Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Revenue up, adjusted earnings down for Lok'nStore
(Sharecast News) - Self-storage operator Lok'nStore Group reported a 4.3% increase in revenue in its interim results on Monday, to £14.17m, with headline self-storage revenue rising 4.9% to £13.33m. The AIM-traded firm said group adjusted EBITDA, however, saw a slight decline of 3.6% to £7.65m year-on-year for the six months ended 31 January.
Its same store analysis revealed positive trends, with same store group revenue increasing 2.6% to £13.93m and same store self-storage revenue rising 3.1% to £13.09m.
However, same store group adjusted EBITDA experienced a marginal decrease of 0.9%.
Operational metrics indicated a 4% increase in pricing to £27.37 per square foot, although occupied unit space decreased 2.9% to 862,554 square feet.
Same store EBITDA margins stood at 58.9%, slightly lower than the prior period.
In terms of banking and liquidity, Lok'nStore disclosed fixed debt of £10m out of a total debt of £43.7m, with £15m cash at period-end.
Net debt, excluding lease liabilities and deferred finance costs, increased to £28.8m, impacting the loan-to-value ratio.
The company's adjusted net asset value per share increased marginally to £9.87 per share.
Lok'nStore also highlighted its new store pipeline, including recent openings and planned developments in 2024.
The company also noted the recommended cash offer by Shurgard Self Storage at 1,110p per share, with unanimous intent from the board to recommend it.
Considering that, the board said it was not recommending a dividend at the interim stage, pending the offer's completion and any associated adjustments.
"Lok'nStore's revenue has moved ahead, with group revenue up 4.3% and headline self-storage revenue up by 4.9%," said chair Andrew Jacobs.
"With this muted growth and some cost increases, group adjusted EBITDA of £7.65m was down 3.6%.
"Customer demand remains above levels seen pre-pandemic, although it has been lower compared to the same period 12 months ago."
Jacobs said the firm had made progress on its new store pipeline, with its new landmark store in Basildon opened in December and Kettering in early February.
"We are on site at two locations in Staines and Bromborough, both of which will open in 2024."
At 1414 BST, shares in Lok'nStore Group were flat at 1,110p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
