Lok'n'Store ramps up divi

Storage barn operator Lok'n'Store has rebased its dividend and for once, the term refers to a substantial increase in pay-outs, not a poorly-disguised dividend cut.

Storage barn operator Lok'n'Store has rebased its dividend and for once, the term refers to a substantial increase in pay-outs, not a poorly-disguised dividend cut.

"The board has decided to significantly increase the dividend to 5p for the full year, and it is intended that the company's future dividend payments will reflect the growth in the underlying cash generated by the business," revealed Andrew Jacobs, Chief Executive Officer of Lok'n'Store.

The 5p dividend represents a two-thirds improvement on the previous year's 3p payment.

"We have a secure financial base, an excellent development pipeline and robust trading which gives the board the confidence to propose this step change in the dividend," Jacobs said.

In the year to July 31st the group saw profit before tax retreat to £926m from £938m the year before, largely as a result of finance costs virtually doubling to £1.03m and a result of the firm refinancing its £40m bank facility during the year.

Though the group's business is off-site storage, many investors regard it as a glorified property company and so the net asset value (NAV) per share is closely watched. At the end of July 2012 adjusted NAV per share had barely changed at 228p from 229p the year before.

Net debt increased from £24.4m at the end of July 2011 to £25.7m at the end of July 2012.

"At an operating level we have continued to demonstrate an innovative approach to asset management, enabling the group to increase its operational footprint while maintaining a strong balance sheet. With further valuable planning permissions obtained and renewed and the opening of the Aldershot and Maidenhead stores scheduled for 2013, we are poised to move ahead strongly over the next couple of years," Jacobs said.

The new document storage business, acquired at the end of June 2011, has moved into profit under its new ownership, with earnings before interest, tax, depreciation and amortisation of £0.47m, versus a loss of £0.04m the year before.

JH

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Best savings accounts – February 2023
Savings

Best savings accounts – February 2023

Interest rates on cash savings are making a comeback. We look at the best savings accounts on the market now
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
3 Feb 2023
After slumping 42% last year, what's next for Scottish Mortgage?
Investment trusts

After slumping 42% last year, what's next for Scottish Mortgage?

After a spectacular couple of decades, the Scottish Mortgage Investment Trust fell by 42% last year. We take a look at the trust's performance and dis…
3 Feb 2023