Interim Management Statement

RNS Number : 0072K

Big Yellow Group PLC

08 July 2011

 



8 July 2011

Big Yellow Group PLC

("Big Yellow" or "the Group")

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 2011. 

Quarterly highlights

Occupancy growth in the quarter across all 63 stores of 162,000 sq ft; 105,000 sq ft of this growth was in the 52 wholly owned stores (same quarter 2010: occupancy growth of 143,000 sq ft of which 107,000 sq ft was in the wholly owned stores).  This represents growth of 2,571 sq ft per store across the 63 stores.

52 Wholly Owned Stores

Annualised store revenue (annualised storage, packing material and insurance revenues at the end of the period) of £63.7 million at 30 June 2011, up 7% from £59.8 million at 30 June 2010 and up 6% from £60.0 million at 31 March 2011.

Total store revenue for the 52 stores was £15.3 million for the quarter

            - Up 6% from £14.4 million for the same quarter last year

            - Up 4% from £14.7 million for the quarter to 31 March 2011

This excludes management fees and non-storage rental income earned of £0.4 million (same quarter last year: £0.7 million, quarter to 31 March 2011: £0.5 million).

Closing occupancy was 2,020,000 sq ft across all 52 stores at 30 June, representing 61.3% of their 3,293,000 sq ft total capacity.  

The occupancy of the 51 stores open at 31 March 2011 was 2,004,000 sq ft, representing 62.1% of their capacity.  This is an increase from 1,905,000 sq ft at the same time last year and from 1,915,000 sq ft occupied at 31 March 2011.

The 32 established stores that were mature prior to the downturn have increased in occupancy to 1,428,000 sq ft (73.6% of capacity)

            - Up 13,000 sq ft from 1,415,000 sq ft (72.9% of capacity) at 30 June 2010

            - Up 47,000 sq ft from 1,381,000 sq ft (71.1% of capacity) at 31 March 2011

The 19 lease-up stores open at 31 March 2011 have increased in occupancy to 576,000 sq ft (44.7% of capacity)            

            - Up 86,000 sq ft from 490,000 sq ft (38.1% of capacity) at 30 June 2010

            - Up 42,000 sq ft from 534,000 sq ft (41.5% of capacity) at 31 March 2011

The 52 stores achieved an average net rent per sq ft over the quarter of £26.78, which was up marginally from £26.75 for the same quarter last year and down marginally from £26.81 for the quarter to 31 March 2011.

Rental rates have increased year-on-year but are slightly down in the quarter due in part to a significant increase in the number of new customers who benefit from our standard opening offer.  In the same quarter last year, average achieved rental rates fell 1% from the quarter to 31 March 2010.  

11 Big Yellow Limited Partnership ("Partnership") Stores

Annualised store revenue of £6.4 million at 30 June 2011

            - Up 64% from £3.9 million at 30 June 2010

            - Up 25% from £5.1 million at 31 March 2011

Total store revenue for the 11 stores was £1.4 million for the quarter

            - Up 75% from £0.8 million for the same quarter last year

            - Up 17% from £1.2 million for the quarter to 31 March 2011

Occupancy grew by 57,000 sq ft in the quarter to 272,000 sq ft across the eleven Partnership stores, representing 39.8% of their 683,000 sq ft total capacity at 30 June. This is an increase from 153,000 sq ft at the same time last year and from 215,000 sq ft occupied at 31 March 2011.

The eleven stores achieved an average net rent per sq ft over the quarter of £18.58, which was down marginally from £18.61 for the same quarter last year and down 3% from £19.10 for the quarter to 31 March 2011.

Store update

During the period we opened one new wholly owned store, in Eltham, South East London.  We intend to open a further store in the current financial year in Stockport, within Big Yellow Limited Partnership.  We are also constructing new wholly owned stores at New Cross and Chiswick which will open in Spring 2012.

James Gibson, Chief Executive Officer, commented:

"Given the continuing uncertainties in the macroeconomic environment it is right to remain cautious.  We are however encouraged by the continuing positive performance of this business."

For further information, please contact:

Big Yellow Group PLC                                                                                                       01276 477 811

Nicholas Vetch, Executive Chairman

James Gibson, Chief Executive Officer

John Trotman, Chief Financial Officer

Weber Shandwick Financial                                                                                              020 7067 0700

Nick Oborne/ John Moriarty

Notes to Editors 

Big Yellow Group PLC is the best known and one of the most dynamic self storage groups in the UK.  It was founded in September 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 June 2002.  

Big Yellow has expanded rapidly and now operates from 63 stores, 56 in London and the South, two in Sheffield, and one each in Birmingham, Edinburgh, Leeds, Liverpool, and Nottingham. There are a further seven stores in development. Of the 70 total stores and sites, 59 are held freehold and four long leasehold (together representing approximately 94% by value of the total property assets); seven stores are held short leasehold.  All the stores have distinct yellow branding, with the majority being within the M25 or in strong urban conurbations.  When fully built out the portfolio will provide approximately 4.4 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, accessible, 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.

 

END

 

 

IMSUGUPPMUPGGAM