Big Yellow profit boosted by Olympics
Big Yellow, the FTSE 250 storage company, has delivered an eight per cent rise in adjusted profit before tax, prompting a 0.5p rise in the final dividend for the year ended March 31st.
Big Yellow, the FTSE 250 storage company, has delivered an eight per cent rise in adjusted profit before tax, prompting a 0.5p rise in the final dividend for the year ended March 31st.
Pre-tax profit for the period totalled £25.5m (2012 £23.6m) on revenue of £69.7m (2012 £65.7m), driven by occupancy growth in the first half, and increased business and consumer confidence in the lead-up to the Olympics.
However, the seasonally weaker quarter to December was further affected by a combination of a softening in the macroeconomy in the period after the Olympics and prices increases to its domestic customers of 10-25%, resulting from the imposition of VAT on its storage rents. The enviroment stabilised in the final quarter, resulting in a return to growth in net occupancy.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The adjusted net asset value per share for the year was 419.2p compared to 422.7p in 2012.
Like-for-like revenue per available foot climbed from £19.43 to £20.25 year-on-year.
The final dividend was incrased 0.5p to 6.0p, giving a total dividend of 11p, up from 10p the previous year.
Nicholas Vetch, Executive Chairman of Big Yellow, said: "We achieved a solid level of revenue growth, despite the imposition of VAT, and have also delivered against our principal financial aims of growing cash flow, earnings and dividend. This is testament to our successful operating model with a strong brand, market-leading digital platform and our focus on large metropolitan areas, particularly in London and the South East.
"Much has been achieved since 2007; 23 new purpose-built stores have been opened, significant operational improvements have been made, and the brand has emerged as the unquestionable market leader.
"This makes us confident that, on a medium to long term view, we will deliver substantially more of our full potential as we build occupancy and yield in our stores. The pace at which this will be achieved will depend in part on external factors, including the wider economy, housing transactions, new business formation and investment. Whilst there remain challenges around these factors, we allow ourselves for the first time in a few years, to enjoy a little more optimism."
The group delivered a statutory profit before tax for the year of £31.9m, compared to a loss of £35.6m last year. The prior year loss reflected the decrease in the valuation of the group's open stores principally caused by the valuer's assessment of the impact of the imposition of VAT on self storage from October 1st 2012. The valuation of the investment property portfolio in the year is broadly in line with the prior year.
Gearing was reduced over the 12 month period and net bank debt at the year-end totalled £230.5m (2012: £273.9m).
NR
-
Adidas, Nike or Jordans - could collectable trainers make you rich?
The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
By Chris Carter Published
-
Early bird ISA investors flock to global funds, India and the US
There’s been an increase in investors maxing out their ISA at the start of the new tax year. But where are they putting their cash and why does it make sense to be an early bird investor?
By Vaishali Varu Published