Interim results for the 6 months to 31 January 16

RNS Number : 1296W
Lok'nStore Group PLC
25 April 2016
 



LOK'NSTORE GROUP PLC

("Lok'nStore" or "the Group")

 

Lok'nStore Group Plc, the fast growing self-storage company announces great interim results

for the six months to 31 January 2016 - growth from new stores and more new stores to come

 

Highlights:   

Record financial results ahead of expectations on all measures

·       Revenue £7.99 million up 4.7% (31.1.2015: £7.63 million) - like for like (LFL) 1  up 8%

·       Operating Costs down 0.6%

·       Adjusted EBITDA2 £3.30million up 13.1% (31.1.2015: £2.92 million)

·       Operating profit (pre-exceptionals3) £2.39 million up 17.4% (31.1.2015: £2.03 million)

·       Operating profit (post-exceptionals) £4.20 million up 106.8% (31.1.2015: £2.03 million)

·       Profit before taxation £3.79 million up 155.5% (31.01.15: £1.48 million)

 

Strong cash flow supports 14.6% dividend increase - progressive dividend policy

·        Funds from Operations (FFO) 4 £3.1 million up 22.7% (31.1.2015: £2.52 million)

·        Annualised FFO of 24 pence per share up 19.3% (31.1.2015: 20.1 pence per share) 

·        Interim dividend 2.67 pence per share up 14.6% (31.1.2015: 2.33 pence per share)

 

Asset backed: Adjusted Net Asset Value per share5 up 14.1% to £3.07 (31.1.2015: £2.69)

·        Total assets now up to £113 million

 

Strong balance sheet, efficient use of capital, low debt

·        New £40 million Bank facility on lower interest margin

·        Additional £2 million received for sale of old Reading store

·        Sale and manage-back of Swindon store for £3.5 million (NBV £1.4 million)

·        Net debt £25.8 million (31.1.2015: £24.3 million)

·        Loan to value ratio down to 26.2%6 (31.1.2015: 27.5%)

 

Self-storage business performing strongly

·        Self-storage revenue £6.93 million up 3.3% (31.1.2015: £6.71 million) - LFL up 7.1%

·        Store EBITDA £3.847million up 5.4% (31.1.2015: £3.65 million)

·        Occupied units pricing up 3.3%

·        Occupancy up 2.4% LFL

 

Document storage profit more than doubles

·        Revenue £1.06 million up 14.7% (31.1.2015: £0.92 million)

·        Adjusted EBITDA £0.25million up 134% (31.1.2015: £0.11 million)

 

Growth from new stores and more new stores to come

·        New Chichester store opened January 2016 - early trading strong

·        New Southampton and Bristol stores due to open early May 2016 

·        Constantly reviewing new store opportunities - pipeline of 4 new stores

 

 

1        On 30 September 2015, Lok'nStore sold its store in Swindon on a sale and manage-back basis. Like-for-like (LFL) growth figures for the period strip out the effect of this sale

2        Adjusted EBITDA is defined as profits before depreciation, amortisation, losses or profits on disposal, share-based payments, acquisition costs, non-recurring professional costs, finance income, finance costs and taxation

3        Exceptionals include an additional £2 million received for the sale of the old Reading site

4        Funds from Operations (FFO) calculated as EBITDA minus net finance cost on operating assets 

5       Adjusted net asset value per share is the net assets adjusted for the valuation of leasehold stores and deferred tax divided by the number of shares at the year   end.  The shares held in the Group's employee benefits trust and treasury are excluded from the number of shares

6     Calculation based on net debt of £25.8 million (31.1.2015: £24.3 million) and total property value of £98.5 million (21.1.2015: £88.4 million) set out in the Business and Financial Review section of the Strategic Report

7      Store adjusted EBITDA is Adjusted EBITDA (see above2) before central and head office costs

 

 

 

 

 

 

 

 

 

 

Commenting on the Group's results, Andrew Jacobs CEO of Lok'nStore Group said, 

 

 

"With revenue up and costs down Lok'nStore's profits have continued to grow robustly. We are investing in the future growth of the business with more new landmark stores. Our low level of debt means that this rapid development programme can be financed from cash flow and existing bank facilities, while progressively increasing the dividend.

 

"Our new store development programme continues to change the balance of our store portfolio with new and purpose built stores accounting for 59% of our portfolio. New stores in Chichester, Southampton and Bristol will add impetus to sales and earnings growth, and our pipeline of 4 new stores will reinforce this further."

 

 

 

Enquiries:

 

Lok'nStore

Andrew Jacobs, CEO

Ray Davies, Finance Director

01252 521 010

finnCap Ltd

Julian Blunt / Giles Rolls, Corporate Finance

Alice Lane, Corporate Broking

020 7220 0500

Camarco

Billy Clegg / Tom Huddart

 

0203 757 4980

 

 

Chairman's Statement

 

Healthy growth, increased dividend and active store opening programme

 

Lok'nStore's focus is opening more landmark self-storage centres while remaining conservatively leveraged to deliver robust, predictable and growing cash flow and dividends.

 

For the half year period to January 2016 trading has been strong with revenue, profits and assets all increasing rapidly. This has been and will continue to be reinforced by improvements to our existing stores combined with our programme of opening new, landmark, purpose-built stores. This will result in a substantial increase in the proportion of our store space which is new or purpose built and will add further momentum to the growth of sales and profits. 

 

An increase in revenue of 4.7% to £7.99 million (31.1.2015: £7.63 million) resulted from both occupancy and price growth and with operating and finance costs reduced in the period profit margins have increased both at the store level and the group level. As a result profits have grown sharply with Adjusted EBITDA up 13.1%.

 

The growth of sales, profit and asset values combined with innovative asset management has allowed us to achieve a reduction in the loan-to-value (LTV) ratio from 27.5% to 26.2% while we invested £4.6 million in stores this period.

 

Funds from Operations (FFO) per share which guides the dividend pay-out has moved smartly ahead and we are proposing to increase the interim dividend by 14.6%. Net Asset Value (NAV) per share which demonstrates the underlying asset value has also improved sharply.

 

Our rapid store development programme has led to an increase in new and purpose built space to 59% of our owned portfolio. Stores in Maidenhead, Reading, Aldershot and recently opened Chichester have plenty of capacity to continue contributing to growth during the coming years. The development programme will also continue with the new stores in Southampton and Bristol opening in early May 2016 and further store openings in 2017 and 2018. This new store growth will build on a robust performance from the existing portfolio. 

 

In the period we also received an extra £2 million for our Reading site which we originally sold in 2014 and a further £3.5 million for the sale and manage-back of our Swindon store. These proceeds will be used to pay down debt and finance new landmark store developments.

 

Our innovative approach to financing, our strong balance sheet and our growing cash flows means we are achieving all this while also reducing our gearing from its existing modest level and continually increasing dividends.

 

New £40 million Banking Facility reflects financial strength of business

 

In January 2016 the Group agreed a new banking facility with Royal Bank of Scotland plc on significantly improved terms. The new £40 million five year revolving credit facility replaces the existing facility which was due to expire in October 2016 and will provide funding for site acquisitions and working capital. The interest margin, non-utilisation fee and arrangement fee have all been significantly reduced leading to a large cash saving over the life of the facility. Further details are provided in the Business and Financial Review.

 

Appointment of Director demonstrates operational focus

 

The Group is pleased to announce the appointment of Neil Newman (38) to the Board as an Executive Director.  Neil brings significant managerial and operational experience having worked in the business since 2006. Neil is currently Group Sales Director and will retain this title. Neil's contribution to Lok'nStore over the recent years has been significant and we look forward to his continuing involvement in our future growth.

 

Properties and Net Asset Value

The period-end property valuation equates to a total value of properties held of £98.5 million (31.1.2015: £88.4 million) an 11.5% increase in value. (Note that these values are not fully reflected in the statement of financial position which states the operating leasehold stores at cost less accumulated depreciation). An update of the progress on store properties is detailed in the Business and Financial Review.

 

Progressive Dividend

It is intended that the Company's future dividend payments will reflect the growth in the underlying cash generated by the business.  At the interim stage we intend to pay approximately one third of the previous year's total annual dividend which equates to 2.67 pence per share, up 14.6% on the 2.33 pence per share interim dividend last year. This interim dividend will be paid on 10 June 2016. The final dividend will be declared when the Group's full year results are announced.

 

Positive Outlook

Lok'nStore is a dynamic business with a record of consistent profit growth and cash generation and is well positioned for the coming years.  Recent strong trading will be reinforced by our programme of new landmark store openings.  

 

With the high barriers to entry to the self-storage industry created by the strong demand for property in South-East England and the difficulties of the local planning process, we believe that the increased capacity which Lok'nStore has already and will continue to create will provide the opportunity for significant further growth. We will continue to focus our efforts on four key areas:  

      

Ø Filling existing stores and improving pricing further

Ø Site acquisitions for new landmark stores

Ø Increasing the number of stores we manage for third parties

Ø Developing our document storage offering through organic growth

 

 

 

Simon G Thomas

Chairman

22 April 2016

 

Business and Financial Review

The Performance of our Stores

 

Sales, Profits and Occupancy growing

 

Trading

Total group revenue for the period grew 4.7% to £7.99 million (31.1.2015: £7.63 million) with Group operating profit up 106.8% to £4.2 million (31.1.2015: £2.03 million). On 30 September 2015 we sold our store in Swindon on a sale and manage-back basis. For clarity we include a table below to show all the headline growth figures and like-for-like growth figures for the period stripping out the effect of this transaction to improve the transparency of operating performance. Revenue growth on this basis rises to 8%. Document storage revenue was £1.06 million up 14.7% (31.1.2015: £0.92 million). 

 

 

Like-for-like 31 Jan 2016

Headline 31 January 2016

 

 

Financials:

Self-storage

Growth

%

Group

Growth

%

Self-storage Growth

%

Group

Growth

%

Revenue

7.1

8.0

3.3

4.7

Group Adjusted EBITDA

4.5

15.1

4.4

13.1

Operating profit (pre- exceptionals)

7.6

20.3

7.4

17.4

FFO per share (Annualised)

-

24 pence

-

24 pence

FFO growth

n/a

22.1

n/a

19.3

Operating:

 

 

 

 

Store Adjusted EBITDA

6.8

-

5.4

-

 

Occupancy increased 2.4% year on year on a like for like basis to 63.6% of current lettable area (CLA). This was combined with a healthy year on year price increase of 3.3%.  Self-storage revenue for the period was £6.93 million up 3.3% (31.1.2015: £6.71 million), and 7.1% on a like-for-like basis.

 

Operating costs for the period were down 0.6% so with costs firmly under control this revenue growth translates into rapid profit growth. Total store EBITDA in the self-storage business, a key performance indicator of profitability and cash flow of the business, increased 5.4% to £3.84 million (31.1.2015: £3.65 million), and 6.8% on a like-for-like basis.

 

We again managed to increase the overall adjusted EBITDA margin across all stores by 1.9 percentage points from 54.6% to 56.5%. The adjusted EBITDA margins of the freehold stores were 66.3% (31.1.2015: 63.9%) and the leasehold store margins remained at 42.2% (31.1.2015: 42.2%).

 

At the end of January 2016 33.1% of Lok'nStore's self-storage revenue was from business customers (31.1.2015: 33.4%) with the remainder from household customers. By number of customers 19.6% of our customers were business customers (31.1.2015: 20.0%).

     

                                                                                                                                      When fully developed

Portfolio Analysis and  Performance Breakdown

Number of stores

% of Valuation

% of Store EBITDA

Store

EBITDA Margin (%)

Number of stores

% lettable space

Lok Owned

Total % lettable space

 

Total  lettable space

(Sq.ft)

As at 31 January 2016

 

 

 

 

 

 

 

 

Freehold and long leasehold stores

11

77.9

69.7

66.3

12

60.6

51.1

659,632

Operating Leaseholds stores

8

15.5

30.3

42.2

8

39.4

30.6

394,926

Pipeline stores (Freehold)

2

6.6

-

-

-

-

-

 

Managed Stores (trading)       

6

-

-

-

6

-

18.3

235,567

Total

27

100

100

56.5

26

100

100

1,290,125

 

The average unexpired term of the Group's operating leaseholds is approximately 12 years and 2 months as at 31 January 2016 (13 years and 2 months: 31 January 2015). Total freeholds and long leasehold stores account for 85% of total property values. (Long leaseholds are those with over 50 years remaining term)

 

Ancillary Sales

Ancillary sales consisting of boxes and packaging materials, insurance and other sales increased 3.5% over the year accounting for 10.9% of self-storage revenues (31.1.2015: 10.7%).  We continue to promote our insurance to new customers with the result that 91% (31.1.2015: 93%) of our new customers purchased our insurance over the year. This has resulted in 78% percent of our customers being insured by Lok'nStore.

 

Saracen - Document storage business

 

Volume metrics in our documents storage business have continued to grow with period-end boxes stored up 11% year on year and period-end tapes stored up 12.5% year on year. Revenue and adjusted EBITDA have increased rapidly as the operating metrics improve in response to the Company's more customer-facing marketing stance. This approach has resulted in excellent customer feedback and puts us in a good position to win new business. Revenue and profit are now starting to follow these volume metrics upwards with EBITDA profits up 134% over the same period last year.

 

Having previously consolidated our serviced document warehouse capacity, closing one of the three storage sites we embarked last year on further fit-out of new warehouse racking in our site in Olney and we now have the capacity to significantly increase the number of boxes stored within our existing premises. As part of this strategy, and in response to further box growth we commissioned a further and final fitting out of the Olney warehouse. Additions of £0.14 million were made in the current period to fixtures, fittings and equipment.

 

 

6 months ended 31 January 2016

6 months ended 31 January 2015

 

Document Storage

£'000

Growth

%

Document Storage

£'000

Document storage - Revenue

                   1,058

14.7

923

Document storage - Adjusted EBITDA

                          252

133.3

108

 

Stores Property review

 

Lok'nStore's strong operating cash flow, solid asset base, and tactical approach to its store property portfolio provide the Group with opportunities to improve the terms of its property usage in all stages of the economic cycle. Our focus on the trading business gives us many opportunities and our property decisions are always driven by the requirements of the trading business. Lok'nStore has 27 sites, of these, 21 sites are owned with 13 freehold or long leasehold, 8 leasehold and 6 further sites which operate under management contracts. 26 sites are trading stores. Lok'nStore is attracting a steady stream of investment partners to help drive the growth of the operating business. At the period-end the average length of the 7 leases which were valued at July 2015 decreased by 12 months to 12 years and 2 months (31.1.2015: 13 years and 2 months).  7 out of 8 of our leasehold stores are inside the Landlord and Tenant Act providing us with a strong security of tenure.

 

Bristol

In January 2014 Lok'nStore acquired a site in Longwell Green, Bristol.  The site of approximately 0.9 acres is in a busy retail park with planning permission to build a 50,000 sq. feet self-storage centre in Lok'nStore's modern and distinctive design. Development is currently well advanced. The total cost of the store when built and fitted-out, will be around £4.3 million and will add to Lok'nStore's high-quality portfolio of freehold, purpose built self-storage centres in prominent trading locations when it opens in May 2016.

 

Additional £2 million received for sale of Reading site 

The Group has received an additional £2 million from the purchaser of the original Reading store site. This sum is in addition to the £2.9 million received from the purchaser on 31 October 2014, taking the total consideration to £4.9m.  These additional proceeds will be re-invested into the Group's opening programme of highly visible purpose-built new stores.

 

Sale and manage-back of Swindon store

 

On 30 September 2015 the Group completed the sale and manage-back of its Swindon East store for £3.5 million in cash to an investment fund.  Historically, the Group has operated two stores in Swindon, one leasehold and one freehold. Following the completion of £0.5m of capital expenditure to increase capacity at its freehold store, the two stores were consolidated into one. The aggregate Net Book Value (NBV) was £1.4 million at the date of sale.

The Group will continue to manage the store as a branded Lok'nStore operation on behalf of the investor, and will receive management and performance fees. The proceeds of this transaction will be re-invested into projects such as the new stores currently under construction.

 

Portsmouth North

On 24 November 2014 the Company announced the sale of the Company's undeveloped site at Portsmouth North Harbour for £3 million subject to planning. The planning application filed and validated on 28 July 2015 was granted in January 2016. The sale will now complete subject to completion of the S106 and the expiration of the judicial review period.

 

Management contracts 

Aldershot

In May 2015 Lok'nStore opened a new managed store in Aldershot, Hampshire. The store is in a prominent location on the main Aldershot roundabout above the A331, is visually striking and benefits from significant levels of passing traffic.

 

The store is managed for outside investors under the Lok'nStore brand.  Lok'nStore has managed the building and subsequent operation of the store and generates a return on £2.5 million of the total development loan capital it has committed to the project, and also receives management fees for the operation and branding of the store. This project is consistent with Lok'nStore's strategy of expanding the operating footprint of the business while maintaining its strong balance sheet. The store has traded well and in January 2016 a further phase of units was commissioned.

 

Chichester

 

Lok'nStore has also completed the development and fit-out on behalf of external investors of a new storage facility in Chichester, West Sussex which opened in January 2016. Lok'nStore manages the operation and branding of the store under a Management Services Agreement.

 

Store portfolio 

We continue our strategy of actively managing our store operating portfolio to ensure we are maximising both trading potential and asset value. This includes strengthening our distinctive brand, increasing the size and number of our stores and replacing stores or sites where it will increase shareholder value. We prefer to own freeholds if possible, and where opportunities arise we will seek to acquire the freehold of our leasehold stores. However we are happy to take leases on appropriate terms and benefit from the advantages of a lower entry cost, with further options to create value later in the site's development. Our most important consideration is always the trading potential of the store rather than the type of property tenure and we will capitalise on our efficient operating systems and growing internet marketing presence to attract investment partners where appropriate and create innovative ownership structures to drive the growth of the operating business.

 

Financial 

Lok'nStore is a robust business which generates an increasing cash flow from its strong asset base.  With a low LTV of 26.2% and low interest margins of 1.4% on its new banking facility the business has a firm base for growth.  The value of the Group's property assets underpin a flexible business model with stable and rising cash flows, low credit risk and tightly controlled operating costs.

 

New £40 million Banking Facility

 

The new £40 million five year revolving credit facility replaces the existing facility which was due to expire in October 2016, and will provide funding for site acquisitions as well as working capital for the development of the business over the medium term. 

 

Under this new five year facility, the Group is not obliged to make any repayments prior to its expiration in 2021 and further provides during the term of the facility for the possibility of an optional extension of the five year term by a maximum of a further two years. The facility also provides for the possibility of an additional accordion of up to £10 million which if taken up will increase facilities available to £50 million. Loan to value covenants are in line with the previous facility.

 

The Group currently has £28.8 million drawn against its existing £40 million facility. The margin on the new facility is at the London Inter-Bank Offer Rate (LIBOR) plus 1.40%-1.65% margin based on a loan to value covenant test (1.40% at Lok'nStore's current LTV level). This is a marked improvement on the existing 2.35%-2.65% margin and the Group will therefore benefit from a lower average cost of debt and improved cash flow.  

 

Management of interest rate risk

 

Of the £28.8 million of gross debt currently drawn against the £40 million revolving credit facility. £20 million is at a fixed interest rate with £10 million fixed rate swap at a fixed 1 month sterling LIBOR rate of 1.2% and £10 million swap at a fixed 1 month sterling LIBOR rate of 1.15%. With 1 month LIBOR around 0.5%, this leaves a balance of £8.8 million floating at a current all-in rate of around 2.8% and results in an overall weighted average rate of 3.25%. The £20 million fixed rate is treated as an effective cash flow hedge and its fair value on a mark-to-market basis has fluctuated historically. Under the new facility arrangements the Group is not committed to enter into hedging instruments going forwards but rather to keep such matters under periodic review. 

 

The current fair value of the swaps is a liability of £0.1 million and is currently stated as (31.1.2015: asset of £0.2 million). (See Note 15b).

 

Taxation

The Group has made a tax provision against earnings in this period of £0.82 million. The reduction in forward corporation tax rates to 18% has resulted in a net reduction in the deferred tax provision carried against revalued properties of £0.73 million. (see Note 16).

 

Earnings per share

Basic earnings per share were 11.53 pence (31.1.2015: 4.39 pence per share) and diluted earnings per share were 11.26 pence (31.1.2015: 4.29 pence per share).

 

Operating costs

 

Costs have been reduced in the period and store EBITDA margins have been increased by 1.9 percentage points to 56.5% (31.1.2015: 54.6%). The cost ratio reduced to 56.6%1 (31.1.2015: 59.7%)

 

Group operating costs amounted to £4.52 million for the period, a 0.6% decrease year on year (31.1.2015: £4.55 million). Overall operating costs as a percentage of revenue have decreased and represent 56.6% as a cost ratio. (31.1.2015: 59.7%). This disciplined approach to costs ensures that as much as possible of the revenue growth achieved contributes to increasing our profits.  Historically we have a strong record of reducing our group operating costs each year.  Although this is increasingly challenging while delivering strong growth, we have again in this period contained property costs with underlying property costs down 3.6%. Overhead costs have also been reduced. Staff costs increased by 3.4% through a combination of higher sales bonuses driven by strong sales growth and additional national insurance costs arising on the exercise of employee share options. Progress continues on reducing Saracen's operating costs with a 0.1% decrease year on year while at the same time achieving nearly 15% revenue growth.

 

 

Group

Increase/

(Decrease) in costs %

 

Six months

ended 31 Jan

2016

£'000

Six months

ended 31 Jan

2015

£'000

 

Year

ended 31 July

2015

£'000

Property costs

(3.6)

 

1,889

1,960

 

4,010

Staff costs

3.4

 

2,074

2,005

 

4,188

Overheads

(1.9)

 

481

491

 

1,049

Distribution costs

(18.4)

 

78

95

 

190

Total

(0.6)

 

4,522

4,551

 

9,437

 

Cash flow

At 31 January 2016 the Group had cash balances of £3.0 million (31.1.2015: £3.4 million). Cash inflow from operating activities before investing and financing activities was £3.8 million (31.1.2015: £1.4 million). The Group also received £3.5 million on the sale and manage-back of its Swindon East store and an additional £2 million from the purchaser of the original Reading store site. As well as using cash generated from operations to fund some capital expenditure, the Group has a new five year revolving credit facility. This provides sufficient liquidity for the Group's current needs.  Undrawn committed facilities at the period-end amounted to £11.2 million (31.1.2015: £12.3 million).

 

Gearing

At 31 January 2016 the Group had £28.8 million of gross borrowings (31.1.2015: £27.7 million) representing gearing of 45.7% (31.1.2015: 53.2%) on net debt of £25.8 million (31.1.2015: £24.3 million).  After adjusting for the uplift in value of leaseholds which are stated at depreciated historic cost in the statement of financial position, gearing is 38.5% (31.1.2015: 42.8%). After adjusting for the deferred tax liability carried at period end of £11.6 million gearing drops to 32.5% (31.1.2015: 35.8%).

 

Funds from Operations (FFO)

By excluding £0.22 million (31.1.2015: £0.16 million) of the interest costs of carrying the development sites from the total net interest charge of £0.41 million (31.1.2015: £0.55 million) the interest on the operating portfolio is £0.2 million for the period (31.1.2015: £0.39 million). Funds from operations (FFO) represented by EBITDA minus interest on the operating portfolio is therefore £3.1 million up 22.7% (31.1.2015: £2.52 million) equating to 24 pence per share annualised, up 19.3% on last year (31.1.2015: 20.1 pence per share annualised).

 

 

 

Analysis of Funds from Operations (FFO)

Six months

ended 31 Jan 2016

£'000

Six months

ended 31 Jan 2015

£'000

Year

ended 31 July 2015

£'000

Group EBITDA

3,297

2,916

5,682

Finance Costs

414

549

1,003

Interest costs relating to holding development assets

 

(216)

 

(158)

 

(297)

Net finance cost based on operations

198

391

706

Funds from Operations

3,099

2,525

4,976

Increase in Funds from Operations

22.7%

 

 

 

 

 

 

 

Adjusted shares in issue

No.

25,873,996

No.

25,162,113

No.

25,356,668

 

FFO per share (annualised)

 

24.0 pence

 

20.1 pence

 

19.6 pence

 

Increase in FFO per share

 

19.3%

 

 

 

 

Capital expenditure and capital commitments

The Group has grown through a combination of site acquisition, existing store improvements and relocations. It has concentrated on extracting value from its existing assets and developing through collaborative projects and management contracts. Capital expenditure during the period totalled £4.6 million (31.1.2015: £1.9 million). This was primarily the construction and fitting out works at our development sites in Southampton and Bristol as well as completing works at our Reading store and expanding capacity at our Luton store. The Group also invested £0.14 million in additional racking in our document storage warehouse to increase box capacity.

 

The Company has no further capital commitments beyond final amounts due on its Reading store, the outstanding build and fitting out commitments at its Bristol and Southampton stores which are currently under development and a further phase of document storage racking.

 

Market Valuation of Freehold and Operating Leasehold Land and Buildings

On 31 July 2015 professional valuations were prepared by Cushman and Wakefield (C&W) in respect of eleven freeholds one long leasehold and seven operating leasehold properties. This valuation, after adjusting for the sale and manage-back of the Swindon store, has been adopted for the 31 January 2016 period-end. The valuation was prepared in accordance with the RICS Valuation - Professional Standards, published by The Royal Institute of Chartered Surveyors (the "Red Book").  The valuation has been provided for accounts purposes and, as such, is a Regulated Purpose Valuation as defined in the Red Book.

 

A deferred tax liability arises on the revaluation of the properties and on the rolled-over gain arising from the disposal of the Kingston and Woking sites in 2007. It is not envisaged that any tax will become payable in the foreseeable future on these disposals due to the availability of rollover relief.  The existing Reading store was sold with the benefit of its permission for residential development and the proceeds have been reinvested in our new store pipeline. It is not the intention of the Directors to make any other significant disposals of trading stores, although individual disposals may be considered where it is clear that added value can be created by recycling the capital into other opportunities.

 

The Board will continue to commission independent valuations on its trading stores annually to coincide with its year-end reporting.

 

The valuations of our freehold property assets are included in the Statement of Financial Position at their fair value, but under applicable accounting standards, no value is included in respect of our leasehold stores to the extent that they are classified as operating leases. The value of our operating leases in the valuation totals £14.8 million (31.1.2015: £14.6 million). Instead we have reported by way of a note the underlying value of these leasehold stores in future revaluations and adjusted our Net Asset Value (NAV) calculation accordingly to include their value. This will ensure comparable NAV calculations.

 

 

 

 

 

 

 

Analysis of Total Property Value

 

 

No of stores/sites

31 Jan 2016 Valuation

£'000

No of stores/sites

31 Jan 2015

Valuation

£'000

No of stores/sites

31 July 2015 Valuation

£'000

Freehold and long leasehold valued by C & W

 

112

 

70,610

 

12

 

65,910

 

12

 

74,110

Leasehold valued by C & W

7

14,760

7

14,570

71

14,760

Subtotal

18

85,370

19

80,480

19

88,870

Sites in development at cost

3

13,150

3

7,874

3

8,888

Total

21

98,520

22

88,354

22

97,758

 

1      Two leasehold stores were not valued as their remaining unexpired terms were insufficient to yield a value under the Cushman & Wakefield valuation methodology.

 

2      The Swindon Store was sold under a sale and manage-back arrangement.

 

 

Adjusted Net Asset Value per Share   

Adjusted net assets per share is the net assets of the Group business adjusted for the valuation of leasehold stores and deferred tax divided by the number of shares at the period-end. The shares currently held in the Group's employee benefits trust (own shares held) and in treasury are excluded from the number of shares.

 

At January 2016 the adjusted net asset value per share increased to £3.07 from £2.69 year on year, up 14.1%.  This increase is a result of higher property values, cash generated from operations, offset in part by an increase in the shares in issue due to the exercise of share options during the period and an increased dividend pay-out.
 

 

Adjusted Net Asset Value per Share (NAV)

31 Jan

2016

£'000

31 Jan

2015

£'000

31 July

2015

£'000

 

Net assets

Adjustment to include leasehold stores at valuation

Add: C & W leasehold valuation 1

Deduct: leasehold properties and their fixtures and fittings at NBV

 

56,409

 

14,760

(3,296)

 

45,711

 

14,570

(3,445)

 

52,969

 

14,760

(3,339)

 

67,873

56,836

64,390

 

Deferred tax arising on revaluation of leasehold properties 2

 

 (2,063)

 

 (2,225)

 

(2,284)

 

Adjusted net assets

 

65,810

 

54,611

 

62,106

 

Shares in issue

 

Number

 

 

Number

'000s

 

Number

'000s

Opening shares

Shares issued for the exercise of options

28,447

517

27,809

443

27,809

638

Closing shares in issue

Shares held in treasury

Shares held in EBT

28,964

 (2,467)

(623)

28,252

 (2,467)

(623)

28,447

(2,467)

(623)

 

Closing shares for NAV purposes

 

25,874

 

25,162

 

25,357

 

Adjusted net asset value per share after deferred tax provision

 

£2.54

 

£2.17

 

£2.45

 

Adjusted net asset value per share before deferred tax provision

 

£3.07

 

£2.69

 

£3.02

 

 

1     The seven leaseholds valued by Cushman & Wakefield are all within the terms of the Landlord and Tenant Act (1954) giving a degree of security of tenure. The average length of the leases on the leasehold stores valued was 12 years and 8 months at the date of the 2015 valuation (2015 valuation: 13 years and 8 months).

 

2  A deferred tax adjustment in respect of the uplift in the value of the leasehold properties has been included. Although this is a memorandum adjustment as leasehold properties are included in the Group's financial statements at cost and not at valuation, this deferred tax adjustment is included in the adjusted net asset value calculation in order to maintain a consistency of tax treatment between freehold and leasehold properties.

 

Corporate and Social Responsibilities

Lok'nStore conducts its business in a manner that reflects honesty, integrity and ethical conduct. We believe that the long-term success of the business is best served by respecting the interests of all our stakeholders. Management of social, environmental and ethical issues is of high importance to Lok'nStore. These issues are dealt with on a day-to-day basis by the Group's managers with principal accountability lying with the Board of Directors. We look for opportunities to address our responsibility to the environment, and we pay close attention to our energy use, carbon dioxide emissions, water use and waste production. At each year-end Lok'nStore commissions a full assessment of the Group's environmental impact.

 

Customers

We believe in clarity and transparency towards our customers. Brochures and literature are written in plain English, explaining clearly our terms of business without hiding anything. We are open and honest about our products and services and do not employ pressure selling techniques or attempt to take advantage of any vulnerable groups. If we make a mistake we acknowledge it, deal with the problem quickly, and learn from our error. We listen to our customers as we know that they can help us improve our service to them.

 

 

 

 

Andrew Jacobs                                    Ray Davies

Chief Executive Officer                            Finance Director

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 31 January 2016

 

Notes

Six months

 ended

31 January 2016

Unaudited

£'000

Six months

 ended

31 January 2015

Unaudited

£'000

Year ended

31 July 2015

Audited

£'000

Revenue

1a

7,986

7,629

15,424

 

 

 

 

 

Total property, staff, distribution and general costs

2a

(4,689)

(4,713)

     (9,742)

 

Adjusted EBITDA1

 

 

3,297

 

2,916

 

5,682

Amortisation of intangible assets

 

 

(84)

 

(83)

 

(165)

Depreciation

 

(735)

(689)

 (1,440)

Equity settled share based payments

18

(93)

(112)

 (211)

 

 

(912)

(884)

(1,816)

Irrecoverable property costs

 

-

-

(209)

Net settlement proceeds

2c

1,940

-

-

Costs of disposal - Swindon store(s)

 

(122)

-

-

 

 

906

(884)

(2,025)

Operating profit

 

 

4,203

 

2,032

                                         3,657

   

 

 

 

 

Finance income

3

150

26

141

Finance cost

4

(564)

(575)

(1,144)

 

 

 

 

 

Profit before taxation

5

3,789

1,483

2,654

Income tax expense

6

(817)

(387)

(686)

 

 

 

 

 

Profit for the period    

 

2,972

1,096

1,968

 

 

 

 

 

Profit attributable to:

 

 

 

 

Owners of the parent

20

2,972

1,096

1,968

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

Items that will not be reclassified to profit and loss

 

 

 

 

Increase/(decrease) in property valuation

 

379

(128)

8,009

Deferred tax relating to change in property valuation

 

734

26

  (1,578)

 

 

1,102

(102)

6,431

Items that may be subsequently reclassified to profit and loss

 

 

 

 

Increase/(decrease) in fair value of cash flow hedges

 

21

137

(170)

Deferred tax relating to cash flow hedges

 

(10)

(28)

38

 

 

11

109

(132)

Other comprehensive income

 

1,113

7

6,299

Total comprehensive income for the period

 

4,085

              1,103

8,267

 

Attributable to:

Owners of the parent

 

 

       4,085

 

              1,103

 

8,267

 

 

 

 

 

Earnings per share

 

 

 

 

Basic

8

     11.53p

              4.39p

7.84p

Diluted

8

11.26p

             4.29p

7.64p

 

1  Adjusted EBITDA and operating profit are defined in the accounting policies section of the notes to the interim report.

 

 

Consolidated Statement of Changes in Equity

 

Share

capital

£'000

Share

premium

£'000

Other

reserves

£'000

Revaluation

reserve

£'000

Retained

earnings

£'000

Attributable

to owners of

the parent

£'000

Non

controlling

interest

£'000

Total

equity

£'000

1 August 2014

279

1,801

8,595

26,478

8,057

45,210

-

45,210

Profit for the period

-

-

-

-

1,096

1,096

-

1,096

Other comprehensive income:

 

 

 

 

 

 

 

 

Decrease in property valuation net of deferred tax

-

-

-

(102)

-

(102)

-

(102)

Decrease in fair value of cash flow hedges net of deferred tax

-

-

109

-

-

109

-

109

Total comprehensive income

-

-

109

(102)

1,096

1,103

-

1,103

Transactions with owners:

 

 

 

 

 

 

 

 

Dividend paid

-

-

(1,258)

-

-

(1,258)

-

(1,258)

Transfer additional dep'n on revaluation net of deferred tax

-

              -

-

(107)

107

-

-

-

IFRS2 transfer share options to which the equity relates have either been exercised or lapsed

-

 

              -

(211)

-

211

-

-

-

Equity share based payments

-

-

112

-

-

112

-

112

Exercise of share options

4

540

-

-

-

544

-

544

31 January 2015 - Unaudited

283

2,341

7,347

26,269

9,471

45,711

-

45,711

Profit for the period

-

-

-

-

872

872

-

872

Other comprehensive income:

 

 

 

 

 

 

 

 

Increase in asset valuation net of deferred tax

-

-

-

6,533

-

6,533

-

6,533

Decrease in fair value of cash flow hedges net of deferred tax

-

-

(241)

-

-

(241)

-

(241)

Total comprehensive income

-

-

(241)

6,533

872

7,164

-

7,164

Transactions with owners:

 

 

 

 

 

 

 

 

Dividend paid

-

-

1,258

-

(1,847)

(1,847)

-

(589)

IFRS2 transfer share options to which the equity relates have either been exercised or lapsed

-

 

              -

(87)

-

87

-

 

-

Equity share based payments

-

-

99

-

-

99

-

99

Deferred tax credit relating to share options

 

-

 

-

309

-

-

309

 

309

Exercise of share options

2

273

-

-

-

275

-

275

Total transactions with owners

 

 

 

 

 

 

 

 

Transfer realised gain on asset disposal

-

-

-

(421)

421

-

-

-

Transfer additional dep'n on revaluation net of deferred tax

-

 

             -

-

(142)

142

-

-

-

31 July 2015 - Audited

285

2,614

8,685

32,239

9,146

52,969

-

52,969

Profit for the period

-

-

-

-

2,972

           2,972

-

2,972

Other comprehensive income:

 

 

 

 

 

 

 

 

Increase in property valuation net of deferred tax

-

-

-

1,102

-

1,102

-

1,102

Decrease in fair value of cash flow hedges net of deferred tax

-

-

11

-

-

11

-

11

Total comprehensive income

-

-

11

1,102

2,972

           4,085

-

4,085

Transactions with owners:

 

 

 

 

 

 

 

 

Dividend paid

-

-

-

-

(1,456)

(1,456)

-

(1,456)

IFRS2 transfer share options to which the equity relates have either been exercised or lapsed

-

 

              -

     (303)

-

303

-

-

-

Equity share based payments

-

-

93

-

-

93

-

93

Deferred tax credit relating to share options

 

-

 

-

(6)

-

-

(6)

 

(6)

Exercise of share options

5

719

-

-

-

724

-

724

Total transactions with owners

 

 

 

 

 

 

 

 

Transfer realised gain on asset disposal

-

-

-

 

(1,668)

1,668

-

-

-

Transfer additional dep'n on revaluation net of deferred tax

-

 

             -

-

(128)

128

-

-

-

31 January 2016 - Unaudited

290

3,333

8,480

31,545

12,761

56,409

-

56,409

 

Consolidated Statement of Financial Position

31 January 2016                                                                                  

                                                                                                               

                                                                                                               

 

Notes

 

31 January

2016

Unaudited

£'000

 

31 January

2015

Unaudited

£'000

 

31 July

2015

Audited

 £'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Intangible assets

 

3,674

3,840

3,758

Property, plant and equipment

9

88,494

78,721

87,802

Development loan capital

10

2,905

-

2,779

Derivative financial instruments

15b

-

188

-

 

 

95,073

82,749

94,339

Current assets

 

 

 

 

Inventories

11

139

127

141

Trade and other receivables

12

3,677

3,408

2,479

Cash and cash equivalents

 

3,010

3,397

2,435

Total current assets

 

                   6,826

6,932

5,055

Total assets

 

101,899

89,681

99,394

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

13

(4,839)

(4,883)

(5,971)

Taxation

 

(294)

(624)

(535)

Derivative financial instruments

15b

(99)

-

-

 

 

(5,232)

(5,507)

(6,506)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

Derivative financial instruments

Deferred tax

15a

15b

16

 (28,624)

-

(11,634)

(27,497)

-

(10,966)

(27,548)

(119)

(12,252)

 

 

(40,258)

(38,463)

(39,919)

Total liabilities

 

(45,490)  

(43,970)

(46,425)

Net assets

 

56,409

45,711

52,969

 

 

 

 

 

 

 

 

Equity

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

Called up share capital

17

290

282

285

Share premium

 

3,333

2,342

2,614

Other reserves

18

8,480

7,347

8,685

Retained earnings

19

12,761

9,471

9,146

Revaluation reserve

 

31 ,545

26,269

32,239

Total equity

 

56,409

45,711

52,969

                                                                                                               

Approved by the Board of Directors and authorised for issue on 22 April 2016 and signed on its behalf by:

                                               

 

 

 

Andrew Jacobs                                    Ray Davies

Chief Executive Officer                            Finance Director

 

Consolidated Statement of Cash Flows

For the six months ended 31 January 2016 

 

 

 

Notes

Six months ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended 

31 July

2015

Audited

 £'000

Operating activities

 

 

 

 

Cash generated from operations

21a

1,826

1,388

5,984

Income tax paid

 

(961)

-

(338)

 

Net cash from operating activities

 

865

1,388

5,646

 

Investing activities

 

 

 

 

Development loan capital

 

(126)

-

(2,650)

Purchase of property, plant and equipment

9

(4,589)

(1,865)

(3,583)

Net proceeds from disposal of property, plant and equipment

 

5,398

2,907

2,901

Interest received

 

135

26

12

Net cash from/(used in) investing activities

 

818

(1,068)

(3,320)

 

 

 

 

 

Financing activities

 

 

 

Repayment of borrowings

 

(27,701)

-  

-

Proceeds from new borrowings

 

28,816

-

-

Loans granted to projects under management contracts

 

(978)

-

-

Finance costs paid

 

(513)

(524)

(1,041)

Equity dividends paid

 

(1,456)

(1,258)

(1,847)

Proceeds from issuance of ordinary shares (net)

 

724

545

         819

Net cash used in financing activities

 

(1,108)

(1,237)

        (2,069)

 

 

 

 

 

Net increase in cash and cash equivalents in the period

 

 

575

1,219

257

 

Cash and cash equivalents at beginning of the period

 

 

2,435

2,178

 

2,178

 

Cash and cash equivalents at end of the period

 

 

3,010

3,397

 

2,435

 

 

 

 

 

Accounting Policies

 

General Information

Lok'nStore Group plc is an AIM listed company incorporated and domiciled in England and Wales. The address of the registered office is One London Wall, London EC2Y 5AB, UK. Copies of this Interim Report and Accounts may be obtained from the Company's head office at 112 Hawley Lane, Farnborough, Hants, GU14 8JE, or from the investor section of the Company's website at http://www.loknstore.co.uk.                              

 

Basis of preparation

The interim results for the six months ended 31 January 2016 have been prepared on the basis of the accounting policies expected to be used in the 2016 Lok'nStore Group Plc Annual Report and Accounts and in accordance with the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union ('EU') ('IFRS').

 

The same accounting policies, presentation and methods of computation are followed in these interim condensed set of financial statements as have been applied in the Group's latest annual audited financial statements.

 

The interim results, which were approved by the Directors on 22 April 2016, are unaudited.  The interim results do not constitute statutory financial statements within the meaning of section 435 of the Companies Act 2006.

 

Comparative figures for the year ended 31 July 2015 have been extracted from the statutory accounts for the Group for that period, which carried an unqualified audit report, did not include a reference to any matters to which the auditor drew attention by way of emphasis of matter, did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and have been delivered to the Registrar of Companies.

 

Going concern

The Directors can report that, based on the Group's budgets and financial projections, they have satisfied themselves that the business is a going concern. The Board has a reasonable expectation that the Company and the Group have adequate resources and facilities to continue in operational existence for the foreseeable future based on Group cash balances and cash equivalents of £3.0 million (31.01.2015: £3.4 million), undrawn committed bank facilities at 31 January 2016 of £11.4 million (31.01.2015: £12.3 million), and cash generated from operations in the period to 31 January 2016 of £3.8 million (31.01.2015: £1.4 million). The Group operates a new banking facility on improved terms with Royal Bank of Scotland plc. The new £40 million five year revolving credit facility has replaced the existing facility which was due to expire in October 2016, and will provide funding for site acquisitions and working capital. The Group is fully compliant with all bank covenants and undertakings and is not obliged to make any repayments prior to expiration. The financial statements are therefore prepared on a going concern basis.

 

Adjusted EBITDA

Earnings before interest, tax, depreciation and amortisation (EBITDA) is defined as profits from operations before all depreciation and amortisation charges, share-based payments and other non-recurring costs, finance income, finance costs and taxation.

 

Store adjusted EBITDA

Store adjusted EBITDA is defined as adjusted EBITDA (see above) but before central and head office costs.

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the Financial Statements

For the six months ended 31 January 2016 

 

1              Revenue

Analysis of the Group's revenue is shown below:

 

 

Six months

ended

31 January

2016

Unaudited

Six months

ended

31 January

2015

Unaudited

 Year

ended

31 July

2015

Audited

Stores trading

£'000

£'000

£'000

 

Self-storage revenue

 

6,004

5,921

11,851

Other storage related revenue

738

713

1,434

Ancillary store rental revenue

4

4

4

Management fees

190

68

176

Sub-total

6,936

6,706

13,465

Stores under development

 

 

 

Non-storage income

(8)

-

3

Sub-total

6,928

6,706

13,468

Serviced archive and records management revenue

                       1,058

923

1,956

Total revenue per statement of comprehensive income

7,986

7,629

15,424

 

 

                                                                                                               

The segment information for the period ended 31 January 2016 is as follows:

 

 

 

2015/2016 - Unaudited

Self-storage

six months ended

31 January

2016

£'000

Serviced archive

and records management

six months ended

31 January

2016

£'000

Total

six months ended

31 January 2016

£'000

Self-storage

six months ended

31 January

2015

£'000

Serviced archive

and records management

six months ended

31 January

2015

£'000

Total

six months ended

31 January 2015

£'000

Revenue from external customers

6,928

1,058

 

7,986

6,706

923

 

7,629

 

Segment adjusted EBITDA

3,045

252

    

3,297

2,808

108

    

2,916

Depreciation

Amortisation of intangible assets

(685)

-

 

(50)

(84)

 

(735)

(84)

 

(633)

-

 

(48)

(83)

 

(689)

(83)

 

 

Equity settled share based payments

(93)

-

 

(93)

(112)

 -

 

(112)

Net settlement proceeds - Reading site

1,940

-

1,940

 

 

 

Costs of disposal - Swindon Store

(122)

-

(122)

 

 

 

Segment profit/(loss)

4,085

118

4,203

2,063

(31)

2,032

 

Central costs not allocated to segments:

 

 

 

 

 

 

Finance income

 

 

150

 

 

26

Finance costs

 

 

(564)

 

 

(575)

Profit before taxation

 

 

3,789

 

 

1,483

Income tax expense

 

 

(841)

 

 

(387)

 

 

 

 

 

 

 

Consolidated profit for the financial period

 

 

2,948

 

 

1,096

 

 

 

 

 

 

 

2014/2015 - Audited

Self-storage

year

ended

31 July

2015

£'000

Serviced archive & records management

year

ended

31 July

2015

£'000

Total

year

ended

31 July

2015

£'000

Revenue from external customers

13,468

1,956

15,424

 

Segment adjusted EBITDA

Management charges

5,420

25

262

(25)

    

5,682

-

Depreciation

Amortisation of intangible assets

(1,340)

-

 

(100)

(165)

 

(1,440)

(165)

 

Equity settled share based payments

(211)

 -

 

(211)

Irrecoverable property costs

(209)

 -

(209)

 

Segment profit/(loss)

3,685  

(28)

 

3,657   

Central costs not allocated to segments:

 

 

 

Finance income

 

 

141

Finance costs

 

 

(1,141)

Profit before taxation

 

 

2,654 

Income tax expense

 

 

(686)

 

 

 

 

Consolidated profit for the financial year

 

 

1,968

 

 

 

 

 

 

 

2016

Unaudited

Self-storage

31 January

 2016

£'000

Serviced archive & records management 

31 January 2016

£'000

Total

31 January

2016

£'000

Self-storage

31 January

 2015

£'000

Serviced archive & records management 

31 January 2015

£'000

Total

31 January

2015

£'000

Segment assets

95,913

5,986

101,899

83,806

5,875

89,681

 

 

 

 

 

 

 

Segment liabilities

(17,246)

(445)

(17,691)

(15,975)

(498)

(16,473

Borrowings

 

 

(28,624)

 

 

 

 

 

 

       (27,497)

 

 

 

Total liabilities

 

 

 

          (46,315)

 

 

 

(43,970)

Capital expenditure

4,449

140

4,589

1,423

442

1,865

 

1      Capital expenditure includes fixed asset additions (note 9).

 

 

2015

Audited

Self-storage

31 July

 2015

£'000

Serviced archive & records management 

31 July 2015

£'000

Total

31 July

2015

£'000

Segment assets

93,296

6,098

99,394

 

 

 

 

Segment liabilities

(18,341)

(536)

(18,877)

Borrowings

 

 

 

 

(27,548)

Total liabilities

 

 

(46,425)

Capital expenditure

3,126

457

3,583

 

 

 

 

 

 

2a            Property, staff, distribution and general costs

 

 

 

 

Six months ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

Property and premises costs

1,960

4,010

Staff costs

2,074

2,005

4,188

General overheads

481

491

1,049

Distribution costs

78

95

190

Retail products cost of sales

167

162

305

 

4,689

4,713

9,742

 

2b           Cost of sales of retail products

Cost of sales represents the direct costs associated with the sale of retail products such as boxes and packaging and, the ancillary sales of insurance cover for customer goods, all of which fall within the Group's ordinary activities.

 

 

Six months ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

Retail

69

130

Insurance

33

17

33

Van hire

                               1

-

2

Other

1

1

-

 

87

165

Serviced archive consumables and direct costs

77

75

140

 

167

162

305

 

2c           Other Income

 

 

Six months ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

 

Net settlement proceeds

1,940

-

-

 

The Group has received an additional £2 million from the purchaser of the original Reading store site in return for the relinquishment of all remaining rights over the site. This sum is in addition to the £2.9 million received from the purchaser on 31 October 2014, taking the total consideration to £4.9m.

3              Finance income

                                                                                                                                                                                                        

 

Six months

ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

Bank interest

150

26

141

                                               

4              Finance costs

 

 

Six months ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

 

Bank interest

 

456

465

 

925

Non-utilisation fees and amortisation of bank loan arrangement fees

 

108

110

 

219

Hire purchase and other interest

-

-

1

 

564

575

1,144

 Most interest payable arises on bank loans classified as financial liabilities measured at amortised cost.

 

 

5              Profit before taxation

                                                                                                                                                                                                        

 

Six months ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£ '000

 

Profit before taxation is stated after charging:

 

 

 

Depreciation and amounts written off property, plant and equipment:

 

 

 

- owned assets

 

Amortisation of intangible assets

Operating lease rentals - land and buildings

735

 

84

762

681

 

83

773

1,440

 

165

1,562

 

 

6              Taxation

 

Six months ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

Current tax:

 

 

 

UK corporation tax

728

293

535

 

Deferred tax:

 

 

 

Origination and reversal of temporary differences

468

94

100

Adjustments in respect of prior periods

(379)

-

51

Total deferred tax charge

89

94

151

Income tax expense for the period/year

817

387

686

 

The charge for the period can be reconciled to the profit for the period as follows:

 

 

Six months ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

 

Profit before tax

3,789

1,483

2,654

 

Tax on ordinary activities at the standard effective rate of corporation tax in the UK of 20% (31.1.2015: 20.67%)

 

 

 

758

306

 

 

 

549

Expenses not deductible for tax purposes

1

4

2

Depreciation of non-qualifying assets

38

58

85

Share based payment charges in excess of corresponding tax deduction

 

19

23

-

Adjustments in respect of prior periods - deferred tax

-

-

51

Adjustments in respect of prior periods - corporation tax

3

-

-

Impact of change in tax rate on closing DT balance

(379)

-

-

Impact of change in tax rate on timing differences

-

(4)

-

Share option scheme

(12)

-

-

Deferred tax on rolled over gain

388

-

-

Other timing differences

1

-

(1)

Income tax expense for the period/year

817

387

686

Effective tax rate

22.2%

26%

26%

 

The UK's main rate of corporation tax reduced to 20% from 1 April 2015. The effective rate for this period is 22.2%. (31.01.2015: 26%).

 

In addition to the amount charged to profit or loss for the period, deferred tax relating to the revaluation of the Group's properties of £75,900 (31.1.2015: £25,612) and the fair value of cash flow hedges of £11,616 (31.1.2014: £28,320) has been recognised directly in other comprehensive income (see note 16 on deferred tax).

 

7              Dividends

 

Six months ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

Amounts recognised as distributions to equity holders in the year:

 

 

 

 

 

 

 

Final dividend for the year ended 31 July 2014 (5.00 pence per share)

-

1,258

 

1,258

 

Interim dividend for the six months to 31 January 2015 (2.33 pence per share)

-

-

589

 

Final dividend for the year ended 31 July 2015 (5.67 pence per share)

 

1,456

 

-

 

-

 

1,456

1,258

1,847

 

In respect of the current period the Directors propose that an interim dividend of 2.67 pence per share will be paid to the shareholders. The total estimated dividend to be paid is £691,236 based on the number of shares currently in issue as adjusted for shares held in the Employee Benefits Trust and for shares held on treasury. This interim dividend is an on-account payment of a final annual dividend and is ultimately subject to approval by shareholders at the 2016 Annual General Meeting and has not been included as a liability in these financial statements. The ex-dividend date will be 5 May 2016; the record date 6 May 2016; with an intended payment date of 10 June 2016.

 

 

8              Earnings per share

 

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

 

 

Six months

ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

Profit for the financial period

2,972

1,096

1,968

 

 

 

 

 

 

No. of shares

 

No. of shares

 

No. of shares

Weighted average number of shares

 

 

 

For basic earnings per share

25,775,767

24,950,434

25,102,032

Dilutive effect of share options

626,082

614,261

654,598

For diluted earnings per share

26,401,849

25,564,695

24,981,571

 

623,212 (31.01.2015: 623,212) shares are held in the Employee Benefit Trust and 2,466,869 (31.01.2015:2,466,869) shares are held in Treasury. Both are excluded from the above calculation.

 

                                                                           

 

Six months

ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£

Year

ended

31 July

2015

Audited

£

Earnings per share

 

 

 

Basic

11.53p

4.39p

7.84p

Diluted

11.26p

4.29p

7.64p

 

 

 

 

9              Property, plant and equipment

 

Group

Development

property assets

at cost

£'000

Land and

buildings

at valuation

£ '000

Long leasehold land and  buildings

at valuation

£'000

Short leasehold

improvements

at cost

£'000

Fixtures,

fittings and

equipment

at cost

£'000

Motor

vehicles

at cost

£'000

Total

£'000

 

Net book value at 31 July 2014 Audited

 

11,409

 

51,412

 

5,121

 

961

 

8,764

 

12

 

77,679

 

Net book value at 31 Jan 2015 Audited

 

7,874

 

54,265

 

5,029

 

918

 

10,624

 

11

 

78,721

 

Net book value at 31 July 2015 Audited

 

8,888

 

61,035

 

6,425

 

873

 

10,572

 

19

 

87,802

Cost or valuation

 

 

 

 

 

 

 

1 August 2015

10,492

61,035

6,425

2,563

20,571

30

101,116

Additions

2,831

134

1

-

1,623

-

4,589

Disposals

-

(3,228)

-

-

(701)

-

(3,929)

Reclassification

1,431

-

-

-

(1,431)

-

-

Revaluations

-

(6)

52

-

-

-

46

31 January 2016 - Unaudited

14,754

57,935

6,478

2,563

20,062

30

101,822

 

 

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

 

1 August 2015

1,604

 -

              -

1,690

9,999

          21

13,314

Depreciation

-

295

37

46

356

1

735

Disposals

-

-

-

-

(389)

-

(389)

Revaluations

 

(295)

 (37)

-

-

-

(332)

31 January 2016 - Unaudited

1,604

-

         -

1,736

9,966

22

13,328

 

Net book value at January 2016 Unaudited

 

 

13,150

 

 

57,935

 

 

6,478

 

 

827

 

 

10,096

 

 

8

 

 

88,494

                   

 

 

If all property, plant and equipment were stated at historic cost the carrying value would be £50.0 million (31.01.2015: £46.4 million).

 

Capital expenditure during the period totalled £4.6 million (31.1.2015: £1.9 million). This was primarily the construction and fitting out works at our developments sites in Southampton and Bristol as well as completing works at our Reading Store and expanding capacity at our Luton store. The Group also invested a further £0.14 million in additional racking at the Saracen Olney warehouse to increase box capacity.

 

Property, plant and equipment (non-current assets) with a carrying value of £88.5 million (31.1.2015: £78.7 million) are pledged as security for bank loans (see note 15a).

 

Market Valuation of Freehold and Operating Leasehold Land and Buildings

Following the comprehensive external valuation at 31 July 2015 by Cushman and Wakefield (C&W), the freehold and leasehold properties have not been externally valued at 31 January 2016, although in accordance with the Group's established policy it is the intention to do so at the next year end at 31 July 2016. 

 

Although the Board did not commission an external valuation at this interim period-end it is mindful of the need to accord with the measurement principles of International Financial Reporting Standards as adopted by the European Union. Accordingly after

consulting with our external valuers, the Directors considered that although there was evidence of a more buoyant real estate market, there had not been such a material movement in market yields that warranted a modification to the position as at 31 January 2016 in respect of our properties externally valued at 31 July 2015. The Directors therefore consider that it is appropriate to maintain the portfolio's external valuation without modification pending a comprehensive external valuation at our 31 July 2016 year-end.

 

 

 

 

 

10           Development loan capital

 

In May 2015 Lok'nStore opened a new store in Aldershot, Hampshire to which it provided development loan capital. The store is managed for outside investors under the Lok'nStore brand.  Lok'nStore has managed the building and subsequent operation of the store and will generate a return on £2.5 million of the total development capital committed to the project, and a management fee for the construction, operation and branding of the store.

 

 

31 January

2016

Unaudited

£'000

31 January

2015

Unaudited

£'000

31 July

2015

Audited

£'000

Development loan capital

2,905

-

2,779

 

11           Inventories

                                                                                                                                                    

 

31 January

2016

Unaudited

£'000

31 January

2015

Unaudited

£'000

31 July

2015

Audited

£'000

Consumables and goods for resale

139

127

141

 

The amount of inventories recognised as an expense during the period was £74,320 (31.1.2015: £98,634).

 

12           Trade and other receivables

                                                                                                                                                    

 

31 January

2016

Unaudited

£'000

 

31 January

2015

Unaudited                           £'000

 

31 July

2015

Audited                           £'000

Trade receivables

1,344

1,183

1,302

Other receivables

1,511

1.596

640

Prepayments and accrued income

822

629

537

 

3,677

3,408

2,479

                                               

The Directors consider that the carrying amount of trade and other receivables and accrued income approximates their fair value.

 

13           Trade and other payables

 

31 January

2016

Unaudited

£'000

31 January

2015

Unaudited                           £'000

31 July

2015

Audited                           £'000

Trade payables

864

952

1,901

Taxation and social security costs

884

598

464

Other payables

1,095

1,112

1,173

Accruals and deferred income

1,996

2,221

2,433

 

4,839

4,883

5,971

 

The Directors consider that the carrying amount of trade and other payables and accruals approximates fair value.

 

14           Capital management and gearing

 

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance.

 

The gearing ratio at the period-end is as follows:

 

Capital Management

 

31 January

2016

Unaudited                             £'000

31 January

2015 Unaudited                     £'000

31 July

2015

Audited                     £'000

Gross debt

(28,816)

(27,701)

(27,701)

Cash and cash equivalents

3,010

3,397

2,435

Net debt

(25,806)

(24,304)

(25,266)

Total equity

56,409

45,711

52,968

Net debt to equity ratio

45.7%

53.2%

47.7%

 

 

15a         Borrowings

                                                                                                                                                    

 

31 January

2016 Unaudited

£'000

31 January

2015 Unaudited

£'000

31 July

2015

Audited                      £'000

Non-current

 

 

 

Bank loans repayable in more than two years

 

 

 

 but not more than five years

 

 

 

Gross

28,816

27,701

27,701

Deferred financing costs

(192)

(204)

(153)

Net bank borrowings

28,624

27,497

27,548

 

 

In January 2016, the Group announced the agreement of a new banking facility on improved terms with Royal Bank of Scotland plc. The new £40 million five year revolving credit facility will replace the existing facility which was due to expire in October 2016, and will provide funding for site acquisitions and working capital. The £40 million revolving credit facility with Royal Bank of Scotland plc is secured by legal charges and debentures over the freehold and leasehold properties and other assets of the business with a net book value of £98.7 million together with cross-company guarantees from Group companies. The revolving credit facility is for a five-year term and expires on 14 January 2021. The Group is not obliged to make any repayments prior to expiration. The loans bear interest at the London Inter-Bank Offer Rate (LIBOR) plus 1.40%-1.45% Royal Bank of Scotland plc margin based on a loan to value covenant test while the interest cover and loan to value covenants are broadly in line with the previous facility. 

 

 

15b         Derivative financial instruments

Of the £28.8 million of gross debt currently drawn against the revolving credit facility, £20 million is at a fixed interest rate with £10 million fixed rate swap at a fixed 1 month sterling LIBOR rate of 1.2% and £10 million swap at a fixed 1 month sterling LIBOR rate of 1.15%. With 1 month LIBOR around 0.5%, this leaves a balance of £8.8 million floating at a current all-in rate of around 2.8% and results in an overall weighted average rate of 3.25%. The £20 million fixed rate is treated as an effective cash flow hedge and its fair value on a mark-to-market basis has fluctuated historically. Under the new facility arrangements the Group is not committed to enter into hedging instruments going forwards but rather to keep such matters under periodic review.  Due to the relatively short unexpired term of the existing £20m of swaps these will continue to be held by Lloyds Bank plc on a modest 'cash cover' basis until their expiration in October 2016.

 

 

 

 

 

 

Fair Value

 

Currency

Principal

£

Maturity date

 

31 Jan

2016 Unaudited

£'000

31 Jan

2015 Unaudited

£'000

31 July

2015 Audited              £'000

3032816LS   Interest rate swap

GBP

10,000,000

20/10/2016

(51)

98

(63)

3047549LS   Interest rate swap

GBP

10,000,000

20/10/2016

(48)

90

(56)

 

 

20,000,000

 

(99)

188

(119)

 

The movement in fair value of the interest rate swaps of £20,529 (31.1.2015: £137,033) has been recognised in other comprehensive income in the period.

 

 

16           Deferred tax

                                                                                                                                                                               

Deferred tax liability

31 January 2016

Unaudited

£'000

31 January 2015

Unaudited

£'000

31 July 2015

Audited

£'000

 

Liability at start of period/year

 

12,252

 

10,870

 

10,870

Charge to income for the period/year

89

94

151

Tax charged directly to other comprehensive income

(707)

2

1,540

Credit to share based payment reserve

-

-

(309)

Liability at end of period/year

11,634

10,966

12,252             

 

 

 

 

 

 

 

The following are the major deferred tax liabilities and assets recognised by the Group and the movements during the year:

 

 

 

Accelerated

Capital

Allowances

£'000

Tax

losses

£'000

Intangible

assets

£'000

Other

temporary

differences

£'000

Revaluation of

properties

£'000

Rolled

over gain

on disposal

£'000

Share

Options

£'000

Total

£'000

 At 1 August 2014

1,441

-

563

29

7,008

1,829

-

10,870

Charge/ (credit) to income for the period

111

-

(17

-

-

-

-

94

Charge to other comprehensive income

-

-

-

28

(26)

-

-

2

At 31 January 2015 Unaudited

1,552

-

546

57

6,982

1,829

-

10,966           

Charge/ (credit) to income for the period

156

-

(16

1

-

(42)

(42)

57

Charge to other comprehensive income

-

-

-

(66)

1,604

-

-

1,538

Credit to share based payment reserve

 

-

 

-

 

-

 

-

 

-

 

-

(309)

(309)

At 31 July 2015 Audited

1,708

-

530

(8)

8,586

1,787

(351)

12,252            

Charge/ (credit) to income for the period

(62)

-

(68

34

-

162

23

89

Charge to other comprehensive income

-

-

-

10

(734)

11

6

(707)

At 31 January 2016 Unaudited

1,646

-

462

36

7,852

1,960

(322)

11,634           

 

A deferred tax asset of £321,313 arises in respect of the share options in existence at 31 January 2016.  No deferred tax asset arises in relation to the remainder of the share options as at 31 January 2016 as the share price at the period-end is below the exercise price of the options.

 

 

17           Share capital

                                                                                                                                                                                                      

 

31 January 2016

Unaudited

£'000

31 January 2015

Unaudited

£'000

31 July 2015

Audited

£'000

Authorised: :35,000,000 ordinary shares of 1 pence each

350

350

350

 

 

Called up,

 

Called up,

 

Called up,

 

allotted and

allotted and

allotted and

 

fully paid

fully paid

fully paid

 

Number

Number

Number

Number of shares at start of period/year

28,446,749

27,809,108

27,809,108

Options exercised during period/year

517,328

443,086

637,641

Balance at end of period/year

28,964,077

28,252,194

28,446,749

 

 

 

 

Allotted, issued and fully paid ordinary shares

£'000

£'000

 £'000

Balance at start of period/year

284,467

278,091

278,091

Options exercised during period/year

5,175

4,430

6,376

Balance at end of period/year

289,640

282,521

284,467

 

The Company has one class of ordinary shares which carry no right to fixed income.

 

 

 

 

 

 

 

 

 

 

 

18           Other reserves

 

 

Cash flow

 

 

Other

 

Capital

Share-based

 

 

hedge

Merger

reserve

redemption

payment

 

 

reserve

reserve

 

reserve

reserve

Total

Group

£'000

£'000

£'000

£'000

£'000

£'000

1 August 2014 - Audited

33

6,295

1,294

34

939

8,595

Equity share based payments

-

-

-

-

112

112

Transfer to retained earnings

-

-

-

-

 (211)

(211)

Cash flow hedge reserve net of tax

109

-

-

-

109

Dividend paid

-

-

(1,258)

-

-

(1,258)

31 January 2015 - Unaudited

142

6,295

36

34

840

7,347

Equity share based payments

-

-

-

-

99

99

Transfer to retained earnings in relation to share based payments

-

-

-

-

(87)

(87)

Cash flow hedge reserve net of tax

(241)

-

-

-

-

(241)

Dividend paid

-

-

1,258

-

-

1,258

-

-

-

-

309

309

31 July 2015 - Audited

(99)

6,295

1,294

34

1,161

8,685

Equity share based payments

-

-

-

-

93

93

Transfer to retained earnings in relation to share based payments

-

-

-

-

 (303)

 (303)

Cash flow hedge reserve net of tax

11

-

-

-

11

 

 

 

 

(6)

(6)

 

31 January 2016 - Unaudited

 

(88)

 

6,295

 

1,294

 

34

 

945

 

8,480

 

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 of Lok'nStore Limited as at 31 July 2001. The other distributable reserve and the capital redemption reserve arose in the year ended 31 July 2004 from the purchase of the Company's own shares and a cancellation of share premium.

 

Share based payment reserve

Under IFRS2 there is the option to make transfers from the share based payment reserve to retained earnings in respect of accumulated share option charges where the options have either been exercised or have lapsed post-vesting. The total amounts calculated and accordingly transferred to retained earnings in the period amounted to £302,804. (31.1.2015: £210,749)

 

19           Retained earnings

 

 

 

 

Retained earnings before

 

 

Retained

 

 

 

deduction of

Own shares

earnings

 

 

 

own shares

(note 21)

Total

Group

 

 

£'000

£'000

£'000

1 August 2014 - Audited

 

 

12,298

(4,241)

8,057

Profit for the financial period

 

 

1,096

-

1,096

Transfer from non-controlling interest

 

 

107

-

107

Transfer from revaluation reserve

 

 

             211

                  211                   

31 January 2015 - Unaudited

 

 

13,712

(4,241)

9,471

Profit for the financial period

 

 

872

-

872

Transfer from revaluation reserve (additional depreciation on revaluation)

 

 

142

-

142

Transfer from share based payment  reserve (Note 19)

 

 

87

87

Dividend paid

 

 

(1,847)

-

(1,847)

Transfer realised gain on asset disposal

 

 

421

-

421

31 July 2015 - Audited

 

 

13,387

(4,241)

9,146

Profit for the financial period

 

 

2,972

-

2,972

Transfer from revaluation reserve

 

 

128

-

128

Transfer from share based payment  reserve (Note 19)

 

 

303

303                                      

Dividend paid

 

 

(1,456)

-

(1,456)

Transfer realised gain on asset disposal

 

 

1,668

-

1,668

31 January 2016 - Unaudited

 

 

17,002

(4,241)

12,761

 

The transfer from revaluation reserve represents the additional depreciation charged on revalued assets net of deferred tax.

 

The Own Shares Reserve represents the cost of shares in Lok'nStore Group plc purchased in the market and held in the Employee Benefit Trust to satisfy awards made under the Group's share incentive plan and shares purchased separately by Lok'nStore Limited for Treasury Account. These treasury shares have not been cancelled and were purchased at an average price considerably lower than the Group's adjusted net asset value. These shares may in due course be released back into the market to assist liquidity of the Company's stock and to provide availability of a reasonable line of stock to satisfy investor demand as and when required.

 

 

20           Own shares

 

 

ESOP

ESOP

Treasury

Treasury

Own shares

 

shares

shares

shares

shares

total

 

Number

£

Number

£

£

 1 August 2014 - Audited

623,212

499,910

2,466,869

3,741,036

4,240,946

31 January 2015 - Unaudited

623,212

499,910

2,466,869

3,741,036

4,240,946

31 July 2015 - Audited

623,212

499,910

2,466,869

3,741,036

4,240,946

31 January 2016 - Unaudited

623,212

499,910

2,466,869

3,741,036

4,240,946

 

Lok'nStore Limited holds a total of 2,466,869 of Lok'nStore Group plc ordinary shares of 1p each for treasury with an aggregate nominal value of £24,669 purchased for an aggregate cost of £3,741,036 at an average price of £1.503 per share. These shares represent 8.52% of the Parent Company's called-up share capital. The maximum number of shares held by Lok'nStore Limited in the period was 2,466,869. No shares were disposed of or cancelled in the year.

 

The Group operates an Employee Benefit Trust (EBT) under a settlement dated 8 July 1999 between Lok'nStore Limited and Lok'nStore Trustee Limited, constituting an employees' share scheme. Funds are placed in the trust by way of deduction from employees' salaries on a monthly basis as they so instruct for purchase of shares in the Company. Shares are allocated to employees at the prevailing market price when the salary deductions are made.  As at 31 January 2016, the Trust held 623,212 (31.01.2015: 623,212) ordinary shares of 1 pence each with a market value of £2,003,627 (31.01.2015: £1,486,361). No shares were transferred out of the scheme during the period (2015: nil).

 

No dividends were waived during the year. No options have been granted under the EBT.

 

21           Cash flows

 

(a) Reconciliation of profit before tax to cash generated from operations

 

 

 

 

Six months

ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

 

Profit before tax

 

 

 

1,849

 

1,483

 

2,654

Depreciation

 

 

735

681

1,440

Amortisation of intangible assets

 

 

83

83

165

Equity settled share based payments

 

 

93

112

211

Interest receivable

 

 

(150)

(26)

(141)

Interest payable

 

 

564

575

1,144

Decrease/ (increase) in inventories

 

 

2

3

(10)

(Increase)/ decrease in receivables

 

 

(221)

(507)

423

(Decrease) / increase in payables

 

 

(1,129)

(1,024)

98

Cash generated from operations

 

 

1,826

1,388

5,984

 

 

 

 

 

 

 

(b) Reconciliation of net cash flow to movement in net debt

 

Net debt is defined as non-current and current borrowings, as detailed in note 15a less cash and cash equivalents.

 

 

 

 

Six months

ended

31 January

2016

Unaudited

£'000

Six months

ended

31 January

2015

Unaudited

£'000

Year

ended

31 July

2015

Audited

£'000

 

Increase in cash in the period/year

 

 

 

575

 

1,219

 

257

Change in net debt resulting from cash flows

 

 

(1,115)

-

-

Movement in net debt in period

 

 

(540)

1,219

257

Net debt brought forward

 

 

(25,266)

(25,523)

(25,523)

Net debt carried forward

 

 

(25,806)

(24,304)

(25,266)

 

 

22           Events after the reporting date

There were no reportable events after the reporting date.

 

 

23           Capital commitments and guarantees

The Group has capital expenditure contracted but not provided for in the financial statements of £2.2 million (31.01.2015: £1.6 million).  The Company has no further capital commitments beyond final amounts due on its Reading store, the outstanding build and fit-out commitments at its Bristol and Southampton stores which are currently under development, and a further phase of racking fit-out at its Saracen Olney Warehouse.

 

 

Our Stores

 

Head office

Lok'nStore plc

112 Hawley Lane

Farnborough

Hampshire GU14 8JE

Tel 01252 521010

 

www.loknstore.co.uk

www.loknstore.com           

 

Central Enquiries

0800 587 3322

info@loknstore.co.uk         

www.loknstore.co.uk         

 

Basingstoke, Hampshire

Crockford Lane

Chineham

Basingstoke

Hampshire RG24 8NA

Tel  01256 474700

Fax 01256 477377

basingstoke@loknstore.co.uk         

 

Crayford, Kent

Block B

Optima Park

Thames Road

Crayford

Kent DA1 4QX

Tel  01322 525292

Fax 01322 521333

crayford@loknstore.co.uk 

 

Eastbourne, East Sussex

Unit 4, Hawthorn Road

Eastbourne

East Sussex BN23 6QA

Tel  01323 749222

Fax 01323 648555

eastbourne@loknstore.co.uk          

 

Fareham, Hampshire

26 + 27 Standard Way

Fareham Industrial Park

Fareham

Hampshire PO16 8XJ

Tel  01329 283300

Fax 01329 284400

fareham@loknstore.co.uk 

       

Farnborough, Hampshire

112 Hawley Lane

Farnborough

Hampshire GU14 8JE

Tel  01252 511112

Fax 01252 744475

farnborough@loknstore.co.uk         

 

Harlow, Essex

Unit 1 Dukes Park

Edinburgh Way

Harlow

Essex CM20 2GF

Tel 01279 454238

Fax 01279 443750

harlow@loknstore.co.uk   

 

 

Horsham, West Sussex

Blatchford Road

Redkiln Estate

Horsham

West Sussex RH13 5QR

Tel  01403 272001

Fax 01403 274001

horsham@loknstore.co.uk               

 

Luton, Bedfordshire

27 Brunswick Street

Luton

Bedfordshire LU2 0HG

Tel  01582 721177

Fax 01582 721188

luton@loknstore.co.uk      

 

Maidenhead, Berkshire

Stafferton Way

Maidenhead

Berkshire

SL6 1AY

Tel  01628 878870

Fax 01628 620136

maidenhead@loknstore.co.uk

 

Milton Keynes, Buckinghamshire

Etheridge Avenue

Brinklow

Milton Keynes

Buckinghamshire MK10 0BB

Tel  01908 281900

Fax 01908 281700

miltonkeynes@loknstore.co.uk       

 

Northampton Central

16 Quorn Way

Grafton Street Industrial Estate

Northampton NN1 2PN

Tel 01604 629928

Fax 01604 627531

nncentral@loknstore.co.uk              

 

Northampton Riverside

Units 1-4

Carousel Way

Northampton

Northamptonshire NN3 9HG

Tel  01604 785522

Fax 01604 785511

northampton@loknstore.co.uk        

 

Poole, Dorset

50 Willis Way

Fleetsbridge

Poole

Dorset BH15 3SY

Tel  01202 666160

Fax 01202 666806

poole@loknstore.co.uk     

 

Portsmouth, Hampshire

Rudmore Square

Portsmouth PO2 8RT

Tel  02392 876783

Fax 02392 821941

portsmouth@loknstore.co.uk          

 

 

 

 

Reading, Berkshire

251 A33 Relief Road

Reading

RG2 0RR

Tel  0118 9588999

Fax 0118 9587500

reading@loknstore.co.uk 

 

Southampton, Hampshire

Manor House Avenue

Millbrook

Southampton

Hampshire SO15 0LF

Tel  02380 783388

Fax 02380 783383

southampton@loknstore.co.uk       

 

Staines, Middlesex

The Causeway

Staines

Middlesex TW18 3AY

Tel  01784 464611

Fax 01784 464608

staines@loknstore.co.uk  

 

Sunbury on Thames, Middlesex

Unit C, The Sunbury Centre

Hanworth Road

Sunbury

Middlesex TW16 5DA

Tel  01932 761100

Fax 01932 781188

sunbury@loknstore.co.uk 

       

Tonbridge, Kent

Unit 6 Deacon Trading Estate

Vale Road

Tonbridge

Kent TN9 1SW

Tel  01732 771007

Fax 01732 773350

tonbridge@loknstore.co.uk              

 

Development locations

 

Southampton, Hampshire

Third Avenue

Millbrook

Southampton

SO15 0JX

 

North Harbour, Port Solent, Hampshire

Southampton Road

Portsmouth

PO6 4RH

 

Bristol 

Gallagher Trade Park

Longwell Green

Bristol

BS30

 

Managed stores

 

Aldershot, Hampshire

251, Ash Road

Aldershot

GU12 4DD

Tel  0845 4856415

aldershot@loknstore.co.uk              

 

Ashford, Kent  

Wotton Road

Ashford

Kent TN23 6LL

Tel 01233 645500

Fax 01233 646000

ashford@loknstore.co.uk

 

Chichester, West Sussex

(Opened January 2016)

17, Terminus Road

Chichester

West Sussex

PO19 8TX

Tel  01243 771840

Fax 01243 775313

chichester@loknstore.co.uk

 

Crawley, West Sussex

Sussex Manor Business Park

Gatwick Road

Crawley

RH10 9NH

Tel  01293 738530

crawley@loknstore.co.uk  

 

Swindon Kembrey Park, Wiltshire

Kembrey Street

Elgin Industrial Estate

Swindon

Wiltshire SN2 8UY

Tel  01793 421234

Fax 01793 422888

swindoneast@loknstore.co.uk

 

Woking

Marlborough Road

Woking

GU21 5JG

Tel  01483 378323

Fax 01483 722444

woking@loknstore.co.uk

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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