Final Results

Lok'n Store Group PLC
1 October 2001


                             LOK'nSTORE GROUP PLC

                             Preliminary Results

                       for the year ended 31 July 2001


                                  Highlights


  * Turnover for the year increased by 38% to £4.0 million (2000: £2.9
    million).

  * Profit before tax and exceptional items for the period of £28,622 (2000:
    £413,528).

  * Opened new stores at Northampton, Milton Keynes, Sunbury, Swindon with
    Ashford opening in October.

  * Existing stores performing well.

  * Total number of stores increased to sixteen.

  * Potential lettable space increased to 725,666sq ft.

  * Investment in new management.

Andrew Jacobs, chief executive of Lok'nStore Group, commented,

' We are delighted to report on the group's continuing excellent progress. The
year to 31 July 2001 was characterised by considerable investment for
Lok'nStore in new stores, in the brand and in the quality and depth of
management.

Our objective continues to be maintaining high growth while sustaining
profitability.'


Press enquiries:
Simon Thomas, Chairman         Lok'nStore Group plc        Tel: [phone]
Andrew Jacobs, Chief Executive Lok'nStore Group plc        Tel: [phone]
Katie Tzouliadis               Biddicks                    Tel: [phone]



CHAIRMAN & CHIEF EXECUTIVE'S STATEMENT

Profitable Growth

We are delighted to report on the group's continuing excellent progress. The
year to 31 July 2001 was characterised by considerable investment for
Lok'nStore in new stores, in the brand and in the quality and depth of
management. Turnover for the period under review rose by 37.9% to £4.0m
(compared with £2.9m for the year ended 31st July 2000). On an annualised
basis turnover is currently running at over £4.7m.

Our core strategy is to maximise the growth of Lok'nStore while at the same
time maintaining profitability. We believe that this strategy will maximise
growth in shareholder value.

During the period, we opened four new stores increasing the net lettable
square footage of the group by 34% to 725,666sqft. We now have 16 stores, all
in prominent locations. We are pleased to have managed this sizeable
investment while still delivering a profit before tax of £28,622.

The new stores, opened during the period, in Northampton, Milton Keynes,
Sunbury and Swindon are all performing well. Three of these stores were opened
in a period of three weeks of each other confirming our belief that we have
the management resources to sustain our anticipated growth rate.

We are pleased to report that our existing stores are performing well.
Recently implemented price increases have not affected occupancy rates. The
acceptance of these increases by our customers confirms our belief that the
market is still significantly undersupplied. Our new range of boxes and
packaging means that their sales as a proportion of the overall turnover has
been increasing significantly and it is our intention to boost these sales
further with additional improvements in the range offered.

The acquisition team formed last year is to be congratulated on its ability to
continue identifying and acquiring high quality stores in prominent locations.

Increased Management Strength

The management team has been significantly strengthened over the year bringing
a wider range of knowledge and experience to support our expansion.

In April we were delighted to welcome Steven Hourston to the new board
position of Managing Director. Steven was previously Regional General Manager
for Boots the Chemist where he worked for fifteen years. Since joining Steven
has focused on improving the fill rate of our stores and increasing revenues.
More recently, on 24th September, Christopher Stevens joined the board as
Finance Director. Chris joins us from a US private equity firm where he was
responsible for identifying investment opportunities in Europe, particularly
within the retail and consumer sector. Previously Chris was Development
Director at Asprey & Garrard.

In July we were pleased to announce the appointment of Marcus Stanton as a
non-executive director. Marcus is an experienced investment banker having
spent the last six years at Robert Fleming &Co., now part of JP Morgan, as
Chief Operating Officer of Global Capital Markets. Prior to that he spent ten
years at Hill Samuel where he was a Director in the Corporate Finance Division
and Head of Structured Finance. We would like to register our thanks to our
former non-executive directors, Martin O'Grady and Paul Read, who stepped down
from the board in May and July respectively. Their contribution to the group
was significant and we would like to wish them well.

Prospects

In the year ahead we aim to bring our successful track record to a wider
investment audience with the intention of gaining a more institutional
shareholder base.

Our objective continues to be maintaining high growth while sustaining
profitability

We will continue to apply the same criteria in identifying high quality sites
that complement our existing portfolio of stores.

Simon Thomas, Chairman

Andrew Jacobs, Chief Executive


CONSOLIDATED PROFIT & LOSS ACCOUNT

for the year ended 31 July 2001


                                                Notes          2001        2000
                                                                  £           £

Turnover                                                  3,958,573   2,905,709

Operating expenses                                      (3,640,915) (2,418,952)

Operating profit                                            317,658     486,757

Exceptional item (relating to AIM admission) 2                    -   (194,453)
Interest receivable                                         122,688     36, 914

Profit on ordinary activities before interest               440,346     329,218

Interest payable                                          (411,724)   (110,143)

Profit on ordinary activities before taxation                28,622     219,075

Taxation                                                          -           -

Profit for the year                                          28,622     219,075

Earnings per share
Basic                                               3         0.13p       1.11p

Diluted                                             3         0.12p       1.04p



The operating profit for the year arises from the group's continuing
operations.

No separate statement of Total Recognised Gains and Losses has been presented
as all such gains and losses have been dealt with in the profit and loss
account.



GROUP BALANCE SHEET

As at 31 July 2001


                                               Notes        2001           2000
                                                               £              £

Fixed Assets
Intangible assets                                  4     456,087        474,278
Tangible assets                                       10,659,523      7,196,663
Investments                                        5     172,917        172,917
                                                      11,288,527      7,843,648

Current Assets
Stocks                                                    41,248         21,764
Debtors                                                1,003,469        757,160
Cash in bank and in hand                                 995,139      2,367,653
                                                       2,039,856      3,146,577

Creditors:
Amounts falling due within one year                  (2,740,802)    (1,702,926)

Net current assets (liabilities)                       (700,946)      1,443,651

Total assets less current liabilities                 10,587,581      9,287,299

Creditors:
Amounts falling due after more than one year         (4,515,567)    (3,243,907)
                                                       6,072,014      6,043,392

Capital and reserves
Called up share capital                            6     214,563        214,563
Merger reserve                                     7   6,295,295      6,295,295
Profit and loss account                            7   (437,844)      (466,466)

Shareholders' funds                                    6,072,014      6,043,392



CONSOLIDATED CASH FLOW STATEMENT

for the year ended 31 July 2001
                                                 Notes        2001        2000
                                                                 £           £

Cash flow from operating activities                  8   1,060,468     455,554
Returns on investments and servicing of finance      8   (289,036)    (73,229)
Taxation                                                         -           -
Capital expenditure and financial investment         8 (3,825,542) (2,289,852)
Acquisitions and disposals                           8           -   (537,985)

Cash outflow before financing                          (3,054,110) (2,445,512)

Financing                                            8   1,681,596   4,292,140

Increase/(decrease) in cash in the period              (1,372,514)   1,846,628




NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2001

 1. Accounting policies

    The above results for the year ended 31 July 2001 are an abridged version
    of the Group's statutory financial statements. The profit and loss account
    and balance sheet do not constitute statutory financial statements within
    the meaning of section 240 of the Companies Act 1985. These accounts have
    been prepared on the basis of the same accounting policies as set out in
    the statutory accounts for the year ended 31 July 2000.

 2. Exceptional item
                                                     2001                2000
                                                        £                   £
                                                        
    Costs of a fundamental reorganisation               -             194,453

    The above costs relate to legal and professional fees incurred in relation
    to the reorganisation of the Group structure and the admission to AIM.

 3. Earnings per Ordinary Share

    The calculations of earnings per share are based on the following profits
    and numbers of shares.

                               Basic     Basic        Diluted           Diluted
                                2001      2000           2001              2000
                                   £         £              £                 £

                              
    Profit for the            28,622   219,075         28,622           219,075
    financial year


                                                         2001              2000
                                                No. of shares     No. of shares

     Weighted average number
     of shares

     For basic earnings per                        21,456,303        19,800,018
     share

     Exercise of share                              1,823,474         1,252,276
     options

     For diluted earnings per                      23,279,777        21,052,294
     share

 4. Intangible fixed assets                                                     
                                                                              £

    Group
    Cost
    1 August 2000 and 31 July 2001
    Goodwill on consolidation                                           485,093

    Amortisation
    At 1 August 2001                                                     10,815
    Charged in the year                                                  18,191
    31 July 2001                                                         29,006
                
    Net book value
    31 July 2001                                                        456,087
                
    31 July 2000                                                        474,278
                

 5. Investments
                                                                     Own shares
                                                                              £
    Group
    Cost
    At 1 August 2000 and 31 July 2001                                   172,917
                

    This represents the shares owned by Lok'nStore Trustee Limited as part of
    the Group's employees share scheme.

 6. Share Capital

                                                              2001        2000
                                                                 £           £

    Group and Company
    Authorised:
    30,000,000 Ordinary Shares of 1p each                  300,000     300,000
                
    Allotted, issued and fully paid:
    21,456,303 Ordinary shares of 1p each                  214,563     214,563
                
 7. Reserves
                       Merger reserve    Profit and loss account         Total
                                    £                          £             £

    1 August 2000           6,295,295                  (466,466)     5,828,829


    Profit for the year             -                     28,622        28,622

                            6,295,295                  (437,844)     5,857,451

    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 capital of Lok'nStore Limited.

 8. Cash flows

                                                               2001        2000
                                                                  £           £
a Reconciliation of operating profit to net cash inflow
  from operating activities

  Operating profit                                          317,658     486,757
      
  Depreciation                                              362,472     257,538
                                                            
  Amortisation                                               18,191      10,815

  Increase in stocks                                       (19,484)     (4,566) 
                  
  Increase in debtors                                     (246,309)   (228,162)

  Increase in creditors                                     627,940     127,625
      
  Exceptional item                                                -   (194,453)
      
  Net cash inflow from operating activities               1,060,468     455,554

b Analysis of cash flows for headings netted in the cash flow

  Returns on investments and servicing of finance

  Interest received                                         122,688      36,914 
    
  Interest paid                                           (403,349)    (99,868)
      
  Interest element of finance lease rental payments         (8,375)    (10,275)
      
  Net cash outflow for returns on investment and          (289,036)    (73,229)
  servicing of finance

  Capital expenditure and financial investment

  Purchase of tangible fixed assets                     (3,825,542) (2,125,794)
      
  Sale of tangible fixed assets                                   -       8,859
      
  Purchase of investments                                         -   (172,917)
      
  Net cash outflow for capital expenditure and           (3,825,542) (2,289,852)
  financial investment

  Acquisitions and disposals

  Purchase of subsidiary undertaking                              -   (525,739)
      
  Net overdrafts acquired with subsidiary                         -    (12,246)
      
  Net cash outflow for acquisitions                               -   (537,985)
      

  Financing

  Bank loans                                              1,720,793     657,786
      
  Capital element of finance lease rental payments         (39,197)    (56,660)
      
  Net proceeds from issue of shares by subsidiary                 -   3,691,014
      
  Net cash inflow from financing                          1,681,596   4,292,140


c         Analysis of net debt
                     At 31 July                   Other non cash     At 31 July
                           2000                          changes           2001
                                  Cash flow
                              £           £                    £              £

                      
        Cash at       2,367,653 (1,372,514)                    -        995,139
        bank and
        in hand

        Debt due      (480,666)   (424,021)                    -      (904,687)
        within 1
        year

        Debt due    (3,212,203) (1,296,550)                    -    (4,508,753)
        after 1
        year

        Finance        (72,665)      39,197                    -       (33,468)
        leases

        Total       (1,397,881) (3,053,888)                    -    (4,451,769)