Interim Results

Lok'n Store Group PLC
18 April 2002

                              LOK'NSTORE GROUP PLC

                                INTERIM RESULTS

                     FOR THE SIX MONTHS TO 31 JANUARY 2002

                                   Highlights

  • Turnover increased by 24% to £2.37 million (2001: £1.91 million)
  • Annualised revenues now running at £5.1 million

  • Loss before tax of £445,079 (2001: profit £127,457) reflecting the normal
    start up losses arising from the opening of four new sites at the end of the
    last financial year and the new site this year.

  • Expansion and consolidation programme progressing well:
      • Existing stores are trading in line with expectations
      • Ashford store opened in November 2001

      • Conversion of leasehold site at Reading to freehold completed in
        November 2001

  • Successful placing of Access' 29% stake across a number of prominent
    institutional investors
  • WestLB Panmure appointed as corporate broker and adviser.

Andrew Jacobs, chairman, commented,

' I am pleased to report that we continue to make excellent progress in driving
the Group's organic growth. Demand for storage space remained buoyant during the
period and trading in all our sites was strong.

'I am also delighted to report that in November 2001, we successfully placed the
29% stake, that was owned by Access Storage Solutions, across a number of
prominent institutional investors.

'With revenues growing and one of the strongest management teams in our
marketplace, we believe that we are well positioned to continue the successful
development of the Lok'nStore brand in the second half of the year and beyond.'

 Press enquiries:
Lok'nStore Group plc               Andrew Jacobs, chairman                                            Tel: [phone]
                                   Simon Thomas, chief executive
                                   Christopher Stevens, finance director

Biddicks                           Katie Tzouliadis                                                   Tel: [phone]



CHAIRMAN'S STATEMENT

 I am pleased to report that we continue to make excellent progress in driving
the Group's organic growth.

Our focus remains on building our network of storage centres in the South &
South-east of England, all in high profile locations. Demand for storage space
remained buoyant during the period and trading in all our sites was strong. With
revenues growing and one of the strongest management teams in our marketplace,
we believe that we are well positioned to continue the successful development of
the Lok'nStore brand.

Results

Turnover for the six months to 31 January 2002 increased by 24% to £2.37 million
(2001: £1.91 million) and on an annualised basis, is currently in excess of £5.1
million.

Loss before tax for the period was £445,079 compared to a profit of £127,457
last year, reflecting the expected losses that arose from the five stores we
opened at the end of the last financial year and at the start of this year. In
their initial 'start-up' phase, these immature sites are naturally loss making.
Our stated policy continues to be the reinvestment of cash generated by the more
mature stores in our portfolio into the development of new storage centres and
we remain rigorous in managing our assets to ensure optimum performance and
thereby ensure steady, balanced and sustained growth. We believe this approach
offers shareholders the best return on their investment.

Cash flow from operating activities decreased during the period to an outflow of
£36,441 for the six months to 31 January 2002 as compared to an inflow of
£503,783 for the six months to 31 January 2001. As highlighted above, this
reflects the costs associated with the five new sites we have opened. We have a
proven track record of opening new sites very quickly after acquisition, which
minimizes the time in which our new sites reach maturity. We believe that our
five new sites will collectively become cash generative during the next 12
months.

In addition, in the period we incurred further central costs arising from our
investment in new, key appointments to the management team.

As we have stated, it is our intention during a period of growth to retain the
cash generated in order to fund the expansion of Lok'nStore. The board therefore
does not recommend the payment of an interim dividend. It is our intention to
commence the payment of dividends when it is commercially prudent to do so and
subject to the availability of distributable reserves.

 Expansion

During the period, Lok'nStore opened a new storage centre in Ashford, Kent. The
site, offering 42,600 sq ft of space, was acquired in June 2000 and, following
vacant possession and the completion of the initial phase of refurbishment, we
opened it for business in November 2001. We have been pleased with the 'fill-up'
rate and occupancy levels now exceed our initial estimates at the time of
opening. The Ashford site extends our eastern boundary and takes our brand into
an undersupplied but densely populated area.

In November 2001, we completed the final stage of the conversion of our Reading
leasehold site to freehold. Having proved the success of our self-storage site
in Reading, it was an obvious next step in our consolidation of the business to
buy the freehold. The split between our freehold and leasehold sites across our
portfolio is now balanced.

We have continued to invest in our existing sites during the period with further
phased fit-outs of our semi-mature sites. Most notably we have accelerated the
next phase on our new Sunbury site due to increased demand.

With the current industrial economic downturn providing a number of property
acquisition opportunities, we are constantly reviewing potential site
acquisitions within the confines of our rigorous investment criteria.

Placing

In November 1999, we welcomed Access Storage Solutions as a significant investor
in Lok'nStore when they took a 29% stake in the Group. Following a recent change
of strategy at Access' parent company, Security Capital, a decision was taken to
realise the investment in Lok'nStore. As a consequence, in November 2001 we
successfully completed the placing of this stake across a broad range of
institutional investors. The placing has enabled us to diversify our shareholder
base and strengthen institutional representation.

I would like to thank Access for its invaluable contribution to the Group during
its period of investment and welcome our new investors to Lok'nStore.

On completion of this successful placing, we appointed WestLB Panmure as
corporate broker and nominated adviser to the Group.

Prospects

I continue to have considerable confidence in the self-storage market as a whole
and believe that the self-storage sector and Lok'nStore remain resilient to
prevailing macro-economic conditions. Our healthy levels of trading during the
last six months only reinforces our belief in the defensive nature of the sector
and the ongoing investment opportunities that a structurally under-supplied
market offers.

Lok'nStore continues to grow and expand in a balanced and focused manner and I
look forward to reporting on our progress at the year end.



CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the period ended 31 January 2002
                                                    Notes             Unaudited                       Audited
                                                                31 January        31 January          31 July
                                                                      2002              2001             2001
                                                                        £                 £                £

TURNOVER
Continuing operations                                           2,369,605         1,906,900        3,958,573

Operating expenses                                             (2,623,213)       (1,641,506)      (3,640,915)


OPERATING (LOSS)/PROFIT                                          (253,608)           265,394          317,658

Interest receivable                                                40,162               664           122,688
Interest payable                                                 (231,633)         (138,601)        (411,724)

(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION                                                        (445,079)           127,457           28,622

Taxation                                               2                -                 -                -

(LOSS)/PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION                                                        (445,079)           127,457           28,622


EARNINGS PER SHARE

Basic                                                   3         (2.07)p             0.59p            0.13p
Fully diluted                                           3         (1.91)p             0.56p            0.12p





CONSOLIDATED BALANCE SHEET

31 January 2002
                                                                           Unaudited                        Audited
                                                                     31 January        31 January           31 July
                                                                           2002              2001              2001
                                                                              £                 £                 £
FIXED ASSETS
Intangible assets                                                      443,960           468,214           456,087
Tangible assets                                                     12,937,303         9,474,366        10,659,523
Investments                                                            172,917           172,917           172,917

                                                                    13,554,180        10,115,497        11,288,527


CURRENT ASSETS
Stock                                                                   40,934            37,063            41,248
Debtors                                                                807,287         1,116,710         1,003,469
Cash at bank and in hand                                               483,123         1,767,316           995,139

                                                                     1,331,344         2,921,089         2,039,856

CREDITORS: Amounts falling due within one year                      (2,671,457)       (1,312,603)       (2,740,802)
                                                                    

NET CURRENT (LIABILITIES)/ASSETS                                   (1,340,113)         1,608,486         (700,946)


TOTAL ASSETS LESS CURRENT LIABILITIES                               12,214,067        11,723,983        10,587,581

CREDITORS: Amounts falling due after more than one year             (6,587,132)       (5,553,134)       (4,515,567)
                                                                    

                                                                     5,626,935         6,170,849         6,072,014


CAPITAL AND RESERVES
Called up share capital                                                214,563           214,563           214,563
Merger reserve                                                       6,295,295         6,295,295         6,295,295
Profit and loss account                                               (882,923)         (339,009)         (437,844)

SHAREHOLDERS' FUNDS                                                  5,626,935         6,170,849         6,072,014




CONSOLIDATED CASH FLOW STATEMENT

For the period ended 31 January 2002
                                                                 Notes            Unaudited                      Audited
                                                                             31 January      31 January          31 July
                                                                                   2002            2001             2001
                                                                                     £               £                £

Cash flow from operating activities                                 4         (36,441)         503,783        1,060,468

Returns on investments and servicing of finance                               (191,470)       (137,937)        (289,036)

Taxation                                                                             -               -                -

Capital expenditure and financial investment                                (2,488,159)     (2,485,289)      (3,825,542)

Acquisitions and disposals                                                           -               -                 -


CASH OUTFLOW BEFORE FINANCING                                               (2,716,070)     (2,119,443)      (3,054,110)

Financing                                                                    2,204,054       1,519,106        1,681,596


DECREASE IN CASH IN THE PERIOD                                                (512,016)       (600,337)      (1,372,514)





RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN DEBT
                                                                  31 January            31 January               31 July
                                                                        2002                  2001                  2001
                                                                          £                     £                     £

Decrease in cash in the period                                     (512,016)             (600,337)           (1,372,514)

Change in net debt resulting from cash flows                     (2,217,433)           (1,479,256)           (1,720,571)

Net finance leases                                                    13,379                    -                 39,197

MOVEMENT IN NET DEBT IN PERIOD                                   (2,716,070)           (2,079,593)          (3,053,888)

NET DEBT BROUGHT FORWARD                                         (4,451,769)           (1,397,881)           (1,397,881)

NET DEBT CARRIED FORWARD                                         (7,167,839)           (3,477,474)           (4,451,769)




NOTES TO THE INTERIM ACCOUNTS

1.     BASIS OF PREPARATION

The interim financial statements have been prepared on the basis of the
accounting policies as set out in the statutory financial statements for the
year ended 31 July 2001. The interim financial statements, which were approved
by the Directors on 17 April 2002, are unaudited but have been reviewed in
accordance with Audit Practices Board bulletin 'Review of Interim Financial
Information' by the auditors.

Comparative figures for the year ended 31 July 2001 are an abridged version of
the Group's full accounts which carry an unqualified audit report and have been
delivered to the Registrar of Companies.

2.     TAXATION

There is no charge to corporation tax for the group due to the availability of
brought forward trading losses.

3.     EARNINGS PER ORDINARY SHARE

The calculation of earnings per ordinary share is based on the loss for the
period of £445,079 (year to 31 July 2001 - profit of £28,622, period to 31
January 2001 - profit of £127,457) and on the weighted average number of shares
in issue during the period of 21,456,303 shares (31 July 2001- 21,456,303
shares; 31 January 2001- 21,456,303).
Fully diluted earnings per share includes shares held under the directors'
option scheme and is based on a loss for the period of £445,079 (year to 31 July
2001 - profit of £28,622; period to 31 January 2001 - profit of £127,457) and on
a weighted average number of shares during the period of 23,268,373 shares (31
July 2001 - 23,279,777 shares; 31 January 2001 - 22,928,987 shares).

 4.     CASH FLOWS                                                         Unaudited                           Audited
                                                                        31 January        31 January           31 July
                                                                              2002              2001              2001
                                                                                £                 £                 £
        Reconciliation of operating profit to net cash flow from
        operating activities

        Operating (loss)/ profit                                         (253,608)          265,394           317,658
        Depreciation                                                      210,494           207,376           362,472
        Amortisation                                                       12,127             6,064            18,191
        Profit on disposal of fixed assets                                   (115)                 -                 -
        Decrease/(increase) in stocks                                          314          (15,299)          (19,484)
        Decrease/(increase) in debtors                                     196,182         (359,550)         (246,309)
        (Decrease)/increase in creditors                                (201,835)           399,798           627,940

        Net cash flow from operating activities                          (36,441)           503,783         1,060,468




INDEPENDENT REVIEW REPORT TO LOK'N STORE GROUP PLC

Introduction

We have been instructed by the company to review the financial information set
out on pages 4 to 7 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and based thereon, assessing
whether the accounting policies and presentation have been consistently applied
unless otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with Auditing
Standards and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 January 2002.

BAKER TILLY
Chartered Accountants
2 Bloomsbury Street
London WC1B 3ST

 17 April 2002







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