Interim Results

Lok'n Store Group PLC
25 April 2003



                              LOK'NSTORE GROUP PLC
                         ('Lok'nStore' or 'the Group')



                                Interim Results
                     for the six months to 31 January 2003



Lok'nStore Group Plc, one of the leading companies in the fast-growing
self-storage market, which operates 17 units in the South East, announces
interim results for the six months ended 31 January 2003.



                                   Highlights



•        Turnover increased by 19% to £2.81 million (£2.37 million)

•        Operating profit of £38,858 (loss £253,608)

•        Profit before tax* of £24,179 (loss £445,079)

•        Luton acquired in August 2002 and opened within 8 week turn around
         programme in October 2002

•        Number of stores is now 17


* Before exceptional items



Andrew Jacobs, Chairman, commented,



'The Group's strong balance sheet and the lowest breakeven occupancy in the
market, means that Lok'nStore remains well positioned to take advantage of the
status of the current market in order to advance its market share.  Lok'nStore
continues to adhere to strict investment appraisal and operational criteria &
the Group continues to see growth opportunities.  The Board is therefore
confident in the future and in its ability to deliver substantial shareholder
value.'


                                                                25 April 2003



Enquiries:


Lok'nStore Group plc
Steven Hourston, Managing Director                          Today: 020 7457 2020
Christopher Stevens, Finance Director                  Thereafter: 020 8547 2288

College Hill                                                  Tel: [phone]
Justine Warren
Crawford Burden




                              LOK'NSTORE GROUP PLC

                              CHAIRMAN'S STATEMENT



I am pleased to report another period of progress for the Group against a
climate of continued challenging market conditions.



With regard to our acquisition programme, we continue to find high quality
potential self-storage sites. However, we remain prudent about the commercial
property market and expect prices to decline further. This has led to protracted
negotiations with vendors and our roll out programme has therefore been slower
than planned.  We continue to apply, and will not compromise, our strict
investment criteria and will continue to invest only within these parameters.
The slower rate of site acquisition has resulted in a higher group operating
profit, as we have not incurred the early losses associated with new sites.



We maintain that the South and South East of England presents the greatest
opportunity for the Group due to the ever-increasing population and continued
pressure on the utilisation of space.  Our site acquisition strategy remains
driven by prospective internal rate of return, site location and visibility.  We
are delighted to be so ideally positioned to exploit opportunities when they
arise.



Results



Turnover for the six months to 31 January 2003 increased by 19% to £2.81 million
(£2.37 million).  Overall, sales have increased due to volume improvements,
price increases and an improved product offering.



Expenditure in the business remains tightly controlled to ensure that any
variable costs remain sensitive to fluctuations in the market place.



Lok'nStore continues to seek to maximise growth whilst maintaining operational
profitability.  The Group made an operating profit of £38,858 compared to an
operating loss of £253,608 during the same period last year, an improvement of
£292,466 year on year.



Profit before tax and exceptional items for the period was £24,180 (loss:
£445,079) representing an improvement of £469,259, reflecting a greater
proportion of the Group's operations moving towards maturity and a reduced
interest charge.



Following the acquisition of Swindon Self-Storage Ltd during year ended 31st
July 2000, which consisted of single site at Swindon West, we were able to take
on a new site in a far more prominent and visible location at the front of the
Swindon West plot.  This enabled the Group to sell the original Swindon
Self-Storage freehold, generating cash of £1.1million and an exceptional loss of
£0.4million.



Overall, during the last few years there has been an underlying significant
uplift in the value of our freehold properties.  This will both enhance the
Group's ability to borrow as and when debt is required in the future and gives
the Group the opportunity to release value to shareholders.


Following the Group's successful placing and open offer in June 2002 and the
signing of a new £10 million revolving credit facility with our existing
bankers, The Royal Bank of Scotland, we were able to pay down all the debt that
existed at the end of the last financial year.  As at 31 January 2003, the Group
held £2.3 million in cash and no debt.



We have seen considerable improvements in retailing and operational techniques
with more advanced and sophisticated management information, investment
appraisal and IT systems being implemented to ensure that the key drivers of the
business are being targeted.



The Board maintains that investing in new sites will strengthen the balance
sheet and create the most value for our shareholders. The Directors do not
recommend the payment of an interim dividend.



Expansion



The opening of the new site at Luton in October 2002 adds an additional 33,000
sq ft of net lettable space to the Group and complements its existing portfolio
of sites north of London that includes Milton Keynes and Northampton.



The phased fit out programme at all our new and semi-mature sites has progressed
well during the six month period, with further phases being completed at
Sunbury, Poole, Ashford, Fareham, Northampton, Southampton and Swindon West.
The phased approach continues to ensure that we take a 'just in time' investment
approach to capital expenditure and ensures that the mix of unit sizes available
to customers can be tailored to local demand.



Prospects



The Group's strong balance sheet and the lowest breakeven occupancy in the
market, means that Lok'nStore remains well positioned to take advantage of the
status of the current market in order to advance its market share.  Lok'nStore
continues to adhere to strict investment appraisal and operational criteria &
the Group continues to see growth opportunities.  The Board is therefore
confident in the future and in its ability to deliver substantial shareholder
value.





                                                                   Andrew Jacobs
                                                                        Chairman

                                                                   24 April 2003




CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 31 January 2003


                                                         Notes              Unaudited                  Audited
                                                                     Six months     Six months            Year
                                                                     31 January     31 January         31 July
                                                                           2003           2002            2002
                                                                             £              £               £

TURNOVER
Continuing operations                                                2,811,873      2,369,605        5,000,488

Operating expenses                                                  (2,773,015)    (2,623,213)     (4,997,589)



OPERATING PROFIT/(LOSS)                                                  38,858      (253,608)           2,899

Exceptional item                                             2        (400,901)              -               -

Interest receivable                                                      35,372        40,162           53,958
Interest payable                                                       (50,051)      (231,633)       (455,730)


(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                 (376,722)      (445,079)       (398,873)

Taxation                                                    3                -              -               -


(LOSS)/PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                  (376,722)      (445,079)       (398,873)



EARNINGS PER SHARE

Basic                                                        4         (1.32)p        (0.59)p         (1.81)p
Fully diluted                                                4         (1.32)p        (0.59)p         (1.81)p





There are no other recognised gains or losses.





CONSOLIDATED BALANCE SHEET
31 January 2003


                                                                        Unaudited                     Audited

                                                                   31 January     31 January          31 July
                                                                         2003           2002             2002
                                                                            £              £                £
FIXED ASSETS
Intangible assets                                                     419,705       443,960           431,832
Tangible assets                                                    13,119,758    12,937,303        13,129,442
Investments                                                           172,917       172,917           172,917


                                                                   13,712,380    13,554,180        13,734,191



CURRENT ASSETS
Stock                                                                  98,982        40,934            62,967
Debtors                                                             1,017,526       807,287         1,256,102
Cash at bank and in hand                                            2,298,408       483,123        10,127,340


                                                                    3,414,916     1,331,344        11,446,409

CREDITORS: Amounts falling due within one year                    (1,847,620)    (2,671,457)      (2,395,389)


NET CURRENT ASSETS / (LIABILITIES)                                  1,567,296   (1,340,113)         9,051,020



TOTAL ASSETS LESS CURRENT LIABILITIES                              15,279,676    12,214,067        22,785,211

CREDITORS: Amounts falling due after more than one
year                                                                    (685)    (6,587,132)      (7,133,995)


                                                                   15,278,991     5,626,935        15,651,216



CAPITAL AND RESERVES
Called up share capital                                               284,687       214,563           284,687
Share premium                                                       9,912,448              -        9,907,951
Merger reserve                                                      6,295,295     6,295,295         6,295,295
Profit and loss account                                           (1,213,439)      (882,923)        (836,717)


SHAREHOLDERS' FUNDS                                               15,278,991      5,626,935        15,651,216








CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 January 2003


                                                       Notes            Unaudited                     Audited
                                                                   Six months     Six months             Year
                                                                   31 January     31 January          31 July
                                                                         2003           2002             2002
                                                                           £              £                £

Cash flow from operating activities                      5a            15,521      (36,441)          806,994

Returns on investments and servicing of finance                      (14,678)      (191,470)        (401,772)

Taxation                                                                   -              -                -

Capital expenditure and financial investment                        (695,621)    (2,488,159)      (2,951,402)


CASH OUTFLOW BEFORE FINANCING                                       (694,778)    (2,716,070)      (2,546,180)

Financing                                                         (7,134,154)     2,204,054        11,678,381




(DECREASE)/INCREASE IN CASH IN THE PERIOD                         (7,828,932)      (512,016)        9,132,201







RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT)


                                                                    31 January      31 January         31 July
                                                                          2003            2002            2002
                                                                            £               £               £

Decrease in cash in the period                                     (7,828,932)       (512,016)       9,132,201

Change in net funds/(debt) resulting from cash flows                 7,138,651     (2,217,433)     (1,700,518)

New finance leases                                                           -          13,379               -


MOVEMENT IN NET FUNDS IN PERIOD                                      (690,281)     (2,716,070)      7,431,683

NET FUNDS BROUGHT FORWARD                                            2,979,914     (4,451,769)     (4,451,769)


NET FUNDS CARRIED FORWARD                                5b          2,289,633     (7,167,839)       2,979,914






NOTES TO THE INTERIM RESULTS



1.       BASIS OF PREPARATION



The interim results have been prepared on the basis of the accounting policies
as set out in the statutory financial statements for the year ended 31 July
2002. The interim results, which were approved by the Directors on 24 April
2003, are unaudited but have been reviewed in accordance with Auditing Practices
Board bulletin 'Review of Interim Financial Information' by the auditors.  The
interim results do not constitute statutory financial statements within the
meaning of section 240 of the Companies Act 1985.



Comparative figures for the year ended 31 July 2002 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.       EXCEPTIONAL ITEM



An exceptional loss of £400,901 (2002: nil) arose on the sale of a freehold site
in Swindon.  The sale generated £1.1m of cash.



3.       TAXATION



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



4.       EARNINGS PER ORDINARY SHARE



The calculation of earnings per ordinary share is based on the loss for the
period of £376,722 (year to 31 July 2002 - loss of £398,373, period to 31
January 2002 - loss of £445,079) and on the weighted average number of shares in
issue during the period of 28,468,693 shares (31 July 2001- 22,081,169 shares;
31 January 2002 - 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 £376,722 (year to 31 July
2002 - loss of £398,373, period to 31 January 2002 - loss of £445,079) and on a
weighted average number of shares during the period of 30,320,140 shares (31
July 2002 - 23,434,294 shares; 31 January 2002 - 23,268,373 shares).



5.       CASH FLOWS                                                       Unaudited                  Audited

                                                                   31 January       31 January       31 July
                                                                         2003             2002          2002
                                                                           £                £             £
    a      Reconciliation of operating profit to net cash flow
           from operating activities

           Operating profit/(loss)                                     38,858        (253,608)        2,899
           Depreciation                                               308,039         210,494       481,598
           Amortisation                                                12,127          12,127        24,255
           Loss/(Profit) on disposal of fixed assets                    3,178            (115)         (115)
           Decrease/(Increase) in stocks                             (36,015)              314      (21,719)
           Decrease/(Increase) in debtors                             238,576          196,182     (252,633)
           (Decrease)/Increase in creditors                         (542,428)       (201,835)       572,709
           Exceptional item                                           (6,814)                -             -


           Net cash flow from operating activities                     15,521        (36,441)       806,994




                                                                   At                    Other non-               At
                                                         31 July 2002      Cash flow   cash changes      31 Jan 2003
                                                                    £             £              £                £
    b     Analysis of net funds/(debt)


          Cash at bank and in hand                         10,127,340    (7,828,932)              -        2,298,408
          Debt due within one year                                  -              -              -                
          Debt due after one year                         (7,130,998)      7,130,998              -                -
          Finance leases                                     (16,428)          7,653              -          (8,775)    
              

          TOTAL                                             2,979,914      (690,281)              -        2,289,633
                                                                                                  





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 8 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 au 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 2003.





BAKER TILLY


Chartered Accountants
2 Bloomsbury Street
London WC1B 3ST




24 April 2003


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