Occupancy down after quiet quarter for Big Yellow

Self-storage group Big Yellow said that 2013 has started well with trading patterns returning to normal following a seasonal weak festive period.

Self-storage group Big Yellow said that 2013 has started well with trading patterns returning to normal following a seasonal weak festive period.

The firm's third quarter (three months to December 31st 2012), its seasonally weakest, saw occupancy in its 54 wholly-owned stores fall by 139,000 square feet (4% of capacity), compared to a loss of 57,000 sq ft (1.7% of capacity) in the same quarter the year before.

"The group's achieved net rent per sq ft in this quarter has also reflected the introduction of VAT on self storage sales, as we shared the increase in cost arising from the introduction of VAT with our domestic customer base," Big Yellow said. However, it did say that the impact of this VAT introduction was as anticipated.

Total store revenue for the 54 stores was £16.8m for the quarter, up 3.7% year-on-year, but down 9.7% on the second quarter.

"The introduction of VAT presented the group with a significant challenge and we are broadly satisfied with the way the business has absorbed this change," said Chief Executive James Gibson.

"Although it is early in the New Year to have much visibility, January has started positively with a return to more normal trading and an encouraging book of reservations.We look forward now to our seasonally busier period."

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021