TIDMLOK
RNS Number : 5033W
Lok'nStore Group PLC
26 April 2021
LOK'NSTORE GROUP PLC
("Lok'nStore" or "the Group")
Lok'nStore Group Plc, the AIM listed self-storage Company
announces interim results for the six months to 31 January 2021
Unprecedented growth in occupied space drives strong trading
performance, robust cash flow and an increased dividend
Highlights:
Strong trading
-- Group revenue GBP10.21 million up 13.9% (31.1.2020: GBP8.97 million)
-- Group adjusted EBITDA(1) profit GBP5.5 million up 17.3% (31.1.2020: GBP4.7 million)
Cash flow growth drives interim dividend increase
-- Cash available for Distribution (CAD)(3) GBP3.49 million up
19.7% (31.1.2020: GBP 2.92 million)
-- Interim dividend 4.33 pence per share up 8.25% (31.1.2020: 4 pence per share)
Increasing net asset value
-- Adjusted Net Asset Value (NAV) per share(5) up 6.8% to GBP5.68 (31.1.2020: GBP5.32)
(31.7.2020: GBP5.56)
Secure balance sheet
-- GBP11.3 million cash at period-end (31.7.2020: GBP13.1 million)
-- Net debt (excluding lease liabilities) GBP42.6 million (31.7.2020: GBP38.3 million)
-- Loan to value ratio(6) 20.4% (31.7.2020: 19.3%)
-- Average cost of debt 1.55 % (31.7. 2020: 1.69%)
Unprecedented occupancy growth
-- Occupied space up 24.7% since January 2020
-- Occupancy up from 67.1% to 81.6% of available space
-- Store EBITDA Margins increased from 55.8% to 58.5%
-- Store management fees GBP0.74 million up 87.5 % (31.1.2020: GBP0.39 million)
Active pipeline of new landmark stores (7)
-- Store pipeline of 13 sites will add 38% of new space over coming years
-- 2 new stores opened (including Salford post-balance sheet)
-- 2 new stores acquired (plus Basildon post-balance sheet)
-- Building 4 new stores
-- Chichester Managed Store acquired.
Commenting on the Group's results, Andrew Jacobs Chairman of
Lok'nStore Group said,
"We continue to build our pipeline of prominent Landmark storage
centres tapping in to deep latent demand for storage in the U.K and
our store team members have worked tirelessly to provide great
service to our customers. As a result, we have achieved an
unprecedented growth in occupied space of 24.7% in the period and
this has driven strong growth of revenue and profits" .
"We have added to our new store pipeline which increases
operating space by 38% to over 2.5 million sq. ft. over the coming
years. We opened our new Leicester store in August and our new
Salford store after the period end. Construction is underway at our
sites in Warrington, Stevenage and Wolverhampton . Continuing this
exciting period of growth, our objective is to build more Landmark
stores in an under-supplied market while remaining conservatively
geared delivering sustainable growth and consistently increasing
dividends. We are raising the interim dividend by 8.25% to 4.33
pence per share."
Enquiries: Lok'nStore:
Andrew Jacobs, Chairman / Ray Davies, Finance
Director 01252 521 010
finnCap Ltd
Julian Blunt / Giles Rolls, Corporate Finance
/ Alice Lane, ECM 020 7220 0500
Camarco: Billy Clegg / Tom Huddart 0203 757 4980
Key Performance Indicators (KPIs))
What we mean when we say... (and why we use these Key
Performance Indicators)
1. Group Adjusted EBITDA - Earnings before interest, tax,
depreciation and amortisation - This measure strips away non-cash
charges, finance charges and tax and now also reflects the removal
of operating lease costs from operating expenses as a result of the
implementation of IFRS 16. Group Adjusted EBITDA is defined as
EBITDA before losses or profits on disposal, share-based payments,
acquisition costs, exceptional items, finance income, finance costs
and taxation.
2. Other income and expenditure items - refers to one-off items
of a non-operational nature which arose during the year, often
relating to asset disposals, and are unlikely to be recurring.
(Refer Note 3(c) of the Interim Financial Statements).
3. CAD - Cash Available for Distribution - is calculated as
Adjusted EBITDA less total net finance cost, less capitalised
maintenance expenses, New Works Team costs and current tax. This
measure is designed to give clarity to the capacity of the business
to generate ongoing net operating cash that can be used to pay
dividends to shareholders or pay down debt. The calculation of the
Cash available for Distribution is set out in the Business and
Financial Review.
4. Adjusted Total Assets - The value of adjusted total assets of
GBP235.9 million (31.01.2020: GBP 213.9 million) (31.07.2020:
GBP229.4 million) is calculated by adding the independent valuation
of the leasehold
properties of GBP16.7 million (31.01.2020: 18.7 million) (31.07.2020: GBP16.7 million) less their corresponding net book value (NBV) GBP 3.5 million (31.01.2020: GBP3.8 million) (31.07.2020: GBP3.7 million) to the total assets in the Statement of Financial Position of GBP222.7 million (31.01.2020: GBP 199.0 million) (31.07.2020: GBP216.4 million). This provides clarity on the significant value of the leasehold stores as trading businesses which under accounting rules on operating leases are only presented at their book values within the Statement of Financial Position.
5. NAV - Net Asset Value per share - Adjusted net asset value
per share is the net assets adjusted for the valuation of leasehold
stores (properties held under property leases) and deferred tax
divided by the number of shares at the year-end. The shares held in
the Group's employee benefits trust and treasury shares are
excluded from the number of shares. The calculation of the Net
Asset Value per share is set out in the Business and Financial
Review.
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 (excluding IFRS 16 lease liabilities) of GBP42.6
million as set out in note 15 (31.01.2020: GBP31.9 million)
(31.07.2020: GBP38.3 million) as a percentage of the total
properties independently valued by JLL, the Directors valuation
placed on the new Leicester store, and including development land
assets all totalling GBP209.2 million (31.01.2020: GBP 185.6
million) (31.07.2020: GBP198.3 million) as set out in the Business
and Financial Review in the Analysis of Total Property Value
table.
7. Pipeline Sites - means sites for new stores that we have
either exchanged contracts on or have agreed heads of terms and are
progressing with our lawyers towards completion. We now have 13
pipeline sites of which 11 are contracted and 2 are currently with
lawyers.
8. Adjusted Store EBITDA is Group Adjusted EBITDA (see 1 above)
before the deduction of central and head office costs. Unlike Group
Adjusted EBITDA this measure excludes the impact of IFRS16 and
includes leasing charges as normal operating costs of each store.
The measure is designed to give clarity on the recurring operating
cash flow of the business and provides important information on the
underlying performance of the trading stores and shows the cash
generating core of the business. Use of this metric enables us to
provide additional information on store EBITDA contributions (after
leasing costs) and the margins analysed between freehold and
leasehold stores and according to the age of the stores. This
analysis is set out in a table in the Business and Financial Review
.
9. Gearing - refers to the level of a company's debt related to
its equity capital, usually expressed in percentage form. It is a
measure of a company's financial leverage and shows the extent to
which its operations are funded by lenders versus shareholders.
Gearing can be measured by a number of ratios and we use the
debt-to-equity ratio in this document. The calculation of the
gearing percentage, also referred to as the net debt to equity
ratio is set out in Note 15 of the Interim Financial
Statements.
10. Group Adjusted EBITDAR - EBITDAR is Earnings before
interest, tax, depreciation amortisation and rent. The measure is
designed to give clarity on the effect of the rent payable by
leasehold stores and how its elimination enables an analytical
comparison between freehold stores operating performance (which do
not pay rent) and leasehold stores operating performance. This
analysis is set out in a table in the Business and Financial Review
on page.
11. Cost Ratio - calculates the ratio of the total operating
costs of the business as set out on page -- of the Business and
Financial Review, expressed as a percentage of total group revenue
(note 2), giving a perspective on the cost efficiency of the
business when compared to the cost ratio of the previous year.
12. LFL- Like for Like - This measure is used to give
transparency on improvements in the operating business unrelated to
the opening of new stores or closure of old stores therefore giving
visibility of the true trading picture. The like for like key
performance measure is only used where its use is particularly
relevant to illustrate a performance metric not otherwise
apparent.
Chairman's Statement
I want to report to you on the excellent first half of the
financial year to 31 January 2021.
The first half-year results can be summarised as:-
-- Unprecedented growth of occupied space across our stores
-- Strong operating performance resulting in strong revenue and profit growth
-- Store pipeline will increase trading space by 38% to 2.5 million sq.ft.
-- Increased dividend
This is an impressive set of results with Lok'nStore continuing
to deliver on our commitment to sustainable growth. The continued
investor interest in the self-storage sector together with the
corresponding market transactions underpins the value of our assets
and our strategy to open more landmark stores.
The detail behind these results is discussed further in our
Business and Financial Review.
Increased Dividend
Lok'nStore's dividend payments to shareholders reflect the
growth in the underlying Cash Available for Distribution (CAD)
which is up 20.0% on an annualised basis.
At this interim stage we will pay one third of the previous
year's total annual dividend which equates to 4.33 pence per share,
up 8.25 % on the 4 pence per share interim dividend last year. The
increase in the interim dividend follows a consistent pattern of
dividend growth reflecting the continued growth of the Group. The
interim dividend will be paid on 11 June 2021 to shareholders on
the register on 7 May 2021 . The ex-dividend date will be 6 May
2021. The final deadline for Dividend Reinvestment Election by
investors is 21 May 2021. The final dividend will be declared when
the Group's full year results are announced in late October
2021.
Investment in our stores
While we invested GBP9.6 million in sites and store development
in this period, we are able to report a period end loan-to-value
(LTV) ratio of only 20.4% (31.1.2020: 17.2%) (31.7.2020: 19.3%) and
net debt of GBP42.6 million (31.1.2020: GBP31.9 million)
(31.7.2020: GBP38.3 million).
The Group continues to find high quality sites for new Landmark
stores. Trading at our new stores has been strong and t his
underpins our confidence that our pipeline will add further
momentum to sales and earnings growth, adding 38% more high quality
trading space to our portfolio. We are on-site at four stores, all
of which will be trading by the end of 2021.
Managed Stores
Our strategy includes increasing the number of stores we manage
for third party owners. This enables the Group to earn revenue
without having to commit capital, to amortise fixed central costs
over a wider operating base and drive further traffic to our
website which benefits our entire operation. We generated managed
store income of GBP0.74 million this period, up 87.5% from the
previous period supported by GBP0.3 million of supplementary
non-recurring fees (Refer analysis of Management fees in the table
below). Second half income will also benefit from additional fees
from managed store development and planning success.
Managed store income is generated from our existing platform and
central management, resulting in an effective margin from this
activity of 100%. Our current pipeline of managed stores includes
an additional 5 stores which will take the total number of managed
stores to 16.
Our Objectives
Our strategic and operational objectives are to:
-- Steadily increase cash available for distribution (CAD) per
share enabling a predictable growth of the dividend from a strong
asset base with conservative levels of debt
-- Fill existing stores and improve pricing
-- Acquire more sites to build new landmark stores
-- Increase the number of stores we manage for third parties
Our People
We rely on the dedication of our people to deliver these
impressive results and even more so now in these difficult
circumstances. During the Covid-19 pandemic the dedication of our
colleagues has shone through more than ever, allowing us to support
our customers during this unprecedented period.
We will continue to invest in training to develop and deepen
their skills. We have reviewed our pay levels to ensure that all of
our employees are paid fairly and we continue to promote equity
ownership to our colleagues via our Share Investment Plan and the
granting of options.
We do this because it makes business sense and rewards staff for
the contribution they make to our strategic and operational
objectives.
Robust Capital Structure and Cash Flow
At 31 January 2021 the Group had cash balances of GBP11.3
million (31.7.2020: GBP13.1 million). The Group has a GBP75 million
five year revolving credit facility which runs until April 2025.
This provides sufficient liquidity for the Group's current needs.
Undrawn committed facilities at the period-end amounted to GBP21.1
million. The Group is not obliged to make any repayments prior to
its expiration in April 2025.
Cash inflow from operating activities before investing and
financing activities was GBP6.6 million in the six months to 31
January 2021, up 9.8% from GBP6.2 million over the same period last
year.
Debt, IFRS 16 and Bank Covenants
The average cost of bank debt on drawn facilities for the period
was 1.55%. All of the Group's total drawn bank debt of GBP53.9
million is unhedged, which means we have benefited from the low
bank lending rates.
Proforma interest cover based on the most recent quarter is in
excess of 9 times. The banking covenants are set at 2.5 times. At
the period end our loan-to-value ratio (LTV) based on net bank debt
was 20.4% versus a bank covenant limit of 60% providing a large
cushion against any potential falls in the valuation of the
portfolio.
Both the Loan to Value and Senior Interest covenants continue to
be tested excluding the effects of IFRS 16.
For this purpose, debt / LTV will continue to exclude Right of
Use Assets and corresponding lease liabilities created by IFRS 16.
Property lease costs (rents) will continue to be a deduction in the
calculation of EBITDA, in accordance with the accounting principles
in force prior to 1 January 2019, when testing the Senior Interest
covenant.
Positive Outlook for Growth over short, medium and long term
Our first half results are very good and trading since the
period end has remained very strong. The excellent occupancy gains
gives us significant embedded pricing and margin opportunities over
the second half and beyond. Our new store pipeline will add 38%
more trading space over coming years.
With Lok'nStore's resilient business model and flexible and
conservative debt structure the Board is confident the Group will
continue to thrive under its proven and highly experienced
management team and staff. We look to the future with
confidence.
Andrew Jacobs
Executive Chairman
23 April 2021
Business and Financial Review
The Performance of our Stores
-- Self-storage revenue GBP9.5 million up 11.0% (31.1.2020: GBP8.5 million)
-- Adjusted Store EBITDA GBP5.5 million up 17.3% (31.1.2020: GBP4.8 million)
-- Unit occupied space increased 24.7% year on year
-- Occupied units pricing decreased 2.6%
With operating costs under control, revenue growth translates
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 17.3 % to GBP 5.5 million
(31.01.2020: GBP 4.8 million).
Over the course of the year unit occupied space rose by a
substantial 24.7 %, with occupancy rising from 67.1% to 81.6%.
In supporting our customers, we chose not to implement price
increases to our existing customers throughout this period and unit
pricing was down 2.6%. However, the strong occupancy gains realised
in the first half gives us significant embedded pricing leverage
and margin opportunity going forward.
The overall adjusted EBITDA margin across all stores increased
to 58.5% from 55.8%.
As we build the Current Pipeline we will be operating from 53.2%
freehold space, leasehold space will decline to 17.0% of space and
managed stores will increase to 29.8% of total space operated. This
shifting tenure structure will also have the effect of increasing
overall margins.
Portfolio Analysis and Performance Breakdown
When Fully Developed
Portfolio Analysis Number % of Property % of Adjusted % lettable Number Total
and Performance of stores Valuation Adjusted Store space of stores % lettable
Breakdown Store EBITDA space
EBITDA Margin
(%)
----------- -------------- ---------- --------- ----------- ----------- ------------
As at 31 January
2021
----------- -------------- ---------- --------- ----------- ----------- ------------
Freehold Stores 16 77.7 77.4 64.4 48.8 23 53.2
----------- -------------- ---------- --------- ----------- ----------- ------------
Leaseholds Stores 9 8.6 22.6 44.6 22.4 9 17.0
----------- -------------- ---------- --------- ----------- ----------- ------------
Managed Stores 11 100.0 28.8 15 29.8
----------- -------------- ---------- --------- ----------- ----------- ------------
Total stores trading 36 47
----------- -------------- ---------- --------- ----------- ----------- ------------
Pipeline Stores
(secured)
----------- -------------- ---------- --------- ----------- ----------- ------------
Owned 7 13.7
----------- -------------- ---------- --------- ----------- ----------- ------------
Managed 4
----------- -------------- ---------- --------- ----------- ----------- ------------
Total Stores 47 100 100 58.5 100 - 100
---------------------- ----------- -------------- ---------- --------- ----------- ----------- ------------
In the Operating Performance table below, we show how the
performance breaks down across the stores, based on the age of
store. Older stores have had more time to fill-up and produce
higher EBITDA returns.
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 adjusted store EBITDA margin. The impact
of this will be to continue to increase the average store 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 make a
larger than average contribution to Group profits as they become
established trading units.
Operating Performance at a glance (Lok'nStore freehold and
leasehold stores only) *
Weeks Old Secured Under 100 to over 250 Total
Pipeline 100 250
Six months ended 31 January
2021
---------- ------- -------- --------- ----------
Sales GBP000 224 1,391 7,900 9,515
---------- ------- -------- --------- ----------
Stores Adjusted EBITDA
GBP'000 (10) 909 4,668 5,567
---------- ------- -------- --------- ----------
Adjusted EBITDA Margin (4.4
(%) %) 65.3 % 59.1 % 58.5 %
---------- ------- -------- --------- ----------
Stores Adjusted EBITDAR
GBP'000 (10) 909 5,435 6,334
---------- ------- -------- --------- ----------
Adjusted EBITDAR Margin (4.4)
(%) % 65.3 % 68.8 % 66.6 %
---------- ------- -------- --------- ----------
As at 31 January 2021
(sq. ft.)
---------- ------- -------- --------- ----------
Maximum Net Area 392,700 97,724 225,980 970,926 1,687,330
---------- ------- -------- --------- ----------
Freehold ('000 sq. ft.) 392,700 97,724 225,980 536,315 1,252,719
---------- ------- -------- --------- ----------
Short Leasehold (sq. ft.) - - - 434,611 434,611
---------- ------- -------- --------- ----------
Number Stores
---------- ------- -------- --------- ----------
Freehold 7 2 4 10 23
---------- ------- -------- --------- ----------
Short Leasehold - - - 9 9
---------- ------- -------- --------- ----------
Total Stores 7 2 4 19 32
----------------------------- ---------- ------- -------- --------- ----------
*Table excludes Managed Stores.
In respect of the Farnborough Store (over 250 weeks) the total
store revenue includes a GBP50,000 contribution receivable from
Group Head Office.
Ancillary Sales
Ancillary sales consisting of boxes, packaging materials,
insurance and other sales increased to GBP1.1 million an increase
of 15.5% year on year (31.01.20: GBP0.96 million) accounting for
11.7% of self-storage revenues.
Providing an important service to our Customers
Many of our customers are providing critical services
distributing medical and other essential supplies. We include the
NHS, GP surgeries, care and home support services and government
departments amongst our customers. Storage, logistics and transport
are important parts of the distribution network and as such were
not selected for closure by the Government. All of our stores have
remained open throughout the Pandemic.
Measures taken
At Lok'nStore the health and safety of our customers and
colleagues is our principal priority.
Existing customers are able to access their storage without any
face to face contact with our team members. Customers can still
communicate with our friendly teams by telephone, email or live
chat. New customers can access our reception area one at a time to
ensure strict social distancing guidelines are followed.
Self-Storage is a service business but our facilities are not
used intensively. Customer footfall is always comparatively low and
our stores have few people in them at any given time.
Store properties and Net Asset Value
-- Adjusted total assets GBP235.9 million up 10.3% (31.1.2020: GBP213.9 million)
-- Net Assets GBP123.4 million (31.1.2020: GBP116.7 million)
-- Adjusted net asset value GBP 5.68 per share up 6.8 % (31.1.2020: GBP5.32)
-- Investment in new stores GBP 9.6* million (31.1.2020: GBP4.7 million)
*Excludes capitalised Interest
At the period-end Lok'nStore had 36 freeholds, leasehold and
managed stores trading. Of these, 25 stores are owned with 16
freeholds, 9 leasehold and 11 further sites operate under
management contracts.
The average unexpired term of the Group's operating leaseholds
is approximately 9 years as at 31 January 2021. All of our
leasehold stores are inside the Landlord and Tenant Act providing
us with a strong degree of 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.
-- 2 new stores acquired in period
-- 2 new store opportunities identified and are progressing with lawyers
-- Total Pipeline of 13 stores (including 2 with lawyers) adds
37.9% of extra trading space to the overall portfolio, 34.3% to our
owned portfolio and 46.8% to the managed portfolio.
Analysis of Stores No of Stores Stores Pipeline Pipeline Pipeline
Trading Trading With
As at 31 Jan 2021 Stores Lok'nStore Managed Total Secured lawyers
--------------------------- ---------- ------------ --------- --------- --------- -------------
Freeholds 16 16
Leaseholds 9 9
Pipeline (Freehold) 7 7 7
Pipeline (Leasehold) 1 1 1
Managed Stores (Trading) 11 11
Managed Stores (Pipeline) 5 5 4 1
Total No. 49 25 11 13 11 2
---------- ------------ --------- --------- ---------
MLA sq. ft. 2,506,712 1,294,630 522,724 689,358 587,358 102,000
--------------------------- ---------- ------------ --------- --------- --------- -------------
Current contracted pipeline:
Basildon - Contract exchanged for a landmark leasehold store
with planning permission granted above a major discount food
retailer - Post balance sheet
Bedford - Planning application in process
Bournemouth - We have a Local Authority resolution to grant
planning permission
Cheshunt - Planning application in process. We have signed an
agreement to share this site with a discount food retailer
mitigating our development costs and generating excellent footfall
for the site.
Chester - Planning application in process
Kettering - Design in process
Peterborough - Design in progress
Salford - Opened 1(st) April 2021 post balance sheet
Stevenage - On site. Target opening date December 2021
Warrington - On site. Target opening date November 2021
Wolverhampton - On site. Target opening date December 2021
Other transactions
Chichester and Wolverhampton
On 29 January 2021, the Managed Store in Chichester was
purchased by the Group for GBP4.025 million and the development
site in Wolverhampton was simultaneously sold on a sale and
manage-back for GBP1.52 million. (Refer Note 24).
Southampton
Our vacant property in Southampton, Hampshire was sold for
GBP1.69 million eliminating over GBP150,000 p.a of residual
costs.
Managed Stores
Our strategy includes increasing the number of stores we manage
for third party owners. This enables the Group to earn revenue
without having to commit our capital, to amortise fixed central
costs over a wider operating base and drive further traffic to our
website which benefits our entire operation.
During the period the Group purchased the Chichester Managed
Store, following which we have eleven stores under management
contracts trading as at 31 January 2021. Development works have
commenced at Stevenage and Wolverhampton, with Chester and
Kettering in the design stage.
For managed stores Lok'nStore receives a standard monthly
management fee, a performance fee based on certain objectives and
fees on a successful exit. We also charge acquisition, planning and
branding fees. This allows Lok'nStore to earn revenue from our
expertise and knowledge of the self-storage industry without
committing our capital. We can amortise various fixed central costs
over a wider operating base and drive more visits to our website
moving it up the internet search rankings and benefitting all of
the stores we both own and manage.
This strategy improves the risk adjusted return of the business
by increasing the operating footprint, revenues and profits without
committing capital. There is a strong correlation between the total
management fee income and the number of stores under management
We generated managed store income of GBP737,946 in this period,
up 87.5% compared to the same period last year. (31.01.2020:
GBP393,459). We expect this to continue increasing steadily over
the coming years as more managed stores are opened. Recurring fees
increased by 10.5% over last year. Second half income will include
additional fees from store opening and planning success. Managed
store income is generated from our existing platform and central
management, resulting in an effective margin from this activity of
100%.
Percentage Group Group Group
Management fees Increase Period ended Period ended Year ended
31 January 31 January 31 July
2021 2020 2020
% GBP GBP GBP
------------------------------- ----------- -------------- ---------------- ------------
Recurring fees
Base management fees 257,072 237,581 434,345
Administration and compliance
fees 31,000 25,000 53,638
Enhanced Management fees 146,547 130,878 243,315
----------- -------------- ---------------- ------------
Recurring fees - Sub-total 10.5% 434,619 393,459 731,298
Construction & Advisory
fees - - 45,000
Supplementary fees 303,327 - 215,000
------------------------------- ----------- -------------- ------------
Non-recurring fees 303,327 - 260,000
------------------------------- ----------- -------------- ---------------- ------------
Total management fees 87.5% 737,946 393,459 991,298
------------------------------- ----------- -------------- ---------------- ------------
Summary - Flexible approach to site acquisition
We continue our strategy of actively managing our 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.
We have 13 new stores in our Current Pipeline (7) . 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. Once developed, these eye-catching buildings, with their
distinctive orange Lok'nStore branded livery and prominent signage,
create highly visible landmarks, which continue to be a significant
source of new customers.
Financial results
-- Group Revenue GBP10.21 million up 13.9% (31.1.2020: GBP8.97 million)
-- Group Adjusted EBITDA(1) GBP5.5 million up 17.3% (31.1.2020: GBP4.72 million)
-- Loan to value (net of cash) 20.4% (31.1.2020: 17.2%) (31.7.2020: 19.3%)
-- Cash available for Distribution (CAD)(3) GBP3.49 million up
19.7% (31.1.2020: GBP 2.92 million)
-- Interim dividend up 8.25% to 4.33 pence per share (31.1.2020: 4.0 pence per share)
-- Cash balance GBP11.3 million (31.1.2020: GBP11.0 million) (31.7.2020: GBP13.1 million)
Lok'nStore is a robust business which generates an increasing
cash flow from its strong asset base with a low LTV of 20.4% and a
low average cost of debt of 1.55%. The value of the Group's assets
underpins a flexible business model with stable and rising cash
flows and low credit risk giving the business a firm base for
growth.
Management of interest rate risk
-- Average cost of debt 1.55% (31.1.2020: 2.21%) (31.7.2020: 1.69%)
With GBP 53.9 million of gross debt currently drawn against the
GBP 75 million bank facility the Group is not committed to enter
into hedging instruments but continues to keep the matter 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 net debt, low loan to value ratio and high interest cover and
the Group has continued to benefit from low lending rates.
Taxation
The Group has made a current tax provision against earnings in
this period of GBP0.58 million (31.1.2020: GBP0.40 million) based
on a corporation tax rate of 19% ( 31.1.2020: 19%). The deferred
tax provision which is calculated at forward corporation tax rates
of 19% and is substantially a tax provision against the potential
crystallisation (sales) of revalued properties and past 'rolled
over' gains amounts to GBP27.0 million ( 31.1.2020: GBP22.5
million) (31.7.2020: GBP26.8 million). (See Note 17).
Earnings per share
Basic earnings per share were 7.89 pence ( 31.1.2020: 5.74 pence
per share) and diluted earnings per share were 7.76 pence
(31.1.2020: 5.63 pence per share).
Six months Six months
ended ended Year ended
31 January 2021 31 January 31 July 2020
Unaudited 2020 Audited
Unaudited
------------------------------------------- ------------ ---------------
Basic
Total basic earnings per share 7.89p 5.74p 10.26p
----------------------------------- ------ ------------ ---------------
Diluted
Total diluted earnings per share 7.76p 5.63p 10.08p
----------------------------------- ------ ------------ ---------------
Costs - Continuing Operations
-- Group operating costs (excluding retail cost of sales)
amounted to GBP4.57 million for the period (31.1.2020: GBP4.16
million).
-- Cost ratio(11) reduced further to 44.8% (31.1.2020: 46.4%) (31.7.2020: 45.8%)
We have a strong record of disciplined control of our group
operating costs. In the period operating costs were up 9.9% year on
year as we opened new landmark stores and paid substantial
performance related bonuses to the store teams for rapid occupancy
growth. We provide a breakdown below. Overall, the cost ratio
continues to decrease as we grow revenue and bear down on
costs.
Future cost increases are likely to be driven by the expansion
of the business in the areas of rates, staffing and marketing.
Overall 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 and as
we opened our new landmark stores.
Staff costs increased by 12.7% as we staffed the new stores and
paid performance bonuses to all our store colleagues resulting from
the excellent revenue growth. We also incurred additional national
insurance costs arising on these performance bonuses and the
exercise of employee share options.
Group Operations Increase Six months Six months Year
(decrease) ended 31 ended 31 ended 31
in costs Jan Jan July
% 2021 2020 2020
GBP'000 GBP'000 GBP'000
------------------------- ------------ ----------- ----------- ----------
Property costs 7.1% 2,309 2,157 4,392
Adjustment for property
lease rentals 6.7% (769) (720) (1,467)
------------------------- ------------ ----------- ----------- ----------
Restated property and
premises costs 7.2% 1,540 1,437 2,925
Staff costs 12.7% 2,424 2,151 4,196
Overheads 6.3% 608 572 1,139
Total 9.9% 4,572 4,160 8,260
------------------------- ------------ ----------- ----------- ----------
Cash flow and financing
At 31 January 2021 the Group had cash balances of GBP11.3
million ( 31.1.2020: GBP11.0 million) (31.7.2020: GBP13.1 million).
Cash inflow from operating activities before investing and
financing activities was GBP6.6 million (31.1.2020: GBP6.2
million).
As well as using cash generated from operations to fund some
capital expenditure, the Group has a GBP75 million five year
revolving credit facility which runs until April 2025. This
provides sufficient liquidity for the Group's current needs.
Undrawn committed facilities at the period-end amounted to GBP21.1
million ( 31.1.2020: GBP32.0 million) (31.7.2020: GBP23.7
million).
Cash plus undrawn committed facilities amounts to GBP32.4
million leaving the business with plenty of headroom to keep
acquiring and building new landmark stores. The bank facility has a
further GBP25 million accordion not yet committed.
Cash available for Distribution (CAD) up 19.7 %
Cash available for Distribution (CAD) provides a clear picture
of ongoing cash flow available for dividends or debt repayment. The
CAD was up 19.7 % in the period compared to the corresponding
period last year.
Cash available for Distribution (CAD) per share (annualised) was
up 20% to 24.17 pence ( 31.1. 2020 : 20.15 pence).
To illustrate this fully the table below shows the calculation
of CAD.
Analysis of Cash Available for Distribution
(CAD)
Period ended Period ended Year ended
31 January 31 January 31 July 2020
2021 2020 GBP'000
GBP'000 GBP'000
------------------- --------------
Group Adjusted EBITDA
(per Statement of Comprehensive
Income) 5,540 4,723 9,654
Adjustment for property lease
rentals (769) (720) (1,468)
Net finance costs paid(1) (484) (560) (1,046)
Capitalised maintenance expenses (169) (80) (110)
New Works Team (42) (41) (89)
Current tax (note 7) (583) (403) (768)
------------------- -------------- ---------------
Total deductions (2,047) (1,804) (3,481)
------------------- -------------- ---------------
Cash Available for Distribution 3,493 2,919 6,173
------------------- -------------- ---------------
Increase in CAD over last year 19.7% 4.8% 12.5%
Number Number Number
Closing shares in issue (less
shares held in EBT and treasury) 28,903,100 28,970,001 29,010,078
CAD per share (annualised) 24.17p 20.15p 21.28p
Increase in CAD per share over
last year 20.0% 4.7% 12.3%
----------------------------------- ------------------- -------------- ---------------
(1) Net finance costs represent finance costs paid per the cash
flow statement of GBP0.48 million less bank interest received to
give the true cash flow effect.
Gearing 9 ( excluding IFRS16 lease liabilities)
At 31 January 2021 the Group had GBP53.9 million of gross bank
borrowings ( 31.1.2020: GBP43.0 million) (31.7.2020: GBP51.3
million) representing gearing of 34.9% (31.1.2020: 27.2%)
(31.7.2020: 31.3%) on net debt of GBP42.6 million (31.1.2020:
GBP31.9 million) (31.7.2020: GBP38.3 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 32.5% (31.1.2020: 24.2%) (31.7.2020: 28.3%). After
adjusting for the deferred tax liability carried at period end of
GBP27.0 million gearing drops to 27.0% (31.1.2020: 20.7%)
(31.7.2020: 23.6%).
Gearing 9 ( including IFRS16 lease liabilities)
At 31 January 2021 the Group had GBP53.9 million of gross bank
borrowings ( 31.1.2020: GBP43.0 million) (31.7.2020: GBP51.3
million) and GBP11.8 million of lease liabilities (31.1.2020:
GBP12.3 million) (31.7.2020: GBP12.5 million) representing gearing
of 44.6% (31.1.2020: 37.9%) (31.7.2020: 41.8%) on net debt of
GBP54.5 million (31.1.2020: GBP44.2 million) (31.7.2020: GBP50.7
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 41.8 % (31.1.2020:
33.6%) (31.7.2020: 37.7%). After adjusting for the deferred tax
liability carried at period end of GBP27.0 million gearing drops to
34.6% (31.1.2020: 28.7%) (31.7.2020: 31.5%).
Capital expenditure
The Group has an active new store development programme. 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.
Capital expenditure during the period totalled GBP9.8 million (
31.1.2020: GBP4.9 million). This was primarily the purchase of the
Warrington site, the purchase of the existing Chichester managed
store for GBP4.0 million and exchange contract deposits paid on the
Peterborough site, together with ongoing construction and fit out
works at our sites in Salford, and Warrington, final costs on
Leicester prior to opening, as well as planning and pre-development
works at our Bedford, Bournemouth, Chester and Cheshunt sites. The
figure includes GBP190,655 of capitalised interest (31/01/20:
GBP223,163) (31/07/20: GBP382,190).
Market Valuation of Freehold and Operating Leasehold Land and
Buildings
On 31 July 2020 professional valuations were prepared by Jones
Lang LaSalle (JLL) for fifteen freeholds and eight operating
leasehold properties. This valuation has been adopted for the 31
January 2021 period-end after adjusting for additions and disposals
since the 31 July 2020 year-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.
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. Accordingly, after consulting with our external valuers,
the Directors considered that the self-storage transactional market
has shown good levels of liquidity and continued investor interest
and whilst there has been continued market activity in the
self-storage sector since July 2020, 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 2021 in
respect of our properties externally valued at 31 July 2020. 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 2021 year-end.
The new Leicester store
We opened the new Leicester Store in early August 2020. Since it
was not open at the Group's previous year-end, in accordance with
the group's policy it was not independently valued at 31 July 2020.
The 57,500 sq. ft. store is in a highly prominent location opposite
a major food retailer in the heart of Leicester's busy retail
district and the store's early trading has been strong.
Accordingly, and in line with the requirement to fair value the
group's store assets the Directors' have used the group's internal
valuation model to uplift the current book value of GBP7.4 million
to a fair value of GBP10.0 million resulting in a GBP2.6 million
uplift. (Refer table below).
The Model assumptions are as follows:
-- Revenue inputs come from our standard budget model
-- Costs have been derived from an average of P&L costs.
-- A standard 6% central management fee is applied, which is
consistent with the central management fees applied by JLL in their
valuation model
-- We have applied our standard 6% exit yield and 8% discount
rate within our model for new Landmark stores. This is broadly in
line with exit yield and discount rate applied by JLL at July 2020
for similar stores
Valuations
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 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. The value
of our leasehold stores in the valuation totals GBP16.7 million
(31.1.2020: GBP18.7 million) but are held at cost in the Statement
of Financial Position.
We have reported by way of a note the underlying value of these
leasehold stores in 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
No of 31 Jan 2021 of 31 Jan No of 31 July
stores Valuation stores 2020 Valuation stores 2020 Valuation
/sites GBP'000 /sites GBP'000 /sites GBP'000
-------- ------------ -------- ---------------- -------- ----------------
Freehold and long leasehold
(3) valued by JLL (1) 15 151,675 15 144,000 15 151,675
Leasehold valued by JLL (2) 8 16,725 8 18,725 8 16,725
Chichester Leasehold valued
by JLL (3) 1 4,025 - - - -
-------- ---------------- -------- ----------------
Subtotal 24 172,425 23 162,725 23 168,400
Sites in development at cost
(4) 10 26,787 10 22,846 10 29,885
-------- ------------ -------- ---------------- -------- ----------------
Subtotal 34 199,212 33 185,571 33 198,285
Freehold store at Director
valuation (5) 1 10,000 - - - -
-------- ------------ -------- ---------------- -------- ----------------
Subtotal (6) 35 209,212 33 185,571 33 198,285
Freehold land & Buildings
at Director valuation - - 1 2,467 1 1,931
Total 35 209,212 34 188,038 34 200,216
-------- ------------ -------- ---------------- -------- ----------------
(1) Includes related fixtures and fittings (refer note 10)
(2) The eight 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 9 years and 7 months at the date of the 2020
valuation.
(3) Chichester store acquired during the period at JLL valuation of GBP4.025 million.
(4) Includes GBP 190,655 of capitalised interest during the
period. (31/01/20: GBP223,163) (31/07/20: GBP382,190).
(5) Leicester store opened during the period and valued at a
Directors' valuation of GBP10.0 million.
(6) Loan to value calculation based on these property values.
Total freehold properties account for 9 0.1 % of all property
values (31.1.2020: 90.0%).
Adjusted Net Asset Value per Share
Adjusted net assets per share are 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 31 January 2021 the adjusted net asset value per share
increased to GBP5.68 from GBP5.32 year on year, up 6.8%. This
increase is a result of cash generated from operations , offset in
part by dividend payments and an increase in the shares in issue
due to the exercise of share options during the year.
31 Jan 31 Jan 31 July
2021 2020 2020
Analysis of net asset value (NAV) GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
------------------------------------------ ------------ ----------- -----------
Net assets 123,432 116,746 121,382
Adjustment to include operating/short
leasehold stores at valuation
Add: JLL leasehold valuation 16,725 18,725 16,725
Deduct: leasehold properties and their
fixtures and fittings at NBV (3,571) (3,851) (3,707)
------------------------------------------ ------------ ----------- -----------
136,586 131,620 134,400
------------------------------------------ ------------ ----------- -----------
Deferred tax arising on revaluation
of leasehold properties(1) (2,500) (2,529) (2,473)
------------------------------------------ ------------ ----------- -----------
Adjusted net assets 134,086 129,091 131,927
------------------------------------------ ------------ ----------- -----------
Number Number Number
Shares in issue '000 '000 '000
------------------------------------------ ------------ ----------- -----------
Opening shares in issue 29,633 29,584 29,584
Shares issued for the exercise of
options 20 9 49
------------------------------------------ ------------ ----------- -----------
Closing shares in issue 29,653 29,593 29,633
Shares held in EBT (623) (623) (623)
Shares held in treasury (127) - -
------------------------------------------ ------------ ----------- -----------
Closing shares for NAV purposes 28,903 28,970 29,010
------------------------------------------ ------------ ----------- -----------
Adjusted net asset value per share GBP4.64 GBP4.46 GBP4.55
after deferred tax provision
------------------------------------------ ------------ ----------- -----------
Adjusted net asset value per share
before deferred tax provision
Adjusted net assets 134,086 129,091 131,927
Deferred tax liabilities and assets
recognised by the Group 27,479 22,487 26,760
Deferred tax arising on revaluation
of leasehold properties(1) 2,500 2,529 2,473
------------------------------------------ ------------ ----------- -----------
Adjusted net assets before deferred
tax 164,065 154,107 161,160
------------------------------------------ ------------ ----------- -----------
Closing shares for NAV purposes 28,903 28,970 29,010
------------------------------------------ ------------ ----------- -----------
Adjusted net asset value per share GBP5.68 GBP5.32 GBP5.56
before deferred tax provision
------------------------------------------ ------------ ----------- -----------
(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.
Covid-19 events continue to move at a fast pace but our
objective is to continue to keep our stores open so that our
business customers in particular can continue to operate. Many of
them are providing critical services distributing medical and other
essential supplies. We include the NHS, GP surgeries, care and home
support services and government departments amongst our customers.
All of our stores remain open.
Neil Newman Ray Davies
Managing Director Finance Director
Consolidated Statement of Comprehensive Income
For the six months ended 31 January 2021
Notes Six months Six months Year ended
ended ended 31 July
31 January 31 January 2020
2021 20120 Audited
Unaudited Unaudited GBP'000
GBP'000 GBP'000
-------------------------------------- ------ ------------ ------------ -----------
Revenue 2 10,211 8,966 18,041
Total property, staff, distribution
and general costs 3a (4,671) (4,243) (8,387)
-------------------------------------- ------ ------------ ------------ -----------
Adjusted EBITDA(1) 5,540 4,723 9,654
-------------------------------------- ------ ------------ ------------ -----------
Depreciation 6 (1,900) (1,829) (3,779)
Equity settled share based payments (67) (41) (88)
-------------------------------------- ------ ------------ ------------ -----------
(1,967) (1,870) (3,867)
Loss on sale of land 3(c) (135) - -
-------------------------------------- ------ ------------ ------------ -----------
(2,102) (1,870) (3,867)
Operating profit 3,438 2,853 5,787
Finance income 4 - 16 29
Finance cost 5 (510) (563) (1,126)
-------------------------------------- ------ ------------ ------------ -----------
Profit before taxation 2,928 2,306 4,690
Income tax expense 7 (642) (642) (1,716)
Profit for the period 2,286 1,664 2,974
-------------------------------------- ------ ------------ ------------ -----------
Profit attributable to:
Owners of the parent 20 2,286 1,664 2,974
Other Comprehensive Income
Items that will not be reclassified
to profit and loss
Increase in property valuation 3,596 631 8,849
Deferred tax relating to change
in property valuation (683) (107) (3,602)
-----------
2,913 524 5,247
Items that may be subsequently
reclassified to profit and loss
Other comprehensive income 2,913 524 5,247
-------------------------------------- ------ ------------ ------------ -----------
Total comprehensive income for
the period 5,199 2,188 8,221
-------------------------------------- ------ ------------ ------------ -----------
Attributable to owners of the parent 5,199 2,188 8,221
-------------------------------------- ------ ------------ ------------ -----------
Consolidated Statement of Comprehensive Income
For the six months ended 31 January 2021
Earnings per share attributable Six months Six months Year
to owners of the Parent ended ended ended
31 January 31 January 31 July
2021 2020 2020
Notes Unaudited Unaudited Audited
---------------------------------- -------- ------------ ------------------------------------------- ---------
Earnings per share
Basic
Total basic earnings per share 9 7.89p 5.74p 10.26p
---------------------------------- -------- ------------ ------------------------------------------- ---------
Earnings per share
Diluted
Total diluted earnings per share 9 7.76p 5.63p 10.08p
---------------------------------- -------- ------------ ------------------------------------------- ---------
Consolidated Statement of Changes in Equity
For the six months ended 31 January 2021
Attributable to owners of the Parent
Share Share Other Revaluation Retained Total
capital premium reserves reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
1 August 2019 - Audited 296 10,490 8,357 71,106 26,301 116,550
Profit for the period - - - - 1,771 1,771
Other comprehensive income
Increase in property valuation
net of deferred tax - - - 524 - 524
Total comprehensive income
for the year - - - 524 1,771 2,295
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Transactions with Owners
Dividend paid - - - - (2,413) (2,413)
Share based payments - - 41 - - 41
Transfers in relation to share
based payments - - (5) - 5 -
Deferred tax credit relating
to share options - - 245 - - 245
Exercise of share options - 28 - - - 28
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Total transactions with owners - 28 281 - (2,408) (2,099)
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Reserve transfer on disposal
of assets - - - - - -
Transfer additional dep'n
on revaluation net of deferred
tax - - - (154) 154 -
31 January 2020 - Unaudited 296 10,518 8,638 71,476 25,818 116,746
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Profit for the period (restated) - - - - 1,203 1,203
Other comprehensive income
Increase in property valuation
net of deferred tax - - - 4,723 - 4,723
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Total comprehensive income
for the year - - - 4,723 1,203 5,926
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Transactions with Owners
Dividend paid - - - - (1,159) (1,159)
Share based payments - - 47 - - 47
Transfers in relation to share
based payments - - (9) - 9 -
Deferred tax credit relating
to share options - - (221) - - (221)
Exercise of share options 1 42 - - - 43
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Total transactions with owners 1 42 (183) - (1,150) (1,290)
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Reserve transfer on disposal - - -
of assets - - -
Transfer additional dep'n
on revaluation net of deferred -
tax - - - (224) 224 -
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
31 July 2020 - Audited 297 10,560 8,455 75,975 26,095 121,382
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Profit for the period - - - - 2,286 2,286
Other comprehensive income
Increase in property valuation
net of deferred tax - - - 2,913 - 2,913
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Total comprehensive income
for the year - - - 2,913 2,286 5,199
------------------------------------ ------------ --------- ---------- ------------
Transactions with Owners
Dividend paid - - - - (2,612) (2,612)
Share based payments - - 67 - - 67
Transfers in relation to share - - - - -
based payments -
Deferred tax credit relating
to share options - - 24 - - 24
Purchase of shares for treasury - - - - (693) (693)
Exercise of share options - 65 - - - 65
Total transactions with owners - 65 91 - (3,305) (3,149)
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Transfer additional dep'n
on revaluation net of deferred
tax - - - (189) 189 -
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
31 January 2021 - Unaudited 297 10,625 8,546 78,699 25,265 123,432
------------------------------------ ------------ --------- ---------- ------------ ---------- --------------
Consolidated Statement of Financial Position
31 January 2021
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
------------------------------- ------ ------------------- -------------------------------- -----------
Assets
Non-current assets
Property, plant and equipment 10 196,107 173,245 187,258
Financial assets 361 361 361
Right of use assets 11 11,137 11,750 11,764
------------------------------- ------ ------------------- -------------------------------- -----------
207,605 185,356 199,383
------------------------------- ------ ------------------- -------------------------------- -----------
Current assets
Inventories 12 335 363 270
Trade and other receivables 13 3,514 2,301 3,628
Cash and cash equivalents 11,297 11,023 13,066
------------------------------- ------ ------------------- -------------------------------- -----------
Total current assets 15,146 13,687 16,964
------------------------------- ------ ------------------- -------------------------------- -----------
Total assets 222,751 199,043 216,347
------------------------------- ------ ------------------- -------------------------------- -----------
Liabilities
Current liabilities
Trade and other payables 14 (6,034) (4,728) (4,676)
Lease liabilities (1,335) (1,257) (1,298)
Taxation (583) (402) (368)
(7,952) (6,387) (6,342)
------------------------------- ------ ------------------- -------------------------------- -----------
Non-current liabilities
Borrowings 16a (53,398) (42,398) (50,705)
Lease liabilities 16b (10,490) (11,025) (11,158)
Deferred tax 17 (27,479) (22,487) (26,760)
------------------------------- ------ ------------------- -------------------------------- -----------
(91,367) (75,910) (88,623)
------------------------------- ------ ------------------- -------------------------------- -----------
Total liabilities (99,319) (82,297) (94,965)
------------------------------- ------ ------------------- -------------------------------- -----------
Net assets 123,432 116,746 121,382
------------------------------- ------ ------------------- -------------------------------- -----------
Equity
Equity attributable to owners
of the parent
Called up share capital 18 297 296 297
Share premium 10,625 10,518 10,560
Other reserves 19 8,546 8,638 8,455
Retained earnings 20 25,265 25,818 26,095
Revaluation reserve 78,699 71,476 75,975
------------------------------- ------ ------------------- -------------------------------- -----------
Total equity 123,432 116,746 121,382
------------------------------- ------ ------------------- -------------------------------- -----------
Approved by the Board of Directors and authorised for issue on
23 April 2021 and signed on its behalf by:
Andrew Jacobs Ray Davies
Executive Chairman Finance Director
Consolidated Statement of Cash Flows
For the six months ended 31 January 2021
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
--------------------------------------------- ------ ----------------- --------------------- -----------
Operating activities
Cash generated from operations 22a 6,777 6,172 9,700
Income tax paid (225) (475) (893)
-----------
Net cash from operating activities 6,552 5,697 8,807
Investing activities
Proceeds of sale of development 1,509 - -
land (net of disposal costs)
Proceeds of sale of land at Southampton 1,676 - -
(net of disposal costs)
Purchase of property, plant and
equipment 10 (9,627) (4,671) (11,628)
Interest received - 16 29
--------------------------------------------- ------ --------------------- -----------
Net cash used in investing activities (6,442) (4,655) (11,599)
--------------------------------------------- ------ ----------------- --------------------- -----------
Financing activities
Proceeds of bank borrowings utilised
for store development 2,614 - 8,351
Finance costs paid on bank refinancing - - (113)
Finance costs paid (484) (576) (1,074)
Lease liabilities paid (769) (720) (1,467)
Equity dividends paid (2,612) (2,413) (3,572)
Purchase of shares for treasury (693) - -
Proceeds from issuance of ordinary
shares (net) 65 28 71
Net cash (used in) / from financing
activities (1,879) (3,681) 2,196
Net decrease in cash and cash equivalents
in the period (1,769) (2,639) (596)
Cash and cash equivalents at beginning
of the period 13,066 13,662 13,662
--------------------------------------------- ------ ----------------- --------------------- -----------
Cash and cash equivalents at end
of the period 11,297 11,023 13,066
--------------------------------------------- ------ ----------------- --------------------- -----------
Accounting Policies
General Information
Lok'nStore Group plc is an AIM listed company incorporated and
domiciled in England and Wales. As required, further information is
available in the investor section of the Company's website at
http://www.loknstore.co.uk.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 2021
have been prepared on the basis of the accounting policies expected
to be used in the 2021 Lok'nStore Group Plc Annual Report and
Accounts and in accordance with the recognition and measurement
principles of International Accounting Standards in conformity with
the requirements of the Companies Act 2006.
The interim financial statements present the Statement of
Comprehensive Income, Statement of Financial Position, financial
performance and cash flows of the Group as a significant lessee in
respect of our leased stores. The right to use the property lease
is recognised as a Right of Use Asset and there is a corresponding
financial liability to pay rentals on all of the property lease
contracts. This is summarised in note 1 of the financial statements
below.
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 23
April 2021, 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 2020 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.
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(and its subsidiaries). Control is achieved where the Company has
power over the investee, exposure or rights to variable returns
from the investee and the ability to use its power to vary those
returns.
Intra-group transactions, balances, and unrealised gains and
losses on transactions between Group companies are eliminated on
consolidation, except to the extent that intra-group losses
indicate an impairment.
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 GBP11.3
million (31.07.2020: GBP11.0 million), undrawn committed bank
facilities at 31 January 2021 of GBP21.1 million (31.07.2020: GBP
32.0 million), and cash generated from operations in the period to
31 January 2021 of GBP6.8 million (31.01.2020: GBP6.2 million)
(31.07.2020: GBP9.7 million).
The Group currently operates a GBP75 million five year revolving
credit facility with Royal Bank of Scotland plc and Lloyds Bank plc
with a further GBP25 million accordion at the Banks' option taking
the facility to GBP100 million which will provide funding for new
landmark site acquisitions and working capital to support the
Group's ambitious growth plans .
The Group is fully compliant with all bank covenants and
undertakings and is not obliged to make any repayments prior to
expiration. The facility expires in April 2025.
The robust capital structure, cash flow and financing and the
performance of the business are reported in the Chairman's
Statement . The interim 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.
Notes to the Financial Statements
For the six months ended 31 January 2021
1 The Group's Property Leases
IFRS 16 was adopted in the year ended 31 July 2020 using the
full retrospective method.
The Group accounts for the value of its property leases on the
balance sheet by the recognition of a Right of Use Asset (the right
to use the leased item) and a corresponding financial liability to
pay rentals due under the property lease term. This treatment
relates to the Groups property leases. The Group has no leases on
any other types of assets.
IFRS 16 has resulted in the recognition of Right of Use Assets
(ROU) of GBP11.1 million at 31 January 2021 and total lease
liabilities of GBP11.8 million, with depreciation charges of
GBP0.63 million and interest charges of GBP0.14 million.
Detailed analysis is provided in the tables below:-
Group Group Group
31 January 31 January 31 July
2021 2020 2020
GBP'000 GBP'000 GBP'000
-------------------------------------- ------------ ------------ ---------
Total rents payable under property
leases 769 720 1,467
-------------------------------------- ------------ ------------ ---------
Group Group Group
Statement of Financial Position (extract) 31 January 31 January 31 July
2021 GBP'000 2020 2020
GBP'000 GBP'000
Right of Use Asset (ROU) 11,137 11,750 11,764
Current Lease Liability
Amounts due within one year 1,335 1,257 1,298
Non-current Lease Liability
Amounts due in one to two years 1,202 1,285 1,327
Amounts due in three to five years 2,726 2,749 2,881
Amounts due in more than five years 6,562 6,991 6,950
--------------------------------------------- -------------- ------------ ---------
Non-current Lease Liability 10,490 11,025 11,158
--------------------------------------------- -------------- ------------ ---------
Total lease liability 11,825 12,282 12,456
--------------------------------------------- -------------- ------------ ---------
Statement of Comprehensive Income Group Group Group
(extract) 31 January 31 January 31 July
2021 2020 2020
GBP'000 GBP'000 GBP'000
Property lease expense 769 720 1,467
Depreciation of Right of Use Asset
(ROU) (627) (609) (1,254)
Interest charged on lease liability (139) (143) (296)
Impact on Comprehensive Income (3) (32) (83)
------------------------------------- ------------ ------------ ---------
Comparative Analysis of the effect Group Group Group
within the Statement of Comprehensive 31 January 31 January 31 July
Income prior to IFRS 16 202 GBP'000 2020 2020
GBP'000 GBP'000
Increase in EBITDA 769 720 1,467
Increase / (decrease) in operating
profit 142 111 213
---------------------------------------- ------------- ------------ ---------
Decrease in profit before tax (3) (32) (83)
---------------------------------------- ------------- ------------ ---------
The Group has applied a single discount rate equivalent to its
effective cost of debt. For more detailed information on the Groups
Commitments under property leases refer to note 23 (Commitments
under property leases).
2 Revenue
Analysis of the Group's revenue from continuing operations is
shown below:
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
Stores trading GBP'000 GBP'000 GBP'000
---------------------------------------------- ------------ ------------ ----------
Self-storage revenue 8,361 7,571 15,126
Insurance revenue 966 844 1,663
Retail sales 139 112 201
Sub-total - self-storage revenue - owned
stores 9,466 8,527 16,990
Ancillary store rental revenue - - 4
Management fees - managed stores 738 393 991
---------------------------------------------- ------------ ------------ ----------
Sub-total 10,204 8,920 17,985
Non-storage income 7 46 56
---------------------------------------------- ------------ ------------ ----------
Total revenue per statement of comprehensive
income 10,211 8,966 18,041
---------------------------------------------- ------------ ------------ ----------
3a Property, staff, distribution, general Six months Six months Year
costs and ended ended ended
retail cost of sales 31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Property and premises costs 2,309 2,157 4,392
Property lease rental payments (769) (720) (1,467)
----------------------------------------------
Net property and premises costs 1,540 1,437 2,925
Staff costs 2,424 2,151 4,196
General overheads 608 572 1,139
---------------------------------------------- ------------ ------------ ---------
Sub total - operating costs 4,572 4,160 8,260
Retail products cost of sales 99 83 127
---------------------------------------------- ------------ ------------ ---------
Total property, staff, distribution, general
costs and retail cost of sales 4,671 4,243 8,387
---------------------------------------------- ------------ ------------ ---------
3b 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 Six months Year
ended ended ended
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------ ------------ ---------
Retail 56 54 98
Insurance 14 13 13
Other 29 16 16
---------------------------------------- ------------ ------------ ---------
Total cost of sales of retail products 99 83 127
---------------------------------------- ------------ ------------ ---------
3c Other Income and costs
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------ ------------ ---------
Profit on sale of land at Wolverhampton 265 - -
(1)
Loss on sale of land at Southampton (2) (400) - -
(135) - -
---------------------------------------- ------------ ------------ ---------
(2021) (:)
(1 Profit on sale of land at Wolverhampton:) (During the period
development land with the benefit of planning permission was sold
on a sale and manage-back.)
(2) In December 2020, we completed the sale of our vacant
property in Southampton, Hampshire for GBP1.6 million (net of
disposal costs). (Net Book Value c. GBP2 million) eliminating over
GBP150,000 p.a of residual costs.
4 Finance income
Six months Six months
ended ended Year ended
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------- ------------- ------------ -----------
Bank interest - 16 29
Total finance income - 16 29
---------------------- ------------- ------------ -----------
5 Finance costs
Six months Six months
ended ended 31 Year ended
31 January January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Bank interest 228 255 510
Non-utilisation fees and amortisation of
bank loan arrangement fees 64 165 183
Bank loan arrangement fees 79 - 137
Interest on lease liabilities 139 143 296
------------------------------------------ ------------ ----------- -----------
Total finance cost 510 563 1,126
------------------------------------------ ------------ ----------- -----------
Most interest payable arises on bank loans classified as
financial liabilities measured at amortised cost.
6 Profit before taxation
Six months Six months
ended ended 31 Year ended
31 January January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP '000
Profit before taxation is stated after charging:
Depreciation of plant, property and equipment
- owned assets (Note 10) 1,273 1,220 2,565
Depreciation of right of use assets (Note
11) 627 609 1,254
---------------------------------------------------- ------------ ----------- -----------
1,900 1,829 3,779
---------------------------------------------------- ------------ ----------- -----------
7 Taxation
Six months Six months Year
ended 31 ended 31 ended 31
January January July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Current tax:
UK corporation tax 583 403 920
--------------------------------------------------- ----------- ----------- ----------
Deferred tax:
Origination and reversal of temporary differences 59 239 730
Adjustments in respect of prior periods - - 66
--------------------------------------------------- ----------- ----------- ----------
Total deferred tax charge 59 239 796
--------------------------------------------------- ----------- ----------- ----------
Income tax expense for the period/year 642 642 1,716
--------------------------------------------------- ----------- ----------- ----------
The charge for the period can be reconciled to the profit for
the period as follows:
Six months Six months Year
ended 31 ended 31 ended 31
January January July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit before tax 2,928 2,306 4,690
Tax on ordinary activities at the standard
effective rate of corporation tax in the
UK of 19% 556 468 931
Expenses not deductible for tax purposes - - -
Depreciation of non-qualifying assets 74 206 229
Share based payment charges in excess of
corresponding tax deduction 12 8 17
Impact of change in tax rate on timing differences - (19) 806
Adjustments in respect of prior periods - - 66
Impact of change of tax rate on timing differences - (21) (157)
Write-back of overprovision - - (153)
Other - - (23)
---------------------------------------------------- ----------- ----------- -------------------
Income tax expense for the period/year 642 642 1,716
---------------------------------------------------- ----------- ----------- -------------------
Effective tax rate 21.9% 27.5% 36%
---------------------------------------------------- ----------- ----------- -------------------
8 Dividends
Six months Six months
ended 31 ended 31 Year ended
January January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------------------- ----------- ----------- -------------
Amounts recognised as distributions to equity
holders in the year:
Final dividend for the year ended 31 July
2019 (8.33 pence per share) - 2,413 2,413
Interim dividend for the six months to 31
July 2020 (4.00 pence per share) - - 1,159
Final dividend for the year ended 31 July
2020 (9.00 pence per share) 2,612 - -
----------------------------------------------- ----------- ----------- -------------
2,612 2,413 3,572
----------------------------------------------- ----------- ----------- -------------
In respect of the current period the Directors propose that an
interim dividend of 4.33 pence per share will be paid to the
shareholders. The total estimated dividend to be paid is GBP1.25
million based on the number of shares currently in issue as
adjusted for shares held in the Employee Benefits Trust and shares
held in treasury. This interim dividend is an on-account payment of
a final annual dividend and is ultimately subject to approval by
shareholders at the 2020 Annual General Meeting and has not been
included as a liability in these financial statements. The
ex-dividend date will be 6 May 2021; the record date 7 May 2021
with an intended payment date of 11 June 2021. The final deadline
for Dividend Reinvestment Election is 21 May 2021.
9 Earnings per share
The calculations of earnings per share are based on the
following profits and numbers of shares.
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Total profit for the financial year
attributable to owners of the parent 2,286 1,664 2,974
--------------------------------------- ---------------- ---------------- ----------------
No. of shares No. of shares No. of shares
--------------------------------------- ---------------- ---------------- ----------------
Weighted average number of shares
For basic earnings per share 28,965,774 28,965,672 28,976,967
Dilutive effect of share options 505,832 565,846 517,257
--------------------------------------- ---------------- ---------------- ----------------
For diluted earnings per share 29,471,606 29,531,518 29,494,224
--------------------------------------- ---------------- ---------------- ----------------
623,212 shares (31.01.2020: 623,212) are held in the Employee
Benefit Trust and 126,855 shares are held in Treasury and are both
excluded from the above calculation.
Earnings per share attributable to owners Six months Six months Year
of the Parent ended ended ended
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
------------------------------------------- ------------------- ------------ ---------------
Earnings per share
Basic
Basic earnings per share 7.89p 5.74p 10.26p
------------------------------------------- ------------------- ------------ ---------------
Earnings per share
Diluted
Total diluted earnings per share 7.76p 5.63p 10.08p
------------------------------------------- ------------------- ------------ ---------------
10 Property, plant and equipment
Fixtures,
Development fittings
property Land and Short leasehold and Motor
assets buildings improvements equipment vehicles
at cost at valuation at cost at cost at cost Total
Group GBP'000 GBP '000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
Net book value at
31 January 2020
- Unaudited 22,846 133,745 1,824 14,813 17 173,245
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
Net book value at
31 July 2020 - Audited 29,885 141,366 1,728 14,279 - 187,258
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
Cost or valuation
1 August 2019 18,442 133,531 3,968 26,554 30 182,525
Additions 4,404 125 29 336 - 4,894
Revaluations - 89 - - - 89
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
31 January 2020
Unaudited 22,846 133,745 3,997 26,890 30 187,508
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
Depreciation
1 August 2019 - - 2,078 11,497 12 13,587
Depreciation - 543 95 580 1 1,219
Revaluations - (543) - - - (543)
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
31 January 2020
Unaudited - - 2,173 12,077 13 14,263
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
Net book value at
31 January 2020
- Unaudited 22,846 133,745 1,824 14,813 17 173,245
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
Cost or valuation
1 February 2020 22,846 133,745 3,997 26,890 30 187,508
Additions 7,039 24 - 53 - 7,116
Disposals - - - - (20) (20)
Revaluations - 7,597 - - - 7,597
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
31 July 2020 - Audited 29,885 141,366 3,997 26,943 10 202,201
--------------------------
Depreciation
1 February 2020 - - 2,173 12,077 13 14,263
Depreciation - 621 96 587 1 1,305
Disposals - - - - (4) (4)
Revaluations - (621) - - - (621)
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
31 July 2020 - Audited - - 2,269 12,664 10 14,943
--------------------------
Net book value at
31 July 2020 - Audited 29,885 141,366 1,728 14,279 - 187,258
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
Cost or valuation
1 August 2020 29,885 141,366 3,997 26,943 10 202,201
Additions 5,534 92 3,312 879 - 9,817
Transfers (7,389) 5,893 - 1,496 - -
Disposals (1,243) (1,758) - (1,301) - (4,302)
Revaluations - 2,991 - - - 2,991
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
31 January 2021
Unaudited 26,787 148,584 7,309 28,017 10 210,707
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
Depreciation
1 August 2020 - - 2,269 12,664 10 14,943
Depreciation - 605 96 572 - 1,273
Disposals - (261) - (750) - (1,011)
Revaluations - (605) - - - (605)
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
31 January 2021
Unaudited - (261) 2,365 12,486 10 14,600
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
Net book value at
31 January 2021
- Unaudited 26,787 148,584 4,944 15,532 - 196,107
-------------------------- ------------ -------------- ---------------- ----------- ---------- ----------
The Group has an active store development programme and in
accordance with IAS 23 has material qualifying assets that take a
substantial period of time to develop from acquisition to ultimate
store opening. Accordingly borrowing costs of GBP190,655 (six
months ended 31.1.2020: GBP223,163: year ended 31.07.20 GBP382,190)
have been capitalised in the current period that are directly
attributable to the acquisition, construction and fit-out of these
qualifying store assets. GBP190,655 of the total amount is carried
in development property assets.
Capital expenditure during the period totalled GBP9.6 million
(excluding capitalised interest) ( 31.1.2020: GBP4.9 million). This
was primarily the purchase of the Warrington site, the purchase of
the Chichester store for GBP4.0 million and exchange contract
deposit paid on the Peterborough sites, together with ongoing
construction and fit out works at our site in Salford, Chester and
Warrington, final costs on Leicester prior to opening, as well as
planning and pre-development works at our Bedford, Bournemouth, and
Cheshunt sites.
Property, plant and equipment (non-current assets) with a
carrying value of GBP193.5 million (31.1.2020: GBP173.2 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 2020
by JLL, the freehold and leasehold properties have not been
externally valued at 31 January 2021, although in accordance with
the Group's established policy it is the intention to do so at the
next year end at 31 July 2021.
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. Accordingly, after consulting with our external valuers,
the Directors considered that the self-storage transactional market
has shown good levels of liquidity and continued investor interest
and whilst there has been continued market activity in the
self-storage sector since July 2020, 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 2021 in
respect of our properties externally valued at 31 July 2020. 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 2021 year-end.
The new Leicester store
We opened the new Leicester Store in early August 2020. Since it
was not open at the Group's previous year-end, in accordance with
the Group's policy it was not independently valued at 31 July 2020.
The 57,500 sq. ft. store is in a highly prominent location opposite
a major food retailer in the heart of Leicester's busy retail
district and the store's early trading has been strong.
Accordingly, and in line with the requirement to fair value the
group's store assets the Directors' have used the group's internal
valuation model to uplift the current book value of GBP7.4 million
to a fair value of GBP10.0 million resulting in a GBP2.6 million
uplift.
The internal model valuation assumptions are as follows:
-- Revenue inputs come from our standard budget model
-- Costs have been derived from an average of P&L costs.
-- A standard 6% central management fee is applied, which is
consistent with the central management fees applied by JLL in their
valuation model
-- We have applied our standard 6% exit yield and 8% discount
rate within our model for new Landmark stores. This is broadly in
line with exit yield and discount rate applied by JLL at July 2020
for similar stores
11 Right of Use assets (ROU)
Group Group Group
Group property leases 31 January 31 January 31 July
2021 2020 2020
GBP'000 GBP'000
GBP'000
Right of Use Asset (ROU) - opening
balance 11,764 12,359 13,018
Depreciation of Right of Use
Asset (ROU) (627) (609) (1,254)
Right of Use Asset (ROU) - closing
balance 11,137 11,750 11,764
------------------------------------ ------------ ------------ ---------
The Right of use Asset (ROU) relates to the Groups property
leases. The Group has no leases on any other types of assets.
The right-of-use asset is depreciated on a weighted depreciation
charge based on the individual lease term of the separate property
leases.
12 Inventories
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------------- ----------- ----------- ---------
Consumables and goods for resale 335 363 270
---------------------------------- ----------- ----------- ---------
The amount of inventories recognised as an expense during the
period was GBP55,820 (31.1.2020: GBP54,472).
13 Trade and other receivables
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ------------- ----------
Trade receivables 993 798 746
Other receivables 1,665 1,007 2,451
Prepayments and accrued income 856 496 431
3,514 2,301 3,628
-------------------------------- ----------- ------------- ----------
Trade receivables
In respect of its self-storage business the Group does not
typically offer credit terms to its customers and hence the Group
is not exposed to significant credit risk. All customers are
required to pay in advance of the storage period. Late charges are
applied to a customer's account if they are more than 10 days
overdue in their payment.
The Group provides for receivables based upon sales levels and
estimated recoverability. There is a right of lien over the
customers' goods, so if they have not paid within a certain time
frame the Company has the right to sell the items they store to
cover the debt owed by the customer. Trade receivables that are
overdue are provided for based on estimated irrecoverable amounts,
determined by reference to expected credit losses.
For individual self-storage customers, the Group does not
perform credit checks. However, this is mitigated by the fact that
all customers are required to pay in advance, and also to pay a
deposit of four weeks' storage income. Before accepting a new
business customer who wishes to use a number of the Group's stores,
the Group uses an external credit rating to assess the potential
customer's credit quality and defines credit limits by customer.
There are no customers who represent more than 5% of the total
balance of trade receivables.
There has not been a significant change in credit quality in the
Group's trade receivables and the amounts are still considered
recoverable. The Group holds a right of lien over its self-storage
customers' goods if these debts are not paid.
14 Trade and other payables
31 January 31 January
2021 2020 31 July
Unaudited Unaudited 2020
GBP'000 GBP'000 Audited GBP'000
------------------------------------ ----------- ----------- -----------------
Trade payables 1,083 768 1,275
Taxation and social security costs 1,379 763 137
Other payables 751 887 777
Accruals and deferred income 2,821 2,310 2,487
------------------------------------ ----------- ----------- -----------------
6,034 4,728 4,676
------------------------------------ ----------- ----------- -----------------
The Directors consider that the carrying amount of trade and
other payables and accruals approximates fair value.
15 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:
Gearing - Bank Borrowings 31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Gross debt (53,935) (42,972) (51,322)
Cash and cash equivalents 11,297 11,023 13,066
------------------------------ ----------- ----------- ---------
Net debt (42,638) (31,949) (38,255)
---------
Total equity - balance sheet 123,432 116,746 121,382
---------
Net debt to equity ratio 34.5% 27.2% 31.3%
------------------------------ ----------- ----------- ---------
Total Gearing - Bank Borrowings 31 January 31 January 31 July
and lease liabilities 2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Gross debt - bank borrowings (53,935) (42,972) (51,322)
Gross debt - lease liabilities (11,825) (12,283) (12,455)
Cash and cash equivalents 11,297 11,023 13,066
---------------------------------- ----------- ----------- ---------
Net debt (54,463) (44,232) (50,711)
---------
Total equity - balance sheet 123,432 116,746 121,382
---------
Net debt to equity ratio 44.1% 37.9% 41.8%
---------------------------------- ----------- ----------- ---------
Cash balances held in current accounts attract no interest but
surplus cash is transferred daily to a treasury deposit account
which earns interest at the prevailing money market rates(1) . All
amounts are denominated in Sterling. The balances at 31 January
2021 are as follows:
31 January 31 January
2021 2020 31 July
Unaudited Unaudited 2020
GBP'000 GBP'000 Audited GBP'000
-------------------------------------- ----------- ----------- -----------------
Variable rate treasury deposits(1) 9,812 9,635 11,608
SIP trustee deposits 63 63 63
Cash in operating current accounts 1,413 1,316 1,385
Other cash and cash equivalents 9 9 10
-------------------------------------- ----------- ----------- -----------------
Total cash and cash equivalents 11,297 11,023 13,066
-------------------------------------- ----------- ----------- -----------------
(1) Money market rates for the Group's variable rate treasury
deposit track Royal Bank of Scotland plc base rate. The rate
attributable to the variable rate deposits at 31 January 2021 was
0.01%.
16a) Borrowings
31 January 31 January 31 July
2021 Unaudited 2020 Unaudited 2020
Bank borrowings GBP'000 GBP'000 Audited GBP'000
----------------------------------- ---------------- ---------------- -----------------
Non-current
Bank loans repayable in more than
two years
but not more than five years
Gross 53,935 42,972 51,322
Deferred financing costs (537) (574) (617)
----------------------------------- ---------------- ---------------- -----------------
Net bank borrowings 53,398 42,398 50,705
----------------------------------- ---------------- ---------------- -----------------
Non-current borrowings 53,398 42,398 50,705
----------------------------------- ---------------- ---------------- -----------------
The Group has a joint GBP75 million five year revolving credit
facility banking facility with Lloyds Bank and Royal Bank of
Scotland plc. The facility provides an accordion GBP25 million
which can take the facility to GBP100 million and runs to April
2025 with an option of a further one year extension.
The interest rate is set at the London Inter-Bank Offer Rate
(LIBOR) plus a 1.50%-1.75% margin based on a loan to value covenant
test. T he all in debt cost on GBP53.9 million drawn averaged 1.55%
in the period. The Group is not obliged to make any repayments
prior to its expiration in April 2025.
The Group currently has GBP53.9 million drawn against its
existing GBP75 million revolving credit facility which is secured
with RBS and Lloyds jointly by legal charges and debentures over
the freehold and leasehold properties and other tangible assets of
the business with a net book value of GBP196.1 million (31.01.2020:
GBP173.2 million: / 31.07.2020 GBP187.3 million) together with
cross-company guarantees from Group companies.
16b) Lease liabilities
Lease liabilities attributable to 31 January 31 January 31 July
Right of Use assets 2021 Unaudited 2020 Unaudited 2020
GBP'000 GBP'000 Audited
GBP'000
Current lease liabilities
Amounts due within one year 1,335 1,257 1,298
Non-current lease liabilities
Amounts due in one to two years 1,202 1,285 1,326
Amounts due in three to five years 2,726 2,749 2,881
Amounts due in more than five years 6,562 6,991 6,950
------------------------------------- -------------------- ------------------ --------------------------
Non-current lease liabilities 10,490 11,025 11,157
------------------------------------- -------------------- ------------------ --------------------------
Total lease liabilities 11,825 12,282 12,455
------------------------------------- -------------------- ------------------ --------------------------
Lease liabilities attributable to 31 January 31 January 31 July
Right of Use assets 2021 Unaudited 2020 Unaudited 2020
GBP'000 GBP'000 Audited
GBP'000
Balance B/Fwd 12,455 12,860 13,626
Lease repayments (769) (720) (1,467)
Lease interest (non-cash) 139 142 296
Total lease liabilities 11,825 12,282 12,455
----------------------------------- -------------------- -------------------- --------------------------
17 Deferred tax
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
Deferred tax liability GBP'000 GBP'000 GBP'000
--------------------------------------- ------------------- ---------------------- ---------------------------
Liability at start of period/year 26,760 22,385 22,385
Charge to income for the period/year 59 239 796
Tax charged / credited directly to
other comprehensive income 683 (137) 3,602
Credit to share based payment reserve (23) - (23)
Liability at end of period/year 27,479 22,487 26,760
--------------------------------------- ------------------- ---------------------- ---------------------------
18 Share capital
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------------ ------------- ------------- -------------
Authorised: 35,000,000 ordinary shares
of 1 pence each 350 350 350
------------------------------------------ ------------- ------------- -------------
Called up, Called up, Called up,
allotted allotted allotted
and and and
fully paid fully paid fully paid
Number Number Number
------------------------------------------ ------------- ------------- -------------
Number of shares at start of period/year 29,633,290 29,583,786 29,583,786
Options exercised during period/year 19,877 9,427 49,504
------------------------------------------ ------------- ------------- -------------
Balance at end of period/year 29,653,167 29,593,213 29,633,290
------------------------------------------ ------------- ------------- -------------
Allotted, issued and fully paid ordinary GBP GBP GBP
shares
------------------------------------------ ------------- ------------- -------------
Balance at start of period/year 296,333 295,838 295,932
Options exercised during period/year 199 94 401
------------------------------------------ ------------- ------------- -------------
Balance at end of period/year 296,532 295,932 296,333
------------------------------------------ ------------- ------------- -------------
The Company has one class of ordinary shares which carry no
right to fixed income
19 Other reserves
Other Capital Share-based
Merger reserve redemption payment
reserve reserve reserve Total
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------- -------- ----------- -------------- --------
1 August 2019 - Audited 6,295 1,294 34 734 8,357
Equity share based payments - - - 41 41
Transfer to retained earnings
in relation to share based
payments - - - (5) (5)
Tax credit relating to
share options - - - 245 245
------------------------------- -------- -------- ----------- -------------- --------
31 January 2020 - Unaudited 6,295 1,294 34 1,015 8,638
------------------------------- -------- -------- ----------- -------------- --------
Equity share based payments - - - 47 47
Transfer to retained earnings
in relation to share based
payments - - - (9) (9)
Tax credit relating to
share options - - - (221) (221)
------------------------------- -------- -------- ----------- -------------- --------
31 July 2020 - Audited 6,295 1,294 34 832 8,455
------------------------------- -------- -------- ----------- -------------- --------
Equity share based payments - - - 67 67
Tax credit relating to share
options - - - 24 24
------------------------------ ------ ------ --- ---- ------
31 January 2021 - Unaudited 6,295 1,294 34 923 8,546
------------------------------ ------ ------ --- ---- ------
Merger reserve
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.
Other reserves
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 IFRS 2 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 GBP nil (31.1.2020: GBP5,191).
20 Retained earnings Retained
earnings Retained
before
deduction Own shares earnings
of
own shares (note 21) Total
Group GBP'000 GBP'000 GBP'000
1 August 2019 - Audited 26,801 ( 500 ) 26,301
Profit for the financial period-
restated 1,771 - 1,771
Transfer from revaluation reserve 154 - 153
Transfer from share based payment
reserve (Note 19) 5 - 5
Dividend paid (2,413) - (2,413)
------------------------------------- ---------------------------- ----------- ----------------------------
31 January 2020 - Unaudited 26,318 ( 500 ) 25,818
------------------------------------- ---------------------------- ----------- ----------------------------
1 February 2020 - Unaudited
Profit for the financial period 1,203 - 1,203
Transfer from revaluation reserve 224 - 224
Transfer from share based payment
reserve (Note 19) 9 - 9
Dividend paid (1,159) - (1,159)
31 July 2020 - Audited 26,595 ( 500 ) 26,095
------------------------------------- ---------------------------- ----------- ----------------------------
1 August 2020 - Audited
Profit for the financial period 2,286 - 2,286
Transfer from revaluation reserve 189 - 189
Purchase of shares for treasury (693) - (693)
Dividend paid (2,612) - (2,612)
------------------------------------- ---------------------------- ----------- ----------------------------
31 January 2021 - Unaudited 25,765 ( 500 ) 25,265
------------------------------------- ---------------------------- ----------- ----------------------------
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.
21 Own shares
ESOP ESOP Treasury Treasury Own shares
shares shares shares shares total
Number GBP Number GBP GBP
-------------------------- -------- -------- --------- --------- -----------
1 August 2019 - Audited 623,212 499,910 - - 499,910
-------------------------- -------- -------- --------- --------- -----------
31 January 2020 -
Unaudited 623,212 499,910 - - 499,910
-------------------------- -------- -------- --------- --------- -----------
31 July 2020 - Unaudited 623,212 499,910 - - 499,910
-------------------------- -------- -------- --------- --------- -----------
Purchase of shares
for treasury - - 126,855 693,250 693,250
-------------------------- -------- -------- --------- --------- -----------
31 January 2021 -
Unaudited 623,212 499,910 126,855 693,250 1,193,160
-------------------------- -------- -------- --------- --------- -----------
Shares purchased for treasury
The Group made the following purchases of its own shares, which
will be held in treasury:-
Date of Trade No. of Price Treasury Account
shares GBP (including dealing
costs and commission)
GBP
25 September
2020 8,000 GBP5.19 41,728
----------------- -------- -----------------------
2 October 2020 29,972 GBP5.18 155,882
----------------- -------- -----------------------
11 December
2020 88,883 GBP5.55 495,640
----------------- -------- -----------------------
126,855 693,250
---------------- ----------------- -------- -----------------------
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 2021, the Trust held 623,212 (31.01.2020:
623,212) ordinary shares of 1 pence each with a market value of
GBP4,269,002 (31.01.2020: GBP 4,468,430 ). No shares were
transferred out of the scheme during the period (2020: Nil). No
options have been granted under the EBT.
22 Cash flows
(a) Reconciliation of profit before tax to cash generated from operations
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Group profit before tax 2,928 2,306 4,690
Depreciation 1,900 1,829 3,779
Equity settled share based
payments 67 41 88
Loss on disposal of land 135 - -
Interest receivable - (16) (29)
Interest payable - bank borrowings 371 420 830
Interest payable - lease liabilities 139 143 296
(Increase) / decrease in inventories (65) (66) 28
Decrease in receivables 114 1,406 79
Increase / (decrease) in payables 1,188 109 (61)
---------------------------------------- ------------ ------------ ---------
Cash generated from operations 6,777 6,172 9,700
---------------------------------------- ------------ ------------ ---------
(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 16 less cash and cash equivalents.
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Decrease / increase in cash
in the period/year (1,769) 2,639 (596)
Change in net debt resulting
from cash flows (2,614) - (8,350)
---------------------------------- ------------ ------------ ---------
Movement in net debt in period (4,383) (2,639) (8,946)
( 29,310
Net debt brought forward (38,255) ) (29,310)
---------------------------------- ------------ ------------ ---------
Net debt carried forward (42,638) (31,949) (38,255)
---------------------------------- ------------ ------------ ---------
23 Commitments under property leases
At 31 January 2021 the total future minimum lease payments as a
lessee under non-cancellable property leases were as follows:
31 January 31 January 31 July
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------- ----------- ---------
Land and buildings
Amounts due:
Within one year 1,605 1,517 1,575
Between two and
five years 4,836 5,082 5,041
After five years 7,292 7,677 7,811
------------------------- ----------- ----------- ---------
13,733 14,276 14,427
---------------------- ----------- ----------- ---------
Property lease payments represent rentals payable by the Group
for certain of its properties. Typically, leases are negotiated for
a term of 20 years and rentals are fixed for an average of five
years.
The Group's property leases are recognised as a 'right of use
asset' and as a corresponding liability at the year-end. This is
explained in Note 1 of the financial statements.
24 Related party events
On 29 January 2021, Lok'nStore acquired the managed store in
Chichester ("the Chichester Store") from Gypsy Moth Storage Limited
(formerly Chichester Storage Limited). On the same date Lok'nStore
sold to GMS its freehold development site at Pantheon Park,
Wolverhampton.
The five-year old Chichester Store was acquired for GBP4.025
million as independently valued by Jones Lang LaSalle Limited
(JLL). The Group paid in aggregate GBP4.16 million in cash with
associated costs and stamp duty. The acquisition was funded from
the Group's existing bank facilities.
Lok'nStore sold its freehold land site at Pantheon Park,
Wolverhampton to GMS, with the full benefit of the planning
permission and all accumulated planning and design work for a new
storage services facility for a total cash consideration of
GBP1.523 million, (excluding VAT) reflecting the purchase price of
the Wolverhampton site, plus planning and other costs and fees
incurred by the Group through to completion. The sales proceeds
were used to offset the cost of the acquisition of the Chichester
Store.
Following this sale Lok'nStore entered into a new Management
Services Agreement ("MSA") and Development and Advisory Agreement
("DAA") with GMS in respect of the Wolverhampton Site pursuant to
which the Group will provide property and construction advice
during the building of the Wolverhampton Store as well as ongoing
operational management services of the facility once built.
The MSA and DAA are each in substantially the same form and
commercial terms as other agreements to which the Group is party in
respect of its other managed facilities. Store development is
underway and once developed the Wolverhampton facility will
comprise a 52,600 ft purpose built landmark store featuring
Lok'nStore's distinctive branding and is located in an excellent
location adjacent to a busy retail park. The store is expected to
open by Q1 2022.
This transaction demonstrates the Group's ongoing desire to
build a balanced portfolio of owned and managed stores. The sale to
GMS is consistent with this strategy and enables the site to be
developed in a capital-efficient manner. The acquisition of the
Chichester store provides the Group with a mature cash generative
asset which will be a welcome addition to the Group's portfolio of
owned stores which are driving Group Cash Available for
Distribution (CAD) and dividends. The reduction in ongoing
management fees from the Chichester Store will be replaced by fees
earned under the new DAA and MSA management and development
agreements referred to above.
GMS is a private company which was incorporated in 2014 to
develop and own the Chichester storage services operation, under
the management of the Group. Andrew Jacobs, Executive Chairman of
Lok'nStore Group holds 17.6% of the share capital of Lok'nStore and
also holds 19.4% of the share capital of GMS. GMS has one director,
Ray Davies appointed on 20 September 2019, who is also Group
Finance Director of Lok'nStore. Accordingly, GMS is deemed to be a
related party of Lok'nStore within the meaning of the AIM Rules and
the above transactions constituted related party transactions
within the meaning of the AIM Rules. Due process was followed at
the time of the transaction with full consideration provided by the
Independent Directors of Lok'nStore, being the Board excluding
Andrew Jacobs and Ray Davies, having consulted with finnCap (as the
Company's nominated adviser) in accordance with the AIM Rules .
25 Events after the Reporting Date
Exchange of contracts - Basildon
Lok'nStore have entered into a conditional agreement to lease a
purpose built self-storage building in a landmark location in the
prominent retail and commercial area of Miles Gray Road and Cranes
Farm Road, Basildon. The landmark site, which has planning
permission, will be leased once complete, and will be above and
adjacent to new retail provision to complement the already busy
commercial area. Once complete and fitted the store will provide
57,000 sq.ft. of storage space.
Glossary
Abbreviation
APM Alternative performance measures
Adjusted EBITDA Earnings before all depreciation and
amortisation charges, losses or profits on disposal, share-based
payments, acquisition costs, and non-recurring professional costs,
finance income, finance costs and taxation
Adjusted Store EBITDA Adjusted EBITDA (see above) but before central and head office costs
AGM Annual General Meeting
APD Auditing Practices
Bps Basis Points
CAC Contributory asset charges
CAD Cash available for Distribution
Capex Capital Expenditure
CGU Cash generating units
CO2 e Carbon Dioxide Equivalents
CSOP Company Share Option Plan
EBT Employee Benefit Trust
(eKPIs) Environmental key performance indicators
EMI Enterprise Management Incentive Scheme
ESOP Employee Share Option Plan
EU European Union
GHG Greenhouse gas
HMRC Her Majesty's Revenue & Customs
IAS International Accounting Standard
IFRIC International Financial Reporting Interpretations
Committee
IFRS International Financial Reporting Standards
ISA International Standards on Auditing
JLL Jones Lang LaSalle
LIBOR London Interbank Offered Rate
LFL Like for like
LTV Loan to Value Ratio
MWh Megawatt Hour
NAV Net Asset Value
NBV Net Book Value
Operating Profit Earnings before interest and tax (EBIT)
PPP Partnership Performance Plan
PV Photovoltaic
QCA Quoted Companies Alliance
RICS Royal Institution of Chartered Surveyors
SIP Share Incentive Plan
SME Small and medium sized enterprises
Sq.ft. Square Feet
tCO2e Tonnes of carbon dioxide equivalent
TVR Total voting rights
VAT Value Added Tax
Our Stores
Head Office - Lok'nStore Central Enquiries
plc 0800 587 3322
112 Hawley Lane info@loknstore.co.uk
Farnborough www.loknstore.co.uk
Hampshire
GU14 8JE
Tel 01252 521010
www.loknstore.co.uk
www.loknstore.com
Owned Trading Stores
Basingstoke, Hampshire Bristol, Gloucestershire Cardiff, Glamorgan Chichester, West
Crockford Lane Longwell Green 234, Penarth Road Sussex
Chineham Trade Park Cardiff 17, Terminus Road
Basingstoke Aldermoor Way Wales Chichester
Hampshire Bristol CF11 8LR West Sussex
RG24 8NA Gloucestershire Tel 0292 022 1901 PO19 8TX
Tel 01256 474700 BS30 7ET Cardiff @loknstore.co.uk Tel 01243 771840
basingstoke@loknstore.co.uk Tel 0117 967 7055 chichester@loknstore.co.uk
Bristol@loknstore.co.uk
Eastbourne, East Fareham, Hampshire Farnborough, Hampshire Gillingham, Kent
Sussex 26 + 27 Standard 112 Hawley Lane Courteney Road
Unit 4, Hawthorn Way Farnborough Gillingham
Road Fareham Industrial Hampshire Kent
Eastbourne Park GU14 8JE ME8 0RT
East Sussex Fareham Tel 01252 511112 Tel 01634 366044
BN23 6QA Hampshire farnborough@loknstore.co.uk gillingham@loknstore.co.uk
Tel 01323 749222 PO16 8XJ
eastbourne@loknstore.co.uk Tel 01329 283300
fareham@loknstore.co.uk
---------------------------- ---------------------------- ----------------------------
Harlow, Essex Hedge End, Southampton Horsham, West Ipswich, Suffolk
Edinburgh Way Units 2 and 3 Sussex 7a Futura Park
Temple Fields Waterloo Industrial Blatchford Road Ipswich
Harlow Estate Flanders Redkiln Estate Suffolk
Essex Rd Horsham IP3 9QH
CM20 2GF Hedge End West Sussex Tel 01473 794940
Tel 01279 882366 Southampton RH13 5QR ipswich@loknstore.co.uk
harlow@loknstore.co.uk SO30 2QT Tel 01403 272001
Tel 01489 787005 horsham@loknstore.co.uk
HedgeEnd@loknstore.co.uk
---------------------------- ---------------------------- ----------------------------
Leicester, East Luton, Bedfordshire Maidenhead, Berkshire Milton Keynes,
Midlands 27 Brunswick Street Stafferton Way Buckinghamshire
Part of land forming Luton Maidenhead Etheridge Avenue
part of Freemens Bedfordshire Berkshire Brinklow
Common Road Leicester LU2 0HG SL6 1AY Milton Keynes
LE2 7SL Tel 01582 721177 Tel 01628 878870 Buckinghamshire
Tel: 0116 497 0785 luton@loknstore.co.uk maidenhead@loknstore.co.uk MK10 0BB
leicester@loknstore.co.uk Tel 01908 281900
miltonkeynes@loknstore.co.u
k
---------------------------- ---------------------------- ----------------------------
Northampton Central, Northampton Riverside, Poole, Dorset Portsmouth, Hampshire
Northamptonshire Northamptonshire 50 Willis Way Rudmore Square
16 Quorn Way Units 1-4, Carousel Fleetsbridge Portsmouth
Grafton Street Industrial Way Poole Hampshire
Estate Northampton Dorset PO2 8RT
Northampton Northamptonshire BH15 3SY Tel 02392 876783
Northamptonshire NN3 9HG Tel 01202 666160 portsmouth@loknstore.co.uk
NN1 2PN Tel 01604 785522 poole@loknstore.co.uk
Tel 01604 629928 northampton@loknstore.co.uk
nncentral@loknstore.co.uk
---------------------------- ---------------------------- ----------------------------
Reading, Berkshire Salford, Lancashire Southampton, Hampshire Sunbury, Middlesex
251 A33 Relief Road North Phoebe Street Third Avenue Unit C, The Sunbury
Reading Salford, Southampton Centre
Berkshire Manchester, Hampshire Hanworth Road
RG2 0RR M5 4EA SO15 0JX Sunbury on Thames
Tel 01189 588999 Tel 0161 676 5903 Tel 02380 783388 Middlesex TW16 5DA
reading@loknstore.co.uk salford@loknstore.co.uk southampton@loknstore.co.uk Tel 01932 761100
sunbury@loknstore.co.uk
---------------------------- ---------------------------- ----------------------------
Tonbridge, Kent Wellingborough,
Unit 6 Deacon Trading Northamptonshire
Estate 19/21 Whitworth
Vale Road Way
Tonbridge Wellingborough
Kent Northamptonshire
TN9 1SW NN8 2EF
Tel 01732 771007 Tel 01634 366044
tonbridge@loknstore.co.uk wellingborough@loknstore.co.uk
Development locations - Lok'nStore Owned Stores
Bedford , Bedfordshire Bournemouth, Dorset Cheshunt, Hertfordshire Peterborough, Northamptonshire
69 Cardington Road Land at Wessex Land lying on Land at Maskew Avenue
Bedford Field the South Side Peterborough
NK42 0BQ Deansleigh Road of Halfhide Lane
Bournemouth Turnford
Dorset Hertfordshire
BH7 7DU EN8 0FH
Staines, Surrey Stevenage, Hertfordshire Warrington, Cheshire
Plot C Part of Land at Land at Winwick
Lovett Road Plot 2000 Road, Warrington
Staines Stevenage Business Cheshire
TW18 3AZ Park Gunnels Wood WA2 7PF
Road
Stevenage
Hertfordshire
SG1 2BL
------------------------- ------------------------ -------------------------------
Managed stores - Trading
Aldershot, Hampshire Ashford, Kent Broadstairs, Kent Crawley, West Sussex
251, Ash Road Wotton Road Unit 2, Pyramid Sussex Manor Business
Aldershot Ashford Business Park, Park
Hampshire Kent Poorhole Lane, Gatwick Road
GU12 4DD TN23 6LL Broadstairs, Crawley
Tel 0845 4856415 Tel 01233 645500 Kent West Sussex
aldershot@loknstore.co.uk ashford@loknstore.co.uk CT10 2PT RH10 9NH
Tel 01843 863253 Tel 01293 738530
broadstairs@loknstore.co.uk crawley@loknstore.co.uk
Crayford, Kent Dover, Kent Exeter, Devon Gloucester, Gloucestershire
Block B, Optima Honeywood Parkway 1 Matford Park Metz Way
Park Whitfield Road Gloucester
Thames Road Dover Exeter GL1 1AH
Crayford CT16 3FJ Devon Tel: 01452 938082
Kent Tel 01304 827353 EX2 8ED gloucester@loknstore.co.uk
DA1 4QX dover@loknstore.co.uk Tel 01392 823989
Tel 01322 525292 exeter@loknstore.co.uk
crayford@loknstore.co.uk
-------------------------
Hemel Hempstead, Oldbury, West Midlands Swindon, Wiltshire
Hertfordshire 6 Churchbridge, Kembrey Street
Fortius Point, Oldbury, Elgin Industrial
47, Maylands Avenue West Midlands Estate
Hemel Hempstead B69 2AP Swindon
Hertfordshire Tel 0121 5446309 Wiltshire
HP2 7DE Oldbury@loknstore.co.uk SN2 8UY
Tel 01442 240768 Tel 01793 421234
hemelhempstead@loknstore.co.uk swindoneast@loknstore.co.uk
-------------------------
Managed stores - Under Development
Chester, Cheshire Kettering, Northamptonshire Wolverhampton,
58-64 Sealand Road, Site between Pytchley Staffordshire
Chester Lane and Pytchley Land at Pantheon
CH1 4LD Road, Park Wednesfield
Kettering Way
NN15 6XB Wolverhampton
Staffordshire
WV11 3DR
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END
IR BLGDSGXDDGBX
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April 26, 2021 02:00 ET (06:00 GMT)
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