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Lok’nStore Boss Confident of Further Growth as First-half Profits Double

30th April 2019

Even excluding the profit made on the sale of its Saracen Datastore business in January, Lok’nStore still posted a 22% rise in first-half profit, driven by higher occupancy rates and prices. Self storage company Lok’nStore Group PLC has hiked its interim dividend by 10% after doubling profits in the first half of its financial year.

Revenue grew 12% to £8.51mln in the six months ended 31 January, driven by an increase in both occupancy and average prices.

First-half profits more than doubled to £4.25mln, although much of that was down to the sale of its Saracen Datastore business at the turn of the year.

Excluding the gains form that disposal, profit for the period came in at £2.08mln (H1 18: £1.70mln).

As a result of the strong showing, Lok’nStore bosses increased the half-year dividend to 3.67p a share – up 10% on the 3.33p it paid out this time last year.

"Lok'nStore's trading is strong and our outlook remains confident,” said chief executive Andrew Jacobs.

"With low gearing helped by capital recycling, we will continue to build more landmark stores in a structurally under supplied market.

"In the first half of this year we opened a new store, acquired an existing operation and added two more sites to our pipeline. We have opened two more sites since the period end and two more sites are currently with lawyers.”

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

Shares edged 0.2% higher to 595.8p.