Interim Management Statement

RNS Number : 6323Y

Big Yellow Group PLC

09 July 2008

 



9 July 2008 

Big Yellow Group PLC

("Big Yellow" or "the Company")

Interim Management Statement

The Board of Big Yellow Group PLC, the UK's leading self storage brand, is pleased to provide the following update on trading for the first quarter ending 30 June 2008.  

Quarterly highlights

• Revenue for the quarter was £14.5 million

    - Up 7% from £13.5 million for the same quarter last year

    - Up 4% from £13.9 million for the quarter to 31 March 2008

• Annualised revenue (*) at 30 June was £56.9 million

    - Up 3% from £55.3 million at the same time last year

    - Up 6% from £53.5 million at 31 March 2008

• Revenue for the quarter in the 32 mature store portfolio was £11.6 million

    - Up 3% from £11.3 million for the same quarter last year

    - Up 4% from £11.2 million for the quarter to 31 March 2008

• The 32 mature store portfolio average achieved rental of £26.19 per sq ft

    - Up 9% from £23.92 for the same quarter last year

    - Up 5% from £25.05 for the quarter to 31 March 2008

• All stores average achieved rental of £26.21 per sq ft

    - Up 8% from £24.31 for the same quarter last year

    - Up 4% from £25.31 for the quarter to 31 March 2008

• Packing material, insurance sales and other storage related income was £2.0 million

    - Unchanged from £2.0 million for the same quarter last year

    - Up 5% from £1.9 million for the quarter to 31 March 2008

• Average occupancy of all stores in the quarter was 1,813,000 sq ft

    - Down from 1,822,000(**) sq ft for the same quarter last year

    - Up from 1,807,000 sq ft for the quarter to 31 March 2008

• Closing occupancy was 1,819,000 sq ft across all stores at 30 June

    - Down 4% from 1,897,000(**) sq ft at the same time last year

    - Up from 1,817,000 sq ft occupied at 31 March 2008

Store update

During the period we opened one new store, a 66,000 sq ft store in Kennington, and now have 48 directly owned open stores with a total self storage capacity of 3 million sq ft.  Our 70,000 sq ft store at Leeds trades within Big Yellow Limited Partnership ("the Partnership").

We intend to open a further five stores in the current financial year. Two directly owned stores in Sheen and Bromley, with a total capacity of 137,000 sq ft and 3 stores within the Partnership at Sheffield, Liverpool and Birmingham, with a total capacity of 180,000 sq ft.

On 8 July 2008 we completed the sale of the four development properties, outside the London orbital M25 motorway in Camberley, High Wycombe, Poole and Reading, to the Partnership.  The total consideration was £14.9 million in cash, the book value of the sites.  Big Yellow will re-invest £4.5 million of the consideration as its equity contribution giving net cash receipts of £10.4 million.  

During the quarter, the Partnership acquired a site in Stockport.  This site, for the development of a 60,000 sq ft self storage centre, is part of a 15 acre new mixed commercial scheme, overlooking the M60 orbital motorway.  

The number of stores open and sites in planning or under development (including 13 to trade in the Partnership) now total 71.  Of the 22 sites in the development pipeline, 10 have planning permission, with a further five applications submitted. 12 of these sites under development will trade in the Partnership, of which six currently have planning consents.  

James Gibson, Chief Executive Officer, commented: 

"Trading conditions continue to be challenging with total occupancy flat over the period. However, we are pleased to have grown revenues year on year and quarter on quarter, whilst at the same time improving the average net rent achieved per sq ft on the portfolio.  

The 32 mature stores have achieved quarter on quarter and year on year revenue growth as a result of improved net achieved rents.  We have also seen satisfactory revenue and occupancy growth in our lease-up portfolio."

* Based on revenue at the end of the period in respect of storage and other related income only

** This has been adjusted for the Leeds store, which is not included in these figures as it now trades in Big Yellow Limited Partnership

For further information, please contact:

Big Yellow Group PLC                                                                                                                                              01276 477 811

Nicholas Vetch, Chairman

James Gibson, Chief Executive Officer

Weber Shandwick Financial                                                                                                                                  020 7067 0700

Louise Robson/ John Moriarty

Notes to Editors  

Big Yellow Group PLC is one of the leading and most dynamic self-storage groups in the UK. It was founded in 1998 by Nicholas Vetch, Philip Burks and James Gibson and listed on AIM in May 2000, moving to the Official List of the London Stock Exchange in 2002.  

Big Yellow has expanded rapidly and now operates (both directly and within Big Yellow Limited Partnership) from 49 stores, 48 in London and the South, and one in Leeds, with a further 22 stores in development and of the 71, 61 are held freehold and three long leasehold, together representing more than 90% of the portfolio. All the stores have the distinct yellow branding, in accessible main road locations, with the majority being within the M25 or in strong urban conurbations. When fully built out the portfolio will provide approximately 4.6 million sq ft of flexible storage space.  

The Group has pioneered the development of the latest generation of self-storage facilities, which utilise state of the art technology and are located in high profile, main road locations. Its focus on the location and visibility of its buildings, coupled with excellent customer service, has created the most recognised brand name in the UK self-storage industry.

In November 2007, the Group formed a £150 million partnership with Pramerica Real Estate Investors Limited to develop stores in the Midlands, the North and Scotland. Big Yellow has made a £25 million commitment. Pramerica will contribute £50 million of equity and the balance of the initial capital required will be funded by way of a committed £75 million development loan facility provided by Royal Bank of Scotland, HSBC Bank and HSH Nordbank.  

Big Yellow has previously entered into agreements with the Partnership to provide both development and operational management services on sites and stores. In consideration for these services, Big Yellow will receive certain acquisition, planning, construction management and operating fees.  

Big Yellow has an option to purchase the assets contained within the Partnership or the interest in the Partnership which it does not own exercisable from the 31 March 2013. On exit whether by way of exercise of the options as set out above or a sale to a third party, Big Yellow is entitled to certain promotes, which would result in Big Yellow sharing in the surplus created in the partnership.

This information is provided by RNS

The company news service from the London Stock Exchange

 

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