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Interim Results

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By LSE RNS

RNS Number : 0435D
Lok'nStore Group PLC
24 April 2017
 



LOK'NSTORE GROUP PLC

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

 

Lok'nStore Group Plc, the fast growing self-storage company announces interim results for the six months to 31 January 2017

 

"Strong balance sheet funds growth strategy and pipeline of 8 new landmark stores"

 

Highlights:   

 

Strong trading and cash flow  

·       Revenue £8.34 million up 4.5% (31.1.2016: £7.99 million)

·       Group Adjusted EBITDA1 £3.31million up 0.5% (31.1.2016: £3.30 million)

·       Adjusted pre-tax profit2 £2.1 million up 13.5%

·       Adjusted net profit2 £1.9 million up 81.2%  

 

     Cash flow growth supports 12.4% dividend increase - progressive dividend policy

·       Cash available for Distribution (CAD) 3 £2.62 million up 6.5% (31.1.2016: £2.46 million)

·        Interim dividend 3 pence per share up 12.4% (31.1.2016: 2.67 pence per share)

 

Significant growth in asset value,

·       Adjusted Net Asset Value (NAV) per share4 up 26.1% to £3.87 (31.1.2016: £3.07)

·       Total assets up to £142.65 million (31.1.2016: £113.4 million)

 

Strong balance sheet, efficient use of capital, low debt 

·       Sale of 1.975 million Treasury shares raising circa £8 million at 400 pence per share (purchase cost 150.3 pence), a premium to NAV4 

·        Net debt £16.7 million down 35.3% (31.1.2016: £25.8 million)

·        Loan to value ratio down to 14.4%6 (31.1.2016: 26.2%)

·        Extension of existing bank facility by 2 years until January 2023

·        Effective cost of debt 1.65%

·        Rolling 12 month EBITDA 16.2 times net interest

 

Consistent performance in the self-storage business

·        Core self-storage revenue £7.0 million up 3.9% (31.1.2016: £6.74 million)

·        Adjusted Store EBITDA £3.857million up 0.1% (31.1.2016: £3.84 million)

·        Occupied units pricing up 1.0% LFL8

·        Unit Occupancy up 4.6% LFL8

 

Healthy pipeline of new landmark stores - 8 stores in pipeline

·        4 new stores to open in 2017 in Wellingborough, Gillingham, Hemel Hempstead and Broadstairs

·        Plus 4 further new sites identified

·        Current pipeline adds 30% of extra trading space to the overall portfolio, 18% to our owned portfolio and 70% to the managed portfolio

·        Following successful completion of Managed Store pipeline will have 10 stores under management   .

 

Confident Outlook

·       The Group is well positioned for future growth

 

 

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

 

"With strong trading Lok'nStore's profits continue to grow, as interest costs and taxation also come down. We are investing in the future growth of the business building more new landmark stores. Our low debt allows this rapid development programme to be financed from cash flow and existing bank facilities, while progressively increasing the dividend.

 

"Our new store development programme continues to change the balance of our stores with new and purpose built stores accounting for 64% of the portfolio.  The three new stores we opened in 2016 are all trading well and the 4 sites acquired last year for new stores will open in 2017 increasing space by a further 18% and adding impetus to sales and earnings growth.

 

"Our objective is to open more landmark self-storage centres while remaining conservatively leveraged to deliver robust, predictable growing cash flow and dividends from an expanding asset base."

 

 

 

 

Enquiries:

 

Lok'nStore:

Andrew Jacobs, CEO

Ray Davies, Finance Director

01252 521 010

finnCap Ltd

Julian Blunt / Giles Rolls, Corporate Finance

Alice Lane, Corporate Broking

020 7220 0500

Camarco

Billy Clegg / Tom Huddart

 

0203 757 4980

 

 

 

 

 

 

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

 

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

 

2.     Adjustment of prior period exceptional sale - Reading

 In 2016, the Group received an additional amount of sale proceeds (net of costs) of £1.94 million on the sale of its old Reading store. The increase in the adjusted profit before tax of £2.1 million (31.01.16: £1.85 million) and the increase in the adjusted net profit £1.87 million (31.01.16: £1.03 million) reported in the highlights above strip out the effect of this exceptional item.

 

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

 

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

 

5.     Total assets - Total assets of £142.6 million  is calculated by adding the independent valuation of the leasehold properties (£16.6 million) less their corresponding net book value (NBV) £3.0 million to the total assets in the balance sheet of £129.0 million.

  

6.     LTV - Loan to value ratio - measures the debt of the business expressed as a percentage of total property assets giving a perspective on the gearing of the business. The calculation is based on net debt of £16.7 million (31.1.2016: £25.8 million) as a percentage of the total properties independently valued by JLL and including development land assets totalling £115.5 million (31.1.2016: £98.5 million) as set out in the Business and Financial Review.

 

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

 

8.     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. During December 2016 and January 2017, Lok'nStore closed its store in Staines.  Like-for-like (LFL) growth figures for the period strip out the effect of this closure.

 

9.     Exceptional items - arose during the period from a further £14,390 of additional costs from the disposal of the old Portsmouth development site and £20,898 of costs relating to the closure of the Staines store.

 

10.  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.

 

11.  Capex - capital expenditure

 

 

 

 

Glossary

 

Abbreviation

 

 

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



C&W

Cushman & Wakefield



CAD

Cash available for Distribution



Capex

Capital Expenditure



CSOP

Company Share Option Plan



EBT

Employee Benefit Trust



EMI

Enterprise Management Incentive Scheme



ESOP

Employee Share Option Plan



EU

European Union





HMRC

Her Majesty's Revenue & Customs



IAS

International Accounting Standard



IFRIC

International Financial Reporting Interpretations Committee



IFRS

International Financial Reporting Standards



JLL

Jones Lang LaSalle



LIBOR

London Interbank Offered Rate



LFL

Like for like



LTV

Loan to Value Ratio



NAV

Net Asset Value



NBV

Net book value



Operating Profit

Earnings before interest and tax (EBIT)



RICS

Royal Institution of Chartered Surveyors



sq. ft.

Square Feet



Store adjusted EBITDA

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



VAT

Value Added Tax



 

Chairman's Statement

 

Healthy growth, increased dividend and active store opening programme

 

Lok'nStore Group continues to build on the successful implementation of all of our strategy objectives. Our focus is opening more landmark self-storage centres while remaining conservatively leveraged to deliver robust, predictable growing cash flow and dividends. Our expanding pipeline of new stores substantially increases the proportion of our store space which is new or purpose-built and will add further momentum to the growth of sales and profits. 

 

Trading positive

For the half year period to January 2017 trading has been steady with revenue, profits and assets all increasing.

An increase in revenue of 4.5% to £8.34 million (31.1.2016: £7.99 million) resulted mainly from occupancy growth with prices holding steady.

 

Progressive Dividend

Dividend payments will reflect the growth in the underlying cash generated by the business as reflected in the cash available for distribution (CAD) which is up 6.5% in the period. As noted above this was balanced by an 8.5% increase in shares outstanding so CAD per share remained steady at an annualised 19 pence despite the significant reduction in risk as debt and LTV were brought down substantially.

 

At this interim stage we will pay one third of the previous year's total annual dividend which equates to 3.00 pence per share, up 12.4% on the 2.67 pence per share interim dividend last year. The ex-dividend date will be 11 May 2017; the record date 12 May 2017; with an intended payment date of 9 June 2017. The final dividend will be declared when the Group's full year results are announced.

 

Balance Sheet and financial platform strengthened to support Growth

Lok'nStore has worked to reduce debt, increase cash and increase the value of its trading assets. This shows through in our higher NAV and lower LTV metrics. Our Bank facilities have been extended and markedly lower interest costs are now feeding through into the Income Statement. Finance costs are 42.4% lower compared to the corresponding period last year. This is all reported in more detail in the remainder of the Statement.

 

Sale of Treasury Shares

In November 2016 Lok'nStore sold 1,975,000 ordinary shares of 1 pence each ("Ordinary Shares") held in treasury. This sale was undertaken to satisfy demand, and to improve liquidity in the Company's shares. The shares were sold to a range of institutional investors at a price of 400 pence per share. (The Company acquired the shares at an average price of 150.3 pence). We welcome the new shareholders to the register.

 

The sale of these shares from treasury will have no impact on earnings or taxable profits but has reduced debt, LTV and interest payable while increasing cash and current assets, so supporting the Company's growth strategy. 

 

There remain 491,869 shares held in treasury. Following this transaction, the Company's total issued share capital was unchanged at 29,199,230 Ordinary Shares.

 

The growth of sales, profit and asset values combined with innovative asset management has allowed us to achieve a substantial reduction in the loan-to-value (LTV) ratio down to 14.4% (31.1.2016: 26.2%) and net debt down to £16.7 million (31.1.2016: £25.8 million) while we invested £2.8 million in store development in this period.

 

Rapid store development programme

Our rapid store development programme has led to an increase in new and purpose built space to 64% of our owned portfolio. Recently opened stores in Southampton, Bristol, Maidenhead, Reading, Aldershot and Chichester have plenty of capacity to continue contributing to growth during the coming years. We have 4 new landmark stores in Wellingborough, Gillingham, Hemel Hempstead and Broadstairs opening through 2017 which will increase space by a further 18% and we have identified 4 more sites taking our total pipeline to 8 stores. This strong pipeline will add further impetus to sales and earnings growth.

 

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

 

Operating Costs

We have a strong record of reducing our group operating costs each year however we cautioned at our 2016 year end results that although we maintain a disciplined approach to costs continuing to reduce them is increasingly challenging while delivering both strong revenue growth and an acceleration of our store opening programme. While overall costs have risen 7.6% and we provide a breakdown in the Business Review, the cost increases are driven by the expansion of the business in the areas of rates, staffing and advertising, and we are seeing little other cost pressures.

 

We will continue pushing Group margins up by building more landmark freehold stores and increasing the number of managed stores we operate from essentially an unchanged central cost platform.

 

Lok'nStore extends existing £40 million Banking Facility to six years

The Group has agreed a two year extension on its existing banking facility. The £40 million facility will now run until January 2023. Together with our £12.1 million of cash and £2.9 million cash generated from operations this will provide funding for more landmark site acquisitions and working capital. 

 

The cost of our debt on £28.8 million drawn averaged 1.69% in the period. 

 

Positive Outlook

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

 

With the high barriers to entry to the self-storage industry created by the strong demand for property in South-East England and the difficulties of the local planning process, we believe that Lok'nStore is creating a highly valuable asset in an attractive market.

 

Our main objective is to steadily increase the cash available for distribution (CAD) enabling a predictable growth of the dividend from a strong asset base and conservatively geared balance sheet.

 

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

 

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

2.   Acquire sites to build more landmark stores

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

4.   Grow our document storage business

 

Our current pipeline of 8 new stores will contribute to the achievement of these objectives.

 

Finally, I should like to thank all of our employees for the contribution they have made to the Group's success. With our experienced and dedicated staff we have built a firm base for the coming years and we are looking to the future with confidence.

 

 

Simon G Thomas

Chairman

24 April 2017

 

 

 

Business and Financial Review

 

The Performance of our Stores - Self-storage business steady

 

·      Self-storage revenue £7.0 million up 3.9% (31.1.2016: £6.74 million)

·      Adjusted Store EBITDA £3.85  million up 0.1% (31.1.2016: £3.84 million)

·      Unit occupancy increased 4.6% year on year on a like for like basis to 61.8% of current lettable area (CLA)

·      Occupied units pricing up 1.0% LFL

 

During the period self-storage revenues rose at a steady rate of 3.9% (4.5% LFL) and Store EBITDA edged ahead by 0.1% (1.1% LFL). This was a result of unit occupancy increasing 4.6% LFL over the period as pricing edged up 1% LFL. Store EBITDA growth was subdued as we absorbed the increased costs of the new landmark stores in Southampton and Bristol, and higher costs of internet search marketing.

 

As you can see from the table below as the business develops the balance of the stores continues to shift towards landmark freehold stores and managed stores which have a higher than average store EBITDA margin (62.9% and 100% respectively versus 54.5% across all stores). The impact of this is to continue to increase the average store EBITDA margin of the Group overall, and this effect is accentuated by operating more stores from a relatively fixed central cost base.  In this context the 8 new stores in the pipeline will make a larger than average contribution to Group profits as they become established trading units.

 

At the end of January 2017 34.5% of Lok'nStore's self-storage revenue was from business customers (31.1.2016: 33.1%) with the remainder from household customers. By number of customers 19.7% of our customers were business customers (31.1.2016: 19.6%).

     






When Fully Developed

Portfolio Analysis and  Performance Breakdown

Number of stores

% of Valuation

% of Adjusted Store EBITDA

Adjusted Store

EBITDA Margin (%)

% lettable space

Lok Owned

Number of stores

Total % lettable space

 

As at 31 January 2017








Freehold and long leasehold stores

12

86.0

70.6

62.9

63.9

15

49.8

 

Operating Leaseholds stores

7

14.0

29.4

41.3

36.1

8

25.7

Managed Stores

6



100


10

             24.5

Pipeline stores



 

 




Owned

4







Managed

4







Total Self Storage

33

100

100

54.5

100

33

100

Document Storage

2

-

-

-

-

2

-

 

Total freeholds and long leasehold stores account for 86% of total property values (long leaseholds are those with over 50 years remaining term).

 

Ancillary Sales

Ancillary sales consisting of boxes and packaging materials, insurance and other sales increased 5.5% (31.1.2016: 3.5%) over the year accounting for 11.1% of self-storage revenues (31.1.2016: 10.9%).  We continue to promote customer goods insurance to new customers with the result that 90% (31.1.2016: 91%) of our new customers purchased the product over the year. This has resulted in nearly 80% of our customers being insured through Lok'nStore.

 

Saracen - Document storage business

·      Revenue £1.15 million up 8.8% (2015: £1.06 million)

·      Adjusted EBITDA £0.25 million unchanged (2015: £0.25 million)

·      Boxes stored up 8.0%.  Tapes stored up 27% over the 12 months to end of January 2017

 

Revenue has increased in our document storage business as operating metrics improve in response to the Company's more customer facing marketing stance. This approach has resulted in excellent customer feedback and puts us in a good position to win new business, with boxes stored increasing 8.0% and tapes stored up 27%.  Initially EBITDA growth has been dampened as the increased volume of incoming items pushes up distribution and handling costs, but later in the storage cycle the profitability of these items will increase as handling is reduced.

 

Last year we completed the final stage of our phased fit-out of new warehouse racking in our site in Olney and we now have the capacity to significantly increase the number of boxes stored within our existing premises.

 

Stores Property review

 

Lok'nStore has 25 freehold, leasehold and managed stores trading. Of these, 19 stores are owned with 12 freehold or long leasehold, 7 leasehold and 6 further sites operate under management contracts. 

 

The average unexpired term of the Group's operating leaseholds is approximately 11 years and 2 months as at 31 January 2017 (12 years and 2 months: 31 January 2016). All of our current leasehold stores are inside the Landlord and Tenant Act providing us with a strong security of tenure.

 

Closure of Staines Store

 

Our leasehold store in Staines was on a short lease outside of the Landlord and Tenant Act (1954) and has now been closed.

 

Around 50% of the existing customers were moved to other Lok'nStore stores. Of the approximately 50% of customers that did move the majority are longer term so we expect revenue from these customers to show little downturn. All of Staines operating costs has been removed so EBITDA profit is at least neutral if not slightly enhanced by the impact of this move. There were no dilapidations payments made to the landlord.

 

Because the Staines store was outside of LTA (1954) act and on a short lease it has never been valued as an asset in our accounts. The carrying book value in the financial statements was therefore de minimis.

 

It should be noted that the headline revenue and occupancy figures for December 2016 onwards will be negatively impacted to some degree by the influence of the closure, but for the sake of transparency and simplicity we have chosen not to show like-for-like figures stripping out this effect, except where it makes a qualitative difference.  

 

Managed Store Service

 

·      Management fees from Managed Stores £0.18 million (31.1.2016: £0.19 million) 

 

Over recent years we have been developing our management services to third party storage owners. We have eight stores under management with six of these open and trading and two in Hemel Hempstead and Broadstairs under development and scheduled to open in 2017.

 

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

 

In this period we earned £0.18 million (31.1.2016: £0.19 million) in management fees. We expect this to increase steadily over the coming years. The comparative 2016 figure was enhanced by accrued fees prior to the period which could not be booked until period ended January 2016 as follows:

 


Six months

ended

31 January

2017

Unaudited

Six months

ended

31 January

2016

Unaudited

Management fees

£

£

 

Management Fees

 

180,881

155,446

Prior period accrued fees

-

34,390

Total management fees

180,881

189,836

 

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.

 

 

·      2016 store openings in Bristol, Southampton and Chichester trading well

·      4 new sites under development adding 18% more space

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

·      4 further new store opportunities identified

·      Current pipeline adds 18% of extra space to our owned portfolio, 70% to the managed portfolio and 30% to the overall portfolio.

 

Development of two new landmark stores 

Wellingborough and Gillingham

 

In September 2016 we received planning permission and completed the purchases of the sites in Gillingham and Wellingborough. We are now on site in both locations.

 

The sites are in prominent retail locations with large catchment areas and little established competition.  The total capital investment of approximately £10 million will be financed from cash flow and our bank facility.  The stores are scheduled to be open at the end of 2017.  When developed these stores will add around 110,000 sq. ft. to the trading portfolio increasing the company's capacity of owned stores by 10%.  They will take the proportion of Lok'nStore's space which is new or purpose built to 64%.

 

Two new stores to be developed under management contracts

Two new management contracts were signed in July 2016 to develop and operate two new stores in prominent retail locations in Hemel Hempstead and Broadstairs.  Opening is scheduled for 2017.  When developed, these will add around 70,000 sq. ft. to the trading portfolio.

 

Flexible and tactical approach to site acquisition

We continue our strategy of actively managing our store operating portfolio to ensure we are maximising both trading potential and asset value. This includes strengthening our distinctive brand, increasing the size and number of our stores and replacing stores or sites where it will increase shareholder value. We prefer to own freeholds if possible, and where opportunities arise we will seek to acquire the freehold of our leasehold stores. However we are happy to take leases on appropriate terms and benefit from the advantages of a lower entry cost, with further options to create value later. Our most important consideration is always the trading potential of the store rather than the type of property tenure.

 

With Wellingborough, Gillingham, Hemel Hempstead and Broadstairs set to open in 2017 this will increase the number of stores we operate to 29 and will capitalise on our efficient operating systems and growing internet marketing presence.   

 

Store property assets and Net Asset Value

 

·      Total assets now £142.6 million (31.1.2016: £113.4 million)

·      Adjusted net asset value of £3.87 per share up 26.1% on last year

 

Financial results

 

·      Group Revenue £8.34 million up 4.5% (31.1.2016: £7.99 million)

·      Group Adjusted EBITDA  £3.3million up 0.5% (31.1.2016: £3.3 million)

·      Forward cost of debt currently 1.65%

·      LTV down to 14.4%

·      Treasury share sale for £7.82m (net of costs)

·      CAD up 6.5%

·      Interim dividend up 12.4%

·      Cash balances £12.1 million (31.1.2016: £3.0 million)

 

Lok'nStore is a robust business which generates an increasing cash flow from its strong asset base.  With a low LTV of 14.4% and low interest margins of 1.4% on its extended banking facility the business has a firm base for growth.  The value of the Group's property assets underpins a flexible business model with stable and rising cash flows and low credit risk.

 

Management of interest rate risk

 

Of the £28.8 million of gross debt currently drawn against the £40 million revolving credit facility £20 million was at a fixed interest rate with £10 million fixed rate swap at a fixed 1 month sterling LIBOR rate of 1.2% and £10 million swap at a fixed 1 month sterling LIBOR rate of 1.15%. Both swaps expired 20 October 2016 and the Group's all-in floating rate dropped to (currently) 1.65% on its entire gross debt.

 

Under the current bank facility the Group is not committed to enter into hedging instruments going forwards but rather to keep such matters under review.  Given our low level of indebtedness, low Loan to Value and high interest cover, combined with the wider uncertainties within the economy of Brexit likely to produce low rates for longer, it is not the intention of the Group to enter into an interest rate hedging arrangement at this time.

 

Taxation

The Group has made a current tax provision against earnings in this period of £0.42 million based on a corporation tax rate of 20%. The deferred tax provision which is calculated at forward corporation tax rates of 17% and is substantially a tax provision against the potential crystallisation (sales) of revalued properties and past 'rolled over' gains amounts to £14.45 million. (31.1.2016: £11.63 million) (see Note 16).

 

Earnings per share

Basic earnings per share were 6.91 pence (31.1.2016: 11.53 pence per share) and diluted earnings per share were 6.74 pence (31.1.2016: 11.26 pence per share).  If 2016 figures are adjusted to eliminate the 2016 property sale gain of £1.94 million, the 2016 EPS is adjusted to 4.00 pence per share and the 2016 diluted EPS to 3.91 pence per share.

 


Six months

ended

31 January

2017

Unaudited

Six months

ended

31 January

2016

Unaudited

Year

ended

31 July

2016

             Audited


Earnings per share (EPS)

£'000

£'000

£'000


 

Profit for the Period

 

1,870

2,972

4,282


Exceptional Gain on sale of Reading

-

(1,940)

(1,940)


Adjusted earnings

1,870

1,032

2,342


 


 

No. of shares

 

No. of shares

 

No. of shares

Weighted average number of shares




For basic earnings per share

27,071,818

25,775,767

25,791,821

Dilutive effect of share options

651,347

626,082

577,882

For diluted earnings per share

27,723,165

26,401,849

26,369,643

Basic EPS

6.91

4.00

9.08

Diluted EPS

6.74

3.91

8.88

 

Operating costs

 

We have a strong record of reducing our group operating costs each year however we cautioned at our 2016 year end results that although we maintain a disciplined approach to costs continuing to reduce them is increasingly challenging while delivering both strong revenue growth and an acceleration of our store opening programme.

 

Group operating costs amounted to £4.87 million for the period, a 7.6% increase year on year (31.1.2016: £4.52 million) which derived from higher rates bills as we opened landmark stores, extra staffing in document storage and higher internet marketing costs.

 

Property costs which mainly constitute rent and rates have risen by 10.5% as we felt the effects of higher rates bills as we opened our new landmark stores at Southampton and Bristol and on our development site at Wellingborough.  Rents remained static and utility costs rose modestly. Excluding these three categories (rent, rates and utilities) other minor property costs rose by only 2.2%.

 

Overhead costs while up 12.5% year on year are running lower for the full year 2017 on an annualised basis. The only significant increase in this category is the cost of internet marketing which has risen 70% year to year as we improve our search rankings. Excluding this expenditure other overhead expenditures were down 3.5% year to year.

 

Staff costs increased by 4% as we increase staffing at our serviced document storage unit to cope with increased volumes of incoming items.  Across the rest of the Group there was no increase in staff costs.

 

Overall the cost increases are mainly driven by the expansion of the business and we are seeing little other cost pressures.

 

 

Group

Increase

    in costs %


Six months

ended 31 Jan

2017

£'000

Six months

ended 31 Jan

2016

£'000


Year

ended 31 July

2016

£'000

Property costs

10.5


2,087

1,889


3,913

Staff costs

4.0


2,156

2,074


4,232

Overheads

12.5


541

481


1,128

Distribution costs

6.3


83

78


170

Total

7.6


4,867

4,522


9,443

 

 

Cash flow and financing

At 31 January 2017 the Group had cash balances of £12.1 million (31.1.2016: £3.0 million). Cash inflow from operating activities before investing and financing activities was £2.9 million (31.1.2016: £0.9 million), and the sale of the Treasury shares further added to our cash position. As well as using cash generated from operations to fund some capital expenditure, the Group has a six year revolving credit facility. This provides sufficient liquidity for the Group's current needs.  Undrawn committed facilities at the period-end amounted to £11.2 million (31.1.2016: £11.2 million).

 

Gearing

At 31 January 2017 the Group had £28.8 million of gross borrowings (31.1.2016: £28.8 million) representing gearing of 20.7% (31.1.2016: 45.7%) on net debt of £16.7 million (31.1.2016: £25.8 million).  After adjusting for the uplift in value of leaseholds which are stated at depreciated historic cost in the statement of financial position, gearing is 17.7% (31.1.2016: 38.0%). After adjusting for the deferred tax liability carried at period end of £14.4 million gearing drops to 15.3% (31.1.2016: 32.5%).

 

Cash available for Distribution (CAD) up 6.5% 

Cash available for Distribution (CAD) provides a clear picture of ongoing cash flow available for dividends. The CAD was up 6.5% in the period although at a per share level this was balanced by the increase in the number of shares outstanding resulting from the sale of the Treasury shares.

 

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

 

Analysis of Cash Available for Distribution (CAD)



Six months ended 31 January 2017

£'000

Six months ended 31 January 2016

£'000

 

Year ended 31 July 2016

£'000

Group Adjusted EBITDA


3,313

3,298

6,295

Less: Net finance costs (per Income Statement)


(151)

(415)

(735)

Capitalised maintenance expenses


(55)

(55)

(110)

New Works Team


(66)

(67)

(134)

Current tax


(424)

(303)

(606)

Total deductions


(696)

(840)

(1,585)

Cash Available for Distribution


2,617

2,458

4,710






Increase over last year


6.5%










Number

Number

Number

Number of shares in issue


28,084,149

25,873,896

26,019,241






CAD per share (annualised)


19p

19p

18p

 

 

Capital expenditure and capital commitments

The Group has grown through a combination of site acquisition, existing store improvements and relocations. It has concentrated on extracting value from its existing assets and developing through collaborative projects and management contracts. Capital expenditure during the period totalled £2.8 million (31.1.2016: £4.6 million). This was primarily the purchase and subsequent construction works at our development sites in Gillingham and Wellingborough as well as completing fitting-out works at our Bristol store.

 

The Company has no further capital commitments beyond the build and fit-outs of the Gillingham and Wellingborough Stores and the refurbishment of the Old Southampton store for cruise parking totalling £5.4 million.

 

Market Valuation of Freehold and Operating Leasehold Land and Buildings

On 31 July 2016 professional valuations were prepared by Jones Lang LaSalle (JLL) in respect of eleven freeholds one long leasehold and seven operating leasehold properties. This valuation has been adopted for the 31 January 2017 period-end. The valuation was prepared in accordance with the RICS Valuation - Professional Standards, published by The Royal Institute of Chartered Surveyors (the "Red Book").  The valuation has been provided for accounts purposes and, as such, is a Regulated Purpose Valuation as defined in the Red Book.

 

A deferred tax liability arises on the revaluation of the properties and on the rolled-over gain arising from the disposal of some properties.  It is not envisaged that any tax will become payable in the foreseeable future on these disposals due to the availability of rollover relief. 

 

It is not the intention of the Directors to make any other significant disposals of trading stores, although individual disposals may be considered where it is clear that added value can be created by recycling the capital into other opportunities.

 

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

 

The valuations of our freehold property assets are included in the Statement of Financial Position at their fair value, but under applicable accounting standards, no value is included in respect of our leasehold stores to the extent that they are classified as operating leases. The value of our operating leases in the valuation totals £16.6 million (31.1.2016: £14.8 million). Instead we have reported by way of a note the underlying value of these leasehold stores in future revaluations and adjusted our Net Asset Value (NAV) calculation accordingly to include their value. This ensures comparable NAV calculations.

 

 

Analysis of Total Property Value

 


No of stores/sites

31 Jan 2017 Valuation

£'000

No of stores/sites

31 Jan 2016

Valuation

£'000

No of stores/sites

31 July 2016 Valuation

£'000

Freehold and long leasehold valued by JLL 1 (Jan 2016 C & W)

 

12

 

96,125

 

11

 

70,610

 

12

 

96,125

Leasehold valued by JLL 2 (Jan 2016 C & W)

7

16,575

7

14,760

71

16,575

Freehold  land and buildings at Director valuation 3

 

1

 

3,000

 

-

 

-

 

1

 

3,000

Subtotal

20

115,700

18

85,370

20

115,700

Sites in development at cost

2

2,792

3

13,150

2

457

Total

22

118,492

21

98,520

22

116,157

 

 

1     Includes related fixtures and fittings (refer note 10b)

2        The seven leaseholds valued by JLL are all within the terms of the Landlord and Tenant Act (1954) giving a degree of security of tenure. The average length of the leases on the leasehold stores valued was 11 years and 8 months at the date of the 2016 valuation (2015 valuation: 12 years and 8 months).   

3     For more details (refer note 10b - Directors valuation)

 

Total freeholds account for 86.0% of property values (31.1.2016: 85.0%).

 

 

Adjusted Net Asset Value per Share   

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

 

At January 2017 the adjusted net asset value per share increased to £3.87 from £3.07 year on year, up 26.1%.  This substantial increase is a result of higher property values as our new valuers recognised the strength of our landmark stores, cash generated from operations, offset in part by an increase in the shares in issue due to the exercise of share options by management and staff during the period.

 

 

 

 

 

 

Analysis of net asset value (NAV)

31 Jan

2017

£'000

31 Jan

2016

£'000

31 July

2016

£'000

 

Net assets

Adjustment to include operating/short leasehold stores at valuation

Add: JLL leasehold valuation

Deduct: leasehold properties and their fixtures and fittings at NBV

 

80,733

 

16,575

 

(3,006) 

 

56,409

 

14,760

 

(3,296)

 

71,475

 

16,575

 

(3,065)


94,302

67,873

84,985

 

Deferred tax arising on revaluation of leasehold properties1

 

(2,307)

 

(2,063)

 

(2,432)

 

Adjusted net assets

 

91,995

 

65,810

 

82,553

 

Shares in issue

 

Number

 

Number

 

Number

Opening shares in issue

Shares issued for the exercise of options

29,109

90

28,447

517

28,447

662

Closing shares in issue

Shares held in treasury

Shares held in EBT

29,199

(492)

(623)

28,964

(2,467)

(623)

29,109

(2,467)

(623)

 

Closing shares for NAV purposes

 

28,084

 

25,874

 

26,019

 

Adjusted net asset value per share after deferred tax provision

 

£3.28

 

£2.54

 

£3.17





 

Adjusted net asset value per share before deferred tax provision




 

Adjusted net assets

 

91,995

 

65,810

 

82,553

Deferred tax liabilities and assets recognised by the Group

14,446

11,634

15,361

 

Deferred tax arising on revaluation of leasehold properties1

 

2,307

 

2,063

 

2,432

 

Adjusted net assets before deferred tax

 

108,748

 

79,507

 

100,346

 

Closing shares for NAV purposes

 

28,084

 

25,874

 

26,019

 

Adjusted net asset value per share before deferred tax provision

 

£3.87

 

£3.07

 

£3.86

 

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

 

Corporate and Social Responsibilities

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

 

Customers

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

 

 

 

Andrew Jacobs                                    Ray Davies

Chief Executive Officer                            Finance Director

 

 

 

Consolidated Statement of Comprehensive Income

For the six months ended 31 January 2017


Notes

Six months

 ended

31 January 2017

Unaudited

£'000

Six months

 ended

31 January 2016

Unaudited

£'000

Year ended

31 July 2016

Audited

£'000

Revenue

1

8,343

7,986

16,056






Total property, staff, distribution and general costs

2a

(5,030)

(4,689)

(9,761)

 

Adjusted EBITDA1


 

3,313

 

3,297

 

6,295

Amortisation of intangible assets


 

(83)

 

(84)

 

(165)

Depreciation


(897)

(735)

 (1,537)

Equity settled share based payments

18

(48)

(93)

 (182)



 

(1,028)

 

(912)

(1,884)

Store relocation costs


(21)

-

-

Net settlement proceeds

2c

-

1,940

1,940

Property disposal costs


(14)

(122)

(123)



(1,063)

906

(67)

Operating profit


 

2,250

 

4,203

                                         6,228

   





Finance income

3

174

150

313

Finance cost

4

(325)

(564)

(1,048)






Profit before taxation

5

2,099

3,789

5,493

Income tax expense

6

(229)

(817)

(1,211)






Profit for the period    


1,870

2,972

4,282






Profit attributable to:





Owners of the parent

19

1,870

2,972

4,282






Other Comprehensive Income





Items that will not be reclassified to profit and loss





Increase in property valuation


391

379

17,651

Deferred tax relating to change in property valuation


499

734

(2,387)

 


890

1,102

15,264

Items that may be subsequently reclassified to profit and loss





Increase in fair value of cash flow hedges


37

21

83

Deferred tax relating to cash flow hedges


-

(10)

(21)



37

11

62

Other comprehensive income


927

1,113

15,326

Total comprehensive income for the period


2,797

4,085

19,608

Attributable to:

Owners of the parent


 

2,797

 

4,085

 

19,608






Earnings per share attributable to owners of the Parent





Basic

8

6.91p

11.53p

  16.60p

Diluted

8

6.74p

11.26p

16.24p

 

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



 

Consolidated Statement of Changes in Equity


Share

capital

£'000

Share

premium

£'000

Other

reserves

£'000

Revaluation

reserve

£'000

Retained

earnings

£'000

Total

equity

£'000

1 August 2015 - Audited

285

2,614

8,685

32,239

9,146

52,969

Profit for the period

-

-

-

-

2,972

2,972

Other comprehensive income:







Increase in property valuation net of deferred tax

-

-

-

1,102

-

1,102

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

-

-

11

-

-

11

Total comprehensive income

-

-

11

1,102

2,972

4,085

Transactions with owners:







Dividend paid

-

-

-

-

(1,456)

(1,456)

Share based payments

-

-

93

-

-

93

Transfers in relation to share based payments

-

-

 (303)

-

303

-

Deferred tax credit relating to share options

-

-

(6)

-

-

(6)

Exercise of share options

5

719

-

-

-

724

Total transactions with owners







Transfer realised gain on asset disposal

-

-

-

(1,668)

1,668

-

Transfer additional dep'n on revaluation net of deferred tax

-

 

 -

-

(128)

128

-

31 January 2016 - Unaudited

290

3,333

8,480

31,545

12,761

56,409

Profit for the period

-

-

-

-

1,310

1,310

Other comprehensive income:







Increase in property valuation net of deferred tax

-

-

-

14,162

-

14,162

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

-

-

51

-

-

51

Total comprehensive income

-

-

51

14,162

1,310

15,523

Transactions with owners:







Dividend paid

-

-

-

-

(691)

(691)

Share based payments

-

-

89

-

-

89

Transfers in relation to share based payments

-

-

 (98)

-

98

-

Deferred tax credit relating to share options

-

-

(90)

-

-

(90)

Exercise of share options

1

234

-

-

-

235

Total transactions with owners

1

234

(99)

-

(593)

(457)

Transfer realised gain on asset disposal

-

-

-

29

(29)

-

Transfer additional dep'n on revaluation net of deferred tax

-

 

 -

-

(134)

134

-

31 July 2016 - Audited

291

3,567

8,432

45,602

13,583

71,475

Profit for the period

-

-

-

-

1,870

1,870

Other comprehensive income:







Increase in property valuation net of deferred tax

-

-

-

890

-

890

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

-

-

37

-

-

37

Total comprehensive income

-

-

37

890

1,870

2,797

Transactions with owners:







Dividend paid

-

-

-

-

(1,778)

(1,778)

Share based payments

-

-

48

-

-

48

Transfers in relation to share based payments

-

-

 (66)

-

66

-

Deferred tax credit relating to share options

-

-

221

-

-

221

Sale of shares from treasury (net of costs)

-

4,704

-

-

3,117

7,821

Exercise of share options

1

148

-

-

-

149

Total transactions with owners

1

148

203

-

6,109

6,461

Transfer additional dep'n on revaluation net of deferred tax

-

 

-

-

(115)

115

-

31 January 2017 - Unaudited

292

8,419

8,672

46,377

16,973

80,733



Consolidated Statement of Financial Position

31 January 2017                                                                            

                                                                                                               

                                                                                                               


Notes

 

31 January

2017

Unaudited

£'000

 

31 January

2016

Unaudited

£'000

 

31 July

2016

Audited

 £'000

 

Assets





 

Non-current assets





 

Intangible assets


3,509

3,674

3,593

 

Property, plant and equipment

9

106,628

88,494

104,363

 

Development loan capital

10

3,319

2,905

3,159

 



113,456

95,073

111,115

 

Current assets





 

Inventories

11

168

139

165

 

Trade and other receivables

12

3,271

3,677

4,952

 

Cash and cash equivalents


12,140

3,010

5,335

 

 

Total current assets


                      15,579

6,826

10,452

 

Total assets


129,035

101,899

121,567

 






 

Liabilities





 

Current liabilities





 

Trade and other payables

  13

(4,522)

(4,839)

(5,794)

 

Taxation


(597)

(294)

(173)

 

Derivative financial instruments

   15b

-

(99)

(37)

 



(5,119)

(5,232)

(6,004)

 






 

Non-current liabilities





 

Borrowings

   15a

(28,737)

(28,624)

(28,727)

 

Deferred tax

   16

(14,446)

(11,634)

(15,361)

 



(43,183)

(40,258)

(44,088)

 

 

Total liabilities


                                    (48,302)  

(45,490)

(50,092)

 

Net assets


80,733

56,409

71,475

 



 

 

 

 


 

Equity





Equity attributable to owners of the parent





Called up share capital

17

292

290

291

Share premium


8,419

3,333

3,567

Other reserves

18

8,672

8,480

8,432

Retained earnings

19

16,973

12,761

13,583

Revaluation reserve


46,377

31,545

45,602

Total equity


80,733

56,409

71,475

                                                                                                               

Approved by the Board of Directors and authorised for issue on 24 April 2017 and signed on its behalf by:

                                               

 

 

 

Andrew Jacobs                                    Ray Davies

Chief Executive Officer                            Finance Director



 

Consolidated Statement of Cash Flows

For the six months ended 31 January 2017 

 

 


Notes

Six months ended

31 January

2017

Unaudited

£'000

Six months

ended

31 January

2016

Unaudited

£'000

Year

ended 

31 July

2016

Audited

 £'000

Operating activities





Cash generated from operations

21a

2,897

1,826

3,774

Income tax paid


-

(961)

(961)

 

Net cash from operating activities


2,897

865

2,813

 

Investing activities





Development loan capital


(160)

(126)

(380)

Purchase of property, plant and equipment

9

(2,770)

(4,589)

(6,988)

Net proceeds from disposal of property, plant and equipment


-

5,398

8,399

Interest received


18

135

14

Net cash (used in) / from investing activities


(2,912)

818

1,045






Financing activities

 


 

Repayment of borrowings


-

(27,701)  

(27,701)

Proceeds from new borrowings


-

28,816

28,816

Loans granted to projects under management contracts


-

(978)

-

Loans repaid from projects under management contracts


944

-

-

Finance costs paid


(315)

(513)

(885)

Equity dividends paid


(1,778)

(1,456)

(2,147)

Proceeds from issuance of ordinary shares (net)


148

724

959

Proceeds from sale of treasury shares (net)


7,821

-

-

 

Net cash used in financing activities


 

6,820

 

(1,108)

    

  (958)

Net increase in cash and cash equivalents in the period


 

6,805

575

2,900

 

Cash and cash equivalents at beginning of the period


 

 

5,335

2,435

 

 

2,435

 

Cash and cash equivalents at end of the period


 

12,140

3,010

 

5,335

 

 

 

 



Accounting Policies

 

General Information

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

 

Basis of preparation

The interim results for the six months ended 31 January 2017 have been prepared on the basis of the accounting policies expected to be used in the 2017 Lok'nStore Group Plc Annual Report and Accounts and in accordance with the recognition and measurement principles of International Financial Reporting Standards as adopted by the European Union ('EU') ('IFRS').

 

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

 

The interim results, which were approved by the Directors on 24 April 2017, are unaudited.  The interim results do not constitute statutory financial statements within the meaning of section 435 of the Companies Act 2006.

 

Comparative figures for the year ended 31 July 2016 have been extracted from the statutory accounts for the Group for that period, which carried an unqualified audit report, did not include a reference to any matters to which the auditor drew attention by way of emphasis of matter, did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and have been delivered to the Registrar of Companies.

 

Going concern

The Directors can report that, based on the Group's budgets and financial projections, they have satisfied themselves that the business is a going concern. The Board has a reasonable expectation that the Company and the Group have adequate resources and facilities to continue in operational existence for the foreseeable future based on Group cash balances and cash equivalents of £12.1 million (31.01.2016: £3.0 million), undrawn committed bank facilities at 31 January 2017 of £11.2 million (31.01.2016: £11.4 million), and cash generated from operations in the period to 31 January 2017 of £2.9 million (31.01.2016: £0.8 million). The Group operates a £40 million five year revolving credit facility with Royal Bank of Scotland plc which provides funding for site acquisitions and working capital. The Group is fully compliant with all bank covenants and undertakings and is not obliged to make any repayments prior to expiration. The Group has recently agreed a two year extension on its existing banking facility with Royal Bank of Scotland plc and the facility which was due to expire in January 2021, will now run until January 2023 The financial statements are therefore prepared on a going concern basis.

 

Adjusted EBITDA

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

 

Store adjusted EBITDA

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

 

 

 



 

Notes to the Financial Statements

For the six months ended 31 January 2017 

 

1              Revenue

Analysis of the Group's revenue is shown below:

 


Six months

ended

31 January

2017

Unaudited

Six months

ended

31 January

2016

Unaudited

 Year

ended

31 July

2016

Audited

Stores trading

£'000

£'000

£'000

 

Self-storage revenue

 

6,225

6,004

11,931

Other storage related revenue

778

738

1,510

Ancillary store rental revenue

-

4

3

Sub-total  - Self-storage revenue - owned stores

7,003

6,746

13,444

Management  fees - managed stores

181

190

439

Sub-total

7,184

6,936

13,883

Stores under development




Non-storage income

8

(8)

-

Sub-total

7,192

6,928

13,883

Serviced archive and records management revenue

1,151

1,058

2,173

Total revenue per statement of comprehensive income

8,343

7,986

16,056

 

                                                                                                               

The segment information for the period ended 31 January 2017 and 2016 is as follows:

 

 

 

2016/2017 - Unaudited

Self-storage

six months ended

31 January

2017

£'000

Serviced archive

and records management

six months ended

31 January

2017

£'000

Total

six months ended

31 January 2017

£'000

Self-storage

six months ended

31 January

2016

£'000

Serviced archive

and records management

six months ended

31 January

2016

£'000

Total

six months ended

31 January 2016

£'000

 

Revenue from external customers

7,192

1,151

 

8,343

6,928

1,058

 

7,986

 

Segment adjusted EBITDA

3,064

249

    

3,313

3,045

252

    

3,297

Depreciation

Amortisation of intangible assets

(847)

-

 

(49)

(83)

 

(896)

(83)

 

(685)

-

 

(50)

(84)

 

(735)

(84)

 

 

Equity settled share based payments

(49)

-

 

(49)

(93)

 -

 

(93)

Store relocation costs

(21)

-

(21)

-

-

-

Net settlement proceeds - Reading site

-

-

-

1,940

-

1,940

Costs of disposal

(14)

-

(14)

(122)

-

 (122)

Segment profit/(loss)

2,133

117

2,250

4,085

118

4,203

 

Central costs not allocated to segments:







Finance income



174



150

Finance costs



(325)



(564)

Profit before taxation



2,099



3,789

Income tax expense



(229)



(817)








Consolidated profit for the financial period



1,870



2,972

 

 

 

2016 - Audited

Self-storage

year

ended

31 July

2016

£'000

Serviced archive & records management

year

ended

31 July

2016

£'000

Total

year

ended

31 July

2016

£'000

Revenue from external customers

13,883

2,173

16,056

 

Segment adjusted EBITDA

Management charges

5,708

72

587

(72)

    

6,295

-

Segment adjusted EBITDA

5,780

515

6,295

Depreciation

(1,436)

(101)

(1,537)

Amortisation of intangible assets

-

(165)

(165)

Equity settled share based payments

(182)

-

(182)

Net settlement proceeds - Reading site

1,940

-

1,940

Net disposal costs - Swindon stores

(123)

-

(123)

 

Segment profit/(loss)

5,979  

249

 

6,228   

Central costs not allocated to segments:




Finance income



313

Finance costs



(1,048)

Profit before taxation



5,493 

Income tax expense



(1,211)

Consolidated profit for the financial year



4,282





 

2017

Unaudited

Self-storage

31 January

 2017

£'000

Serviced archive & records management 

31 January 2017

£'000

Total

31 January

2017

£'000

Self-storage

31 January

 2016

£'000

Serviced archive & records management 

31 January 2016

£'000

Total

31 January

2016

£'000

Segment assets

122,935

6,100

129,035

95,913

5,986

101,899








Segment liabilities

(19,067)

(498)

(19,565)

(16,322)

(445)

(16,767) 

Borrowings



(28,737)



      (28,624)

Derivative financials



-



(99)

 

Total liabilities



(48,302)



(45,490) 

Capital expenditure

2,768

2

2,770

4,449

140

4,589

 

2016

Audited

Self-storage

31 July

 2016

£'000

Serviced archive & records management 

31 July 2016

£'000

Total

31 July

2016

£'000

Segment assets

115,253

6,314

121,567





Segment liabilities

(20,727)

(601)

(21,238)

Borrowings

Derivative financials



(28,727)

(37)

Total liabilities



(50,092)

Capital expenditure

6,629

359

6,988

 

2a            Property, staff, distribution and general costs

Six months ended

31 January

2017

Unaudited

£'000

Six months

ended

31 January

2016

Unaudited

£'000

Year

ended

31 July

2016

Audited

£'000

Property and premises costs

2,087

1,889

3,913

Staff costs

2,156

2,074

4,232

General overheads

542

481

1,128

Distribution costs

83

78

170

Retail products cost of sales

162

167

318


5,030

4,689

9,761

 

2b           Cost of sales of retail products

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

 


Six months ended

31 January

2017

Unaudited

£'000

Six months

ended

31 January

2016

Unaudited

£'000

Year

ended

31 July

2016

Audited

£'000

Retail

67

55

118

Insurance

20

33

51

Van hire

-

1

1

Other

2

1

1


89

90

171

Serviced archive consumables and direct costs

73

77

147


162

167

318

 

2c           Other Income and costs

 


Six months ended

31 January

2017

Unaudited

£'000

Six months

ended

31 January

2016

Unaudited

£'000

Year

ended

31 July

2016

Audited

£'000

 

Net settlement proceeds

-

(1,940)

(1,940)

Property disposal costs

14

122

123

Store relocation costs

21

-

-


35

(1,818)

(1,817)

 

In the year ended 31 July 2017, the Group received an additional £2 million from the purchaser of the original Reading store site in return for the relinquishment of all remaining rights over the site. This sum is in addition to the £2.9 million received from the purchaser on 31 October 2014, taking the total consideration to £4.9m.

3              Finance income

 


Six months ended

31 January

2017

Unaudited

£'000

Six months ended

31 January

2016

Unaudited

£'000

Year ended

31 July

2016

Audited

£'000

Bank interest

18

9

14

Other interest

156

141

299


174

150

313

 

 

4              Finance costs


Six months ended

31 January

2017

Unaudited

£'000

Six months ended 31 January

2016

Unaudited

£'000

Year ended

31 July

2016

Audited

£'000

 

Bank interest

 

283

456

 

797

Non-utilisation fees and amortisation of bank loan arrangement fees

 

42

108

 

251


325

564

1,048

 

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

 

 

 

5              Profit before taxation                                                                                                       


Six months ended

31 January

2017

Unaudited

£'000

 

Profit before taxation is stated after charging:




Depreciation and amounts written off property, plant and equipment:




- owned assets

 

Amortisation of intangible assets

Operating lease rentals - land and buildings

897

 

83

764

735

 

84

762

1,535

 

165

1,529

 

 

6              Taxation


Six months ended 31 January

2017

Unaudited

£'000

Six months

ended 31 January

2016

Unaudited

£'000

Year

ended 31 July

2016

Audited

£'000

Current tax:




UK corporation tax

424

728

606

 

Deferred tax:




Origination and reversal of temporary differences

71

468

976

Adjustments in respect of prior periods

-

(379)

75

Impact of change in tax rate on closing balance

(266)

-

(446)

Total deferred tax charge

(195)

89

605

Income tax expense for the period/year

229

817

1,211

 

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

 

 


Six months ended 31 January

2017

Unaudited

£'000

Six months

ended 31 January

2016

Unaudited

£'000

Year

ended 31 July

2016

Audited

£'000

 

Profit before tax

2,098

3,789

5,493

 

Tax on ordinary activities at the standard effective rate of corporation tax in the UK of 20% (31.1.2016: 20.0%)

 

 

 

420

758

 

 

 

1,099

Expenses not deductible for tax purposes

2

1

3

Depreciation of non-qualifying assets

50

38

85

Share based payment charges in excess of corresponding tax deduction

 

10

19

36

Adjustments in respect of prior periods - deferred tax

-

(379)

75

Adjustments in respect of prior periods - corporation tax

-

3

-

Impact of change in tax rate on closing DT balance

  (266)

-

(69)

Share option scheme

12

(12)

(22)

Deferred tax on rolled over gain

-

388

-

Other timing differences

1

1

4

Income tax expense for the period/year

229

817

1,211

Effective tax rate

10.9%

22.2%

22%

 

The UK's main rate of corporation tax reduced to 20% from 1 April 2015. The effective rate for this period is 10.9%. (31.01.2016: 22.2%). The effective rate is 23.6% after taking account of the effect of £266,091 arising from the reduction in forward deferred tax rates from 18% to 17%.

 

In addition to the amount charged to profit or loss for the period, deferred tax relating to the revaluation of the Group's properties of £84,445 (31.1.2016: £733,704) and the fair value of cash flow hedges of £nil (31.1.2016: £19,648) has been recognised directly in other comprehensive income (see note 16 on deferred tax).

 

7              Dividends

 


Six months ended 31 January 2017

Unaudited

£'000

Six months ended 31 January  2016

Unaudited

£'000

 

Year ended 31 July

2016

Audited

£'000

Amounts recognised as distributions to equity holders in the year:








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

-

1,456

1,456

Interim dividend for the six months to 31 January 2016 (2.67 pence per share)

-

-

691

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

1,778

-

-






1,778

1,456

2,147

 

 

In respect of the current period the Directors propose that an interim dividend of 3.00 pence per share will be paid to the shareholders. The total estimated dividend to be paid is £842,524 based on the number of shares currently in issue as adjusted for shares held in the Employee Benefits Trust and for shares held on treasury. This interim dividend is an on-account payment of a final annual dividend and is ultimately subject to approval by shareholders at the 2017 Annual General Meeting and has not been included as a liability in these financial statements. The ex-dividend date will be 11 May 2017; the record date 12 May 2017; with an intended payment date of 9 June 2017.

 

 

8              Earnings per share

 

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

 


Six months

ended

31 January

2017

Unaudited

£'000

Six months

ended

31 January

2016

Unaudited

£'000

Year

ended

31 July

2016

Audited

£'000

Profit for the financial period

1,870

2,972

4,282






 

No. of shares

 

No. of shares

 

No. of shares

Weighted average number of shares




For basic earnings per share

27,071,818

25,775,767

25,791,821

Dilutive effect of share options

651,347

626,082

577,822

For diluted earnings per share

27,723,165

26,401,849

26,369,643

 

 

623,212 (31.01.2016: 623,212) shares are held in the Employee Benefit Trust and 491,869 (31.01.2016: 2,466,869) shares are held in Treasury. Both are excluded from the above calculation.

 

 


Six months

ended

31 January

2017

Unaudited

 

Six months

ended

31 January

2016

Unaudited

 

Year

ended

31 July

2016

Audited

 

Earnings per share




Basic

6.91p

11.53p

16.60p

Diluted

6.74p

11.26p

16.24p

 

 

9              Property, plant and equipment

 

Group

Development

property assets

at cost

£'000

Land and

buildings

at valuation

£ '000

Long leasehold land and  buildings

at valuation

£'000

Short leasehold

improvements

at cost

£'000

Fixtures,

fittings and

equipment

at cost

£'000

Motor

vehicles

at cost

£'000

Total

£'000

 

Net book value at 31 July 2015 - Audited

 

8,888

 

61,035

 

6,425

 

873

 

10,572

 

19

 

87,802

 

Net book value at 31 January 2016 - Unaudited

 

 

13,150

 

 

57,935

 

 

6,478

 

 

827

 

 

10,096

 

 

8

 

 

88,494

 

Net book value at 31 July 2016 - Audited

 

 

458

 

 

80,953

 

 

90,263

 

 

782

 

 

12,902

 

 

5

 

 

104,363

 

Cost or valuation








1 August 2016

458

80,953

9,263

2,563

22,758

17

116,012

Additions

2,334

(43)

-

36

443

-

2,770

Disposals

-

-

-

-

-

-

-

Reclassification

-

-

-

-

-

-

-

Revaluations

-

(45)

51

-

-

-

6

31 January 2016 - Unaudited

2,792

80,865

9,314

2,599

23,201

17

118,788









Depreciation








1 August 2016

-

 -

-

1,781

9,856

12

11,649

Depreciation

-

323

63

49

461

1

897

Disposals

-

-

-

-

-


-

Revaluations


(323)

 (63)       

-

-

-

(386)

31 January 2017 Unaudited

-

-

-

1,830

10,317

13

12,160

 

Net book value at 31 January 2017 -  Unaudited

 

 

2,792

 

 

80,865

 

 

9,314

 

 

769

 

 

12,884

 

 

4

 

 

106,628

 

 

Capital expenditure during the period totalled £2.8 million (31.1.2016: £4.6 million). This was primarily the purchase and subsequent construction works at our development sites in Gillingham and Wellingborough as well as completing fitting-out works at our Bristol store.

 

Property, plant and equipment (non-current assets) with a carrying value of £106.6 million (31.1.2016: £88.5 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 2016 by JLL, the freehold and leasehold properties have not been externally valued at 31 January 2017, although in accordance with the Group's established policy it is the intention to do so at the next year end at 31 July 2017. 

 

Although the Board did not commission an external valuation at this interim period-end it is mindful of the need to accord with the measurement principles of International Financial Reporting Standards as adopted by the European Union. Accordingly after consulting with our external valuers, whilst there has been continued market activity in the self storage sector since July 2017, including the sale of the Big Box portfolio in October 2016 to US investors Storage Mart for in excess of £100m, as well as some sales of individual self storage assets, 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 2017 in respect of our properties externally valued at 31 July 2016. 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 2017 year-end.

 

 

10           Development loan capital

 

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

 


31 January

2017

Unaudited

£'000

31 January

2016

Unaudited

£'000

31 July

2016

Audited

£'000

Development loan capital

3,319

2,905

3,159

 

11           Inventories

 


31 January

2017

Unaudited

£'000

31 January

2016

Unaudited

£'000

31 July

2016

Audited

£'000

Consumables and goods for resale

168

139

165

 

The amount of inventories recognised as an expense during the period was £81,005 (31.1.2016: £74,320).

 

12           Trade and other receivables

 


31 January

2017

Unaudited

£'000

 

31 January

2016

Unaudited
 £'000

 

31 July

2016

Audited
 £'000

Trade receivables

1,414

1,344

2,027

Other receivables

857

1,511

1,910

Prepayments and accrued income

1,000

822

1,015


3,271

3,677

4,952

 

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

 

13           Trade and other payables


31 January

2017

Unaudited

£'000

31 January

2016

Unaudited
 £'000

31 July

2016

Audited
£'000

Trade payables

593

864

887

Taxation and social security costs

666

884

1,369

Other payables

1,156

1,095

1,197

Accruals and deferred income

2,107

1,996

2,341


4,522

4,839

5,794

 

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

 

14           Capital management and gearing

 

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

 

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

 

Capital Management

 

31 January

2017

Unaudited
£'000

31 January

2016

Unaudited
 £'000

31 July

2016

Audited
£'000

Gross debt

(28,816)

(28,816)

(28,816)

Cash and cash equivalents

12,140

3,010

5,335

Net debt

(16,676)

(25,806)

(23,481)

Total equity

80,733

56,409

71,475

Net debt to equity ratio

20.7%

45.7%

32.8%

 

 

15a         Borrowings

 


31 January

2017 Unaudited

£'000

31 January

2016 Unaudited

£'000

31 July

2016

Audited
 £'000

Non-current




Bank loans repayable in more than two years




 but not more than five years




Gross

28,816

28,816

28,816

Deferred financing costs

(79)

(192)

(89)

Net bank borrowings

28,737

28,624

28,727

 

 

The Group has agreed a two year extension on its existing banking facility with Royal Bank of Scotland plc. The £40 million five year revolving credit facility which was executed last year included an extension option which has now been implemented. The facility which was due to expire in January 2021, will now run until January 2023 providing funding for more landmark site acquisitions and working capital. 

 

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

 

The £40 million revolving credit facility is secured by legal charges and debentures over the freehold and leasehold properties and other assets of the business with a net book value of £125.5 million together with cross-company guarantees from Group companies. The Group is not obliged to make any repayments prior to expiration.

 

15b         Derivative financial instruments

 

Of the £28.8 million of gross debt currently drawn against the revolving credit facility, £20 million was at a fixed interest rate with £10 million fixed rate swap at a fixed 1 month sterling LIBOR rate of 1.2% and £10 million swap at a fixed 1 month sterling LIBOR rate of 1.15%.

 

The £20 million fixed rate was treated as an effective cash flow hedge and its fair value on a mark-to-market basis has fluctuated historically. Under current facility arrangements the Group is not committed to enter into hedging instruments going forwards but rather to keep such matters under periodic review.  The fixed interest swaps expired on 20 October 2016 and the Groups entire £28.8 million of gross debt reverted to variable rate and results in an overall weighted average rate over the financial period of 1.74%. At the balance sheet date the effective cost of debt is 1.65 %

 

 





Fair Value


Currency

Principal

£

Maturity date

 

31 Jan

2017 Unaudited

£'000

31 Jan

2016 Unaudited

£'000

31 July

2016 Audited
£'000

3032816LS   Interest rate swap

GBP

10,000,000

20/10/2016

-

(51)

(19)

3047549LS   Interest rate swap

GBP

10,000,000

20/10/2016

-

(48)

(18)



20,000,000


-

(99)

(37)

 

The movement in fair value of the interest rate swaps of £37,850 (31.1.2016: £20,529) has been recognised in other comprehensive income in the period.

 

 

16           Deferred tax

 

Deferred tax liability

31 January 2017

Unaudited

£'000

31 January 2016

Unaudited

£'000

31 July 2016

Audited

£'000

 

Liability at start of period/year

 

15,361

 

12,252

 

12,252

Charge to income for the period/year

(195)

89

605

Tax charged directly to other comprehensive income

(499)

(707)

2,408

Credit to share based payment reserve

(221)

-

96

Liability at end of period/year

14,446

11,634

15,361

 

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

 


Accelerated

Capital

Allowances

£'000

Tax

losses

£'000

Intangible

assets

£'000

Other

temporary

differences

£'000

Revaluation of

properties

£'000

Rolled

over gain

on disposal

£'000

Share

Options

£'000

Total

£'000

At 31 July 2015 - Audited

1,708

-

530

(8)

8,586

1,787

(351)

12,252 

Charge/ (credit) to income for the period

(62)

-

(68

34

-

162

23

89

Charge to other comprehensive income

-

-

-

10

(734)

11

6

(707)

At 31 January 2016 - Unaudited

1,646

-

462

36

7,852

1,960

(322)

11,634

Charge/ (credit) to income for the period

209

-

(15

(23)

-

362

(17)

516

Charge to other comprehensive income

-

-

-

11

3,109

1

(6)

3,115

Charge to share based payment reserve


-

     -

        -

 -

-

-

96

96

At 31 July 2016 - Audited

1,855

-

447

24

10,961

2,323

(249)

15,361

Charge/ (credit) to income for the period

(34)

-

(39) 

(8)

-

(141)

27

 (195)

Charge to other comprehensive income

-

-

-

-

(511)

12

   -

 (499)

Charge to share based payment reserve


-

     -

        -

 -

-

-

(221)

(221)

At 31 January 2017 - Unaudited

1,821

-

408

16

10,450

2,194

(443)

14,446

 

 

17           Share capital

                                                                                                                                                                                                      


31 January 2017

Unaudited

£'000

31 January 2016

Unaudited

£'000

31 July 2016

Audited

£'000

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

350

350

350


 

Called up,

 

Called up,

 

Called up,


allotted and

allotted and

allotted and


fully paid

fully paid

fully paid


Number

Number

Number

Number of shares at start of period/year

29,109,322

28,446,749

28,446,749

Options exercised during period/year

89,908

517,328

662,573

Balance at end of period/year

29,199,230

28,964,077

29,109,322





Allotted, issued and fully paid ordinary shares

£

£

 £

Balance at start of period/year

291,093

284,467

284,467

Options exercised during period/year

899

5,175

6,626

Balance at end of period/year

291,992

289,640

291,093

 

 

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

 

 

18           Other reserves


 

Cash flow


 

Other

 

Capital

Share-based



hedge

Merger

reserve

redemption

payment



reserve

reserve


reserve

reserve

Total

Group

£'000

£'000

£'000

£'000

£'000

£'000

1 August 2015 - Audited

(99)

6,295

1,294

34

1,161

8,685

 

Equity share based payments

 

-

 

-

 

-

 

-

 

93

Transfer to retained earnings in relation to share based payments

-

-

-

-

 (303)

Cash flow hedge reserve net of tax

11

-

-

-

Tax credit relating to share options





(6)

(6)

 

31 January 2016 - Unaudited

 

(88)

 

6,295

 

1,294

 

34

 

945

 

8,480

 

Equity share based payments

 

-

 

-

 

-

 

-

 

89

Transfer to retained earnings in relation to share based payments

-

-

-

-

 (98)

Cash flow hedge reserve net of tax

51

-

-

-

Tax credit relating to share options





(90)

(90)

 

31 July 2016 - Audited

 

(37)

 

6,295

 

1,294

 

34

 

846

 

8,432

 

Equity share based payments

 

-

 

-

 

-

 

-

 

48

Transfer to retained earnings in relation to share based payments

-

-

-

-

 (66)

Cash flow hedge reserve net of tax

37

-

-

-

Tax credit relating to share options

-

-

-

-

221

221

 

31 January 2017 - Unaudited

 

-

 

6,295

 

1,294

 

34

 

1,049

 

8,672

 

The merger reserve represents the excess of the nominal value of the shares issued by Lok'nStore Group plc over the nominal value of the share capital and share premium of Lok'nStore Limited as at 31 July 2001. The other distributable reserve and the capital redemption reserve arose in the year ended 31 July 2004 from the purchase of the Company's own shares and a cancellation of share premium.

 

Share based payment reserve

Under IFRS2 there is the option to make transfers from the share based payment reserve to retained earnings in respect of accumulated share option charges where the options have either been exercised or have lapsed post-vesting. The total amounts calculated and accordingly transferred to retained earnings in the period amounted to £65,570 (31.1.2016: £302,804).

 

19           Retained earnings

 



Retained earnings before


 

Retained




deduction of

Own shares

earnings




own shares

(note 21)

Total

Group



£'000

£'000

£'000

1 August 2015 - Audited



13,387

(4,241)

9,146

Profit for the financial period



2,972

-

2,972

Transfer from revaluation reserve



128

-

128

Transfer from share based payment  reserve (Note 18)



303

303

Dividend paid



(1,456)

-

(1,456)

Transfer realised gain on asset disposal



1,668

-

1,668

31 January 2016 - Unaudited



17,002

(4,241)

12,761

Profit for the financial period



1,310

-

1,310

Transfer from revaluation reserve



134

-

134

Transfer from share based payment  reserve (Note 18)



98

98

Dividend paid



(691)

-

(691)

Transfer realised gain on asset disposal



(29)

-

(29)

31 July 2016 - Audited



17,824

(4,241)

13,583

Profit for the financial period



1,870

-

1,870

Transfer from revaluation reserve



115

-

115

Transfer from share based payment  reserve (Note 18)



66

66

Dividend paid



(1,778)

-

(1,778)

Sale of Treasury shares



-

3,117

3,117

31 January 2017 - Unaudited



18,097

(1,124)

16,973

 

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

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

 

20           Own shares

 


ESOP

ESOP

Treasury

Treasury

Own shares


shares

shares

shares

shares

total


Number

£

Number

£

£

 1 August 2015 - Audited

623,212

499,910

2,466,869

3,741,036

4,240,946

31 January 2016 - Unaudited

623,212

499,910

2,466,869

3,741,036

4,240,946

31 July 2016 - Audited

623,212

499,910

2,466,869

3,741,036

4,240,946

31 January 2017 - Unaudited

623,212

499,910

491,869

624,247

1,124,157

 

On 1 November 2016 the Group sold 1,975,000 ordinary shares of 1 pence each ("Ordinary Shares") held in treasury. This sale was undertaken to satisfy demand for the Company's shares, and to improve liquidity going forward. The Ordinary Shares were sold to a range of institutional investors at a price of 400 pence per share.

 

Lok'nStore Limited now holds a total of 491,869  (31.1.2016:  2,466,869) of Lok'nStore Group plc ordinary shares of 1p each for treasury with an aggregate nominal value of £4,919 purchased for an aggregate cost of £618,413 at an average price of £1.26 per share. These shares represent 1.68% of the Parent Company's called-up share capital. The maximum number of shares held by Lok'nStore Limited in the period was 2,466,869.

 

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 2017, the Trust held 623,212 (31.01.2016: 623,212) ordinary shares of 1 pence each with a market value of £2,835,615 (31.01.2016: £2,003,627). No shares were transferred out of the scheme during the period (2016: nil).  No dividends were waived during the year. No options have been granted under the EBT.

 

21           Cash flows

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




Six months

ended

31 January

2017

Unaudited

£'000

Six months

ended

31 January

2016

Unaudited

£'000

Year

ended

31 July

2016

Audited

£'000

 

Profit before tax



 

2,099

 

1,849

 

5,493

Depreciation



897

735

1,535

Amortisation of intangible assets



83

83

165

Equity settled share based payments



49

93

182

Store relocation costs and site disposal costs



35

-

-

Net settlement proceeds - Reading site



-

-

(1,940)

Disposal costs



-

-

123

Interest receivable



(174)

(150)

(313)

Interest payable



325

564

1,048

(Increase)/decrease in inventories



(3)

2

(24)

Decrease/(increase) in receivables



736

(221)

(2,471)

Decrease in payables



(1,150)

(1,129)

(24)

Cash generated from operations



2,897

1,826

(3,774)

 

 

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

 

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

 




Six months

ended

31 January

2017

Unaudited

£'000

Six months

ended

31 January

2016

Unaudited

£'000

Year

ended

31 July

2016

Audited

£'000

 

Increase in cash in the period/year



 

6,805

 

575

 

2,900

Change in net debt resulting from cash flows



-

(1,115)

(1,115)

Movement in net debt in period



6,805

(540)

1,785

Net debt brought forward



(23,481)

(25,266)

(25,266)

Net debt carried forward



(16,676)

(25,806)

(23,481)

 

 

22           Events after the reporting date

There were no reportable events after the reporting date.

 

 

23           Capital commitments and guarantees

The Group has capital expenditure contracted but not provided for in the financial statements of £5.4 million (31.01.2016: £2.2 million).  These relate to the build and fit-outs of the Gillingham and Wellingborough Stores and the refurbishment of the Old Southampton store for cruise parking.

 

 

 

Our Stores

 

Head office

Lok'nStore plc

112 Hawley Lane

Farnborough

Hampshire GU14 8JE

Tel   01252 521010

 

www.loknstore.co.uk

www.loknstore.com              

 

Central Enquiries

0800 587 3322

info@loknstore.co.uk             

www.loknstore.co.uk            

 

Basingstoke, Hampshire

Crockford Lane

Chineham

Basingstoke

Hampshire RG24 8NA

Tel   01256 474700

Fax  01256 477377

basingstoke@loknstore.co.uk 

 

Bristol, Gloucestershire

Longwell Green Trade Park

Aldermoor Way

Bristol

BS30 7ET

Tel 0117 967 7055

Bristol@loknstore.co.uk

 

Crayford, Kent

Block B

Optima Park

Thames Road

Crayford

Kent DA1 4QX

Tel   01322 525292

Fax 01322 521333

crayford@loknstore.co.uk     

 

Eastbourne, East Sussex

Unit 4, Hawthorn Road

Eastbourne

East Sussex BN23 6QA

Tel   01323 749222

Fax  01323 648555

eastbourne@loknstore.co.uk 

 

Fareham, Hampshire

26 + 27 Standard Way

Fareham Industrial Park

Fareham

Hampshire PO16 8XJ

Tel   01329 283300

Fax  01329 284400

fareham@loknstore.co.uk      

       

 

Farnborough, Hampshire

112 Hawley Lane

Farnborough

Hampshire GU14 8JE

Tel   01252 511112

Fax 01252 744475

farnborough@loknstore.co.uk               

 

Harlow, Essex

Unit 1 Dukes Park

Edinburgh Way

Harlow

Essex CM20 2GF

Tel   01279 454238

Fax 01279 443750

harlow@loknstore.co.uk        

 

Horsham, West Sussex

Blatchford Road

Redkiln Estate

Horsham

West Sussex RH13 5QR

Tel   01403 272001

Fax  01403 274001

horsham@loknstore.co.uk     

 

Luton, Bedfordshire

27 Brunswick Street

Luton

Bedfordshire LU2 0HG

Tel   01582 721177

Fax  01582 721188

luton@loknstore.co.uk           

 

Maidenhead, Berkshire

Stafferton Way

Maidenhead

Berkshire

SL6 1AY

Tel   01628 878870

Fax  01628 620136

maidenhead@loknstore.co.uk

 

Milton Keynes, Buckinghamshire

Etheridge Avenue

Brinklow

Milton Keynes

Buckinghamshire MK10 0BB

Tel   01908 281900

Fax  01908 281700

miltonkeynes@loknstore.co.uk              

 

Northampton Central

16 Quorn Way

Grafton Street Industrial Estate

Northampton NN1 2PN

Tel   01604 629928

Fax 01604 627531

nncentral@loknstore.co.uk    

 

Northampton Riverside

Units 1-4

Carousel Way

Northampton

Northamptonshire NN3 9HG

Tel   01604 785522

Fax  01604 785511

northampton@loknstore.co.uk               

 

Poole, Dorset

50 Willis Way

Fleetsbridge

Poole

Dorset BH15 3SY

Tel   01202 666160

Fax  01202 666806

poole@loknstore.co.uk          

 

 

Portsmouth, Hampshire

Rudmore Square

Portsmouth PO2 8RT

Tel   02392 876783

Fax  02392 821941

portsmouth@loknstore.co.uk 

 

Reading, Berkshire

251 A33 Relief Road

Reading

RG2 0RR

reading@loknstore.co.uk       

 

Southampton, Hampshire

Third Avenue

Southampton

Hampshire SO15 0JX

Tel   02380 783388

Fax  02380 783383

southampton@loknstore.co.uk              

 

Staines, Middlesex

The Causeway

Staines

Middlesex TW18 3AY

Tel   01784 464611

Fax  01784 464608

staines@loknstore.co.uk       

 

Sunbury on Thames, Middlesex

Unit C, The Sunbury Centre

Hanworth Road

Sunbury

Middlesex TW16 5DA

Tel   01932 761100

Fax  01932 781188

sunbury@loknstore.co.uk      

 

 

Tonbridge, Kent

Unit 6 Deacon Trading Estate

Vale Road

Tonbridge

Kent TN9 1SW

Tel   01732 771007

Fax  01732 773350

tonbridge@loknstore.co.uk    

 

Development locations (Owned Stores) 

 

Wellingborough, Northamptonshire

19/21 Whitworth Way

Wellingborough NN8 2EF

 

Gillingham, Kent

Courtney Road

Gillingham

Kent ME8 0RT

 

 



 

Managed stores

 

Aldershot, Hampshire

251, Ash Road

Aldershot

GU12 4DD

Tel  0845 4856415

aldershot@loknstore.co.uk    

 

Ashford, Kent  

Wotton Road

Ashford

Kent TN23 6LL

Tel   01233 645500

Fax 01233 646000

ashford@loknstore.co.uk

 

Chichester, West Sussex

17, Terminus Road,

Chichester,

PO19 8TX

Tel 01243 771840

Chichester@loknstore.co.uk

 

Crawley, West Sussex

Sussex Manor Business Park

Gatwick Road

Crawley

RH10 9NH

Tel  01293 738530

crawley@loknstore.co.uk      

 

Swindon Kembrey Park, Wiltshire

Kembrey Street

Elgin Industrial Estate

Swindon

Wiltshire SN2 8UY

Tel   01793 421234

Fax  01793 422888

swindoneast@loknstore.co.uk              

 

Woking

Marlborough Road

Woking

GU21 5JG

Tel   01483 378323

Fax  01483 722444

woking@loknstore.co.uk

 

Under Development            (Managed Stores)

 

Hemel Hempstead

Broadstairs

 


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