Interim Results

RNS Number : 6771L
Lok'nStore Group PLC
23 April 2018
 

LOK'NSTORE GROUP PLC

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

 

Lok'nStore Group Plc, the fast growing self-storage company announces interim results for the six months to 31 January 2018

 

"Strong cash flows and balance sheet fund growth strategy and pipeline of new landmark stores"

 

Highlights:   

 

Strong trading and cash flow  

·       Revenue £8.82 million up 5.7% (31.1.2017: £8.34 million) LFL1 up 8.3%

·       Group operating costs down by 1.4% at £4.80 million (31.1.2017: £4.87 million)

·       Group Adjusted EBITDA2 £3.85 million up 16.3% (31.1.2017: £3.31 million)

·       Adjusted pre-tax profit £2.55 million up 21.3% (31.1.2017: £2.10 million)

 

     Cash flow growth supports 11.0% dividend increase - progressive dividend policy

·       Cash available for Distribution (CAD) 3 £2.96 million up 13.0% (31.1.2017: £2.62 million)

·       Cash available for Distribution (CAD)  per share (annualised) 20.5 pence (31.1.2017: 18.6 pence) up 10.2%

·        Interim dividend 3.33 pence per share up 11.0% (31.1.2017: 3 pence per share)

 

Significant growth in asset value

·       Adjusted Net Asset Value (NAV) per share4 up 7.9% to £4.18 (31.1.2017: £3.87)

·       Total assets5 up to £154.5 million up 8.4% (31.1.2017: £142.6 million)

 

Strong balance sheet, efficient use of capital, low debt 

·        Net debt £23.45 million (31.1.2017: £16.67 million)

·        Loan to value6 ratio 16.8% (31.1.2017: 14.4%)

·        Average cost of debt 1.72% (31.1.2017: 1.69%)

·        Post period-end: Bank facility increased by £10 million to £50 million

 

Consistent performance of the self-storage business

·        Core self-storage revenue £7.32 million up 4.5% (31.1.2017: £7.0 million) LFL up 7.6%

·        Adjusted Store EBITDA7 £4.29 million up 11.6% (31.1.2017: £3.85 million) LFL up 14.4%

·        Store EBITDA margin increased to 58.6% from 54.5%

·        Occupied units pricing up 0.4% LFL

·        Unit Occupancy up 6.0% LFL

 

Healthy pipeline of new landmark stores8

·        2 new stores opened in this period in Gillingham and Hemel Hempstead

·        2 new sites acquired in this period in Bedford and Bournemouth

·     Current pipeline of 7 contracted stores adds 26% of extra trading space to the overall portfolio, 22% to our owned   portfolio and 41% to the managed portfolio

·        4 pipeline sites are currently with lawyers

·        Following successful completion of the pipeline, we will have 11 stores under management contracts

 

Confident outlook

·       Positive momentum carried into second half

·       The Group continues to grow strongly

 

 

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

 

"With strong trading and reduced costs Lok'nStore's profits and margins continue to grow rapidly. We are using our robust balance sheet to invest in the future growth of the business building more new landmark stores in a structurally under-supplied market. We have opened 2 new stores in the period and added 2 more to our pipeline with four more sites currently with lawyers.

"Our objective is to open more landmark stores while remaining conservatively geared delivering sustainable growth and consistently increasing dividends."

 

 

 

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

 

 

 

 

 

 

Notes - What we mean when we say … (and why we use these key performance indicators (KPIs))

 

1.   LFL- Like for like - This measure is used to give transparency on performance in the operating business unrelated to the opening of new stores or closure of old stores therefore giving visibility of the true trading picture. During December 2016 and January 2017 Lok'nStore closed its store in Staines.  Our new store in Gillingham opened in December 2017. Like-for-like (LFL) growth figures for the period strip out these 2 effects.

 

2.   Group Adjusted EBITDA - Earnings before interest, tax, depreciation and amortisation - The measure is designed to give clarity on the operating cash flow of the business stripping away non-cash charges, finance charges and tax. Adjusted EBITDA is defined as earnings before all depreciation and amortisation charges, losses or profits on disposal, share-based payments, acquisition costs, exceptional costs finance income, finance costs and taxation.

 

3.   CAD - Cash available for Distribution - is calculated as Adjusted EBITDA minus total net finance cost, less capitalised maintenance expenses, New Works Team costs and current taxation.  This measure is designed to give clarity to the capacity of the business to generate net operating cash that can be used to pay dividends to shareholders on a continuing basis.

 

4.   NAV - Adjusted Net Asset Value per share - Adjusted net asset value per share is the net assets of the business 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 any treasury shares are excluded from the number of shares. 

 

5.   Total assets - Total assets of £154.5 million is calculated by adding the independent valuation of the leasehold properties (£16.7 million) less their corresponding net book value (NBV) of £2.8 million to the total assets as shown in the balance sheet of £140.6 million.

  

6.   LTV - Loan to value ratio - measures the debt of the business expressed as a percentage of total property assets giving a perspective on the gearing of the business. The calculation is based on net debt of £23.5 million (31.1.2017: £16.7 million) as a percentage of the total properties independently valued by JLL and including development land assets totalling £139.7 million (31.1.2017: £118.5 million) as set out in the Business and Financial Review.

 

7.   Store adjusted EBITDA is Adjusted EBITDA (see 3 above) before the deduction of central and head office costs.

 

8.   Pipeline sites - 11 sites including 7 sites which have been contracted and 4 sites which are currently progressing to contract with lawyers.

 

 

 

 

 

 

 

Glossary

Abbreviation

 

 

Adjusted EBITDA    Earnings before all depreciation and amortisation charges, losses or profits on disposal, share basedpayments, acquisition costs, and non-recurring professional costs, finance income, finance costs and taxation

 

CAD                             Cash available for Distribution

 

Capex                           Capital Expenditure

 

CSOP                           Company Share Option Plan

 

EBT                              Employee Benefit Trust

 

EMI                              Enterprise Management Incentive Scheme

 

ESOP                           Employee Share Option Plan

 

EU                                European Union

 

HMRC                           Her Majesty's Revenue & Customs

 

IAS                               International Accounting Standard

 

IFRIC                            International Financial Reporting Interpretations Committee

 

IFRS                             International Financial Reporting Standard

 

JLL                               Jones Lang LaSalle

 

LIBOR                           London Interbank Offered Rate

 

LFL                               Like for like

 

LTV                              Loan to Value Ratio

 

NAV                             Net Asset Value

 

NBV                             Net book value

 

Operating Profit              Earnings before interest and tax (EBIT)

 

RICS                             Royal Institution of Chartered Surveyors

 

Sq. ft.                           Square Feet

 

Store adjusted

EBITDA                         Adjusted EBITDA (see above) but before central and head office costs

 

VAT                              Value Added Tax

 

 

Chairman's Statement

 

Healthy growth, increased dividend and active store opening programme

 

Lok'nStore continues to grow rapidly as evidenced by these strong results and the increased dividend. This growth will continue. We have the people and the balance sheet strength to buy and build many more landmark stores.

 

New sites can be difficult to find. The understandable desire to preserve 'greenfield' spaces and the restrictive planning laws that this necessitates leads to high land prices. This is why the UK self-storage market remains structurally undersupplied.  However improvements in our store acquisition, design and development processes have resulted in the biggest pipeline of new landmark stores in the company's history.

 

These  smart, modern buildings, which already make up over two-thirds of the space Lok'nStore owns, so the Board looks forward to further expansion with confidence.

 

Positive trading

For the half year period to January 2018 trading has been good with revenue, profits and assets all increasing.

An increase in Group revenue of 5.7% to £8.82 million (31.1.2017: £8.34 million) resulted mainly from occupancy growth with prices holding steady. Stripping out the effect of the Staines closure and the early trading from our new store in Gillingham, like for like Group revenue increased by 8.3%.

 

Progressive Dividend

Dividend payments will reflect the growth in the underlying cash generated by the business as reflected in the cash available for distribution (CAD) which is up 13% period to period.

 

At this interim stage we will pay one third of the previous year's total annual dividend which equates to 3.33 pence per share, up 11.0% on the 3.00 pence per share interim dividend last year. The increase in the interim dividend follows a consistent pattern of dividend growth reflecting the sustained growth of the Group. The interim dividend will be paid on 15 June 2018 to shareholders on the register on 4 May 2018. The ex-dividend date will be 3 May 2018. The final deadline for Dividend Reinvestment Election is 21 May 2018. The final dividend will be declared when the Group's full year results are announced.

 

Balance Sheet and financial platform strengthened to support a rapid store development programme

Lok'nStore has worked to increase the value of its assets and this is reflected in our higher NAV and low LTV metrics. Our bank facilities run until 2023 and were increased post balance sheet by £10 million to £50 million with no change to underlying covenants. We continue to benefit from low interest costs. This is all reported in more detail in the remainder of the Statement.

 

The growth of sales, profit and asset values combined with innovative asset management allows us to report a loan-to-value (LTV) ratio of only 16.8% (31.1.2017: 14.4%) and net debt of £23.5 million (31.1.2017: £16.7 million) while we invested £10.9 million in store development in this period.

 

The Group continues to source high quality sites. Our rapid store development programme has led to an increase in new and purpose built space to 64% of our owned portfolio. Trading at our new landmark stores has been excellent. This underpins our confidence that our strong pipeline of seven more landmark stores will add further momentum to sales and earnings growth. They will add 26% more trading space to our portfolio.

 

Reduced Operating Costs

We have a strong record of reducing our group operating costs each year however we cautioned at our 2017 year end results that although we maintain a disciplined approach to costs, continuing to reduce them is increasingly challenging while delivering both strong revenue growth and an acceleration of our store opening programme. Nevertheless in this period we have reduced Group operating costs which are down 1.4% and we provide a breakdown in the Business Review. Any future cost increases will be driven by the increase in number of stores, chiefly showing in local business rates, staffing and advertising. However we are not seeing significant cost pressures outside of these areas.

 

Group margins will increase by building more landmark freehold stores and increasing the number of managed stores we operate from a broadly unchanged central cost platform. Group Adjusted EBITDA margins in the period were 43.7% up from 39.7% in the corresponding period last year.

 

Lok'nStore increases its existing £40 million Banking Facility to £50 million (Post Balance sheet)

In February 2018, after the period-end the Group increased its bank facility by £10 million to £50 million. The increased facility will provide funding for landmark site acquisitions and working capital to support the Group's ambitious growth plans. 

 

The facility was originally agreed with The Royal Bank of Scotland plc in January 2016 and the term extended in January 2017.  This larger facility runs until January 2023. The interest rate is set at the London Inter-Bank Offer Rate (LIBOR) plus a 1.40%-1.65% margin based on a loan to value covenant test (currently the margin is 1.40%). Bank covenants and margin are unaffected by this increase in facility.

 

The cost of our debt on £28.8 million drawn (gross) averaged 1.72% in the period. 

 

Positive Outlook for Growth

Lok'nStore is a dynamic business designed to deliver significant future growth with an established record of consistent profit and cash generation.  It is particularly pleasing to note that the momentum reported earlier in the year has translated into a strong start to the second half. 

 

Our main objective is to steadily increase the cash available for distribution (CAD) per share enabling a predictable growth of the dividend from a strong asset base with conservative levels of debt.

 

In order to achieve this our focus will be on three key areas:  

 

1.   Fill stores and improve pricing to increase cash flow from the existing stores

2.   Acquire sites to build more landmark stores

3.   Increase the number of stores we manage for third parties

 

Our current pipeline of 11 new stores will contribute to the achievement of these objectives.

 

Finally, I should like to thank all of our employees for the huge contribution they have made to the Group's success. Managing growth is a key challenge to organisations. It is a challenge which our staff are meeting with expertise, dedication and enthusiasm.

 

 

 

Simon G Thomas

Chairman

20 April 2018

 

 

 

 

Business and Financial Review

 

The Performance of our Stores - Self-storage business steady

 

·      Self-storage revenue £7.32 million up 3.8% (31.1.2017: £7.00 million) LFL up 6.9%

·      Adjusted Store EBITDA £4.29 million up 11.6% (31.1.2017: £3.85 million) LFL up 14.4%

·      Unit occupancy increased 6.0% year on year on a like for like basis to 66% of current lettable area (CLA)

·      Occupied units pricing up 0.4% LFL

 

With operating costs firmly under control during the period (down 1.4%) steady revenue growth has translated into healthy profit growth. Total adjusted store EBITDA in the self-storage business, a key performance indicator of profitability and cash flow of the business, increased 11.6% to £4.29 million (31.01.2017: £3.85 million). Like for like growth in store EBITDA was 14.4%.

 

The overall adjusted EBITDA margin across all stores was up at 58.6% (31.1.2017: 54.5%) with the adjusted Store EBITDA margins of the freehold stores at 66.9% (31.1.2017: 62.9%) and the leasehold stores at 44.1% (31.1.2017: 41.3%).

 

Over the course of the year unit occupancy rose by a healthy 6.0% LFL and unit pricing growth was up 0.4 % LFL.

 

As you can see from the table below as the business develops the balance of the stores continues to shift towards landmark freehold stores and managed stores which have a higher than average store EBITDA margin (66.9% and 100% respectively versus 58.6% across all stores).  The impact of this is to continue to increase the average store EBITDA margin of the Group overall, and this effect is accentuated by operating more stores from a relatively fixed central cost base.  In this context the new stores in the pipeline will over time make a larger than average contribution to Group profits as they become established trading units.

 

At the end of January 2018, 34.8% of Lok'nStore's self-storage revenue was from business customers (31.1.2017: 34.5%) with the remainder from household customers. By number of customers 18.8% of our customers were business customers (31.1.2017: 19.7%).

     

 

 

 

 

 

When Fully Developed

Portfolio Analysis and Performance Breakdown

Number of stores

% of Property

Valuation

% of Adjusted Store EBITDA

Adjusted Store

EBITDA Margin (%)

% lettable space

Lok Owned

Number of stores

Total % lettable space

 

As at 31 January 2018

 

 

 

 

 

 

 

Freehold and long leasehold stores

13

87.7

72.7

66.9

65.8

17

54.3

 

Operating Leaseholds stores

  7

12.3

27.3

44.1

34.2

7

21.2

Managed Stores

  8

 

 

100

 

11

24.5

Total stores trading

28

 

 

 

 

35

 

Pipeline stores

 

 

 

 

 

 

 

Owned

  4

 

 

 

 

 

 

Managed

  3

 

 

 

 

 

 

Total Self Storage

35

100

100

58.6

100

35

100

Document Storage

  2

-

-

-

-

2

-

 

Total freeholds and long leasehold stores account for 88% of total property values.

 

Ancillary Sales

Ancillary sales consisting of boxes and packaging materials, insurance and other sales increased 1.1% over the year accounting for 10.8% of self-storage revenues (31.1.2017: 11.1%).  We continue to promote customer goods insurance to new customers with the result that 91% (31.1.2017: 90%) of our new customers purchased the product over the period. This has resulted in nearly 80% of our customers being insured through Lok'nStore.

 

Saracen - Document storage business

·      Revenue £1.18 million up 2.6% (31.01.2017: £1.15 million)

·      Adjusted EBITDA £0.36 million up 43.6%  (31.01.2017: £0.25 million)

 

In Saracen we have further reduced cost by vacating surplus property and this has helped to increase Adjusted EBITDA significantly up 43.4% from a steady increase in turnover compared to the corresponding period last year. This is part of a continuing strategy within the document storage business of optimising the utilisation of trading space which has now been consolidated into two trading units.

 

 

Our Stores

 

Lok'nStore has 28 freehold, leasehold and managed stores trading. Of these, 20 stores are owned with 13 freehold or long leasehold, 7 leasehold and 8 further sites operate under management contracts. 

 

The average unexpired term of the Group's operating leaseholds is approximately 10 years and 2 months as at 31 January 2018 (11 years and 2 months: 31 January 2017). All of our current leasehold stores are inside the Landlord and Tenant Act providing us with a strong security of tenure.

 

Growth from new stores and more new landmark stores to come

 

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.

 

·      Early trading at Gillingham has been excellent

·      New and purpose built stores lettable space 64% of portfolio

·      4 further new store opportunities identified and are progressing with lawyers

·      Current pipeline of 7 contracted stores adds 26% of extra trading space to the overall portfolio, 22% to our owned portfolio and 41% to the managed portfolio

 

Development of four new landmark stores 

 

Wellingborough, Bedford, Bournemouth, and Leicester.

 

Wellingborough

 

The Wellingborough site is in a prominent retail location with large catchment areas and little established competition.  The total capital investment of approximately £5 million has been financed from cash flow and our bank facility. After the period-end we completed the development and the store opened on 23 March 2018.

 

Purchase of the Bedford site 

 

On 1 December 2017 contracts were completed on the purchase of a site in Bedford which will be developed as a purpose built landmark store.  The site is in a prominent location to the South-East of Bedford town centre, adjacent to a modern retail park and a large food retailer on a very busy arterial road.  Net capital expenditure of £6 million will be funded from cash flow and existing banking facilities.  Subject to the completion of all planning matters the store is scheduled to open in 2019 and deliver around 55,000 sq. ft. of trading space.

Acquisition of a freehold site for a new landmark store in Bournemouth, Dorset

The 3-acre site is in a highly prominent location on Castle Lane, adjacent to a major food retailer and Bournemouth Hospital. Building work will follow completion of all relevant planning matters, and the circa £8 million of net capital expenditure will be funded from cash flow and existing banking facilities. Opening is scheduled for 2019.  When developed, this store will add around 80,000 sq. ft. of trading space.

Post Balance Sheet: Acquisition of a freehold site for a new landmark store in Leicester (subject to planning)

 

The 1 acre site is in a highly prominent location opposite a major food retailer in the heart of Leicester's busy retail district.  The total investment of circa £8.5 million will be funded from cash flow and existing banking facilities. When developed this store will add around 60,000 sq. ft. of trading space.

 

More Managed Stores

 

Over recent years we have been developing our management services to third party storage owners. We have eleven stores under management with eight of these open and trading and three in Exeter, Ipswich and Dover under development and scheduled to open in 2018/19.

 

In the case of managed stores Lok'nStore receives a standard monthly fee, a performance fee based on certain objectives and a fee on successful exit. In some cases we charge acquisition, planning and branding fees. This allows us to earn revenue from our expertise and knowledge of the self-storage industry without having to commit our capital, to amortise various fixed central costs over a wider operating base, and to drive more visits to our website moving it up the rankings and benefitting all the stores we both own and manage.

 

In this period we earned £0.31 million (31.1.2017: £0.18 million) in management fees. We expect this to increase steadily over the coming years.

 

 

Management fees

Six months ended

31 January 2018

Unaudited

Six months ended

31 January 2017

Unaudited

 

       £

       £

Total management fees

311,524

180,881

 

Three stores currently being developed under management contracts

 

ü Exeter                                  - scheduled to open next financial year

ü Ipswich                                 - scheduled to open next financial year

ü Dover                                    - scheduled to open next financial year

 

 

Summary - Stores Property review

 

The most recent site acquisition in Leicester increases our pipeline of new landmark stores which are legally secured, to seven. All are in prominent locations with large catchment areas and little established competition and demonstrate the Company's ability to source high quality sites adding to future sales and earnings growth. These eye-catching buildings, with their distinctive orange Lok'nStore branded livery and prominent signage, create highly visible landmarks, which continue to be a big contributor of new customers. We are in the final stages of construction at Wellingborough and the early stages of construction at both Dover and Exeter. Bedford, Ipswich, Bournemouth and Leicester are all in the design and planning stage. All of these new stores will be open by the end of 2019. This will increase the number of stores we operate to 35 and will capitalise on our efficient operating systems and growing internet marketing presence.   

 

Flexible approach to site acquisition

 

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. Our most important consideration is always the trading potential of the store rather than the type of property tenure.

 

Store property assets and Net Asset Value

 

·      Total assets now £154.5 million up 8.4% (31.1.2017: £142.6 million)

·      Adjusted net asset value of £4.18 per share up 7.9% on last year

 

Financial results

 

·      Group Revenue £8.82 million up 5.7% (31.1.2017: £8.34 million)  LFL up  8.3%

·      Group Adjusted EBITDA  £3.85 million up 16.3% (31.1.2017: £3.31 million)

·      Average cost of debt currently 1.72% (31.1.2017: 1.69%)  

·      LTV still only 16.8% (31.1.2017: 14.4%)  

·      Cash available for Distribution (CAD)  £2.96 million up 13.0% (31.1.2017: £2.62 million)

·      Interim dividend up 11%  to 3.33 pence per share (31.1.2017: 3.00 pence per share)  

·      Cash balances £5.4 million (31.1.2017: £12.1 million)

·      Investment in new stores £10.9 million (31.1.2017: £2.8 million)

 

Lok'nStore is a robust business which generates an increasing cash flow from its strong asset base.  With a low LTV of 16.8% and low interest margins of 1.4% on its extended banking facility the business has a firm base for growth.  The value of the Group's property assets underpins a flexible business model with stable and rising cash flows and low credit risk.

 

Management of interest rate risk

 

With £28.8 million of gross debt currently drawn against the £50 million bank facility the Group is not committed to enter into hedging instruments going forwards but rather to keep such matters under review.

 

It is not the intention of the Group to enter into an interest rate hedging arrangement at this time given our low level of debt, low loan to value ratio and high interest cover.

 

Taxation

The Group has made a current tax provision against earnings in this period of £0.49 million (31.1.2017: £0.42 million) based on a corporation tax rate of 20%. The deferred tax provision which is calculated at forward corporation tax rates of 17% and is substantially a tax provision against the potential crystallisation (sales) of revalued properties and past 'rolled over' gains amounts to £16.63 million. (31.1.2017: £14.45 million) (See Note 16).

 

Earnings per share

Basic earnings per share were 6.70 pence (31.1.2017: 6.91 pence per share) and diluted earnings per share were 6.58 pence (31.1.2017: 6.74 pence per share) showing small declines due to the increased number of shares in issue.

 

Reduced Operating costs

 

Group operating costs amounted to £4.80 million for the period, a 1.4% decrease year on year (31.1.2017: £4.87 million).

 

We have a strong record of reducing our group operating costs each year however we cautioned at our 2017 year end results that although we maintain a disciplined approach to costs continuing to reduce them is increasingly challenging while delivering both strong revenue growth and an acceleration of our store opening programme.

 

For this period we have contained overall costs which are down 1.4% and we provide a breakdown below. Future cost increases are driven by the expansion of the business in the areas of rates, staffing and advertising (higher internet marketing costs).  Overall the cost increases are mainly driven by the expansion of the business and we are seeing little other cost pressures.

 

Property costs which mainly constitute rent and rates have risen in recent years as we felt the effects of higher rates bills as we opened our new landmark stores particularly at Southampton and Bristol.  However we have in this period been able to secure rate reductions for past periods on these sites and this has contributed to the reduction in property costs.  Rents have remained broadly static but overall are lower in this period as the closure of Staines has eliminated rent costs (31.01.2017: £62,447) and utility costs are lower as a result of a renegotiation of our energy tariffs.

 

 

Group

Increase (decrease)

in costs %

 

Six months

ended 31 Jan

2018

£'000

Six months

ended 31 Jan

2017

£'000

 

Year

ended 31 July

2017

£'000

Property costs

(5.4%)

 

1,974

2,087

 

4,179

Staff costs

 1.8%

 

2,194

2,156

 

4,389

Overheads

 1.8%

 

   552

   542

 

1,098

Distribution costs

(2.4%)

 

     81

     83

 

   171

Total

(1.4%)

 

4,801

4,868

 

9,837

 

Cash flow and financing

At 31 January 2018 the Group had cash balances of £5.4 million (31.1.2017: £12.1 million). Cash inflow from operating activities before investing and financing activities was £3.76 million (31.1.2017: £2.90 million). As well as using cash generated from operations to fund some capital expenditure, the Group has a five year revolving credit facility which runs until January 2023. This provides sufficient liquidity for the Group's current needs.  Undrawn committed facilities at the period-end amounted to £11.2 million (31.1.2017: £11.2 million). See also Note 22 (i) (Events after the Reporting Date).

 

Gearing

At 31 January 2018 the Group had £28.8 million of gross borrowings (31.1.2017: £28.8 million) representing gearing of 26.1% (31.1.2017: 20.7%) on net debt of £23.5 million (31.1.2017: £16.7 million).  After adjusting for the uplift in value of short leaseholds which are stated at depreciated historic cost in the statement of financial position, gearing is 22.6% (31.1.2017: 17.7%). After adjusting for the deferred tax liability carried at period end of £16.6 million gearing drops to 19.5% (31.1.2017: 15.3%).

 

Cash available for Distribution (CAD) up 13% 

Cash available for Distribution (CAD) provides a clear picture of ongoing cash flow available for dividends. The CAD was up 13% in the period although at a per share level this was partially offset by the increase in the number of shares outstanding resulting from the sale of the Treasury shares. Cash available for Distribution (CAD)  per share (Annualised) was up 10.2% to 20.5 pence (31.1.2017:18.6 pence).

 

To illustrate this fully the table below shows the calculation of CAD.

 

Analysis of Cash Available for Distribution (CAD)

 

 

 

 

 

 

 

Six months ended 31 January 2018

£'000

Six months ended 31 January 2017

£'000

 

Year ended 31 July 2017

£'000

 

Group Adjusted EBITDA

 

3,852

3,313

6,493

 

Less: Net finance costs (per Income Statement)

 

 (296)

 (151)

 (297)

 

Capitalised maintenance expenses

 

   (45)

   (55)

   (90)

 

New Works Team

 

   (69)

   (66)

 (138)

 

Current tax

 

 (485)

 (424)

 (792)

 

Total deductions

 

 (895)

 (696)

(1,317)

 

Cash Available for Distribution

 

2,957

2,617

5,176

 

 

 

 

 

 

 

 

Increase over last period

 

13.0%

 

 

 

 

 

 

 

 

 

 

 

Number                  Number

      Number

Number of shares in issue (excluding treasury and EBT shares)

 

28,806,711

 

          28,084,149          

28,679,711

 

CAD per share (annualised)

 

 20.5p

18.6p

           18.0p
                             

 

 

Capital expenditure and capital commitments

The Group has grown through a combination of building new stores, existing store improvements and relocations. We have concentrated on extracting value from existing assets and developing through collaborative projects and management contracts. As we accelerate the store development programme capital expenditure during the period increased to £10.9 million (31.1.2017: £2.8 million). This was primarily the construction and fitting out work at our development sites in Gillingham and Wellingborough as well as the acquisition of the Bedford, Bournemouth and Leicester sites.

 

Market Valuation of Freehold and Operating Leasehold Land and Buildings

On 31 July 2017 professional valuations were prepared by Jones Lang LaSalle (JLL) for eleven freeholds, one long leasehold and seven operating leasehold properties. This valuation has been adopted for the 31 January 2018 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 some properties.  It is not envisaged that any tax will become payable in the foreseeable future on these disposals due to the availability of rollover relief. 

 

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 value can be added 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 £16.7 million (31.1.2017: £16.6 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 ensures comparable NAV calculations.

 

Analysis of Total Property Value

 

 

No of stores/sites

31 Jan 2018 Valuation

£'000

No of stores/sites

31 Jan 2017

Valuation

£'000

No of stores/sites

31 July 2017 Valuation

£'000

Freehold and long leasehold valued by JLL 1

 

12

 

102,900

 

12

 

96,125

 

12

 

102,900

Leasehold valued by JLL 2

7

16,725

7

16,575

7

16,725

Freehold land and buildings at Director valuation

 

1

 

4,148

 

1

 

3,000

 

1

 

4,195

Subtotal

20

123,773

20

115,700

20

123,820

Sites in development at cost

5

15,880

2

2,792

2

5,124

Total

25

139,653

22

118,492

22

128,945

 

 

1     Includes related fixtures and fittings (refer note 9)

2        The seven leaseholds valued by JLL 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 10 years and 8 months at the date of the 2017 valuation (2016 valuation: 11 years and 8 months).   

 

Total freeholds account for 88.0% of property values (31.1.2017: 86.0%).

 

Adjusted Net Asset Value per Share   

Adjusted net assets per share is the net assets of the Group 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 2018 the adjusted net asset value per share increased to £4.18 from £3.87 year on year, up 7.9%.  This is a result of cash generated from operations offset in part by an increase in the shares in issue due to the sale of treasury shares and the exercise of share options during the period.

 

 

 

 

Analysis of net asset value (NAV)

31 Jan

2018

£'000

Unaudited

 

31 Jan

2017

£'000

Unaudited

31 July

2017

£'000

Audited

 

Net assets

Adjustment to include operating/short leasehold stores at valuation

Add: JLL leasehold valuation

Deduct: leasehold properties and their fixtures and fittings at NBV

 

 89,775

 

 16,725 

 (2,777) 

 

 

80,733

 

16,575

(3,006) 

 

 

89,119

 

16,725

(2,878) 

 

 

103,723

94,302

102,966

 

Deferred tax arising on revaluation of leasehold properties1

 

(2,371)

 

(2,307)

 

(2,354)

 

Adjusted net assets

 

101,350

 

91,995

 

100,612

 

 

Shares in issue

Number

'000

Number

'000

Number

'000

 

 

 

 

Opening shares in issue

Shares issued for the exercise of options

29,303

     127

29,109

       90

29,109

     194

Closing shares in issue

Shares held in treasury

Shares held in EBT

29,430

        -

    (623)

29,199

    (492)

    (623)

29,303

        -

   (623)

 

Closing shares for NAV purposes

 

 28,807

 

 28,084

 

 28,680

 

Adjusted net asset value per share after deferred tax provision

 

  £3.52

 

   £3.28

 

   £3.51

 

 

Adjusted net asset value per share before deferred tax provision

 

 

 

Adjusted net assets

101,350

   91,995

100,612

Deferred tax liabilities and assets recognised by the Group

16,633

   14,446

  16,363

Deferred tax arising on revaluation of leasehold properties1                                                                                                                                                                              

  2,371

     2,307

    2,354

 

Adjusted net assets before deferred tax

 

120,354

 

108,748

 

119,329

 

Closing shares for NAV purposes

 

28,807

 

    28,084

 

  28,680

 

Adjusted net asset value per share before deferred tax provision

 

  £4.18

 

      £3.87

 

    £4.16

 

1 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 2018

 

Notes

Six months

 ended

31 January 2018

Unaudited

£'000

Six months

 ended

31 January 2017

Unaudited

£'000

Year ended

31 July 2017

Audited

£'000

Revenue

1

8,819

8,343

    16,654

 

 

 

 

 

Total property, staff, distribution and general costs

2a

(4,967)

(5,030)

     (10,161)

 

Adjusted EBITDA1

 

 

3,852

 

3,313

 

6,493

Amortisation of intangible assets

 

 

(83)

 

(83)

 

(165)

Depreciation

 

(962)

(897)

 (1,856)

Equity settled share based payments

18

(17)

(48)

 (97)

 

 

 

(1,062)

 

 

(1,028)

 

(2,118)

Store relocation costs

 

-

(21)

(29)

Property disposal costs             

 

-

(14)

(15)

Director retirement costs

 

-

-

(69)

 

 

(1,062)

(1,063)

(2,231)

Operating profit

 

 

2,790

 

2,250

                                         4,262

   

 

 

 

 

Finance income

3

71

174

309

Finance cost

4

(314)

(325)

(606)

 

 

 

 

 

Profit before taxation

5

2,547

2,099

3,965

Income tax expense

6

(621)

(229)

(904)

 

 

 

 

 

Profit for the period    

 

1,926

1,870

3,061

 

 

 

 

 

Profit attributable to:

 

 

 

 

Owners of the parent

19

1,926

1,870

3,061

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

Items that will not be reclassified to profit and loss

 

 

 

 

Increase in property valuation

 

                    629

                    391

7,772

Deferred tax relating to change in property valuation

 

                    (119)

                    499

  (932)

 

 

510

890

6,840

Items that may be subsequently reclassified to profit and loss

 

 

 

 

Increase in fair value of cash flow hedges

 

-

37

37

Other comprehensive income

 

510

927

6,877

Total comprehensive income for the period

 

      2,436

2,797

9,938

 

Attributable to:

Owners of the parent

 

 

      2,436

 

 2,797

 

 9,938

 

 

 

 

 

Earnings per share attributable to owners of the Parent

 

 

 

 

Basic

8

        6.70p

6.91p

11.02p

Diluted

8

         6.58p

 6.74p

10.64p

 

1  Adjusted EBITDA is defined in the accounting policies section of the notes to the interim report.

 

 

Consolidated Statement of Changes in Equity

                                                                Attributable to owners of the Parent

 

Share

capital

£'000

Share

premium

£'000

Other

reserves

£'000

Revaluation

reserve

£'000

Retained

earnings

£'000

Total

equity

£'000

 

1 August 2016 - Audited

291

3,567

8,432

45,602

13,583

71,475

 

Profit for the period

-

-

-

-

1,870

1,870

Other comprehensive income:

 

 

 

 

 

 

Increase in property valuation net of deferred tax

-

-

-

890

-

890

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

-

-

37

-

-

37

Total comprehensive income for the year

-

-

37

890

1,870

2,797

Transactions with Owners

 

 

 

 

 

 

Dividend paid

-

-

-

-

(1,778)

(1,778)

Share based payments

-

-

48

-

-

48

Transfers in relation to share based payments

-

-

(66)

-

66

-

Deferred tax credit relating to share options

-

-

221

-

             -

221

Sale of shares from treasury (net of costs)

-

4,704

-

-

3,117

7,821

Exercise of share options

1

148

-

-

-

149

Total transactions with owners

1

4,852

203

-

1,405

6,461

Transfer additional dep'n on revaluation net of deferred tax

-

-

-

(115)

115

-

 

31 January 2017 - Unaudited

292

8,419

8,672

46,377

16,973

80,733

 

Profit for the period

-

-

-

-

1,191

1,191

Other comprehensive income:

 

 

 

 

 

 

Increase in property valuation net of deferred tax

-

-

-

5,950

-

5,950

Total comprehensive income for the year

-

-

-

5,950

1,191

7,141

Transactions with Owners

 

 

 

 

 

 

Dividend paid

-

-

-

-

(859)

(859)

Share based payments

-

-

49

-

-

49

Transfers in relation to share based payments

-

-

(73)

-

73

-

Deferred tax credit relating to share options

-

-

(179)

-

-

(179)

Sale of shares from treasury (net of costs)

-

1,446

-

-

624

2,070

Exercise of share options

1

163

-

-

-

164

Total transactions with owners

2

1,609

(203)

-

(162)

1,245

Transfer additional dep'n on revaluation net of deferred tax

-

-

-

(162)

162

-

 

31 July 2017 - Audited

293

10,028

8,469

52,165

18,164

89,119

 

Profit for the period

-

-

-

-

1,926

1,926

Other comprehensive income:

 

 

 

 

 

 

Increase in property valuation net of deferred tax

-

-

-

510

-

510

Total comprehensive income for the year

-

-

-

510

1,926

2,436

Transactions with Owners

 

 

 

 

 

 

Dividend paid

-

-

-

-

(2,016)

(2,016)

Share based payments

-

-

17

-

-

17

Transfers in relation to share based payments

-

-

(80)

-

80

-

Deferred tax credit relating to share options

-

-

(16)

-

-

(16)

Exercise of share options

1

234

-

-

-

235

Total transactions with owners

1

234

(79)

-

(1,936)

    (1,780)

Transfer additional dep'n on revaluation net of deferred tax

-

-

-

(148)

148

-

 

31 January 2018 - Unaudited

294

10,262

8,390

52,527

18,302

89,775
 

Consolidated Statement of Financial Position

31 January 2018                                                                            

                                                                                                               

                                                                                                               

 

Notes

 

31 January

2018

Unaudited

£'000

 

31 January

2017

Unaudited

£'000

 

31 July

2017

Audited

 £'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Intangible assets

 

3,343

3,509

3,428

Property, plant and equipment

9

127,447

106,628

116,901

Development loan capital

10

-

3,319

3,463

 

 

130,790

113,456

123,792

Current assets

 

 

 

 

Inventories

11

236

168

203

Trade and other receivables

12

4,192

3,271

4,266

Cash and cash equivalents

 

5,359

12,140

11,386

 

Total current assets

 

 

9,787

                    

  15,579

15,855

Total assets

 

140,577

129,035

139,647

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

  13

(4,912)

(4,522)

(5,032)

Taxation

 

(573)

(597)

(463)

 

 

(5,485)

(5,119)

(5,495)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

   15a

(28,684)

(28,737)

(28,670)

Deferred tax

   16

(16,633)

(14,446)

(16,363)

 

 

(45,317)

(43,183)

(45,033)

 

Total liabilities

 

                              (50,802)

                               (48,302)

(50,528)

Net assets

 

             89,775

80,733

          89,119

 

Equity

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

Called up share capital

17

294

292

293

Share premium

 

10,262

8,419

10,028

Other reserves

18

8,390

8,672

8,469

Retained earnings

19

18,302

16,973

18,164

Revaluation reserve

 

52,527

46,377

52,165

Total equity

 

89,775

80,733

89,119

           

                                                                                                               

Approved by the Board of Directors and authorised for issue on 20 April 2018 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 2018

 

 

 

Notes

Six months ended

31 January

2018

Unaudited

£'000

Six months

ended

31 January

2017

Unaudited

£'000

Year

ended 

31 July

2017

Audited

 £'000

Operating activities

 

 

 

 

Cash generated from operations

21a

3,756

2,897

5,523

Income tax paid

 

(375)

-

(502)

 

Net cash from operating activities

 

3,381

2,897

5,021

 

Investing activities

 

 

 

 

Development loan capital repaid /(invested)

 

3,463

(160)

(304)

Purchase of property, plant and equipment

9

(10,879)

(2,770)

(6,628)

Interest received

 

68

18

25

Net cash used in investing activities

 

(7,348)

(2,912)

(6,907)

 

 

 

 

 

Financing activities

 

 

 

Loans repaid from projects under management contracts

 

-

944

944

Finance costs paid

 

(280)

(315)

(574)

Equity dividends paid

 

(2,016)

(1,778)

(2,637)

Proceeds from issuance of ordinary shares (net)

 

236

148

       313

Proceeds from sale of treasury shares (net)

 

-

7,821

9,891

 

Net cash (used in) / from financing activities

 

 

(2,060)

 

6,820

    

7,937

Net (decrease) / increase in cash and cash equivalents in the period

 

 

(6,027)

 

6,805

6,051

 

Cash and cash equivalents at beginning of the period

 

 

 

11,386

 

 

5,335

 

 

5,335

 

Cash and cash equivalents at end of the period

 

 

5,359

 

12,140

 

11,386

 

 

 

 

 

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 Fleet Place, London EC4M 7WS, 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 2018 have been prepared on the basis of the accounting policies expected to be used in the 2018 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 20 April 2018, are unaudited.  The interim results do not constitute statutory financial statements within the meaning of section 434A of the Companies Act 2006.

 

Comparative figures for the year ended 31 July 2017 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 £5.4 million (31.01.2017: £12.1 million), undrawn committed bank facilities at 31 January 2018 of £11.2 million (31.01.2017: £11.2 million), and cash generated from operations in the period to 31 January 2018 of £3.76 million (31.01.2017: £2.90 million). The Group operates a £40 million five year revolving credit facility with Royal Bank of Scotland plc which provides funding for site acquisitions and working capital and which was increased to £50 million after the period end in February 2018. The Group is fully compliant with all bank covenants and undertakings and is not obliged to make any repayments prior to expiration. The Group had reported in its July year-end financial statements that it had agreed a two year extension on its existing banking facility with Royal Bank of Scotland plc and the facility which was due to expire in January 2021, will now run until January 2023. The financial statements are therefore prepared on a going concern basis.

 

Adjusted EBITDA

Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted 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 2018

 

1              Revenue

Analysis of the Group's revenue is shown below:

 

 

Six months

ended

31 January

2018

Unaudited

Six months

ended

31 January

2017

Unaudited

 Year

ended

31 July

2017

Audited

Stores trading

£'000

£'000

£'000

 

Self-storage revenue

 

6,532

 

6,225

12,343

Other storage related revenue

787

778

1,550

Ancillary store rental revenue

-

-

14

Sub-total - Self-storage revenue - owned stores

7,319

7,003

13,907

Management fees - managed stores

312

181

420

Sub-total

7,631

7,184

14,327

Stores under development

 

 

 

Non-storage income

7

8

-

Sub-total

7,638

7,192

14,327

Serviced archive and records management revenue

                      1,181

                1,151

2,327

Total revenue per statement of comprehensive income

8,819

8,343

16,654

 

                                                                                                               

The segment information for the period ended 31 January 2018 and 2017 is as follows:

 

 

 

2017/2018 - Unaudited

Self-storage

six months ended

31 January

2018

£'000

Serviced archive

and records management

six months ended

31 January

2018

£'000

Total

six months ended

31 January 2018

£'000

Self-storage

six months ended

31 January

2017

£'000

Serviced archive

and records management

six months ended

31 January

2017

£'000

Total

six months ended

31 January 2017

£'000

 

Revenue from external customers

7,638

1,181

8,819

7,192

1,151

 

8,343

 

 

Segment adjusted EBITDA

3,495

357

3,852

3,064

249

    

3,313

 

Depreciation

Amortisation of intangible assets

(912)

-

 

(50)

(83)

 

(962)

(83)

 

(848)

-

 

(49)

(83)

 

(897)

(83)

 

 

 

Equity settled share based payments

(17)

-

 

(17)

(48)

-

 

(48)

 

Store relocation costs

-

-

-

(21)

-

             (21)

 

Costs of disposal

-

-

-

(14)

-

             (14)

 

Segment profit

2,566

224

2,790

2,133

117

2,250

 

 

Central costs not allocated to segments:

 

 

 

 

 

 

 

Finance income

 

 

71

 

 

174

 

Finance costs

 

 

(314)

 

 

(325)

 

Profit before taxation

 

 

2,547

 

 

2,099

 

Income tax expense

 

 

(621)

 

 

(229)

 

 

 

 

 

 

 

 

 

Consolidated profit for the financial period

 

 

1,926

 

 

1,870

 
                           

 

 

 

 

 

 

 

2017 - Audited

Self-storage

year

ended

31 July

2017

£'000

Serviced archive & records management

year

ended

31 July

2017

£'000

Total

year

ended

31 July

2017

£'000

Revenue from external customers

14,327

2,327

16,654

 

Segment adjusted EBITDA

Management charges

5,933

25

560

(25)

    

6,493

-

Segment adjusted EBITDA

5,958

535

6,493

Depreciation

(1,760)

(96)

(1,856)

Amortisation of intangible assets

-

(165)

(165)

Equity settled share based payments

(97)

-

(97)

Store relocation costs

(29)

-

(29)

Property disposal costs

-

(15)

(15)

Director retirement costs

(69)

-

(69)

 

Segment profit

4,003

259

 

4,262   

Central costs not allocated to segments:

 

 

 

Finance income

 

 

309

Finance costs

 

 

(606)

Profit before taxation

 

 

3,965 

Income tax expense

 

 

(904)

Consolidated profit for the financial year

 

 

3,061

 

 

 

 

 

2018

Unaudited

Self-storage

31 January

 2018

£'000

Serviced archive & records management 

31 January 2018

£'000

Total

31 January

2018

£'000

Self-storage

31 January

 2017

£'000

Serviced archive & records management 

31 January 2017

£'000

Total

31 January

2017

£'000

Segment assets

134,660

5,917

140,577

122,935

6,100

129,035

 

 

 

 

 

 

 

Segment liabilities

(21,512)

(606)

(22,118)

(19,067)

(498)

(19,565) 

Borrowings

 

 

(28,684)

 

 

      (28,737)

Total liabilities

 

 

(50,802)

 

 

(48,302) 

Capital expenditure

10,863

16

10,879

2,768

2

2,770

 

2017

Audited

Self-storage

31 July

 2017

£'000

Serviced archive & records management 

31 July 2017

£'000

Total

31 July

2017

£'000

Segment assets

133,457

6,190

139,647

 

 

 

 

Segment liabilities

(21,189)

(669)

(21,858)

Borrowings

 

 

 

(28,670)

 

Total liabilities

 

 

(50,528)

Capital expenditure

6,459

169

6,628

 

2a            Property, staff, distribution, general costs and            retail cost of sales

Six months ended

31 January

2018

Unaudited

£'000

Six months

ended

31 January

2017

Unaudited

£'000

Year

ended

31 July

2017

Audited

£'000

Property and premises costs

1,974

2,087

4,179

Staff costs

2,194

2,156

4,389

General overheads

552

542

1,098

Distribution costs

81

83

171

Subtotal - operating costs

                 4,801

         4,868

9,837

Retail products cost of sales

                     166

162

324

 

4,967

5,030

10,161

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

2018

Unaudited

£'000

Six months

ended

31 January

2017

Unaudited

£'000

Year

ended

31 July

2017

Audited

£'000

Retail

56

67

128

Insurance

20

20

37

Other

5

2

2

 

81

89

167

Serviced archive consumables and direct costs

85

73

157

 

166

162

324

 

2c           Other Income and costs

 

Six months ended

31 January

2018

Unaudited

£'000

Six months

ended

31 January

2017

Unaudited

£'000

Year

ended

31 July

2017

Audited

£'000

 

 

 

 

Property disposal costs

-

14

15

Director retirement costs

-

-

69

Store relocation costs

-

21

29

 

-

35

113

 

3              Finance income                                                                                                 

 

Six months ended  

31 January

2018

Unaudited

£'000

Six months ended

31 January

2017

Unaudited

£'000

Year ended

31 July

2017

Audited

£'000

Bank interest

5

18

25

Other interest

66

156

284

 

71

174

309

                                               

4              Finance costs

 

Six months ended

31 January

2018

Unaudited

£'000

Six months ended 31 January

2017

Unaudited

£'000

Year ended

31 July

2017

Audited

£'000

 

Bank interest

 

269

 

283

 

520

Non-utilisation fees and amortisation of bank loan arrangement fees

 

45

 

42

 

86

 

314

325

606

 

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

 

 

5              Profit before taxation                                                                                                       

 

Six months ended

31 January

2018

Unaudited

£'000

Six months

ended 31 January

2017

Unaudited

£'000

Year ended

31 July

2017

Audited

£ '000

 

Profit before taxation is stated after charging:

 

 

 

Depreciation of plant, property and equipment

 

 

 

- owned assets

962

  897

   1,856

 

Amortisation of intangible assets

Operating lease rentals - land and buildings

83

719

 

83

764

 

165

1,488
           

 

 

6              Taxation

 

Six months ended 31 January

2018

Unaudited

£'000

Six months

ended 31 January

2017

Unaudited

£'000

Year

ended 31 July

2017

Audited

£'000

Current tax:

 

 

 

UK corporation tax

486

424

792

 

Deferred tax:

 

 

 

Origination and reversal of temporary differences

135

71

204

Adjustments in respect of prior periods

-

-

173

Impact of change in tax rate on closing balance

-

(266)

(265)

Total deferred tax charge

135

(195)

112

Income tax expense for the period/year

621

229

904

 

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

 

 

 

Six months ended 31 January

2018

Unaudited

£'000

Six months

ended 31 January

2017

Unaudited

£'000

Year

ended 31 July

2017

Audited

£'000

 

 

Profit before tax

2,547

2,099

3,695

 

 

Tax on ordinary activities at the standard effective rate of corporation tax in the UK of 20% (31.1.2017: 20.0%)

 

 

 

509

 

 

 

420

 

 

 

793

 

Expenses not deductible for tax purposes

2

2

2

 

Depreciation of non-qualifying assets

144

50

104

 

Share based payment charges in excess of corresponding tax deduction

 

3

 

10

19

 

Adjustments in respect of prior periods - deferred tax

-

-

173

 

Impact of change in tax rate on closing DT balance

  -

  (266)

(265)

 

Share option scheme

-

12

5

 

Other timing differences

          (37)

      -

     71

Income tax expense for the period/year

              621

229

    904

 

Effective tax rate

   10.9%

      23%

 
                         

 

 

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 £118,872 (31.1.2017: £498,983) has been recognised directly in other comprehensive income (see note 16 on deferred tax).

 

7              Dividends

 

Six months ended 31 January 2018

Unaudited

£'000

Six months ended 31 January  2017

Unaudited

£'000

 

Year ended 31 July

2017

Audited

£'000

Amounts recognised as distributions to equity holders in the year:

 

 

 

 

 

 

 

Final dividend for the year ended 31 July 2016 (6.33 pence per share)

-

1,778

1,778

Interim dividend for the six months to 31 January 2017 (3 pence per share)

-

-

859

Final dividend for the year ended 31 July 2017 (7 pence per share)

2,016

-

-

 

 

 

 

 

2,016

1,778

2,637

 

 

In respect of the current period the Directors propose that an interim dividend of 3.33 pence per share will be paid to the shareholders. The total estimated dividend to be paid is £983,956 based on the number of shares currently in issue as adjusted for shares held in the Employee Benefits Trust. This interim dividend is an on-account payment of a final annual dividend and is ultimately subject to approval by shareholders at the 2018 Annual General Meeting and has not been included as a liability in these financial statements. The ex-dividend date will be 3 May 2018; the record date 4 May 2018; with an intended payment date of 15 June 2018. The final deadline for Dividend Reinvestment Election is 21 May 2018.

 

 

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

2018

Unaudited

£'000

Six months

ended

31 January

2017

Unaudited

£'000

Year

ended

31 July

2017

Audited

£'000

Profit for the financial period

1,926

1,870

3,061

 

 

No. of shares

 

No. of shares

 

No. of shares

Weighted average number of shares

 

 

 

For basic earnings per share

28,746,236

27,071,818

27,780,676

Dilutive effect of share options

526,509

651,347

999,657

For diluted earnings per share

29,272,745

27,723,165

28,780,333

 

623,212 shares (31.01.2017: 623,212) are held in the Employee Benefit Trust and nil (31.01.2017: 491,869) shares are held in Treasury. Both are excluded from the above calculation.

                                                                           

 

Six months

ended

31 January

2018

Unaudited

 

Six months

ended

31 January

2017

Unaudited

 

Year

ended

31 July

2017

Audited

 

Earnings per share

 

 

 

Basic

6.70p

6.91p

11.02p

Diluted

6.58p

6.74p

10.64p

 

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 2016 - Audited

 

458

 

80,953

 

9,263

 

782

 

12,902

 

5

 

104,363

Net book value at 31 January 2017 - Unaudited

 

2,792

 

80,865

 

9,314

 

769

 

12,884

 

 

4

 

106,628

Net book value at 31 July 2017 - Audited

 

5,124

 

87,548

 

10,293

 

719

 

13,213

 

4

 

116,901

 

Cost or valuation

 

 

 

 

 

 

 

1 August 2017

5,124

87,548

10,293

2,599

23,984

17

129,565

Additions

10,756

105

-

18

-

-

10,879

Revaluations

-

145

49

-

-

-

194

31 January 2018 Unaudited

15,880

87,798

10,342

2,617

23,984

17

140,638

Depreciation

 

 

 

 

 

 

 

1 August 2017

-

 -

              -

1,880

10,771

           13

12,664

Depreciation

-

372

63

49

478

-

962

Revaluations

 

(372)

(63)

-

-

-

(435)

31 January 2018 Unaudited

-

-

-

1,929

11,249

13

13,191

 

Net book value at 31 January 2018 -  Unaudited

15,880

87,798

10,342

688

12,735

4

127,447
                 

 

Capital expenditure during the period totalled £10.9 million (31.1.2017: £2.8 million). This was primarily the purchase and subsequent construction works at our development sites in Gillingham and Wellingborough as well as completing fitting-out works at our Bristol store.

Property, plant and equipment (non-current assets) with a carrying value of £127.4 million (31.1.2017: £106.6 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 2017 by JLL, the freehold and leasehold properties have not been externally valued at 31 January 2018, although in accordance with the Group's established policy it is the intention to do so at the next year end at 31 July 2018. 

 

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, whilst there has been continued market activity in the self storage sector since July 2017, the Directors considered that there had not been such a material movement in market yields that warranted a modification to the position as at 31 January 2018 in respect of our properties externally valued at 31 July 2017. 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 2018 year-end.

                                                                                                                                                                                               

10           Development loan capital

 

In May 2015 Lok'nStore opened a new store in Aldershot, Hampshire on behalf of outside investors, to which it provided development loan capital. The store is managed under the Lok'nStore brand.  The Group has managed the building and subsequent operation of the store and has generated a return on £2.5 million of the total development capital committed to the project, as well as management fees for the construction, operation and branding of the store. On 31 October 2017 the entire development loan was repaid to Lok'nStore together with all accrued interest. Lok'nStore continues to manage the operation of the store.

 

 

31 January

2018

Unaudited

£'000

31 January

2017

Unaudited

£'000

31 July

2017

Audited

£'000

Development loan capital

-

3,319

3,463

 

11           Inventories

 

 

31 January

2018

Unaudited

£'000

31 January

2017

Unaudited

£'000

31 July

2017

Audited

£'000

Consumables and goods for resale

236

168

203

 

The amount of inventories recognised as an expense during the period was £77,039 (31.1.2017: £81,005).

 

12           Trade and other receivables

                                                                                                                                                    

 

31 January

2018

Unaudited

£'000

31 January

2017

Unaudited 

£'000

31 July

2017

Audited 

£'000

Trade receivables

2,098

1,414

1,693

Other receivables

1,473

857

1,822

Prepayments and accrued income

621

1,000

751

 

4,192

3,271

4,266

                                               

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

2018

Unaudited

£'000

31 January

2017

Unaudited

  £'000

31 July

2017

Audited 

£'000

Trade payables

960

593

818

Taxation and social security costs

496

666

288

Other payables

1,221

1,156

1,692

Accruals and deferred income

2,235

2,107

2,234

 

4,912

4,522

5,032

 

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:

 

 

31 January

2018

Unaudited

£'000

31 January

2017

Unaudited 

£'000

31 July

2017

Audited

£'000

Gross debt

(28,816)

(28,816)

(28,816)

Cash and cash equivalents

5,359

12,140

11,386

Net debt

(23,457)

(16,676)

(17,430)

Total equity

89,775

80,733

89,119

Net debt to equity ratio

26.1%

20.7%

19.6%

 

 

15a         Borrowings

                                                                                                                                                    

 

31 January

2018 Unaudited

£'000

31 January

2017 Unaudited

£'000

31 July

2017

Audited 

£'000

Non-current

 

 

 

Bank loans repayable in more than two years

 

 

 

 but not more than five years

 

 

 

Gross

28,816

28,816

28,816

Deferred financing costs

(132)

(79)

(146)

Net bank borrowings

28,684

28,737

28,670

 

 

The £40 million five year revolving credit facility which was executed in January 2016 with Royal Bank of Scotland plc. included a two year extension option which means it will now run until January 2023.

 

The £40 million five year revolving credit facility set the interest rate margin at the London Inter-Bank Offer Rate (LIBOR) plus 1.40%-1.65% based on a loan to value covenant test. This rate is 1.40% currently and the all in debt cost on £28.8 million drawn averaged 1.7% in the last five months. 

 

The revolving credit facility 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 £127.4 million together with cross-company guarantees from Group companies. The Group is not obliged to make any repayments prior to expiration.

 

(Post Balance Sheet) In February 2018, after the period-end, the Group executed its £10 million accordion increasing its existing £40 million Banking Facility to £50 million.  The increased facility will provide funding for site acquisitions and working capital to support the Group's ambitious growth plans for more landmark site acquisitions and working capital.

 

 

16           Deferred tax                                                       

Deferred tax liability

31 January 2018

Unaudited

£'000

31 January 2017

Unaudited

£'000

31 July 2017

Audited

£'000

 

Liability at start of period/year

 

16,363

 

15,361

 

15,361

Charge to income for the period/year

135

(195)

112

Tax charged directly to other comprehensive income

119

(499)

932

Credit to share based payment reserve

16

(221)

(42)

Liability at end of period/year

16,633

14,446

16,363

 

 

 

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 31 July 2016 - Audited

1,855

-

447

24

10,961

2,323

(249)

15,361 

 

Charge/ (credit) to income for the period

(34)

-

(39) 

(8)

-

(141)

     27

       (195)

 

Charge to other comprehensive income

-

-

-

-

(511)

12

   -

      (499)

 

Charge to share based payment reserve

 

-

     -

        -

 -

-

-

(221)

  (221)

 

At 31 January 2017 - Unaudited

1,821

-

408

16

10,450

2,194

(443)

14,446

 

Charge/ (credit) to income for the period

375

-

(14) 

1

-

(48)

(7)

307

 

Charge to other comprehensive income

-

-

-

-

1,431

-

-

1,431

 

Charge to share based payment reserve

 

-

   -

      -

 -

-

  -

179

179

At 31 July 2017 - Audited

2,196

-

394

17

11,881

2,146

(271)

 16,363  

 

Charge/ (credit) to income for the period

161

-

(14) 

-

-

(12)

         -

 135

 

Charge to other comprehensive income

-

-

-

-

107

12

    -

      119

 

Charge to share based payment reserve

 

-

   -

      -

 -

      -

-

 

 

     

16

 

 

      16

 

At 31 January 2018 - Unaudited

2,357

-

380

17

11,988

2,146

(255)

 16,633

 
                                         

 

 

17           Share capital

                                                                                                                                                                                                      

 

31 January 2018

Unaudited

£'000

31 January 2017

Unaudited

£'000

31 July 2017

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

29,302,923

29,109,322

29,109,322

Options exercised during period/year

127,000

89,908

193,601

Balance at end of period/year

29,429,923

29,199,230

29,302,923

 

 

 

 

 

Allotted, issued and fully paid ordinary shares

£

£

 £

Balance at start of period/year

293,029

291,093

291,093

Options exercised during period/year

1,270

899

1,936

Balance at end of period/year

294,299

291,992

293,029

 

 

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 2016 - Audited

(37)

6,295

1,294

34

846

8,432

 

Equity share based payments

 

-

 

-

 

-

 

-

 

48

 

48

Transfer to retained earnings in relation to share based payments

-

-

-

-

 (66)

 (66)

Cash flow hedge reserve net of tax

37

-

- 

-

-

37

Tax credit relating to share options

-

-

-

-

221

221

 

31 January 2017 - Unaudited

 

-

 

6,295

 

1,294

 

34

 

1,049

 

8,672

 

Equity share based payments

 

-

 

-

 

-

 

-

 

49

 

49

Transfer to retained earnings in relation to share based payments

-

-

-

-

 (73)

 (73)

Tax credit relating to share options

 

 

 

 

(179)

(179)

 

31 July 2017 - Audited

 

-

 

6,295

 

1,294

 

34

 

846

 

8,469

 

Equity share based payments

 

-

 

-

 

-

 

-

 

17

 

17

Transfer to retained earnings in relation to share based payments

-

-

-

-

(80)

(80)

Tax credit relating to share options

-

-

-

-

(16)

(16)

 

31 January 2018 - Unaudited

 

-

 

6,295

 

1,294

 

34

 

767

 

8,390

 

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 £79,666 (31.1.2017: £65,570).

 

19           Retained earnings

 

 

 

Retained earnings before

 

 

Retained

 

 

 

deduction of

Own shares

earnings

 

 

 

own shares

(note 20)

Total

Group

 

 

£'000

£'000

£'000

1 August 2016 - Audited

 

 

17,824

(4,241)

13,583

Profit for the financial period

 

 

1,870

-

1,870

Transfer from revaluation reserve

 

 

115

-

115

Transfer from share based payment  reserve (Note 18)

 

 

66

- 

66

Dividend paid

 

 

(1,778)

-

(1,778)

Sale of treasury shares

 

-

3,117

3,117

31 January 2017 - Unaudited

 

 

18,097

(1,124)

16,973

Profit for the financial period

 

 

1,191

-

1,191

Transfer from revaluation reserve

 

 

162

-

162

Transfer from share based payment reserve (Note 18)

 

 

73

- 

73

Sale of treasury shares

 

 

-

624

624

Dividend paid

 

 

(859)

-

(859)

Transfer realised gain on asset disposal

 

-

-

-

31 July 2017 - Audited

 

 

18,664

(500)

18,164

Profit for the financial period

 

 

1,926

-

1,926

Transfer from revaluation reserve

 

 

148

-

148

Transfer from share based payment reserve (Note 18)

 

 

80

- 

80

Dividend paid

 

 

(2,016)

-

(2,016)

31 January 2018 - Unaudited

 

 

18,802

(500)

18,302

 

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.

 

 

20           Own shares

 

 

ESOP

ESOP

Treasury

Treasury

Own shares

 

shares

shares

shares

shares

total

 

Number

£

Number

£

£

1 August 2016- Audited

623,212

499,910

2,466,869

3,741,036

4,240,946

31 January 2017 - Unaudited

623,212

499,910

491,869

624,247

1,124,157

31 July 2017- Audited

623,212

499,910

-

-

499,910

31 January 2018 - Unaudited

623,212

499,910

-

-

499,910

 

Following the disposal on 26 April 2017 in the previous period of the remaining shares held in Treasury, and with no purchases made during the current period, Lok'nStore Limited no longer holds any shares in Treasury at the period-end (31.1.2017:  491,869).

 

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 2018, the Trust held 623,212 (31.01.2017: 623,212) ordinary shares of 1 pence each with a market value of £2,461,687 (31.01.2017: £2,835,615). No shares were transferred out of the scheme during the period (2017: nil).. 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

2018

Unaudited

£'000

Six months

ended

31 January

2017

Unaudited

£'000

Year

ended

31 July

2017

Audited

£'000

 

Profit before tax

 

 

 

2,547

 

2,099

 

3,965

Depreciation

 

 

962

897

1,856

Amortisation of intangible assets

 

 

83

83

165

Equity settled share based payments

 

 

17

48

97

Store relocation costs and site disposal costs

 

 

-

35

44

Interest receivable

 

 

(71)

(174)

(309)

Interest payable

 

 

314

325

606

(Increase) in inventories

 

 

(33)

(3)

(38)

Decrease/(increase) in receivables

 

 

74

736

(284)

(Decrease) in payables

 

 

(137)

(1,149)

(648)

Cash generated from operations

 

 

3,756

2,897

5,523

 

 

 

 

 

 

 

 

(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

2018

Unaudited

£'000

Six months

ended

31 January

2017

Unaudited

£'000

Year

ended

31 July

2017

Audited

£'000

 

(Decrease) / Increase in cash in the period/year

 

 

 

(6,027)

 

6,805

 

6,051

Change in net debt resulting from cash flows

 

 

-

-

-

Movement in net debt in period

 

 

(6,027)

6,805

6,051

Net debt brought forward

 

 

(17,430)

(23,481)

(23,481)

Net debt carried forward

 

 

(23,457)

(16,676)

(17,430)

 

 

22            Events after the Reporting Date

 

i)    Lok'nStore increases its existing £40 million Banking Facility to £50 million 

In February 2018, after the period-end the Group executed its £10 million accordion. The increased facility will provide funding for site acquisitions and working capital to support the Group's ambitious growth plans for more landmark site acquisitions and working capital. 

 

ii)   Wellingborough Store

The store opened on 23 March 2018.

 

iii)  Gloucester

On 2 March 2018 the Gloucester site was secured as a Managed Store.

 

iv)  Leicester

Acquisition on 14 February 2018 of a freehold site for a new landmark store (subject to planning).

      The 1 acre site is in a highly prominent location opposite a major food retailer in the heart of Leicester's busy retail district.  The total investment of circa £8.5 million will be funded from cash flow and existing banking facilities. When developed, this store will add around 60,000 sq. ft. of trading space.

 

v)  Fareham Store (Leasehold)

On 22 February 2018, the Group completed the Deed of Variation, Reversionary Lease and Rent Review Memorandum extending the lease term by ten years to 2036.

 

 

 

 

Our Stores/Sites

 

Head office

Lok'nStore plc

112 Hawley Lane

Farnborough

Hampshire GU14 8JE

Tel   01252 521010

www.loknstore.co.uk

 

Owned Trading Stores    

       

Basingstoke, Hampshire

Crockford Lane

Chineham

Basingstoke

Hampshire RG24 8NA

Tel   01256 474700

basingstoke@loknstore.co.uk

 

Horsham, West Sussex

Blatchford Road

Redkiln Estate

Horsham

West Sussex RH13 5QR

Tel   01403 272001

horsham@loknstore.co.uk

Poole, Dorset

50 Willis Way

Fleetsbridge

Poole

Dorset BH15 3SY

Tel   01202 666160

poole@loknstore.co.uk

Bristol, Gloucestershire

Longwell Green Trade Park

Aldermoor Way

Bristol

BS30 7ET

Tel  0117 967 7055

bristol@loknstore.co.uk

 

Crayford, Kent

Block B

Optima Park

Thames Road

Crayford

Kent DA1 4QX

Tel   01322 525292

crayford@loknstore.co.uk

Luton, Bedfordshire

27 Brunswick Street

Luton

Bedfordshire LU2 0HG

Tel   01582 721177

luton@loknstore.co.uk

Portsmouth, Hampshire

Rudmore Square

Portsmouth PO2 8RT

Tel   02392 876783

portsmouth@loknstore.co.uk

Gillingham, Kent

Courtney Road

Gillingham

Kent ME8 0RT

Tel  01634 366044

gillingham@loknstore.co.uk

 

 

 

 

Eastbourne, East Sussex

Unit 4, Hawthorn Road

Eastbourne

East Sussex BN23 6QA

Tel   01323 749222

eastbourne@loknstore.co.uk 

 

Maidenhead, Berkshire

Stafferton Way

Maidenhead

Berkshire

SL6 1AY

Tel   01628 878870

maidenhead@loknstore.co.uk

 

Reading, Berkshire

251 A33 Relief Road

Reading

RG2 0RR

Tel 01189 588999         

reading@loknstore.co.uk

Tonbridge, Kent

Unit 6 Deacon Trading Estate

Vale Road

Tonbridge

Kent TN9 1SW

Tel   01732 771007

tonbridge@loknstore.co.uk

 

Fareham, Hampshire

26 + 27 Standard Way

Fareham Industrial Park

Fareham

Hampshire PO16 8XJ

Tel   01329 283300

fareham@loknstore.co.uk

Milton Keynes, Buckinghamshire

Etheridge Avenue

Brinklow

Milton Keynes

Buckinghamshire MK10 0BB

Tel   01908 281900

miltonkeynes@loknstore.co.uk

 

Southampton, Hampshire

Manor House Avenue

Millbrook

Southampton

Hampshire SO15 0LF

Tel   02380 783388

southampton@loknstore.co.uk

Harlow, Essex

Edinburgh Way

Temple Fields

Harlow

Essex CM20 2GF

Tel 01279 882366

harlow@loknstore.co.uk

 

Farnborough, Hampshire

112 Hawley Lane

Farnborough

Hampshire GU14 8JE

Tel   01252 511112

farnborough@loknstore.co.uk       

 

Northampton Central

16 Quorn Way

Grafton Street Industrial Estate

Northampton NN1 2PN

Tel   01604 629928

nncentral@loknstore.co.uk

Northampton Riverside

Units 1-4

Carousel Way

Northampton

Northamptonshire NN3 9HG

Tel   01604 785522

northampton@loknstore.co.uk       

 

Sunbury, Middlesex

Unit C

The Sunbury Centre

Hanworth Road

Sunbury on Thames

Middlesex TW16 5DA

sunbury@loknstore.co.uk

 

Southampton, Hampshire

Third Avenue

Southampton

Hampshire SO15 0JX

Tel   02380 783388

southampton@loknstore.co.uk       

 

ParknCruise

Manor House Avenue

Millbrook, Southampton Hampshire SO15 0LF

Tel   02380 789966

southampton@parkncruise.co.uk

 

 

 

 

 

 

       

 

Development locations - LNS Owned Stores

 

Wellingborough,

19/21 Whitworth Way

Wellingborough NN8 2EF

 

 

Bedford

69 Cardington Road, Bedford.

NK42 0BQ

Bournemouth

Land at Wessex Field, Deansleigh Road, Bournemouth BH7 7DU

Leicester

Part of land forming part of Freemens Common Road, Leicester LE2 7SL

 

 

 

 

       

Managed stores - Trading

 

Aldershot, Hampshire

251, Ash Road

Aldershot

GU12 4DD

Tel  0845 4856415

aldershot@loknstore.co.uk

Chichester, West Sussex

17, Terminus Road

Chichester

West Sussex

PO19 8TX

chichester@loknstore.co.uk

 

Woking

Marlborough Road

Woking

GU21 5JG

Tel   01483 378323

woking@loknstore.co.uk

 

Broadstairs

Unit 2, Pyramid Business Park, Poorhole Lane,

Broadstairs,

Kent   CT10 2PT

 

 

 

 

Ashford, Kent  

Wotton Road

Ashford

Kent TN23 6LL

Tel   01233 645500

Fax 01233 646000

ashford@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

Kembrey Street

Elgin Industrial Estate

Swindon

Wiltshire SN2 8UY

Tel   01793 421234

swindoneast@loknstore.co.uk

Hemel Hempstead

Fortius Point,

47, Maylands Avenue, Hemel Hempstead,

Hertfordshire HP2 7DE

 

 

       

Managed stores - Under Development

 

 

Dover, Kent

Honeywood Parkway, Whitfield,

Dover, CT16 3FJ

Exeter

Land on the West Side of Matford Park Road, Marsh Barton, Exeter

Devon

Ipswich,

Part of Site 7,

Futura Park, Ipswich

IP3 9QH

 

 

       

 

 

 

 


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