbridge
Kent TN9 1SW
Tel 01732 771007
Fax 01732 773350
Development locations (Owned Stores)
Wellingborough, Northamptonshire
19/21 Whitworth Way
Wellingborough NN8 2EF
Gillingham, Kent
Courtney Road
Gillingham
Kent ME8 0RT
Managed stores
Aldershot, Hampshire
251, Ash Road
Aldershot
GU12 4DD
Tel 0845 4856415
Ashford, Kent
Wotton Road
Ashford
Kent TN23 6LL
Tel 01233 645500
Fax 01233 646000
Chichester, West Sussex
17, Terminus Road,
Chichester,
PO19 8TX
Tel 01243 771840
Chichester@loknstore.co.uk
Crawley, West Sussex
Sussex Manor Business Park
Gatwick Road
Crawley
RH10 9NH
Tel 01293 738530
Swindon Kembrey Park, Wiltshire
Kembrey Street
Elgin Industrial Estate
Swindon
Wiltshire SN2 8UY
Tel 01793 421234
Fax 01793 422888
Woking
Marlborough Road
Woking
GU21 5JG
Tel 01483 378323
Fax 01483 722444
Under Development (Managed Stores)
Hemel Hempstead
Broadstairs
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR UAVVRBOASUAR
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