Lok 'n Store Group, a self-storage company listed in London, has announced a fall in pretax profit for fiscal 2023, citing a strong prior-year comparative. However, the company remains optimistic about its future prospects, as recent performance aligns with expectations.
For the year ended July 31, Lok 'n Store Group recorded a pretax profit of £6.7 million ($8.1 million), compared to £15.9 million in the previous year. The previous year's figures were boosted by the sale of four trading stores, which generated £5.9 million in revenue.
Despite the decline in pretax profit, the company saw a slight increase in revenue, rising from £26.9 million to £27.1 million. Same store self-storage revenue experienced a notable growth of 12% year-on-year, primarily driven by a 6.8% increase in pricing.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which excludes exceptional and one-off items, decreased to £15.1 million from £16.3 million.
Net Asset Value and Dividend
Chair Andrew Jacobs expressed confidence in the company's financial position, highlighting that the demand for U.K. self-storage assets remains robust. He also noted that the opening of new stores has contributed to a 1.4% increase in net asset value, amounting to £9.86 per share.
Lok 'n Store Group has sustained its momentum beyond the fiscal year-end, with store revenue experiencing a 6.3% growth in August and September compared to the previous year.
In addition to the financial results, the group has declared an annual dividend of 19 pence per share, representing an increase from the previous year's dividend of 17.25 pence.
In conclusion, Lok 'n Store Group acknowledges the decline in pretax profit for fiscal 2023 but emphasizes its optimistic outlook for the future. The company remains confident in the strength of the U.K. self-storage market and its ability to drive growth through new store openings.
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