Annual Report
and Accounts 2026
Annual Report
and Accounts 2026
Big Yellow Group PLC
2 2026 Highlights
4 Innovating
6 Expanding
8 Excelling
10 Incubating
12 Impacting
14 Our Nationwide Network
16 Chairman’s Statement
18 Strategic Report
18 Chief Executive’s Statement
22 Strategy and Investment Case
26 Our Key Performance Indicators
28 Operating Review
33 Portfolio Summary
35 Our Stores
40 Financial Review
46 Principal Risks and Uncertainties
52 Climate-Related Disclosures Statement
63 Section 172 Statement
64 Environmental, Social and Governance Report
75 SGS Assurance Statement on the ESG Report
78 Governance Report
78 Executive Chairman’s Introduction
79 How We Are Structured
80 Directors, Officers and Advisers
83 Corporate Governance Report
90 Nominations Committee Report
94 Sustainability Committee Report
96 Remuneration Committee Report
118 Audit Committee Report
122 Directors’ Report
127 Statement of Directors’ Responsibilities in Respect
of the Annual Report and the Financial Statements
128 Financial Statements
128 Independent Auditor’s Report to the Members of
Big Yellow Group PLC
136 Consolidated Statement of Comprehensive Income
137 Consolidated Balance Sheet
138 Consolidated Statement of Changes in Equity
139 Consolidated Cash Flow Statement
140 Notes to the Financial Statements
175 Company Balance Sheet
176 Company Statement of Changes in Equity
177 Notes to the Financial Statements
181 Glossary
183 Ten Year Summary
Contents
This report was approved by the Board of Directors on 18 May 2026
and signed on its behalf by:
Jim Gibson
Chief Executive Officer
John Trotman
Chief Financial Officer
Annual Report and Accounts 2026 Big Yellow Group PLC 1
Highlights
• Store revenue growth of 2%, with like-for-like store revenue also up by 2%, driven by increases in average achieved rents
• Like-for-like occupancy decrease of 1.7 ppts to 77.0% (March 2025: 78.7%). Since the period end, this gap has closed to
0.6 ppts. During the year four new stores were opened adding 0.3 million sq ft (5% of opening MLA). These store openings
are the primary driver of the 4.5 ppts decline in closing occupancy
• Average achieved net rent per sq ft increased by 4% year-on-year, closing net rent up 3% from March 2025
• Like-for-like store operating cost increase of 0.3% in the year, down from 7% in the previous year
• Overall store EBITDA was up £3.3 million compared to the prior year, with strong cost control resulting in store EBITDA margin
of 70.5% in line with the prior year (2025: 70.5%)
• Cash flow from operating activities (after net finance costs and pre-working capital movements) broadly in line with last year
at £111.5 million, however the prior year included a one-off receipt of £4 million in respect of Cheadle. Excluding this receipt
from the prior year, cash flow from operating activities was up 3% compared to 2025
• Adjusted profit before tax up 2% to £117.5 million, adjusted earnings per share up 2% to 59.0p
• A 2% increase in full year dividend to 47.2 pence per share in line with adjusted eps growth
• Statutory profit before tax of £126.2 million, down from £203.9 million in the prior year, due to a lower revaluation
surplus in the year
• £2 million invested in the year with 85 stores now having solar arrays. This resulted in a 13% increase in capacity in the year to
9.6 Megawatts, continuing to reduce our reliance on grid-bought electricity – energy costs now represent only 1.2% of revenue
• During the year we opened four new freehold stores in Staines (July 2025), Queensbury (October 2025), Slough Bath Road
(February 2026) and Wembley (March 2026)
• Acquired a freehold site in Coventry, exchanged contracts on a freehold site in Bethnal Green, London, and subsequent to
the year end exchanged contracts on a freehold site in Acton, West London, taking the pipeline to 11 development sites and
one replacement store of approximately 0.9 million sq ft (13% of current MLA). 1.7 million sq ft of fully built vacant space is
currently available for future growth
• Planning consent granted for Leamington Spa, Leicester and Old Kent Road; we now have 9 of our 12 pipeline stores with
planning; six stores are currently under construction.
This business has again continued to prove to be resilient over
the year despite the prevailing external crises.
2026 Highlights2026 Highlights
Annual Report and Accounts 2026 Big Yellow Group PLC2
(1)
See note 33 for glossary of terms
(2)
Excluding Staines, Queensbury, Slough Bath Road
and Wembley (all opened 2025/26)
(3)
See reconciliation in Financial Review on page 43
(4)
Statutory metric
(5)
The dividend paid in the year is all Property Income
Distribution (“PID”)
(6)
See reconciliation in Portfolio Summary on page 34
(7)
See reconciliation in note 10
(8)
See reconciliation in note 12
Financial metrics
Revenue
(4)
£209.1m +2%
£204.5m
Store revenue
(1)
£207.6m +2%
£203.1m
Like-for-like store revenue
(1,2,6)
£207.3m +2%
£203.1m
Store EBITDA
(1)
£146.5m +2%
£143.2m
Adjusted profit before tax
(1,7)
£117.5m +2%
£115.6m
Adjusted earnings per share
(1,8)
59.0p +2%
57. 8p
Dividend
(4,5)
47.2p +2%
46.4p
Highlights
2026 2025
Store maximum lettable
area (“MLA”)
(1)
6,721,000 +5%
6,421,000
Closing occupancy (sq ft)
(1)
4,985,000 (1%)
5,056,000
Closing occupancy
(1)
74.2% (4.5 ppts)
78.7%
Closing occupancy
like-for-like stores (%)
(1,2,6)
77.0% (1.7 ppts)
78.7%
Average net rent per sq ft
(1)
£35.98 +4%
£34.71
Closing net rent per sq ft
(1)
£36.28 +3%
£35.17
Profit before tax
(4)
£126.2m (38%)
£203.9m
Cash flow from operating activities
(after net finance costs and pre-working
capital movements)
(3)
£111.5m 0%
£111.9 m
Basic earnings per share
(4)
63.8p (38%)
103.2p
Store metrics
Annual Report and Accounts 2026 Big Yellow Group PLC 3
Innovation and security go hand in hand at Big Yellow,
ensuring the protection of our customers’ possessions remains
our number one priority.
Innovating.Innovating.
Secure access through innovation
Over the past year, we have rolled out an innovative mobile-based app that
enables customers to access storage areas securely using their smartphones.
Developed with our technology partner StorID, this modernises the customer experience
by removing the need to remember PIN codes. This innovation improves convenience
while strengthening security, eliminating the risk of PIN theft, shoulder surfing and
unauthorised access, and delivering a safer, simpler and more intuitive in-store journey.
Security features across
our stores
• 24 hr externally monitored CCTV surveillance
• AI enabled cameras
• PIN code access
• Smartphone app access (rolling out)
• Individually alarmed rooms
• Staff on-site seven days a week
• Secure gated entry and perimeter fencing
Annual Report and Accounts 2026 Big Yellow Group PLC4
Secure, automated customer verification
During the year, we introduced automated customer identity verification for new
customers moving in, delivered through Yoti, a UK-based digital identity verification platform.
These checks are completed by customers at home as part of our online check-in process,
removing the need for store teams to manually inspect identity documents in-store.
The technology detects fraudulent or expired documents and matches ID photography to a
live facial scan. This AI-driven process is critical in giving us confidence in who is storing with
us, strengthening security and efficiency. Our store teams are also vigilant and we are not
afraid to decline move-ins should we have concerns.
AI-enabled security monitoring
Big Yellow continues to benefit from its investment in DSOC, an external security monitoring
centre that plays a central role in the protection of our store network. Leveraging advanced
surveillance systems and AI-enabled camera technology, DSOC provides continuous
oversight of our stores and is alerted to any unusual or suspicious behaviour, particularly
outside normal operating hours. This capability enables informed, timely intervention,
including the ability to grant or deny access where required. The partnership is a core
component of our layered security strategy and reinforces Big Yellow’s position as an
industry leader in security standards and operational control.
Annual Report and Accounts 2026 Big Yellow Group PLC 5
With four new store openings next year, and a further eight more
in our development pipeline, Big Yellow will expand our maximum
lettable area from 6.7 million sq ft to 7.6 million sq ft.
Expanding.Expanding.
Staines, July 2025 MLA – 70,000 sq ft Queensbury, October 2025 MLA – 72,000 sq ft
Wembley, March 2026 MLA – 73,000 sq ftSlough Bath Road, February 2026 MLA – 80,000 sq ft
Recent openings driving urban growth
Big Yellow’s most recent store openings at Staines, Queensbury, Slough Bath Road and Wembley, are all in, or close to London. Combined, these
stores have added approximately 300,000 sq ft of new capacity in a single year. All are large freehold assets located in prominent, high-density
areas. This reinforces the Group’s strategy of concentrating investment in supply-constrained urban markets, where scale, visibility and strong
locations align with the Big Yellow operating model and continue to reinforce our market-leading brand presence.
Annual Report and Accounts 2026 Big Yellow Group PLC6
Positioning for growth in supply
constrained locations
Big Yellow is accelerating its expansion through
2026-2027 and laying the groundwork for sustained
growth well beyond this period. The Group’s strategy
centres on increasing store numbers in high-demand,
supply-constrained urban locations, particularly
London and its key commuter towns that generate
the majority of our revenue. The development pipeline
includes major new flagship schemes – most notably
the forthcoming Staples Corner store, which will
be one of the Group’s most prominent and visually
distinctive buildings – alongside a series of additional
openings designed to strengthen coverage across
densely populated regions.
At the same time, Big Yellow continues to advance a
longer-term pipeline, with several sites currently at
earlier planning, acquisition and feasibility stages.
These opportunities are concentrated in London and
the South East, where barriers to entry remain high
and long-term market fundamentals are strongest.
By securing and progressing sites well ahead of
development, the Group ensures a consistent flow
of future openings, supports brand visibility, and
enhances the long-term quality and resilience of
its portfolio.
What’s coming next in our London pipeline
Location
Status
Staples Corner,
London
Replacement store for existing leasehold.
Construction commenced with planned store
opening in August 2026.
Additional 18,000 sq ft
Epsom,
London
Construction commenced with planned store
opening in September 2026.
59,000 sq ft
Kentish Town,
London
Construction commenced, with planned store
opening in September 2026.
70,000 sq ft
Wapping,
London
Construction commenced with planned store
opening in December 2026.
Additional 95,000 sq ft
West Kensington,
London
Demolition of existing building completed, with
store opening anticipated in spring 2029.
176,000 sq ft
Old Kent Road,
London
Site acquired in June 2022. Planning application
submitted in October 2023, with planning consent
granted in May 2026.
79,000 sq ft
Annual Report and Accounts 2026 Big Yellow Group PLC 7
Delivering exceptional customer service remains a core
focus, driven by our people, their commitment and the
strong customer-led culture across Big Yellow.
Excelling.Excelling.
Technology enabled, people led service
Having teams on-site seven days a week remains critically
important to our business. While we have invested in the
automated onboarding for new customers, we cannot overstate
the value of our people. Customers, particularly businesses,
benefit from in-person support, on-site. Our continued investment
in technologies such as remote security monitoring, access
control and digital onboarding frees store teams to focus on
delivering exceptional service and keeping our stores safe,
secure and well managed.
Service that sets us apart
Our friendly and helpful store teams consistently deliver the
highest standards of customer service. From the outset, our
strategy has been to achieve this through a strong culture and
engaged, motivated employees. We recruit for personality over
a CV, recognising that many customers are new to self storage
and often going through stressful life events. Exceptional service
starts with a warm, empathetic personality – central to our
recruitment approach. This is reflected in our results, with an
average Net Promoter Score in the year of 85.
This is further evidenced by over 45,000 Google reviews and more
than 5,200 Trustpilot reviews, both averaging 4.8 out of 5, with
Trustpilot ratings classified as “Excellent”.
Annual Report and Accounts 2026 Big Yellow Group PLC8
People, culture and development
We are committed to developing our people through ongoing training and support,
ensuring teams have the skills and confidence to deliver consistently high standards.
This is underpinned by a strong, inclusive culture that keeps employees engaged and aligned
to the business. A flat management structure encourages partnership, open communication
and shared accountability.
Employees participate in corporate performance through bonus schemes and share
incentives, alongside a range of benefits, including an additional day’s holiday for birthdays
and recognition for exceptional service.
We provide a range of online and in-person training, while regular feedback, employee surveys,
Town Halls and Director store visits ensure we remain closely connected to our teams.
4.8 out of 5
Trustpilot: 5,200 Reviews.
Rated “Excellent”
85 NPS
Net Promoter Score
Your feedback matters
Annual Report and Accounts 2026 Big Yellow Group PLC 9
Providing flexible, secure space and hands-on support, is key
to helping businesses start, scale and operate efficiently, without
the risks of traditional leases.
Incubating.Incubating.
Supporting business growth
Business customers now account for 36% of our occupied space, and this segment continues to grow. Big Yellow provides an ideal platform
for businesses to start, grow and expand, offering flexible space that removes many of the risks associated with traditional leases.
Our all-inclusive model, with no business rates or hidden costs, gives customers clarity and control with their overheads.
Our stores operate as practical business hubs, supporting a wide range of business types from start-ups to established operators. We are
seeing strong growth from e-commerce businesses and entrepreneurs scaling side ventures. A broad range of unit sizes allows customers
to scale space in line with demand, supported by access from 5am to 11pm, seven days a week. Purpose-built facilities, including large
car parks, loading bays, spacious corridors and forklifting, alongside industry-leading security and on-site team support, enable efficient
operations and allow business customers to focus on growth.
Annual Report and Accounts 2026 Big Yellow Group PLC10
Enabling growth: ProtectaPet
ProtectaPet, an award-winning specialist in feline welfare and recipient of the King’s Award
for Enterprise in Innovation, has partnered with Big Yellow to support its rapid growth.
By utilising our nationwide network and National Customer service, the business has
established a flexible depot model, enabling stock to be positioned closer to customers
and significantly improving operational efficiency. This has reduced travel time for
engineers, helped increase conversion of enquiries into sales, while also reducing
environmental impact.
The flexibility of our offering allows ProtectaPet to scale space quickly in response to
demand, opening or resizing units across the UK with ease. Our on-site teams further
support operations by receiving deliveries, handling goods and ensuring secure storage
through robust security measures. This combination of flexibility, infrastructure and
service provides ProtectaPet with the confidence and operational efficiency required to
continue expanding its business.
Flexible office space
Big Yellow offers flexi-office space across 30 locations, designed to support modern,
dynamic businesses with a simple and adaptable place to work. These workspaces
provide a professional environment without the long-term commitment and complexity
of traditional office leases.
Uniquely positioned alongside our storage facilities, flexi-offices allow customers to
manage their workspace, stock and operations in one location. This integrated approach
is particularly attractive to start-ups, e-commerce businesses and SMEs seeking greater
efficiency and operational flexibility.
Our offices are fully serviced with secure access, free parking, kitchens, high-speed
Wi-Fi and on-site team support, creating a convenient and reliable working environment.
Flexible terms enable customers to scale space requirements in line with business needs,
without the constraints of fixed leases.
Our business services
• Staff on-site to accept deliveries
• Extended hours access available
• Flexible uncomplicated leases from one week
• Forklifting service
• Trolleys and pallet trucks
• Easily accessible large car parks and loading bays
• Unrivalled security
• 30 dedicated office locations
Annual Report and Accounts 2026 Big Yellow Group PLC 11
At Big Yellow, we believe in supporting the communities
and environment we operate in.
Impacting.Impacting.
Big Yellow Foundation
The Big Yellow Foundation works with charity partners supporting
vulnerable individuals, including ex-offenders, refugees,
ex-service personnel and people living with disabilities, helping
them build pathways into sustainable employment. Funded
through generous customer donations, which are then matched
by Big Yellow, the Foundation raised a record £533,000 in the
year and provided £414,000 of funding to our charity partners.
The total funding since the inception of the Foundation in 2018
now stands at £1.8 million. Our employees are actively engaged
through volunteering with the charity partners we support.
Creating opportunities
through partnership
Through store-based work placements, we are able to provide
individuals from the Foundation’s charity partners, valuable
experience and the opportunity to develop practical skills.
We also run CV writing and interview skills programmes to help
with their development and pathways into employment. This
collaborative approach ensures meaningful engagement for
both our Foundation partners and our employees.
Annual Report and Accounts 2026 Big Yellow Group PLC12
Harnessing solar at scale
Solar generation is a central component of our energy strategy, with continued roll-out of
rooftop panels across the portfolio to produce renewable electricity on-site. This reduces
reliance on grid supply, lowers operational emissions and supports long-term cost efficiency.
With large, flat roof space across the estate, our stores are well suited to solar generation at
scale, making it a practical and efficient solution as both new developments are delivered
and existing sites are upgraded.
Storing solar for peak demand
As the business grows, we are investing in battery storage systems to optimise the use of
solar energy generated across the estate.
By capturing surplus electricity and storing it for use during peak periods or for when the sun
isn’t shining, these systems improve energy resilience, support demand management and
further reduce reliance on external supply.
Retrofit Programme for
Sustainable Performance
We are enhancing our existing store portfolio
through a targeted retrofit programme, upgrading
buildings with modern, energy-efficient technologies
to ensure they remain sustainable and aligned with
the standards of new developments.
A key focus is the installation of rooftop solar
panels and battery storage. We are also improving
overall building efficiency with upgraded lighting
and controls, helping to lower energy usage and
operating costs.
In parallel, we are investing in reporting systems to
strengthen energy management, security monitoring
and digital infrastructure, supporting more efficient
and resilient operations across the portfolio.
Annual Report and Accounts 2026 Big Yellow Group PLC 13
We now operate a portfolio of 113 stores across the UK,
with a further 12 sites in the development pipeline.
Locatio ns.Locatio ns.
Where we grow and why
We focus on securing sites that combine strong demand, high visibility
and long-term growth potential. By carefully selecting where we
invest, we ensure each store is well positioned and easily accessible,
supporting both customer convenience and long-term value creation.
London and South East focus
London and the South East represents 75% of our revenue. This is
where demand is strongest, populations are densest and barriers
to entry, such as planning constraints and land availability, support
sustainable, long-term growth.
High-visibility locations
We target prominent sites on busy roads and key routes to maximise
brand awareness, increase footfall and ensure stores are easy to find
and access.
Designed for convenience
Our stores are designed with generous car parking and loading areas,
making access simple and efficient, particularly for customers
managing stock and deliveries.
Regional expansion
Through our Armadillo brand, we continue to expand beyond London,
with 24 stores across the UK, enabling growth in key regional markets.
Annual Report and Accounts 2026 Big Yellow Group PLC14
Poole
Oxford x2
Swindon
Guildford Slyfield
Guildford Central
Camberley
Reading
Slough
High Wycombe
Bracknell
Nottingham
Norwich
Brighton
Tunbridge Wells
Cheltenham
Southend
Chelmsford
Chester
Sheffield Parkway
Sheffield Westbar
Sheffield Hillsborough
Hull
Grimsby
Stockport
Manchester
Leeds
Liverpool South
Liverpool
Liverpool Aintree
Liverpool North
Morecambe
Edinburgh
Dundee
Newcastle
Canterbury
Cardiff
Gloucester
Bristol
Central
Bristol
Ashton Gate
Portsmouth
Exeter
Torquay
Hove
Stockton Central
Stockton South
Newcastle
Aberdeen
Plymouth
Sheffield Bramall Lane
Gateshead
Warrington
London
Colchester
Peterborough
Derby
Cambridge
Luton
Milton Keynes
Birmingham
Stoke-on-Trent
Macclesfield
Daventry
Leicester
Leamington Spa
Coventry
KEY
89 Big Yellow stores (50 in London)
12 Big Yellow stores under
development (8 in London)
24 Armadillo stores (1 in London)
Annual Report and Accounts 2026 Big Yellow Group PLC 15
Poole
Oxford x2
Swindon
Guildford Slyfield
Guildford Central
Camberley
Reading
Slough
High Wycombe
Bracknell
Nottingham
Norwich
Brighton
Tunbridge Wells
Cheltenham
Southend
Chelmsford
Chester
Sheffield Parkway
Sheffield Westbar
Sheffield Hillsborough
Hull
Grimsby
Stockport
Manchester
Leeds
Liverpool South
Liverpool
Liverpool Aintree
Liverpool North
Morecambe
Edinburgh
Dundee
Newcastle
Canterbury
Cardiff
Gloucester
Bristol
Central
Bristol
Ashton Gate
Portsmouth
Exeter
Torquay
Hove
Stockton Central
Stockton South
Newcastle
Aberdeen
Plymouth
Sheffield Bramall Lane
Gateshead
Warrington
London
Colchester
Peterborough
Derby
Cambridge
Luton
Milton Keynes
Birmingham
Stoke-on-Trent
Macclesfield
Daventry
Leicester
Leamington Spa
Coventry
Romford
Ilford
Dagenham
Barking
West Norwood
Balham
New Cross
Byfleet
Croydon
Orpington
Beckenham
Bromley
Sutton
Kingston
New Malden
Battersea
Kingston North
Kennington
Sheen
Fulham
Richmond
Twickenham x2
Hounslow
Chiswick
East Finchley
Bow
Edmonton
Enfield
Hanger Lane
Ealing
Gypsy Corner
West Molesey
Nine Elms
Camberwell
Kings Cross
Wembley
Harrow
Staines
West Kensington
Uxbridge
Hayes
Epsom
Kentish Town
Eltham
Wapping
Old Kent Road
North Finchley
Queensbury
Wandsworth
Tolworth
Watford
North Kensington
Staples Corner
Merton
Bethnal Green
Acton
Financial results
This business has again continued to prove to be resilient over the year
despite the prevailing external crises.
The year-on-year like-for-like deficit in occupancy, currently our principal
focus of attention, has at the point of reporting, seen some improvement,
closing to 0.6 ppts.
Cost control has been effective, reducing like-for-like store operating
expense inflation to 0.3%. The fall in short term interest rates has helped
with our total interest bill rising just £0.1 million, despite significant
capital expenditure resulting in an increase in total levels of debt.
Revenue for the year was £209.1 million (2025: £204.5 million), an
increase of 2%, with store revenue up 2%. Like-for-like store revenue
(which excludes new store openings) was up 2% driven by improvements
in average net rent. Store EBITDA was £146.5 million, an increase of
£3.3 million from the prior year (2025: £143.2 million).
The adjusted profit before tax in the year was £117.5 million up 2% from
£115.6 million in 2025. Adjusted earnings per share increased by 2% to
59.0p (2025: 57.8p).
The Group’s cash flow from operating activities (after net finance costs
and pre-working capital movements) was £111.5 million for the year,
broadly in line with the prior year (2025: £111.9 million). The prior year
included a one-off receipt of £4 million in respect of Cheadle. Excluding
this receipt from the prior year, cash flow from operating activities was
up 3% compared to 2025.
The Group’s statutory profit before tax was £126.2 million, a decrease
from £203.9 million in the prior year. There was a revaluation surplus for
the current year of £7.6 million, compared to a surplus of £79.7 million in
the prior year.
Investing in our platform
Our business involves the provision of safe, secure, convenient, local
space to individuals and businesses which requires physical real estate.
We are continuing to invest significantly in AI use cases, automation and
machine-learning to further improve efficiency both in our stores and
head office.
During the year we opened four new freehold stores in Staines,
Queensbury, Slough and Wembley (all in, or close to London). Sites were
acquired in Coventry, and contracted to be acquired in Bethnal Green,
London, and Acton, London. Planning consents have been secured in
Leamington Spa, Leicester and Old Kent Road, resulting in 9 of our 12
sites now having planning consents.
We have continued to focus on buying and building in central London,
where the barriers to entry are highest, and supply most constrained.
Six stores are currently under construction, with the 12 sites in our
pipeline forecast to deliver an additional 0.9 million sq ft of capacity,
delivering an estimated 8.3% return on capital deployed, or a total of
£39 million of net operating income. The pipeline’s total cost to complete
at 31 March 2026 is £231 million to be deployed over the next four years.
Capital structure
The Group’s interest cover for the year was 6.1x (2025: 6.1x), with the
Group’s net debt to EBITDA ratio increasing to 3.7x (2025: 3.1x). Net debt
was £476.7 million at 31 March 2026 (2025: £388.7 million), on gross
property assets of £3.1 billion, and the Group has undrawn committed
facilities of £83 million. Our current average cost of drawn debt is 4.7%,
down from 5.0% at 31 March 2025, and a peak of 5.7% in September 2023.
Dividends
The Group’s dividend policy is to distribute a minimum of 80% of full year
adjusted earnings per share. The final distribution of Property Income
Distribution (“PID”) declared is 23.4 pence per share. This brings the total
distribution declared for the year to 47.2 pence per share, an increase of
2% from the prior year (2025: 46.4p).
Big Yellow Group PLC (“Big Yellow”, “the Group” or “the Company”),
the UK’s brand leader in self storage, is pleased to announce its results
for the year ended 31 March 2026.
Chairman’s Statement
Annual Report and Accounts 2026 Big Yellow Group PLC16
Board changes
As we announced in March, Jim Gibson has informed the Board of his
intention to retire. Consequently, he will step down as CEO and from the
Big Yellow Board with effect from 20 July 2026, following the Annual
General Meeting. John Hunter, who has been COO since April 2024 will
become Chief Executive following his appointment at the AGM.
Jim has, with the able assistance of the Company’s senior management,
been a critical force in putting the Company into the market-leading
position it now holds. He has been thoughtful, strategic, bold when
appropriate, cautious when necessary, and has commanded the respect
and affection of his colleagues over his long tenure.
This transition has been four years in the making. John has been with
the Company for two years, and it has become abundantly clear that he
has all the operational, financial and strategic skills to leads us in the
next stage of our evolution. Most importantly, he has proved to be an
excellent cultural fit. The Board, our CFO John Trotman, and I look forward
to working with John over the coming years as we continue to grow our
market leading business.
Helen Gordon, the CEO of Grainger plc and the current Senior Independent
Non-Executive Director at Derwent London plc has agreed to join the
Big Yellow Board as Senior Independent Non-Executive Director with
effect from 1 June 2027. I am grateful to Vince Niblett who has agreed
to stay on as the SID until Helen takes up the post.
Our people
We enjoy a high level of employee engagement, with a significant cohort
of staff having been with the Company for many years. I am grateful to
them for their commitment and hard work, particularly in this uncertain
macro and political environment.
Our customer net promoter scores (“NPS”) increased to 85.0 from 82.8
last year – a magnificent achievement by all our team.
Outlook
We recognise that the current operating environment presents
considerable challenges for businesses across the sector, and we do not
underestimate the headwinds that lie ahead. Nonetheless, we believe
that we have taken the necessary steps to position the Company in as
good a place as we can.
Looking forward, we will maintain our disciplined focus on the factors
that remain firmly within our control: namely, the quality, design, and
strategic location of our store portfolio – both those already operational
and those currently in the development pipeline, the consistently high
standard of service we deliver to our customers, and the prudent and
sustainable management of our capital structure.
Nicholas Vetch CBE
Executive Chairman | 18 May 2026
Spotlight onSpotlight on
The expansion plan
During the year, we opened four new freehold stores
in Staines, Queensbury, Slough and Wembley, all in
or around London. We acquired a site in Coventry and
exchanged contracts on further sites in Bethnal Green,
London and Acton, London. Planning consent has been
secured in Leamington Spa, Leicester and Old Kent Road.
Nine of our twelve development pipeline stores now
have consent. Our strategy remains focused on central
London, where barriers to entry are highest and supply
constrained. We prioritise larger, modern buildings,
designed sustainably and incorporating smart technology
to enhance efficiency and customer experience. Six stores
are under construction. The 12 store development
pipeline is expected to deliver 0.9 million sq ft of capacity,
generating an estimated 8.3% return and £39 million of
net operating income.
Annual Report and Accounts 2026 Big Yellow Group PLC 17
Trading
The first half of the year saw subdued activity levels as we navigated
the global economic uncertainty created by changes in US tariff policy.
However, we saw stronger trading in the second half, which resulted in a
recovery in like-for-like occupancy, although some of that progress was
reversed in March following the start of the Iran war, with occupancy
growth stalling. In the period after the year end we have seen an
improvement in relative performance with the like-for-like occupancy
gap closing to 0.6 ppts at the time of reporting.
We continued to deliver rental growth through our yield management
to new and existing customers. This offset the reduction in like-for-like
occupancy experienced during the year and translated into 2% growth in
store revenue. Following a period of elevated inflationary pressures on
our cost base in recent years, it was pleasing to see strong cost control
deliver much lower increases in our operating costs over the past 12
months. In the first half we saw lower like-for-like operating costs versus
the same six months in the prior year, which was the result of several
operational efficiencies being delivered. In the second half we reinvested
some of these savings into additional marketing expenditure to drive
occupancy. We nevertheless mitigated this with savings elsewhere,
resulting in an overall 0.3% increase in like-for-like operating costs for
the full year. For the year ahead we expect underlying store operating
cost inflation of approximately 2-3%, after absorbing a 9% increase in
our like-for-like property rates.
Whilst we continue to see demand spread across a diverse range of
drivers, the largest driver of demand remains from domestic customers
renting storage space when moving home (40% of move-ins during the
year, 23% owners and 17% renters). We saw subdued levels of activity in
our first quarter, as many customers completed their house purchase
prior to the changes in Stamp Duty thresholds from 1 April last year.
However, we saw an improvement in demand from home movers in the
second half, following four base rate cuts through calendar year 2025,
which helped narrow the gap in year-on-year occupancy reported
at the half year. We experienced stronger demand from business
customers in the second half of the year, with business occupancy
increasing by 16,000 sq ft for the six months to the end of March, the
first growth since early 2022 following the Covid period. We continue
to see good demand from online retailers and B2B traders looking for
flexible mini-warehousing for e-fulfilment. National business customers
continued to occupy 5% of our space and delivered revenue growth of
6% year-on-year. Businesses now occupy 36% of our occupied space,
generating 32% of storage revenue and we believe there is further growth
to come from serving this important customer segment.
We are pleased to have delivered another year of revenue and earnings
growth, which is a testament to the resilience of our business and the hard
work of our employees.
Chief Executive’s Statement
Investment in our operating platform
and systems
Our core purpose as a Company is to provide customers with a safe and
secure space for their possessions. Our store teams provide a reassuring
presence during normal opening hours, and we continue to invest in
the technology and the physical security of our stores to deliver an
accessible and secure environment for our customers.
We have rolled out a mobile-based access system to most of our
Big Yellow stores over the past 12 months and intend to complete the
roll out to the entire store estate before the end of 2026. This system
enables customers to unlock gates and other entry points to the store
via their Bluetooth enabled smartphone. This has the combined benefit
of removing the need for customers to remember their PIN code, whilst
reducing the risk of PIN codes being misappropriated. We increased our
investment in Doncaster Security Operations Centre Limited (“DSOC”)
during the financial year and now own 74% of the ordinary share capital of
the Company. DSOC increasingly uses data and AI to help detect unusual
behavioural patterns generating alerts to our store teams or its overnight
monitoring operators.
We also launched a digital identity verification process, Yoti, during the
year to complement our online check-in process, which allows us to
validate customers’ identity prior to the move-in stage. This removes
the need for customers to bring their proof of identity into store, whilst
using technology to ensure they are indeed who they say they are.
These technology investments work alongside physical security
features, such as perimeter fencing, lighting enabled by motion
detectors, individually alarmed rooms and 24-hour CCTV. We continue
to restrict access outside of normal trading hours to 15-20% of our
customers, the majority of whom are business customers. Most of our
customers are happy to access the store during normal opening hours
when our store teams are present. Our store teams play an important
role as the final check on who we accept into our buildings as customers,
and importantly allow access to out of store opening hours. We believe
this is critical to maintaining the security of our stores, as it cannot be
replicated online.
Annual Report and Accounts 2026 Big Yellow Group PLC18
Over 90% of customers come through our digital channels, and our
website saw continual development over the past year to improve
conversion of customers seeking self storage. We continually work to
identify and remove points of friction in our online journeys and thereby
drive-up conversion levels. There is a continuing trend of customers
engaging digitally in the self storage sector, in common with most retail
and consumer services businesses.
We continue to automate operational tasks performed by our store
teams. We have developed our performance dashboard reporting to allow
our store managers to identify issues more easily and speed up decision
making. We have made improvements to several back-office processes;
for example, we have centralised our packing material stock ordering
to remove this task from our store teams and generate more accurate
stock orders. Our new customer service platform aggregates customer
feedback, whether from our internal surveys or from external sources
(for example, Google and Trustpilot reviews). This allows us to easily see
trends in customer feedback and address any service delivery issues
even more promptly. Our use of an external data supplier to automatically
track competitor pricing has allowed us to become more efficient and
reactive to pricing adjustments. We intend to launch a chatbot this
year to help answer simple queries from customers online and reduce
the volume of calls into our customer support centre. Last year we
automated our debt collection, which remains well managed with very
low levels of debts going beyond 10 days due, with bad debt write offs
of 0.2% over the year, in line with the prior year.
All of this has allowed us to operate more efficiently, whilst focusing our
store teams on value-adding activities. This ensures they are focused on
dealing with any customer service issues and helping to drive revenue
from ancillary services in the store. For example, optimising contents
cover, accepting deliveries for business customers, and packing material
sales are revenue generating activities that rely on our store teams
to complete.
We continue to review and invest in our cyber security platform.
We maintain our digital security standards by training our teams,
implementing best-of-breed products and technologies and enhancing
our policies and procedures. Our proactive approach helps us to stay
ahead of potential threats and vulnerabilities as we look to maintain
the integrity and availability of our digital assets.
Investing in security
We increased our investment in Doncaster Security
Operations Centre Limited (“DSOC”) during the year,
taking our ownership to 74%. DSOC provides 24/7 remote
monitoring and alarm receiving services, including
for our store network, strengthening our approach to
out-of-hours security.
DSOC increasingly uses data and AI to identify
unusual behavioural patterns, generating alerts for
monitoring teams and enabling faster, more targeted
responses. AI is also used to filter and prioritise alerts
from security systems, improving efficiency and
reducing unnecessary interventions.
This investment enhances the resilience, effectiveness
and scalability of our security operations as our store
portfolio continues to grow.
Spotlight onSpotlight on
Annual Report and Accounts 2026 Big Yellow Group PLC 19
Strategic Report Governance Report Financial Statements
People
As ever, our continued progress as a business reflects the steadfast
commitment of our people, whether in head office or in our stores, who
have worked extremely hard this year.
The level of staff turnover and vacancies in the business continues to
be at relatively low levels over the past 12 months. This is encouraging
and reflects the strong culture of the business and the high level of
engagement and loyalty this engenders. It also supports our ability to
attract and retain the talent we need to grow as a business going forward.
Our customer feedback comments frequently refer to the excellent
service delivered by specific team members. We track our customer
satisfaction levels through our net promoter score, and our average
over the year for move-ins and move-outs was 85.0 (2025: 82.8),
which demonstrates an improvement on already very high levels of
customer service. We also see excellent customer service ratings
via our Google and Trustpilot review pages. The customer service and
experience delivered by our store teams is a differentiating success
factor, particularly with those customers who increasingly use online
reviews, either via traditional search or using AI, to decide on their self
storage provider.
The continual improvement in our digital journeys, along with automation
and improvement of in-store processes, has allowed us to safely
review our store staffing structure. We have not been replacing certain
positions when we see staff attrition and we achieved annualised
savings of £0.3 million in the year. We will continue to seek further
reductions in store staff headcount levels where these can be safely
achieved. However, whilst we continue to identify opportunities to reduce
headcount, our store team members will always be required during our
normal opening hours to deliver great customer service, income from
ancillary services and maintain the standards and security of our stores.
We continue to make improvements to our culture and practices in
respect of diversity, and these are set out in our latest Inclusivity
and Diversity Report, which is available on our corporate website.
Our Inclusivity and Diversity Committee continues to meet regularly, and
we believe diversity has a positive impact on our performance. We want
to ensure we have an inclusive culture that attracts, retains and provides
equal opportunity to all our team members to drive forward our business.
Chief Executive’s Statement continued
ESG
The Big Yellow Foundation helps support the rehabilitation of vulnerable
people into work. Our store teams raise funds by asking our customers
if they wish to donate to the Foundation at move-in and move-out.
We also generate donations from fundraising activities carried out by our
employees across the business. The Company matches all money raised
in this way. Through the generosity of our customers and the efforts of
our employees, we raised a record £533,000 (2025: £444,000) in the
year for the Foundation and provided £414,000 (2025: £345,000) of
funding to our charity partners. The total funding since the inception
of the Foundation in 2018 now stands at £1.8 million.
We also continue to provide 12-week work placements in our stores
to candidates from some of our Foundation partner charities.
These placements help improve confidence and work chances for
the candidates. Our store teams also enjoy working alongside the
candidates and find it rewarding to do so. We continue to provide free
space to small local charities and community organisations across our
store estate. At present we support approximately 300 charities this
way. Our volunteering programme allows our staff to give back to the
community, with every member of staff given one day a year to volunteer
with one of our charity partners or a charity of their choice.
Our solar programme continues to expand across both new developments
and existing stores. During the year, seven installations were completed,
including four new developments and three retrofit installations on
existing assets. We have invested £18.2 million in the retrofit programme
over the last four years, which has taken the total number of stores with
solar to 85. Alongside new installations, we have begun upgrading some
of our earliest solar arrays to improve performance and ensure they
continue to deliver efficiently over the long term. Our total solar capacity
across the estate is now 9.6 Megawatts (2025: 8.5 Megawatts).
As part of our solar strategy, our battery programme has progressed
from pilot to early-stage deployment. We installed and commissioned
four battery systems at our new stores opened in the year, alongside
a programme of retrofit installations across existing stores. Once all
our current installations are commissioned, we will have approximately
700kW of battery storage capacity across 15 stores. We intend to install
batteries across a further eight stores in the year ahead and so further
expand our battery capacity across the store estate, benefiting over time
from improvements in performance and cost. Battery storage enables us
to store and deploy energy when it is needed, increase the efficiency of
our solar generation, reduce peak grid demand and improve the resilience
of our operations.
Annual Report and Accounts 2026 Big Yellow Group PLC20
Following a successful trial, our energy efficiency programme has moved
from pilot to scaled roll out. Taking the lessons from the initial pilot, we
have refined the solutions deployed, with a focus on lighting controls and
lighting system optimisation. During the year, 24 stores were upgraded with
new lighting controls, delivering energy savings of approximately 25% at
those locations, with a three to four year payback. We intend to implement
these lighting controls across the entire store estate in the financial year
ahead. This initiative will help further protect the business against energy
cost instability.
We maintain an updated assessment of the performance of our estate
by recertifying our EPCs, even when certificates are in date following
improvements. We are projected to have all stores (bar one short leasehold)
at A+, A or B by the end of 2026, well ahead of the 2028 requirement.
We continue to make significant progress on our journey to self-generation
of our energy needs.
Further detail, including progress on our Science Based Targets, is included
in the ESG Report.
Conclusion
Our business model, combined with continued investment in our
market-leading brand, store portfolio and operating platform, has once
again delivered a resilient performance over the last 12 months.
Finally, I have been very proud to have played my part in the Big Yellow story
from the beginning working with a great team in a great culture. I intend to
remain invested, confident that the business will continue to deliver secure,
compounding returns in the coming years under the leadership of my
replacement John Hunter alongside my co-founder and Chairman Nick Vetch
and CFO John Trotman.
Jim Gibson
Chief Executive Officer | 18 May 2026
Annual Report and Accounts 2026 Big Yellow Group PLC 21
Strategic Report Governance Report Financial Statements
Our strategy
Brand, platform, and customer service
Our strategy from the outset has been to develop Big Yellow into the
market-leading self storage brand, delivering excellent customer service,
investing in sustainability and our market-leading operating platform and
digital channels, with a great culture and highly motivated employees.
We concentrate on developing our stores in main road locations with
high visibility, where our distinctive branding generates high awareness
of Big Yellow.
Creating shareholder value
We continue to believe that the medium-term opportunity to create
shareholder value consists of driving revenue and cash flow from our
existing portfolio through continued investment in sustainability,
our people, culture, and digital operating and marketing platforms.
In addition, we aim to deliver external growth as new stores open through
continued investment in our development pipeline, and selectively
acquiring existing storage centres from smaller operators. As a REIT our
key financial objective is to produce sustainable returns for shareholders
through a relatively low leverage, low volatility, high distribution
business. In addition, any successful business must have an effective
sustainability strategy, particularly around climate change, and this
continues to be a key strategic focus for our business.
Real estate
A key plank of our strategy has been to build a portfolio of large
purpose-built freehold self storage centres, focused on London, the
South East and other large urban conurbations. We believe that by owning
a predominantly freehold estate we are insulating ourselves against:
economic downturns as we operate at higher margins; adverse rent
reviews; and in the long-term possible redevelopment of key stores by the
landlord. It also provides us financing flexibility as rent is a form of gearing.
Approximately 60% of our current annualised store revenue derives from
within the M25; for London and the South East, the proportion of current
annualised store revenue is 75%. With our store development pipeline and
recent store openings largely in London and the South East, we would
expect these proportions to increase over the medium term.
New supply and competition is a key risk to our business model, hence
our weighting to London and its commuter towns, where barriers to entry
in terms of competition for land and difficulty around obtaining planning
are highest.
Our stores are on average 59,500 sq ft, compared to an industry average
of approximately 43,000 sq ft (source: UK Self Storage Association 2026
Annual Survey). The upside from filling our larger than average sized
stores is, in our view, only possible in large metropolitan markets.
As our operating costs are relatively fixed, larger stores in bigger urban
conurbations, particularly London, drive higher revenues and higher
operating margins.
Capital structure
Following the Global Financial Crisis and the ensuing economic recession,
we have materially reduced the financial risk within the business and
diversified our sources of debt, whilst at the same time, increasing our
store platform by deploying significant capital investment. We measure
leverage by looking at our interest cover which was 6.1 times for the
year ended 31 March 2026, and our objective is to not let this fall below
5 times, compared to the consolidated EBITDA covenant of 1.5 times.
We also look at our debt to EBITDA ratio, which is currently 3.7 times, and
we seek to maintain this in the range of three to four times. We manage
this business on the basis that an external economic shock could
potentially happen at any time. This is reinforced by the performance of
the business during the pandemic, where we delivered a strong trading
performance whilst at the same time continuing to invest and expand.
Self storage demand drivers
Economic activity and change are key drivers of self storage demand and
are greatest in the larger urban conurbations, and in particular London
and the South East. The structural changes consisting of the conversion
of ex-industrial brownfield land to other uses, in particular residential;
the reduction in home ownership and increased proportion of those
choosing to rent; increasing density of living with new properties being
built with optimised living space and very little provision for storage;
will continue and will increase demand for our product. These changes
have resulted in a significant shortage of available warehousing space,
particularly in London. Self storage provides a convenient flexible
solution to businesses such as online retailers, importers and exporters,
service providers, the public sector, and marketing companies looking for
mini-warehousing space.
In addition to domestic customers taking space to declutter their homes,
our largest customer base is those using us short-term around an event,
such as moving home, refurbishment, inheritance, household formation,
separation, relocation, and students.
Resilience
The location of our stores, brand, security, and most importantly
customer service, together with the diversity of use in our 71,000
occupied rooms, serve better than any lease contract in providing
income security.
The business proved to be relatively resilient, but not immune during
the Global Financial Crisis and recession of 2007 to 2009, with London
and the South East proving to be less volatile. Since 2020, the Group has
grown its revenue by 62%.
81% of our customers pay by direct debit, and our cash collection has
remained robust over recent years.
Strategy and Investment Case
Annual Report and Accounts 2026 Big Yellow Group PLC22
Digital execution
Leveraging our market-leading brand
position to generate new prospects,
principally from our digital, mobile and
desktop platforms.
We focus on the following key areas:
Sustainability
Through our environmental initiatives,
aim to create a more sustainable
business which will increase
shareholder and customer value in
both the medium and long-term.
Customer experience
Focusing on training, selling skills, and
customer satisfaction to maximise
prospect conversion and referrals.
Social initiatives
Through our social initiatives, we
support local charities with free storage
space and help vulnerable people get
back into the workplace through the
Big Yellow Foundation.
Driving revenue
Growing occupancy and net rent to
drive revenue optimally at each store.
Culture
Maintaining Big Yellow’s culture as
an accessible, apolitical, inclusive,
non-hierarchical, socially responsible,
and enjoyable place to work.
Cost control
Maintaining a focus on cost control, so
revenue growth is transmitted through
to earnings growth.
Conservative capital structure
Maintaining a conservative capital
structure in the business with Group
debt to EBITDA in the range of three to
four times.
Increasing footprint
Increasing the footprint of the
Big Yellow platform principally
through new site development and
where possible existing prime freehold
stores that meet our quality criteria.
Annual Report and Accounts 2026 Big Yellow Group PLC 23
Strategic Report Governance Report Financial Statements
Our competitive advantage
• UK self storage industry’s most recognised brand with
over 90% of enquiries online
• Prominent mainly purpose-built stores on arterial or
main roads, with high visibility
• Continuous innovation and investment into our mobile
and desktop digital channels
• Strong customer satisfaction and NPS scores reflecting
excellent customer service
• 6.7 million sq ft UK footprint, with development pipeline of
0.9 million sq ft
• Primarily freehold estate concentrated in London and
South East and other larger urban conurbations
• Larger average store capacity – economies of scale, higher
operating margins
• Secure financing structure with strong balance sheet
• Continued significant investment in sustainability
and our culture
Resilient
Resilient through the Global Financial Crisis, the
pandemic and recent geopolitical events.
Flexible Contract
Flexible contract allows rental growth in an
inflationary environment as demonstrated in
last four years.
Structural undersupply
Structural undersupply in larger cities over the
medium to long term.
New customer reach
Awareness still remains relatively low, with
approximately 53% having reasonable or good
knowledge of self storage.
How we deliver value
Total shareholder return
In the twenty six years since flotation in May 2000, Big Yellow has
delivered a Total Shareholder Return (“TSR”), including dividends
reinvested, of 11.4% per annum, in aggregate 1,527.2% at the closing
price of £8.45 on 31 March 2026. This compares to 3.7% per annum
for the FTSE Real Estate Index and 5.9% per annum for the FTSE All
Share index over the same period. We feel this illustrates the power of
compounding consistent incremental returns over the longer term.
Strategy and Investment Case continued
Our Investment Case
Attractive market dynamics
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Annual Report and Accounts 2026 Big Yellow Group PLC24
High margins
Freehold assets for high operating margins and
operational advantage.
Sustainable
Low technology and obsolescence product,
maintenance capex fully expensed.
Annual compound adjusted eps
12%
Annual compound adjusted eps growth of 12% since 2004/5.
Cash flow
12%
Annual compound cash flow growth of 12% since 2004/5.
Dividend pay-out
80%
Dividend pay-out ratio of a minimum of 80% of adjusted eps.
Evergreen income streams
• 71,000 occupied rooms, with customers from a diverse base –
individuals, SMEs, and national customers
• 39% of customers in stores greater than two-year length of stay,
a further 17% for one to two years
• Average length of stay for existing customers of 33 months, for
the 56% of customers that have stayed for more than one year,
the average length of stay is 55 months
• Low bad debt expense (0.2% of revenue in the year)
Strong growth opportunities
• Opportunities to drive further occupancy growth
• Yield management as occupancy increases
• Densification of living and scarcity of flexible business
warehouse space drives demand
• Development pipeline of 0.9 million sq ft (13% of current MLA)
to drive further growth
• Conservative capital structure allowing further growth from
internal resources
Conversion into quality returns
Annual Report and Accounts 2026 Big Yellow Group PLC 25
Strategic Report Governance Report Financial Statements
Our Key Performance Indicators
The Group’s KPIs are shown in the charts below. The key performance
indicators of our stores are occupancy and net rent per sq ft, which
together drive the revenue of the business. These are key measures
which are focused on by the Board and are reported on a weekly basis.
Over the course of the past five years, revenue has increased by 22%.
The current year has seen a modest decline in occupancy, with growth in
net rent per sq ft and revenue.
Closing net rent per sq ft has increased by 21% over the past five years,
with growth of 3% in the year to 31 March 2026. We expect revenue
growth to be driven by a combination of occupancy increases and
growth in net achieved rent per sq ft.
Adjusted profit before tax and adjusted earnings per share (“eps”),
as defined in note 33, which drive the distributions to shareholders
(as our dividend policy is to pay a minimum of 80% of adjusted earnings
as dividends) are also KPIs. The Group focuses on adjusted profit and
earnings measures as they give a clearer picture of the Group’s trading
performance without distortion from external factors such as property
valuations and the fair value of derivatives. We have delivered compound
adjusted eps and dividend growth of 7% over the past five years, with
growth of 2% in both metrics in the current financial year. Compound
adjusted eps growth since 2004/5 is 12%.
Our non-financial KPIs are the net promoter scores we receive from our
customers and the carbon intensity of the Group’s business. The Group’s
net promoter score received from its customers during the year was 85.0
(2025: 82.8). We believe this overall score compares very favourably with
other consumer-facing businesses.
The Group has reduced its carbon intensity (our carbon emissions divided
by our average occupied space) by 26% in the year and by 36% over the
past five years. This has been achieved through investment in renewable
technology, roof mounted solar photo-voltaic systems, and LED lighting
across the Group’s portfolio.
Annual Report and Accounts 2026 Big Yellow Group PLC26
Closing occupancy
4,985,000 sq ft
(2%) over 5 years
Revenue
£209.1m
+22% over 5 years
Closing net rent per sq ft
£36.28
+21% over 5 years
Adjusted profit before tax
£117.5m
+21% over 5 years
50
70
90
110
130
150
170
190
210
230
171.3
188.8
199.6
204.5
209.1
2022 2023 2024 2025 2026
25
27
29
31
33
35
37
29.92
32.48
34.14
35.17
36.28
2022 2023 2024 2025 2026
15.0
35.0
55.0
75.0
95.0
115.0
135.0
96.8
106.0
107.3
115.6
117.5
2022 2023 2024 2025 2026
(000 sq ft)
(£)
(£m)(£m)
3,000
3,500
4,000
4,500
5,000
5,500
5,107
5,088
5,029
5,056
4,985
2022 2023 2024 2025 2026
Adjusted earnings per share
59.0 pence
+12% over 5 years
Dividend per share
47.2 pence
+12% over 5 years
30.0
35.0
40.0
45.0
50.0
55.0
60.0
65.0
52.5
56.5
55.9
57.8
59.0
2022 2023 2024 2025 2026
39
40
41
42
43
44
45
46
47
48
42.0
45.2 45.2
46.4
47.2
2022 2023 2024 2025 2026
Net promoter score
85.0
Average of 81.2
over 5 years
Carbon intensity
3.2
(36%) over 5 years
50
55
60
65
70
75
80
85
90
78.9 78.9
80.5
82.8
85.0
2022 2023 2024 2025 2026
0
1
2
3
4
5
6
5.0
5.1
4.8
4.3
3.2
2022 2023 2024 2025 2026
(pence) (pence)
kgCO
2
e/1000m
2
Annual Report and Accounts 2026 Big Yellow Group PLC 27
Strategic Report Governance Report Financial Statements
The store platform and demand
Self storage demand is spread across a diverse set of drivers, and is
largely driven by need, with security, convenience, quality of product,
service and location being key factors. Awareness remains relatively
low compared to commoditised products, such as hotel rooms or airline
seats, albeit it is increasing slowly year-on-year with increased supply,
marketing expenditure and customer use. The majority of our domestic
customers are represented in ACORN profiled groups such as Flourishing
Capital, Up and Coming Urbanites, Exclusive Addresses, Prosperous
Professionals, Metropolitan Surroundings, Upmarket Families, Urban
Aspiring Flat Dwellers and Privately Renting Professionals in Flats.
The largest element of demand into our business each year is customers
who use us for relatively short periods driven by a need.
Of our move-ins during the year:
• customers renting storage space whilst moving represented
40% of move-ins during the year (2025: 41%), with homeowners
representing 23% and renters 17%;
• 13% of our customers who moved in took storage space as a spare
room for decluttering (2025: 12%);
• 35% of our customers used the product because some event had
occurred in their lives generating the need for storage; they may
be moving abroad for a job, have inherited possessions, are getting
together, or separating, are students who need storage during the
holidays, or homeowners developing into their lofts or basements
(2025: 35%);
• the balance of 12% of our new customer demand during the year
came from businesses (2025: 12%), who stay longer and represent
around 20% of our customers in store at any one time, occupying 36%
of the space at 31 March 2026.
Of our overall occupied space today, customers who are longer stay
lifestyle users, decluttering into small rooms as an extension to their
accommodation, occupy 10% to 15% of our space; approximately 50%
of the space is customers using it for less than 12 months, for reasons
which are largely event driven, which could be inheritance, moving in
the owner-occupied or rental sector, home improvements, travelling;
the balance of 36% of our space is businesses.
Our business customer base is comprised of online retailers, B2B traders
looking for flexible mini-warehousing for e-fulfilment, service providers,
those looking to shorten supply chains, and businesses looking to
rationalise their other fixed costs of accommodation. For these customers,
who are typically looking for rooms which could be from 50 sq ft to 500 sq ft
in facilities that meet their operational requirements, the only supply in
big cities is from self storage providers. The average space occupied by
business customers at the year-end is 177 sq ft (2025: 175 sq ft).
Domestic customers occupy on average 59 sq ft (2025: 59 sq ft) and
pay on average 16% more in rent per sq ft than business customers
(2025: 17%), due to the smaller on average room size rented.
Business customers do however stay longer, take more space and
represent around 32% of revenue (2025: 32%).
The pandemic accelerated many structural changes that were already
occurring, such as the move to online retailing and an increase in working
from home facilitated by technological advances. The deindustrialisation
of big cities with the conversion of commercial space into residential
and other uses, has led to a shortage of suitable flexible mini-warehouse
space from which to operate small scale storage and e-fulfilment,
particularly in London. These developments, along with businesses
increasingly seeking flexible office and storage space rather than longer
inflexible leases, we believe are long-term structural trends, which will
benefit our business going forward.
From research we carried out in the year, a typical small business
using our storage employs around two people and over 60% of them are
early-stage businesses and for 50% of them this is their only space.
In addition, we have a dedicated national customers team for businesses
who wish to occupy space in multiple stores. These customers on
average occupy approximately 900 sq ft, paying £30,000 per annum,
and are billed and managed centrally. This area has performed strongly
in the year with revenue up 6% compared to the prior year, making up 5%
of occupied space.
Activity
Occupancy across all 113 stores decreased over the year by 71,000 sq ft
(2025: increase of 27,000 sq ft). Domestic occupied space decreased by
50,000 sq ft over the year.
Business occupancy dropped 1.2% or 21,000 sq ft on 1.78 million sq ft
occupied at the beginning of the year. As we have experienced over
the years, there are businesses who outgrow us and move to their own
accommodation, others cease operations, some are seasonal, and we
continue to replace any vacated space with new move-ins from online
traders, e-tailers and service providers. We are not seeing any noticeable
further softening in demand from businesses, particularly in London,
and in the last six months of the financial year, we saw an increase in
occupancy from businesses of 16,000 sq ft.
The 77 Big Yellow same stores (see Portfolio Summary) are 78.2%
occupied compared to 80.9% at the same time last year. The 12 lease-up
Big Yellow stores added 60,000 sq ft of occupancy over the year to reach
closing occupancy of 49.2%. The 24 Armadillo stores, representing 10% of
the Group’s revenue are 75.5% occupied, compared to 76.2% at this time
last year. Overall store occupancy, with four new stores opening in the
year, was 74.2% (2025: 78.7%).
Operating Review
We now have a portfolio of 113 open and trading stores, with a current
maximum lettable area of 6.7 million sq ft, an increase of 0.3 million sq ft
(5%) since the prior year, with four stores opening in the year.
Annual Report and Accounts 2026 Big Yellow Group PLC28
Occupancy
31 March
2026
%
Occupancy
change in
year
000 sq ft
Occupancy
31 March
2026
000 sq ft
Occupancy
31 March
2025
000 sq ft
77 same store Big Yellow stores 78.2% (123) 3,809
3,932
12 lease-up Big Yellow stores 49.2% 60 417 357
24 Armadillo stores 75.5% (8) 759 767
All 113 stores 74.2% (71) 4,985 5,056
All stores are trading profitably at the EBITDA level, with the exception of
our newly opened stores in Queensbury, Slough Bath Road and Wembley.
Rental growth
We continue to manage pricing dynamically, taking account of room
availability, customer demand and local competition, with our pricing
model reducing promotions and increasing asking prices where individual
room sizes are in scarce supply.
We continue to price competitively to win new customers and increase
rents to in-place customers on a range dependent on what they are
paying relative to the current asking price, and on average these were at
levels slightly ahead of wage inflation. It must be remembered that some
60% of our customers vacate within six months and therefore do not
receive any price increases.
New customers over the year paid on average 0.7% less than move-ins for
last year, and 6.9% less than customers moving out over the year. If we
can improve our relative occupancy performance, we would expect to see
this narrow and be an additional driver to revenue growth.
The average achieved net rent per sq ft increased by 4% compared to the
prior year, with closing net rent up 3% compared to 31 March 2025.
Marketing
Our marketing strategy is focused on further strengthening our market
leading brand awareness and leveraging this to drive the cost efficient
generation of enquiries, customer move ins and high levels of customer
satisfaction across our digital platforms and store experience. Our strong
brand, combined with continued investment in digital capability and
innovation, has enabled us to develop a market leading website, which
now generates over 90% of all enquiries.
Our latest YouGov brand tracking survey (published May 2024)
confirmed that Big Yellow’s brand awareness remains significantly ahead
of all other UK self storage operators. Unprompted brand awareness is
more than four times higher than our nearest competitor across the UK.
Energy efficiency
Following a successful trial, our energy efficiency
programme has moved from pilot to a scaled rollout,
with refinements focused on lighting controls and
system optimisation. During the year, 24 stores were
upgraded, delivering energy savings of approximately
25% and a three to four year payback. We plan to extend
these lighting controls across the entire estate in the
financial year ahead. This initiative will further improve
efficiency and help protect the business against energy
cost volatility.
Spotlight onSpotlight on
Annual Report and Accounts 2026 Big Yellow Group PLC 29
Strategic Report Governance Report Financial Statements
We also provide the ability to purchase boxes and packing materials
through our online BoxShop store. These items can be home delivered or
made available through our Click and Collect service from stores, which
represents 84% of BoxShop transactions.
Driving online traffic
Self storage is a consumer facing business and building a strong,
sustainable brand is inherently multi layered. It requires consistency
in product offering, customer service and brand interaction across all
touchpoints, particularly online.
Search engines remain our most important customer acquisition channel,
accounting for the majority of traffic to our website. Our continued focus
on building and maintaining competitive advantage in search has seen
ongoing investment in search engine optimisation (“SEO”), enabling
us to sustain strong organic rankings for both generic and local self
storage search terms. This drives both growth and cost efficiency in the
acquisition of new prospects.
As the search landscape evolves, we are increasingly focused on AI
driven search visibility and generative search optimisation (“GEO”),
across leading large language models. This includes understanding why
certain brands are surfaced and how we can positively influence that
visibility. The strength, authority and reputation of the Big Yellow brand,
combined with many years of investment in a robust SEO foundation,
position us well for this next era of search.
Brand search terms are a significant driver of enquiries for Big Yellow
and play an important role in improving cost efficiency. Over the
past year, 35% of all paid search clicks to our website were generated
from “Big Yellow” brand searches, clearly demonstrating the value
of strong brand awareness in driving higher quality prospects and
improved operational efficiency. This effect is consistently evidenced
by the performance uplift seen in acquired store portfolios following
rebranding and integration into the Big Yellow business.
Operating Review continued
The Big Yellow website allows customers to browse different room sizes,
obtain pricing, reserve online and complete their check in before arriving
at the store. Once a customer has moved in, our stores operate with
automated access.
We recognise that many customers find it difficult to determine the right
storage size. To support this, our online size estimator uses intuitive
animations and clear guidance to help customers make an informed
choice. Short video clips demonstrating different room sizes are also
available, giving prospects greater confidence that they are selecting
the correct space.
Customers can communicate with us in real time via Live Chat or
WhatsApp while comprehensive online FAQs provide quick answers
to common queries without the need to call us directly. This digital
experience is particularly important given that around 60% of our new
customers have never used self storage before.
The seamless digital experience continues with our online check in
platform, which allows customers to complete the majority of their move
in process remotely. This has significantly reduced the time customers
need to spend in reception when they arrive at the store. Customers
can sign their full storage licence, set up authorised users, complete
their storage inventory and establish a paperless Direct Debit, all before
arriving on-site.
During the year, we also introduced automated identity verification
through Yoti. This removes the need for store teams to manually inspect
customer ID documents and visually match them to the individual
present. The technology automatically identifies fraudulent or expired
documents and matches the ID photo to a live facial scan of the user.
This AI driven automation provides an additional layer of security
by giving us greater confidence in who is storing with us, while also
significantly speeding up the move in process.
Annual Report and Accounts 2026 Big Yellow Group PLC30
Search engine marketing remains our largest source of paid digital traffic
and is managed by a specialist search team to ensure spend is tightly
controlled and highly efficient. Continued website optimisation and a strong,
engaging user experience across our digital platforms help maximise the
conversion of web visits into enquiries and, ultimately, customers.
Digital display advertising allows us to target audiences actively
considering self storage, increasing brand consideration through
engaging creative formats. In parallel, we continue to expand strategic
online partnerships with brands that share similar customer profiles,
further improving efficiency in our cost per customer acquisition.
Online customer reviews and social media
Supporting our value of putting the customer at the heart of the business,
online customer reviews provide real time feedback on our service and
generate powerful word of mouth advocacy for prospective customers.
Through our structured customer feedback programme, we capture
insight from customers following both their move in and move out
experiences. Customer reviews and mystery shop results are made
transparently available across the business, reinforcing our continued
focus on delivering outstanding customer service. Over the year, we
achieved an average Net Promoter Score of 85, representing a very
strong benchmark for a consumer facing business.
We also benefit from real time customer feedback via more than 45,000
Google reviews, with an average rating of 4.8 out of 5. These reviews
not only provide valuable insight but also enhance our visibility in local
search results and help build trust in the Big Yellow brand, which is
increasingly important for AI driven search visibility. In addition, we have
over 5,200 reviews on the independent review platform Trustpilot, with
an average rating of 4.8 out of 5, categorised as “Excellent”. All customer
reviews are actively monitored and responded to, ensuring we manage
our online reputation effectively and use customer insight to continually
improve our service offering.
Social media continues to complement our core marketing channels.
Big Yellow maintains an active presence across LinkedIn, Instagram,
Facebook and TikTok, using these platforms to raise awareness of our
services and ESG activities. Social channels also provide customers
with another way to engage with us and are monitored in real time to
enable prompt responses to enquiries. LinkedIn is used specifically
to communicate company achievements, ESG initiatives and our
company culture.
The Big Yellow YouTube channel further supports the customer journey by
allowing prospective customers to explore our stores remotely through
video based guides to self storage.
We will continue to invest in enhancing the customer experience and
user journey across both our digital channels and in store operations,
supporting increased automation and delivering further efficiency
gains across the business.
AI
We continue to identify new ways to use AI and emerging technologies to
drive efficiency and improve performance across the business. We are
currently leveraging a range of AI tools to enhance our content creation
processes, including Microsoft Copilot, Claude and Canva, enabling us
to generate ideas and content more quickly and creatively. We also use
AI based focus groups to provide valuable insight into customer facing
website designs.
AI tools support the creation of training modules, the drafting of policies
and procedures, and the development of engaging presentations
and visual content. The integration of these tools has significantly
streamlined workflows and boosted productivity across our key
business functions.
Alongside this, we make extensive use of rules based data manipulation
and automation across multiple operational areas, including dynamic
pricing, prospect management, online check in and the automation of
customer communications. Data driven access control reporting and
alerts from our stores have strengthened our audit processes, while
exception reporting has delivered notable efficiency gains. In marketing,
AI is also used for paid search optimisation and prospect acquisition,
customer identity verification via Yoti and competitor monitoring.
We have implemented new software within our financial reporting team
to speed up our financial forecasting. Our DSOC business also uses AI to
help filter alerts triggered by operator security systems, which enables
its security operatives to work more efficiently.
While often delivered through third party services, machine learning
driven AI underpins our cybersecurity and defence capabilities.
It plays a critical role in anti malware protection, firewall management,
email security, vulnerability testing and Security Information and
Event Monitoring.
This is by no means an exhaustive summary of how AI is supporting and
enhancing our business, but it provides a clear indication of its impact –
and it remains an area we will continue to invest in.
Cyber security and IT infrastructure
Cyber security and IT infrastructure remain fundamental to the Group's
strategic objectives and operational effectiveness. We operate a
comprehensive framework encompassing risk management, security
protocols, regulatory compliance, innovation, and operational efficiency.
Throughout the year we have delivered substantial progress whilst
maintaining our proactive approach to identifying opportunities and
addressing evolving challenges. The Group remains committed to
sustained investment in our capabilities safeguarding our competitive
position. Our Infrastructure and Development teams continue to deliver
innovation and operational efficiencies across the Group.
Our cyber risk and security posture is subject to continuous assessment,
drawing upon the expertise of both internal specialists and independent
external advisors. Measures such as compulsory Information Security
and Data Protection training, complemented by regular testing
programmes including penetration testing and phishing simulations
helps to ensure the resilience of both our technical systems and our
people. During the year our infrastructure successfully completed a
rigorous external audit attaining IASME Cyber Assurance and Cyber
Essentials certification. The Group also maintains cyber insurance
coverage to mitigate potential financial exposure in the event of a
security incident.
Our Data Compliance Officer oversees ongoing compliance with GDPR
and PCI DSS requirements, whilst also managing our Business Continuity
and Crisis Communication frameworks. Policies and procedures
undergo periodic review and are benchmarked against industry best
practice standards.
Annual Report and Accounts 2026 Big Yellow Group PLC 31
Strategic Report Governance Report Financial Statements
Development pipeline
An important aspect of our external growth is the development of new stores, particularly in London, where there are very few existing assets suitable
to be acquired.
Current development pipeline – with planning
Site Prominent location Status Anticipated capacity
Staples Corner, London
North Circular Road Construction commenced with planned store opening in
August 2026.
Replacement for existing
leasehold store, additional
18,000 sq ft
Epsom, London
East Street Construction commenced with planned store opening in
September 2026.
59,000 sq ft
Kentish Town, London
Regis Road Construction commenced, with planned store opening in
September 2026.
70,000 sq ft
Wapping, London
The Highway, adjacent to existing Big Yellow Construction commenced with planned store opening in
December 2026.
Additional 95,000 sq ft
West Kensington, London
Hammersmith Road Demolition of existing building completed, with store opening
anticipated in spring 2029.
176,000 sq ft
Newcastle
Scotswood Road Planning consent granted, with store opening anticipated in
summer 2027.
60,000 sq ft
Leicester
Belgrave Gate, Central Leicester Site acquired in June 2023. Planning consent granted, with store
opening anticipated in early 2028.
58,000 sq ft
Leamington Spa
Queensway Site acquired in May 2024. Planning consent granted, construction
commenced with store opening anticipated in summer 2027.
54,000 sq ft
Old Kent Road, London
Old Kent Road Site acquired in June 2022. Planning application submitted in
October 2023, with planning consent granted in May 2026.
79,000 sq ft
Current development pipeline – without planning
Site Prominent location Status Anticipated capacity
Coventry
Sir Henry Parkes Road Site acquired in April 2025. Planning application submitted in
November 2025.
58,000 sq ft
Bethnal Green, London
Hollybush Gardens Contracts exchanged in September 2025, with deferred completion
in March 2027. Planning application submitted in April 2026.
68,000 sq ft
Acton, London
The Vale Contracts exchanged in May 2026, with completion occurring in
the same month.
66,000 sq ft
Total – all sites 861,000 sq ft
Operating Review continued
The four new stores opened in the year to March 2026 have added a further 0.3 million sq ft of capacity; the 12 development sites in our pipeline
are forecast to deliver an additional 0.9 million sq ft of capacity. The projected net operating income of the combined increase in our total capacity
of 1.2 million sq ft when stabilised, at today’s prices, is £39 million representing a proforma 8.3% return on the capital deployed. If we include the
replacement store at Staples Corner, due to open in July 2026, the proforma net operating income increases to £43 million, a return of approximately
8.4% on the total development cost of approximately £513 million, including land already acquired.
Annual Report and Accounts 2026 Big Yellow Group PLC32
Portfolio Summary
March 2026 March 2025
Big Yellow
same stores
(1)
Big Yellow
lease-up Armadillo Total
Big Yellow
same stores
Big Yellow
lease-up Armadillo Total
Number of stores 77 12 24 113 77 8 24 109
At 31 March:
Total capacity (sq ft) 4,868,000 848,000 1,005,000 6,721,000 4,863,000 552,000 1,006,000 6,421,000
Occupied space (sq ft) 3,809,000 417,000 759,000 4,985,000 3,932,000 357,000 767,000 5,056,000
Percentage occupied 78.2% 49.2% 75.5% 74.2% 80.9% 64.7% 76.2% 78.7%
Net rent per sq ft £38.80 £34.05 £24.88 £36.28 £37.56 £33.28 £23.74 £35.17
For the year:
REVPAF
(2)
£34.99 £23.82 £21.77 £31.84 £34.80 £23.34 £21.01 £31.63
Average occupancy 79.7% 59.2% 76.7% 77.2% 82.3% 62.1% 77.3% 79.8%
Average annual net rent psf £38.45 £34.04 £24.48 £35.98 £37.08 £32.82 £23.42 £34 .71
£000 £000 £000 £000 £000 £000 £000 £000
Self storage income 149,098 13,129 18,845 181,072 148,335 11,262 18,226 17 7, 823
Other storage related income
(2)
19,330 1,820 2,972 24,122 19,195 1,607 2,861 23,663
Ancillary store rental income 1,786 589 46 2,421 1,576 17 45 1,638
Total store revenue 170,214 15,538 21,863 2 07, 615 169,106 12,886 21,132 203,124
Direct store operating costs (43,934) (6,436) (8,584) (58,954) (43,606) (5,690) (8,269) (57,565)
Short and long leasehold rent
(3)
(1,980) (11) (218) (2,209) (2,145) (26) (206) (2,377)
Store EBITDA
(2)
124,300 9,091 13,061 146,452 123,355 7,17 0 12,657 143,182
Store EBITDA margin 73.0% 58.5% 59.7% 70.5% 72.9% 55.6% 59.9% 70.5%
Deemed cost
£m £m £m £m
To 31 March 2026 752.0 220.0 148.5 1,120.5
Capex to complete – 2.1 – 2.1
Total 752.0 222.1 148.5 1,122.6
(1)
The Big Yellow same stores are those that have reached 85% occupancy during a previous financial year. Should a store move categories in a year, we re-present the comparative information, so the
store is in the same category in both years.
(2)
See glossary in note 33.
(3)
Rent paid for five short leasehold properties and five long leasehold properties.
Annual Report and Accounts 2026 Big Yellow Group PLC 33
Strategic Report Governance Report Financial Statements
The table below reconciles Store EBITDA to gross profit in the statement of comprehensive income.
Year ended 31 March 2026
£000
Year ended 31 March 2025
£000
Store EBITDA Reconciling items
Gross profit per
statement of
comprehensive
income Store EBITDA Reconciling items
Gross profit per
statement of
comprehensive
income
Store revenue/Revenue
(4)
207, 615 1,469 209,084 203,124 1, 371 204,495
Cost of sales
(5)
(58,954) (4,572) (63,526) (57,565) (4,561) (62,126)
Rent
(3)
(2,209) 2,209 – (2,377) 2,377 –
146,452 (894) 145,558 143,182 (813) 142,369
(4)
See note 3 of the financial statements, reconciling item is non-storage income.
(5)
See reconciliation in cost of sales section in Financial Review on page 41.
Reconciliation of APMs
The table below reconciles the reported figures above to the like-for-like metrics the Group reports:
Like-for-like revenue
Year ended
31 March 2026
£000
Year ended
31 March 2025
£000
Store revenue
(6)
207, 615 203,124
Less revenue from non like-for-like stores
(6)
(322) –
Like-for-like revenue
(6)
207,293 203,124
Like-for-like store occupancy
Year ended
31 March 2026
Year ended
31 March 2025
Store MLA (sq ft)
(6)
6,721,000 6,421,000
Less MLA from non like-for-like stores (sq ft)
(6)
(295,000) –
Like-for-like MLA (sq ft)
(6)
6,426,000 6,421,000
Store occupancy (sq ft)
(6)
4,985,000 5,056,000
Less occupancy from non like-for-like (sq ft)
(6)
(38,000) –
Like-for-like occupancy (sq ft)
(6)
4,947,000 5,056,000
Like-for-like occupancy (%)
(6)
77.0% 78.7%
(6)
See glossary in note 33.
Portfolio Summary continued
Annual Report and Accounts 2026 Big Yellow Group PLC34
Our Big Yellow Stores
An unrivalled portfolio of stores across London,
theSouth East and other large metropolitan cities.
Slough Bath Road, February 2026
MLA – 80,000 sq ft
Harrow, September 2022
MLA – 82,000 sq ft
Kingston North, September 2022
MLA – 56,000 sq ft
Aberdeen, June 2022
MLA – 54,000 sq ft
Hayes, January 2022
MLA – 73,000 sq ft
Uxbridge, June 2021
MLA – 53,000 sq ft
Battersea, November 2020
MLA – 69,000 sq ft
Camberwell, July 2020
MLA – 75,000 sq ft
Manchester, May 2019
MLA – 58,000 sq ft
Wapping, July 2018
MLA – 31,000 sq ft
Staines, July 2025
MLA – 70,000 sq ft
Slough Farnham Road, July 2024
MLA – 65,000 sq ft
Bracknell, September 2020
MLA – 58,000 sq ft
Hove, March 2022
MLA – 55,000 sq ft
Kings Cross, June 2023
MLA – 101,000 sq ft
Queensbury, October 2025
MLA – 72,000 sq ft
Wembley, March 2026
MLA – 73,000 sq ft
Annual Report and Accounts 2026 Big Yellow Group PLC 35
Strategic Report Governance Report Financial Statements
Guildford Central, March 2018
MLA – 55,000 sq ft
Twickenham 2, April 2016
MLA – 22,000 sq ft
Nine Elms, April 2016
MLA – 64,000 sq ft
Cambridge, January 2016
MLA – 60,000 sq ft
Enfield, April 2015
MLA – 63,000 sq ft
Chester, February 2015
MLA – 68,000 sq ft
Oxford 2, July 2014
MLA – 39,000 sq ft
Gypsy Corner, April 2014
MLA – 70,000 sq ft
Chiswick, April 2012
MLA – 73,000 sq ft
New Cross, February 2012
MLA – 61,000 sq ft
Stockport, September 2011
MLA – 65,000 sq ft
Eltham, April 2011
MLA – 70,000 sq ft
Camberley, January 2011
MLA – 67,000 sq ft
High Wycombe, June 2010
MLA – 60,000 sq ft
Reading, December 2009
MLA – 62,000 sq ft
Sheffield Bramall Lane,
September 2009
MLA – 64,000 sq ft
Poole, August 2009
MLA – 55,000 sq ft
Nottingham, August 2009
MLA – 66,000 sq ft
Edinburgh, July 2009
MLA – 63,000 sq ft
Twickenham, May 2009
MLA – 77,000 sq ft
Liverpool, March 2009
MLA – 60,000 sq ft
Bromley, March 2009
MLA – 71,000 sq ft
Birmingham, February 2009
MLA – 64,000 sq ft
Sheen, December 2008
MLA – 67,000 sq ft
Annual Report and Accounts 2026 Big Yellow Group PLC36
Sheffield Hillsborough,
October 2008
MLA – 63,000 sq ft
Kennington, May 2008
MLA – 66,000 sq ft
Merton, March 2008
MLA – 80,000 sq ft
Fulham, March 2008
MLA – 137,000 sq ft
Balham, March 2008
MLA – 61,000 sq ft
Barking, November 2007
MLA – 64,000 sq ft
Ealing, November 2007
MLA – 56,000 sq ft
Sutton, July 2007
MLA – 76,000 sq ft
Gloucester, December 2006
MLA – 53,000 sq ft
Edmonton, October 2006
MLA – 85,000 sq ft
Kingston, August 2006
MLA – 62,000 sq ft
Bristol Ashton Gate, July 2006
MLA – 64,000 sq ft
Finchley East, May 2006
MLA – 54,000 sq ft
Tunbridge Wells, April 2006
MLA – 59,000 sq ft
Bristol Central, March 2006
MLA – 64,000 sq ft
North Kensington, December 2005
MLA – 50,000 sq ft
Leeds, July 2005
MLA – 83,000 sq ft
Beckenham, May 2005
MLA – 71,000 sq ft
Tolworth, November 2004
MLA – 56,000 sq ft
Watford, August 2004
MLA – 64,000 sq ft
Swindon, April 2004
MLA – 53,000 sq ft
Orpington, December 2003
MLA – 64,000 sq ft
Byfleet, November 2003
MLA – 48,000 sq ft
Chelmsford, April 2003
MLA – 56,000 sq ft
Annual Report and Accounts 2026 Big Yellow Group PLC 37
Strategic Report Governance Report Financial Statements
Ilford, November 2001
MLA – 58,000 sq ft
Cardiff, October 2001
MLA – 74,000 sq ft
Portsmouth, October 2001
MLA – 61,000 sq ft
Norwich, September 2001
MLA – 47,000 sq ft
Dagenham, July 2001
MLA – 51,000 sq ft
Wandsworth, April 2001
MLA – 71,000 sq ft
Luton, March 2001
MLA – 41,000 sq ft
Southend, March 2001
MLA – 57,000 sq ft
Staples Corner, March 2001
MLA – 112,000 sq ft
Romford, November 2000
MLA – 70,000 sq ft
Milton Keynes, September 2000
MLA – 60,000 sq ft
Cheltenham, April 2000
MLA – 50,000 sq ft
Hanger Lane, October 1999
MLA – 66,000 sq ft
Oxford, August 1999
MLA – 33,000 sq ft
Croydon, July 1999
MLA – 79,000 sq ft
Richmond, May 1999
MLA – 35,000 sq ft
Guildford Slyfield, June 2002
MLA – 55,000 sq ft
New Malden, May 2002
MLA – 81,000 sq ft
Hounslow, December 2001
MLA – 54,000 sq ft
Brighton, October 2002
MLA – 59,000 sq ft
Bow, November 2002
MLA – 133,000 sq ft
Colchester, December 2002
MLA – 57,000 sq ft
West Norwood, January 2003
MLA – 57,000 sq ft
Finchley North, March 2003
MLA – 62,000 sq ft
Annual Report and Accounts 2026 Big Yellow Group PLC38
Canterbury
MLA – 35,000 sq ft
Daventry
MLA – 35,000 sq ft
Derby
MLA – 43,000 sq ft
Dundee
MLA – 39,000 sq ft
Exeter
MLA – 34,000 sq ft
Gateshead
MLA – 46,000 sq ft
Grimsby
MLA – 40,000 sq ft
Hull
MLA – 32,000 sq ft
Liverpool Aintree
MLA – 49,000 sq ft
Liverpool Bootle
MLA – 36,000 sq ft
Liverpool South
MLA – 50,000 sq ft
Macclesfield
MLA – 63,000 sq ft
Morecambe
MLA – 50,000 sq ft
Newcastle
MLA – 56,000 sq ft
Peterborough
MLA – 49,000 sq ft
Plymouth
MLA – 25,000 sq ft
Sheffield Parkway
MLA – 48,000 sq ft
Sheffield West Bar
MLA – 29,000 sq ft
Stockton Central
MLA – 43,000 sq ft
Stockton South
MLA – 41,000 sq ft
Stoke
MLA – 39,000 sq ft
Torquay
MLA – 33,000 sq ft
Warrington
MLA – 57,000 sq ft
West Molesey
MLA – 35,000 sq ft
Our Armadillo Stores
Armadillo is Big Yellow’s regional brand in smaller towns and cities with 24 largely freehold stores.
Annual Report and Accounts 2026 Big Yellow Group PLC 39
Strategic Report Governance Report Financial StatementsStrategic Report Governance Report Financial Statements
Financial Review
Revenue
Total revenue for the year was £209.1 million, an increase of £4.6 million
(2%) from £204.5 million in the prior year. Like-for-like store revenue
(see glossary in note 33) for the year was £207.3 million, an increase of
2% from the prior year (2025: £203.1 million).
In the prior year, we reported that revenue growth was highest in our
London stores, with our south east commuter and regional stores
delivering a lower run-rate of revenue growth. In the current year, we
have seen this reverse, with our commuter and regional stores delivering
higher revenue growth than our London stores.
Included in store revenue is other storage related income, from the sale
of packing materials, insurance/enhanced liability service (“ELS”), and
storage related charges. This amounted to £24.1 million in the year
(2025: £23.7 million), an increase of 2%.
The other revenue earned by the Group is tenant income on sites where
we have not started development.
Operating costs
Cost of sales principally comprise the direct store operating costs,
including store staff salaries, utilities, business rates, insurance, a full
allocation of the central marketing budget and repairs and maintenance.
The table below shows the breakdown of our store operating costs
compared to the prior year:
Category
Year ended
31March
2026
£000
Year ended
31March
2025
£000 Change
% of store
operating
costs in
2026
Cost of sales 1,294 1,422 (9%) 2%
Staff costs 15,502 15,199 2% 26%
General & admin 1,397 1,646 (15%) 2%
Utilities 2,519 2,783 (9%) 4%
Property rates 21,666 20,856 4% 36%
Marketing 7,699 6,778 14% 13%
Repairs & maintenance 5,598 5,841 (4%) 9%
Insurance 3,257 3,394 (4%) 6%
Computer costs 1,151 1,193 (4%) 2%
Total before one-off items 60,083 59,112 2% 100%
One-off items (1,129) (1,547) (27%)
Total per portfolio summary 58,954 57,565 2%
Store operating costs have increased by £1.4 million (2%). The one-off
items in the current and prior years relate to rates rebates received
in the year. Store operating costs before these one-off items have
increased by £1.0 million (2%) compared to the prior year. The additional
operating expense from new stores accounted for £0.8 million in the year.
The remaining increase is £0.2 million (0.3%), with commentary below:
• Cost of sales has reduced with lower packing material sales in the
year, and some savings on purchase costs.
• Staff costs have increased by £0.3 million (2%) with the salary review
of on average 3.2% (including a higher increase to those at the lower
end of the pay scale reflecting the rise in the national living wage).
This increase has been partly offset by savings on headcount, as we
drive efficiencies into the stores through automation, and a lower
bonus payout.
• Our utilities expenditure has reduced by £0.3 million (9%) compared
to the prior period, from a combination of a lower contracted energy
price, our investment in solar and the roll-out of an energy efficiency
programme across our stores. Our energy pricing is fixed through to
September 2026.
• Property rates have increased by £0.8 million (4%). The rates payable
for this year were based off the CPI print to September 2024, which
was 1.7%. The remaining increase is due to new stores. Looking
ahead to next year, following the publication of the 2026 Rating List,
we anticipate our like-for-like rates bill will increase by 8.5% in the
year to 31 March 2027, with the increase moderating in the years
ending 31 March 2028 and 31 March 2029.
• Our marketing expense for the year was up 14%, mainly due to
an increase in the pay-per-click (“PPC”) budget over the second
half of the year to drive additional prospects in a softer demand
environment. The total marketing spend represents 3.7% of revenue
for the year.
• The repairs and maintenance expense has reduced by £0.2 million
(4%) due to savings we have made across a number of cost lines.
• Our insurance expense has fallen by £0.1 million (4%) principally due
to lower customer insurance claims in the year.
• The Group’s bad debt expense for the year was 0.2% of revenue, in
line with the prior year (2025: 0.2%). The Group has not seen any
deterioration in its aged debtors’ profile over recent months.
For the year ending 31 March 2027, we anticipate like-for-like operating
costs increasing by approximately 2% to 3%.
Annual Report and Accounts 2026 Big Yellow Group PLC40
The table below reconciles store operating costs per the portfolio
summary to cost of sales in the statement of comprehensive income:
Year ended
31March
2026
£000
Year ended
31March
2025
£000
Direct store operating costs per portfolio summary
(excluding rent) 58,954 57,565
Rent included in cost of sales (total rent payable is
included in portfolio summary) 1,952 1,593
Depreciation charged to cost of sales 517 530
Costs associated with closure of Slough leasehold store – 694
Head office and other operational management costs
charged to cost of sales 2,103 1,74 4
Cost of sales per statement of comprehensive income 63,526 62,126
The Group incurred various costs associated with the closure of its
Slough leasehold store in the prior year, including the cost of transferring
customers to our new freehold Slough Farnham Road store, and the
strip-out of the building before returning it to the landlord. These costs
totalled £0.7 million and were excluded from the Group’s adjusted profit
for that year, as they were a one-off item.
Store EBITDA
Store EBITDA for the year was £146.5 million, an increase of £3.3 million
from £143.2 million for the prior year (see Portfolio Summary). The overall
EBITDA margin for during the year was 70.5%, in line with the prior year.
All stores are currently trading profitably at the Store EBITDA level, with
the exception of our recently opened stores in Queensbury, Slough Bath
Road and Wembley.
Administrative expenses
Administrative expenses in the statement of comprehensive income
are £15.0 million, down £0.7 million (5%) compared to the prior year.
The fall is due to a reduction in the IFRS 2 Share Based Payments charge
of £1.0 million in the year. Excluding this movement, administrative
expenses remained tightly controlled and were up £0.3 million (2%).
Share of profit of joint venture
At the start of the year, the Group had a £0.6 million investment (34% of
the equity) in Doncaster Security Operations Centre Limited (“DSOC”),
a company which provides out-of-hours monitoring and alarm receiving
services, including for the Group’s stores. On 1 August 2025 the Group
increased its investment in DSOC and now owns 74% of the ordinary share
capital of the Company. The investment is treated as a joint venture,
as the Group has joint control over DSOC with the minority founder
shareholder. The investment is measured using the equity method of
accounting. The Group’s share of profit for the period from 1 August 2025
to 31 March 2026 was £0.1 million.
Other income
In the current year, the Group earned other income of £0.2 million. This
was a dilapidations receipt on a development property. The prior year
other income is loss of income insurance proceeds of £4.0 million,
which was the final settlement following a fire at our Cheadle store in
February 2022.
Interest expense on bank borrowings
The gross bank interest expense for the year was £23.4 million, an
increase of £0.1 million from the prior year, due to higher average
debt levels, partly offset by a lower average cost of debt following the
reduction in interest rates. The average cost of borrowing during the
year was 5.0% compared to 5.7% in the prior year.
Capitalised interest has risen significantly as we build out the stores in
our development pipeline, and was £10.6 million, up from £7.9 million in
the prior year.
Total finance costs in the statement of comprehensive income reduced
to £13.6 million from £15.9 million in the prior year, due to the increase in
capitalised interest.
Annual Report and Accounts 2026 Big Yellow Group PLC 41
Strategic Report Governance Report Financial Statements
Profit before tax
The Group made a profit before tax in the year of £126.2 million,
compared to a profit of £203.9 million in the prior year. After adjusting for
the gain on the revaluation of investment properties and other matters
shown in the table below, the Group made an adjusted profit before tax
in the year of £117.5 million, up 2% from £115.6 million in 2025.
Profit before tax analysis
2026
£000
2025
£000
Profit before tax 126,212 203,854
Gain on revaluation of investment properties (7,574) (79,667)
Movement in fair value on interest rate derivatives (1,164) (547)
Gain on disposal of non-current asset – (8,754)
Costs associated with closure of Slough leasehold store – 694
Adjusted profit before tax 117, 474 115,580
The adjustments made to the Group’s profit before tax follow guidance
issued by EPRA, with additional Company specific adjustments made
to give readers a clearer underlying picture of the Group’s performance.
EPRA profit before tax for the prior year is disclosed in note 10.
The movement in the adjusted profit before tax from the prior year is
illustrated in the table below:
£m
Adjusted profit before tax – year ended 31 March 2025 115.6
Increase in gross profit 2.5
Decrease in administrative expenses 0.7
Decrease in other income (3.8)
Increase in share of profit of joint venture 0.1
Increase in net interest payable (0.3)
Increase in capitalised interest 2.7
Adjusted profit before tax – year ended 31 March 2026 117. 5
Basic earnings per share for the year was 63.8p (2025: 103.2p) and
diluted earnings per share was 63.4p (2025: 102.8p). Diluted adjusted
earnings per share based on adjusted profit after tax was up 2% to 59.0p
(2025: 57.8p) (see note 12).
REIT status
The Group is a Real Estate Investment Trust (“REIT”) and therefore
benefits from a zero tax rate on its qualifying self storage earnings.
The Group only pays tax on the profits attributable to our residual
business, comprising primarily of the sale of packing materials
and insurance.
REIT status gives the Group exemption from UK corporation tax on profits
and gains from its qualifying portfolio of UK stores. Revaluation gains on
developments and our existing open stores are exempt from corporation
tax on chargeable gains, provided certain criteria are met.
The Group has a rigorous internal system in place for monitoring
compliance with criteria set out in the REIT regulations. On a monthly
basis, a report on compliance with these criteria is issued to the
Executive. To date, the Group has complied with all REIT regulations,
including forward looking tests.
Taxation
There is a £2.4 million tax charge in the residual business for the year
ended 31 March 2026 (2025: £2.5 million). The current year tax charge is
partly offset in the income statement by an adjustment to the prior year
tax estimate of £1.1 million (2025: prior year adjustment of £0.5 million).
Dividends
The Board is recommending the payment of a final dividend of 23.4 pence
per share in addition to the interim dividend of 23.8 pence, giving a total
dividend for the year of 47.2 pence, an increase of 2% from the prior year.
The Group’s policy is to distribute a minimum of 80% of our adjusted
earnings per share in each reporting period.
REIT regulatory requirements determine the level of Property Income
Distribution (“PID”) payable by the Group. Based on the full year
distributable reserves for PID purposes, a PID of 47.2p pence per
share is payable (31 March 2025: 46.4 pence). The PID for the year
to 31 March 2026 accounts for all of the declared dividend. The table
below summarises the declared dividend for the year:
Dividend (pence per share)
31March
2026
31March
2025
Interim dividend 23.8p 22.6p
Final dividend 23.4p 23.8p
Total dividend 47.2p 46.4p
Subject to approval by shareholders at the Annual General Meeting to
be held on 20 July 2026, the final dividend will be paid on 24 July 2026.
The ex-div date is 2 July 2026 and the record date is 3 July 2026.
Cash flow growth
The Group is strongly cash generative and draws down from its
longer term committed facilities as required to meet its obligations.
The Group’s cash flow from operating activities pre-working capital
movements for the year was £111.5 million, broadly in line with the prior
year. The prior year included a one-off receipt of £4 million in respect
of Cheadle. Excluding this receipt from the prior year, cash flow from
operating activities was up 3% compared to 2025. These operating cash
flows are after the ongoing maintenance costs of the stores, which
were on average approximately £50,000 per store (2025: £53,500),
a 7% reduction.
The Group’s net debt has increased over the year to £476.7 million
(March 2025: £388.7 million).
There are distortive working capital items in the prior year, and therefore
the summary cash flow on the next page sets out the free cash flow
pre-working capital movements:
Financial Review continued
Annual Report and Accounts 2026 Big Yellow Group PLC42
Year ended
31March 2026
£m
Year ended
31March 2025
£m
Cash generated from operations pre-working capital movements 134.8 132.0
Net finance costs (22.0) (21.5)
Interest on obligations under lease liabilities (0.7) (0.6)
Other operating income received 0.2 4.0
Tax (0.8) (2.0)
Cash flow from operating activities pre-working capital movements 111.5 111.9
Working capital movements
(2.6)
2.6
Cash flow from operating activities 108.9 114.5
Capital expenditure (100.9) (58.3)
Disposal of non-current asset – 30.6
Investment in joint venture (1.0) –
Cash flow after investing activities 7. 0 86.8
Dividends (93.2) (88.5)
Issue of share capital 0.1 0.8
Payment of lease liabilities (1.3) (1.8)
Loan arrangement fees paid (0.6) (0.6)
Increase in borrowings 88.5 2.7
Net cash inflow/(outflow) 0.5 (0.6)
The Group’s interest cover for the period (expressed as the ratio of cash
generated from operations pre-working capital movements against
interest paid) was 6.1 times (2025: 6.1 times). This is calculated
per below:
31March
2026
£000
31March
2025
£000
Cash generated from operations pre working capital
movements (see note 26) 134,803 131,999
Interest paid per cash flow statement (22,126) (21,657)
Interest cover 6.1x 6.1x
In the year capital expenditure outflows were £100.8 million, up from
£58.3 million in the prior year. This capital expenditure was principally
on the construction of new stores. We expect the amount of construction
capital expenditure to decrease next year, as we open the stores in
our pipeline.
The cash flow after investing activities was a net inflow of £7.0 million, a
decrease of 92% from £86.8 million in the prior year, due to the additional
capital expenditure, coupled with the prior year receipt of £30.6 million
from land adjacent to our Battersea store.
Balance sheet
Property
The Group’s open stores and stores under development owned at
31 March 2026, which are classified as investment properties, have
all been valued individually by JLL.
The external valuation has resulted in a total investment property asset
value of £3,111.1 million, as broken down in the table below.
Investment property
The open store portfolio has increased in value by £15.7 million (0.5%).
This increase in value arises from improvements in the projected cash
flows for the stores. The weighted average exit capitalisation rate used
in the valuations was 5.5% in the current year, in line with the prior year.
Analysis of property portfolio
Value at
31March
2026
£m
Revaluation
movement in
theyear
£m
Investment property 2,944.5 15.7
Investment property under construction 166.6 (8.1)
Investment property total 3,111.1 7. 6
Annual Report and Accounts 2026 Big Yellow Group PLC 43
Strategic Report Governance Report Financial Statements
The table below provides a further breakdown of the open store valuations:
Big Yellow
same stores
Armadillo –
same stores
Total –
same stores
Big Yellow
lease-up
freehold Total
Number of stores 77 24 101 12 113
MLA capacity (sq ft) 4,868,000 1,005,000 5,873,000 848,000 6,721,000
Valuation at 31March 2026 (£m) £2,230.9m £186.2m £2,417.1m £380.7m £2,797.8m
Value per sq ft £458 £185 £412 £449 £416
Net initial year one NOI yield 5.0% 6.2% 5.1% 2.6% 4.7%
The total store valuation in this table differs to the balance sheet due to
the non-self storage investment property that the Group owns, such as
the Harrow and Staines Industrial Schemes. The net initial year one NOI
yield for the Big Yellow and Armadillo same stores is 5.1% (2025: 5.2%).
Note 15 contains more detail on the assumptions underpinning
the valuations.
Investment property under construction
The Group spent £102.6 million (including capitalised interest) on
investment property under construction in the year with eight stores
in various stages of construction. Staines, Queensbury, Slough Bath
Road and Wembley all transferred to investment property during the
year as the stores opened, along with the Staines Industrial Scheme.
There was a revaluation deficit of £8.1 million on investment property
under construction in the year, arising from an increase in projected
construction costs.
Purchaser’s cost adjustment
As in prior years, we have instructed an alternative valuation on our
assets using a purchaser’s cost assumption of 2.75% (see note 15 for
further details) to be used in the calculation of our adjusted diluted
net asset value. All the significant sized transactions that have been
concluded in the UK in recent years were completed in a corporate
structure. Sale in a corporate structure would result in a reduction in
the assumed Stamp Duty Land Tax but an increase in other transaction
costs reflecting additional due diligence resulting in a reduced notional
purchaser’s cost of 2.75% of gross value. This Red Book valuation based
on the special assumption of 2.75% purchaser’s costs, results in a higher
property valuation at 31 March 2026 of £3,231.8 billion (£120.7 million
higher than the value recorded in the financial statements). This
translates to 60.8 pence per share. This revised valuation translates
into an adjusted net asset value per share of 1,370.4 pence (2025:
1,355.6 pence) after the dilutive effect of outstanding share options.
Receivables
The Group’s bad debt expense in the year represented 0.2% of revenue
compared to 0.2% in the prior year, with 81% of our customer base paying
by direct debit (2025: 81%).
Net asset value
The adjusted net asset value is 1,370.4 pence per share (see note 13),
an increase of 1% compared to 1,355.6 pence per share at 31 March 2025.
The table below reconciles the movement:
Movement in adjusted net asset value £m
Adjusted NAV
pence per share
31 March 2025 2,682.1 1,355.6
Adjusted profit after tax 116.2 58.7
Equity dividends paid (93.2) (47.1)
Revaluation movements 7. 6 3.8
Movement in purchaser’s cost adjustment 4.6 2.3
Other movements (e.g. share schemes) 2.0 (2.9)
31 March 2026 2,719.3 1,370.4
Financial Review continued
Annual Report and Accounts 2026 Big Yellow Group PLC44
Borrowings
Our financing policy is to fund our current needs through a mix of debt, equity, and cash flow to allow us to build out, and add to, our development pipeline
and achieve our strategic growth objectives, which we believe improve returns for shareholders. We aim to ensure that there are sufficient medium-
term facilities in place to finance our committed development programme, secured against the freehold portfolio, with debt serviced by our strong
operational cash flows. Given our relatively low leverage we will maintain a watching brief over short term rates and for the moment continue with our
flexible approach to hedging interest rate exposure.
The table below summarises the Group’s debt facilities at 31 March 2026, with a current average cost of drawn debt of 4.7% (March 2025: 5.0%).
Debt Expiry Facility Drawn Cost
Aviva Loan (all fixed) September 2028 £149m £149m 3.3%
M&G loan (£35 million fixed at 4.5%, £85 million floating) September 2029 £120m £120m 5.9%
Revolving bank facility (Lloyds, HSBC & Barclays, £30 million fixed at 3.7%, balance floating) December 2028 £300m £217m 4.9%
Total Average term 2.8 years £569m £486m 4.7%
In addition to the facilities above, subsequent to the year end, the Group
put in place a $225 million credit approved shelf facility with Pricoa
Private Capital (“Pricoa”), to be drawn in fixed sterling notes. The Group
can draw the debt in minimum tranches of £10 million over the next three
years with terms of between 7 and 15 years at short notice, typically
10 days.
The Group’s £300 million RCF has incorporated sustainability-linked KPIs
into the loan, which include annual pre-agreed targets and are based on:
• reductions in Scope 1 and 2 emissions;
• increase in solar generation capacity;
• total annual grants to Big Yellow Foundation charity partners; and
• the value of storage space provided free of charge to local charities
in our stores.
Performance against the KPIs is measured annually, with a margin
decrease or increase applied to the headline margin. We are pleased
to report that the Group has again met all the KPIs and is therefore
benefitting from a 5bps margin reduction on the RCF.
The Group was comfortably in compliance with its banking covenants at
31 March 2026. Further details of the Group’s covenants are provided in
note 19 of the accounts. The Group’s key financial ratios are shown in the
table below:
Metric
31 March
2026
31 March
2025
Net Debt / Gross Property Assets 15% 13%
Net Debt / Adjusted Net Assets 18% 14%
Net Debt / Market Capitalisation 29% 21%
Net debt to Group EBITDA ratio 3.7x 3.1x
Cash generated from operations pre-working capital
movements against interest paid 6.1x 6.1x
The Group took out an additional interest rate derivative during the year,
£30 million fixed at 3.7% until September 2029, with a bank option to call
the swap in March 2027. At 31 March 2026, the fair value on the Group’s
interest rate derivatives was a liability of £0.1 million. The Group does not
hedge account its interest rate derivatives. The fair value movements
are eliminated from adjusted profit before tax, adjusted earnings per
share, and adjusted net assets per share. Cash deposits are only placed
with approved financial institutions in accordance with the Group’s
Treasury policy.
Share capital
The share capital of the Company totalled £19.7 million at 31 March 2026
(2025: £19.7 million), consisting of 196,818,571 ordinary shares of 10p
each (2025: 196,714,696 shares). 0.1 million shares were issued for the
exercise of options during the year at an average exercise price of £10.09
(2025: 0.5 million shares at an average price of £12.60).
The Group holds 0.9 million shares within an Employee Benefit Trust
(“EBT”). These shares are shown as a debit in reserves and are not
included in calculating net asset value per share.
Metric
2026
No.
2025
No.
Opening shares 196,714,696 196,195,287
Shares issued for the exercise of options 103,875 519,409
Closing shares in issue 196,818,571 196,714,696
Shares held in EBT (859,397) (881,360)
Closing shares for NAV purposes 195,959,174 195,833,336
143.2 million shares were traded in the market during the year ended
31 March 2026 (2025: 96.9 million). The average mid-market price of
shares traded during the year was £9.96 with a high of £11.80 and a
low of £8.45.
Annual Report and Accounts 2026 Big Yellow Group PLC 45
Strategic Report Governance Report Financial Statements
The section below details the emerging and principal risks and uncertainties that are considered to have the most material impact on the Group’s
strategy and objectives. These key risks are monitored on an ongoing basis by the Executive Directors and considered fully by the Board in its annual
risk review.
Risk and impact Mitigation Change during the year and outlook
Self storage market risk
There is a risk to the business that the
self storage market does not grow
in line with our projections, and that
economic growth in the UK is below
expectations, which could result in
falling demand and a loss of income.
Self storage is a relatively immature market in the UK compared to
other self storage markets such as the United States and Australia,
and we believe has further opportunity for growth. Awareness of self
storage and how it can be used by domestic and business customers is
relatively low throughout the UK, although higher in London.
The rate of growth of branded self storage on main roads in good
locations has historically been limited by the difficulty of acquiring sites
at affordable prices and obtaining planning consent.
Our performance during the past six years has been resilient with
revenue growing by 62% from £129.3 million in the year ended 31 March
2020 to £209.1 million for this year. We believe that this performance is
due to a combination of factors including:
– a high quality and growing portfolio of freehold properties delivering
higher operating margins;
– a focus on London and the South East and other large urban
conurbations, where the drivers in the self storage market are at
their strongest and the barriers to competition are at their highest;
– continuing innovation and automation;
– an inclusive and non-hierarchical culture with a highly
engaged team;
– a focus on delivering the highest levels of customer service;
– delivering on our strong ESG commitments;
– the UK’s leading self storage brand, with high and growing public
awareness and online strength; and
– strong cash flow generation from a secure capital structure.
We have a large current storage customer base occupying
approximately 71,000 rooms spread across the portfolio of stores and
hundreds of thousands more who have used our stores over the years.
In any month, customers move in and out at the margin resulting in
changes in occupancy. This is a seasonal business and typically we see
growth over the spring and the summer months, with the seasonally
weaker period being the winter months.
The past four financial years have seen a
challenging geopolitical and macroeconomic
backdrop, with the Russian invasion of Ukraine
in February 2022, the US regional banking crisis,
the collapse of Credit Suisse, the conflict in the
Middle East, the impact of rising inflation and
interest rates, the imposition of tariffs by the
United States, and the Iran conflict.
The Iran conflict has led to an increase in
mortgage rates in the UK, and the spectre of
rising inflation. This could impact cost of living
in the UK, and the level of housing transactions
may fall as the cost of mortgages increases.
The Group’s activity levels can be impacted by
macro-economic and geo-political dislocations,
and we saw a reduction in our activity levels in
April and May 2025, and again in March 2026.
We have seen some competitor openings in
the year in our areas of operation, although the
overall level of penetration of self storage in the
UK remains significantly below that of the US
and Australia.
Principal Risks and Uncertainties
The Directors have carried out a robust assessment of the emerging and
principal risks facing the Group, including those that would threaten its
business model, future performance, solvency, or liquidity. The Group
maintains a low appetite to risk, in line with our strategic objectives of
providing a low volatility, high distribution business.
Annual Report and Accounts 2026 Big Yellow Group PLC46
Risk and impact Mitigation Change during the year and outlook
Property risk
There is a risk that we will be unable
to acquire new development sites
which meet management’s criteria.
This would impact on our ability to
grow the overall store platform.
Changing climate and resulting likely
changes to planning restrictions
will narrow choice of available
sites further.
The Group is also subject to the risk of
failing to obtain planning consents on
its development sites, and the risk of
a rising cost of development.
Planning approval is increasingly
dependent on Social or Environmental
enhanced features (e.g. social
enterprise at Battersea, BREEAM
standards, local planners demands
for green spaces) – adding cost
and complexity.
Our management has significant experience in the property industry
generated over many years and in particular acquiring property on main
roads in high profile locations and obtaining planning consents. We do
take planning risk where necessary, although the availability of land,
and competition for it makes acquiring new sites challenging.
Our in-house development team and our professional advisers
have significant experience in obtaining planning consents for self
storage centres.
We manage the construction of our properties very tightly, working
with an established professional team of external advisers and
sub-contractors who have worked with us for many years to our
Big Yellow specification.
We carried out an external benchmarking of our construction costs
and tendering programme during 2023, which reinforced our current
approach, but also gave some areas where further efficiencies and cost
savings can be achieved, which we have been implementing since then.
The Group has a pipeline of 12 sites which, when
opened, would expand the Group’s current MLA
by 13%.
The planning process remains difficult and
to achieve a planning consent can take
anything from eighteen months to three years.
Local planning policy is favouring residential
development over other uses, and we don’t
expect this to change given the shortage of
housing in the UK.
We have planning consent on nine of the 12
development sites and expect to open four
stores during the year ending 31 March 2027.
Valuation risk
The valuation of the Group’s
investment properties may fall due
to external pressures or the impact
of performance.
Lack of transactional evidence in
the self storage sector leads to more
subjective valuations.
The portfolio is diverse with approximately 71,000 rooms currently
occupied in our stores for a wide variety of reasons.
The valuations are carried out by independent, qualified external valuers
who have significant experience in the UK self storage industry.
The revaluation surplus on the Group’s open
store investment properties was £15.7 million
in the year (an uplift of 0.5%), due to a slight
improvement in the underlying cash flows used
in the valuations.
There have been several larger portfolio
transactions across Europe over the past four
years, notably including the acquisition of
Lok ‘n Store by Shurgard, which completed in
August 2024 and there is a weight of institutional
money looking to invest in self storage.
There is significant headroom on our loan to
value banking covenants.
Annual Report and Accounts 2026 Big Yellow Group PLC 47
Strategic Report Governance Report Financial Statements
Risk and impact Mitigation Change during the year and outlook
Treasury risk
The Group may face increased
costs from adverse interest
rate movements.
Our financing policy is to fund our current needs through a mix of debt,
equity, and cash flow to allow us to selectively build out the remaining
development pipeline and achieve our strategic growth objectives,
which we believe improve returns for shareholders. We have made it
clear that we believe optimal leverage for a business such as ours should
be a debt to EBITDA ratio in the range of 3 to 4 times and this informs our
management of treasury risk.
We aim to ensure that there are sufficient medium-term facilities in
place to finance our committed development programme, secured
against the freehold portfolio, with debt serviced by our strong
operational cash flows.
We have a fixed rate loan in place from Aviva Commercial Finance
Limited, with two and a half years remaining. The Group has a
£120 million loan from M&G Investments, which is repayable in 2029.
For our revolving credit facility, we borrow at floating rates of interest.
The Group has a $225 million credit approved shelf facility with Pricoa
Private Capital (“Pricoa”), to be drawn in fixed sterling notes. The Group
can draw the debt in minimum tranches of £10 million with terms of
between 7 and 15 years at short notice, typically 10 days.
Our policy is to maintain a flexible borrowing structure, with a long-term
average of approximately 50% of our total borrowings fixed, with the
balance floating. At 31 March 2026 44% of the Group’s total drawn
borrowings were fixed or subject to interest rate derivatives. The Group
reviews its current and forecast projections of cash flow, borrowing and
interest cover as part of its monthly management accounts. In addition,
an analysis of the impact of significant transactions is carried out
regularly, as well as a sensitivity analysis assuming movements in
interest rates and store occupancy on gearing and interest cover.
This sensitivity testing underpins the viability statement below.
The Group regularly monitors its counterparty risk. The Group
monitors compliance with its banking covenants closely. During the
year it complied with all its covenants and is forecast to do so for the
foreseeable future.
The Bank of England base rate has continued to
reduce during the year, with it currently at 3.75%,
down from 4.25% at the start of our financial
year. The projection for interest rates for the year
ahead is uncertain.
During the year, the Group fixed an additional
£30 million of debt, by way of a callable swap.
44% of the Group’s drawn debt is fixed, with the
balance floating.
Debt providers currently remain supportive to
companies with a strong capital structure.
The Group’s interest cover ratio for the
year ended 31 March 2026 was 6.1 times,
comfortably ahead of our banking covenants,
as disclosed in note 19.
We keep our hedging arrangements under
review and if the long-term cost of borrowing
for durations of ten to twelve years falls, we
will consider taking out more longer-term debt,
which would increase the weighting of the
fixed element.
Tax and regulatory risk
The Group is exposed to changes in
the tax regime affecting the cost of
corporation tax, property rates, VAT,
Stamp Duty and Stamp Duty Land
Tax (“SDLT”).
The Group is exposed to potential
tax penalties or loss of its REIT
status by failing to comply with the
REIT legislation.
We regularly monitor proposed and actual changes in legislation with the
help of our professional advisers, through direct liaison with HMRC, and
through trade bodies to understand and, if possible, mitigate or benefit
from their impact.
HMRC has designated the Group as having a low-risk tax status, and we
hold regular meetings with them. We carry out detailed planning ahead
of any future regulatory and tax changes using our expert advisers.
The Group has internal monitoring procedures in place to ensure that the
appropriate REIT rules and legislation are complied with. To date all REIT
regulations have been complied with, including projected tests.
The Group has seen a significant increase in its
property rates bill over recent years, with the
2023 rating list reflecting the rise in industrial
rents over the past few years, alongside higher
levels of CPI inflating our cost. The rating list
for 2026 was published in November 2025
and will lead to a like-for-like increase of 8.5%
(£1.8 million) in our rates cost for the financial
year ending 31 March 2027.
There is a risk that corporate tax rates will rise
in the medium-term to fund the increasing
government deficits.
The Group has also experienced an increase in
cost from the recent rises in National Insurance
and the National Living Wage. We have sought
to mitigate the impact of these through
reductions in store headcount as we continue our
investment in automation.
Principal Risks and Uncertainties continued
Annual Report and Accounts 2026 Big Yellow Group PLC48
Risk and impact Mitigation Change during the year and outlook
Human resources risk
Our people are key to our success and
as such we are exposed to a risk of
high staff turnover, and a risk of the
loss of key personnel.
We have developed a professional, lively, and enjoyable working
environment and believe our success stems from attracting and
retaining the right people. We encourage all our staff to build on their
skills through appropriate training and regular performance reviews.
We believe in an accessible and open culture and everyone at all levels
is encouraged to review, and challenge accepted norms to contribute to
the performance of the Group.
The Group carried out an engagement survey of
its employees during the year, which showed
very pleasing results of the level of engagement
of our teams.
We have listened to the feedback from our
employees raised during our engagement
survey and made several changes to the Group’s
operations. This has included enhancing our
careers pages and launching a vacancies
mini-site, developing diversity-focused
dashboards and promotion toolkits and
partnering with apprenticeship providers to
support employee progression and foster
an inclusive workplace. A range of initiatives
have been implemented to support employee
development, including career insights videos,
virtual masterclasses, expanded eLearning
and workshops, mentoring and a video-based
induction for part-time staff. These measures,
alongside new performance reviews and talent
mapping, aim to increase flexibility, accessibility,
personal growth and succession planning across
the business.
Brand and reputation risk
The Group is exposed to the risk of
a single serious incident materially
affecting our customers, people,
financial performance and hence our
brand and reputation, including the
risk of a data breach.
We have always aimed to run this business in a professional way,
which has involved strict adherence with all regulations that affect our
business, such as health and safety legislation, building regulations in
relation to the construction of our buildings, anti-slavery, anti-bribery,
and data regulations.
We also invest in cyber security (discussed below), and make an
ongoing investment in staff training, facilities management, and the
maintenance of our stores.
We work closely with our key suppliers to ensure a consistency of
service from them.
To ensure consistency of service and to understand the needs of our
customers, we send surveys to every customer who moves in and
moves out of the business. The results of the surveys and mystery
shops are reviewed to continuously improve and deliver consistent
performance throughout the business.
We experienced a fire caused by arson at our Armadillo Cheadle store
in 2022. Our crisis response team worked effectively in managing
the incident.
We maintain regular communication with our key stakeholders,
customers, employees, shareholders, and debt providers.
The Group has a crisis response plan which
was developed in conjunction with external
consultants to ensure the Group is well placed
to effectively deal with a major incident.
Annual Report and Accounts 2026 Big Yellow Group PLC 49
Strategic Report Governance Report Financial Statements
Risk and impact Mitigation Change during the year and outlook
Security risk
The Group is exposed to the risk of
the damage or loss of a store due to
vandalism, fire, or natural incidents
such as flooding. This may also cause
reputational damage.
The safety and security of our customers, their belongings, stores, and
our staff remains a key priority. To achieve this, we invest in state-of-
the-art access control systems, individual room alarms, digital CCTV
systems, intruder and fire alarm systems and the remote monitoring of
all our stores outside of our trading hours. We are the only major operator
in the UK self storage industry that has every room in every Big Yellow
store individually alarmed.
We have implemented customer security procedures in line with advice
from the Police and continue to work with the regulatory authorities
on issues of security, reviewing our operational procedures regularly.
The importance of security and the need for vigilance is communicated
to all store staff and reinforced through training and routine
operational procedures.
We have continued to run courses for all our staff
to enhance the awareness and effectiveness of
our procedures in relation to security.
We have further invested in security
improvements in our stores during the year,
and are in the middle of a roll-out of app-based
access to our stores. We have automated reports
and alerts which notify our overnight monitoring
station and the operating team of suspicious
customer activity.
We regularly review and implement
improvements to our security processes
and procedures.
During the year, we increased our stake in
our monitoring company, Doncaster Security
Operations Centre Limited, now owing 74% of
the business.
Cyber risk
High profile cyber-attacks and data
breaches are a regular staple in
today’s news. The results of any
breach may result in reputational
damage, fines, or customer
compensation, causing a loss of
market share and income.
The Group engages specialist cyber security advisors and consultants
to inform our security strategy. We maintain dedicated in-house
monitoring capabilities and conduct systematic reviews of our security
infrastructure. Customer data retention is limited to the minimum
regulatory and operational requirements.
Our policies and procedures are subject to ongoing review and
benchmarking against industry best practice by our external
consultants. These encompass defence, detection, and
response protocols.
Whilst we do not assess the risk exposure for
the Group to have increased disproportionately
relative to comparable organisations, we
recognise that threats across the digital
landscape continue to intensify and adapt.
Accordingly, we have maintained our investment
programme in cyber security, upgrading
and replacing infrastructure components as
necessary to ensure resilience.
Climate change
related risk
The Group is exposed to
climate-change related transition
and physical risks. Physical risks
may affect the Group’s stores and
may result in higher maintenance
and repair costs. Failing to transition
to a low carbon economy may cause
an increase in taxation, decrease
in access to loan facilities and
reputational damage.
The good working order of our stores is of critical importance to our
business model.
We visually inspect each of our stores at least once per annum and
planned and unplanned work is discussed immediately.
Maintenance requirements are discussed at budget reviews; proposals
are made to raise climate change related issues to the Board, who may
request more holistic adaptation work to be carried out.
The key mitigation strategy to address transitional risks is the delivery
of our Sustainability Strategy and the Net Zero Scope 1 and Scope
2 Emissions Strategy. Our investment to decarbonise our business
over the coming years is expected to mitigate fully against taxation
(carbon tax) risk and reputational risks (both investors and customers).
Our Sustainability Committee, chaired by
a Non-Executive Director, has delivered an
ambitious strategic plan to 2032.
We appreciate that both physical and transition
risks are expected to materialise to lesser or
greater extents over the coming years and costs
may go up gradually, hidden within what may be
perceived as ‘natural variations’. Our focus and
strong governance will allow us to continue to
mitigate the effects.
Principal Risks and Uncertainties continued
Annual Report and Accounts 2026 Big Yellow Group PLC50
Internal audit
The Group employs a Head of Store Compliance responsible for reviewing
store operational and financial controls. He reports to the Chief Financial
Officer and meets with the Audit Committee at least once a year.
This role is supported by three other team members, enabling additional
work and support to be carried out across the Group’s store portfolio.
The Store Compliance team visits each operational store at least once
every nine months to carry out a detailed store audit. These audits are
unannounced, and the Store Compliance team carry out detailed tests
on financial management, administrative standards, and operational
standards within the stores. Part of the store staff’s bonus is based
on the scores they achieve in these audits. The results of each audit
are reviewed by the Chief Financial Officer, the Chief Operating Officer,
the Financial Controller, and the Head of Store Operations. This is the
equivalent of an internal audit function for the Group’s store operations.
For the key business cycles conducted at the Group’s head office,
external consultants are used to review the Group’s controls
on a rotational basis. The consultants produce a report with
recommendations which is discussed with management and reviewed
by the Audit Committee. The cycles covered by this activity include
construction expenditure, treasury, taxation, and facilities management.
During the prior year, the Group implemented new software to enable
us to better capture risks and controls and implement a formal testing
cycle ahead of the new Corporate Governance Code. With the assistance
of external consultants, we performed a detailed walk through of key
processes. We have developed a detailed Risk and Controls Matrix in
these areas and documented the workflows. These are embedded in
the software, and with reference to best practice will highlight any
risks we can further develop controls around, or any controls that could
be improved.
With the combination of the store compliance process, the external
assessment of the key business cycles, and the software to manage and
report on risks, the Audit Committee considers that this provides a robust
internal audit assessment for the Group, and hence there is no need for a
separate Internal Audit function.
Going concern
A review of the Group’s business activities, together with the factors
likely to affect its future development, performance and position are set
out in the Strategic Report. The financial position of the Group, its cash
flows, liquidity position and borrowing facilities are shown in the balance
sheet, cash flow statement and accompanying notes to the financial
statements. Further information concerning the Group’s objectives,
policies, and processes for managing its capital; its financial risk
management objectives; details of its financial instruments and hedging
activities; and its exposures to credit risk and liquidity risk can be found
in this Report and in the notes to the financial statements.
At 31 March 2026 the Group had available liquidity of approximately
£92 million, from a combination of cash and undrawn bank debt facilities.
In addition, since the year end, the Group put in place a $225 million
credit approved shelf facility with Pricoa Private Capital to be drawn in
fixed sterling notes. The Group can draw the debt in minimum tranches
of £10 million with terms of between 7 and 15 years at short notice,
typically 10 days. The Group is cash generative and for the year ended
31 March 2026, had cash flow from operating activities (after net finance
costs and pre-working capital movements) of £111.5 million, with capital
commitments at the balance sheet date of £54.3 million. The Group
has net current liabilities at the balance sheet date and draws on its
Revolving Credit Facility (current headroom of £83 million) as required,
as it is inefficient for the Group to hold significant amounts of cash.
The Directors have prepared cash flow forecasts for a period of 18
months from the date of approval of these financial statements, taking
into account the Group’s operating plan and budget for the year ending
31 March 2027 and projections contained in the longer-term business
plan which cover the 18 month going concern assessment period.
After reviewing these projected cash flows together with the Group’s
and Company’s cash balances, borrowing facilities and covenant
requirements, and potential property valuation movements over that
period, the Directors believe that, taking account of severe but plausible
downsides, the Group and Company will have sufficient funds to meet
their liabilities as they fall due for that period.
In making their assessment, the Directors have carefully considered the
outlook for the Group’s trading performance and cash flows as a result
of the current economic environment, taking into account the trading
performance of the Group over the recent dislocations in the global
economy from Covid-19, the Russian invasion of Ukraine, the impact of
rising inflation and the war in Iran. The Directors have also considered
the performance of the business during the Global Financial Crisis.
The Directors modelled several different scenarios, including material
reductions in the Group’s occupancy rates and property valuations, and
assessed the impact of these scenarios against the Group’s liquidity
and the Group’s banking covenants. The scenarios considered did not
lead to breaching any of the banking covenants, and the Group retained
sufficient liquidity to meet its financial obligations as they fall due.
Consequently, the Directors continue to adopt the going concern basis in
preparing the Group and Company financial statements.
Viability statement
The Directors have assessed the Group’s viability over a four-year period
to March 2030. This period is selected based on the Group’s long-term
strategic plan to give greater certainty over the forecasting assumptions
used. As in the assessment of going concern, the Directors have modelled
several different scenarios on the Group’s future prospects.
In making their assessment, the Directors took account of the Group’s
current financial position, including committed capital expenditure.
The Directors carried out a robust assessment of the emerging and
principal risks and uncertainties facing the business, their potential
financial impact on the Group’s cash flows, REIT compliance and financial
covenants and the likely effectiveness of the mitigating options detailed.
The Directors have assumed that funding for the business in the form
of equity, bank debt and debt provided by insurance companies will
be available in all reasonably plausible market conditions. Whilst the
eventual impact of the current economic environment on the Group is
uncertain, and may not be known for some time, the Group has a highly
cash generative business, good liquidity and has proved resilient in its
trading in recent years.
Based on this assessment the Directors have a reasonable expectation
that the Company and the Group will be able to continue operating and
meeting all their liabilities as they fall due to March 2030.
Annual Report and Accounts 2026 Big Yellow Group PLC 51
Strategic Report Governance Report Financial Statements
1. Introduction
Big Yellow recognises the importance of addressing climate-related
risks and opportunities in its business operations and decision-
making processes. This disclosure explains how climate-related risks
and opportunities are identified, assessed and managed within the
Company’s overall business strategy and risk management framework.
Climate risk is embedded within Big Yellow’s principal risk assessment
process and is evaluated using the same probability and impact
methodology applied to other strategic risks. The Company’s climate
strategy and Science Based Targets (“SBT”) are aligned with a 1.5°C
pathway consistent with the goals of the Paris Agreement. Scenario
analysis and resilience assessments have been undertaken using both low
and high-emissions pathways to assess the robustness of our business
model, portfolio and capital allocation strategy under a range of plausible
climate futures. Climate considerations are integrated into strategic
planning, capital deployment and operational decision-making processes
to support long-term shareholder value creation and financial resilience.
Throughout this report (*) denotes values externally assured by SGS
United Kingdom Limited (“SGS”).
2. Basis of Preparation and
Framework Alignment
i. TCFD Alignment
This disclosure has been prepared in compliance with the
recommendations of the Task Force on Climate-related Financial
Disclosures (“TCFD”) and taking into consideration the requirements
of the International Financial Reporting Standards (“IFRS”) IFRS S1
and IFRS S2 as issued by the International Sustainability Standards
Board (“ISSB”). It forms part of Big Yellow’s general purpose financial
reporting and covers the same reporting period and consolidation
boundary as the consolidated financial statements, unless otherwise
stated. The disclosure is structured with the four core pillars of the
framework and addresses the Governance, Strategy, Risk Management,
and Metrics & Targets pillars. It incorporates the additional granularity,
financial effects and connectivity requirements introduced under IFRS
S2. The boundary is consistent with Big Yellow’s consolidated financial
statements prepared under IFRS Accounting Standards. Greenhouse gas
emissions are reported using the operational control approach.
ii. Overview of IFRS S2 Architecture
Under IFRS S2, climate-related disclosures are structured around
governance, strategy, risk management, and metrics and targets.
It also carries additional emphasis on transparency regarding
current and anticipated financial effects as well as the connectivity
between sustainability information and the financial statements.
Although integration with the financial statements has not yet been
achieved we have aligned them closer this year and are working towards
a fully integrated approach. Accordingly, this disclosure explains how
climate-related risks and opportunities influence Big Yellow’s business
model, strategic planning and capital allocation decisions. It details
how those risks are identified, assessed and monitored within the
risk management framework. It discusses the metrics and targets
used to manage performance, including greenhouse gas emissions.
It also specifies how climate-related assumptions and impacts are
reflected in financial reporting, accounting estimates and forward-
looking analysis. As such it has been prepared in alignment with IFRS S2
Climate-related disclosures as we progress towards full integration.
3. Governance
i. Board Oversight
Our Chief Executive has overall responsibility for climate-related risks
and opportunities. Ongoing oversight of climate-related issues is carried
out by our Sustainability Committee, chaired by our Non-Executive
Director for Sustainability, and attended by our Head of Sustainability
and the Executive Leadership Team. The Sustainability Committee
supports the Board in overseeing the management of climate-related
risks and opportunities and monitoring progress against the Group’s
climate strategy. The Sustainability Committee meets twice yearly.
While no Board member holds a formal climate-specific qualification,
the Board receives regular climate-related training and briefings on
regulatory changes and solution updates being deployed across
the estate. The Board receives periodic updates on climate-related
opportunities such as emerging technologies and risks and regulatory
updates relevant to the Group’s operations and assets.
The Board is updated on relevant aspects of our sustainability strategy
at each meeting and this is embedded into the standard agenda and
board pack. In addition, climate-related risk has been defined as a
‘principal risk’ and managed as part of our standard business risk
process. These risks are assessed using the same probability and impact
scoring framework as other principal risks. These are reviewed by the
Sustainability Committee twice a year, the Audit Committee annually
and the Environmental Committee quarterly when required. If material
climate matters arise between board meetings these are escalated to
the executive leadership team for review.
ii. Management’s role
The quarterly Environmental Committee has been tasked by the CEO with
assessing climate change risk exposure and to feed that back into the
Business Risk Process, the Sustainability Committee, where it intersects
with the Sustainability Strategy, and to the CEO. It will then be available
to the CEO, CFO and the Board for discussion. Outputs of the work will be
used to submit to external benchmarks and enhance ESG reporting. The
progress of the work on the TCFD is guided and monitored by the Head
of Sustainability who manages the quarterly Environmental Committee.
As part of the existing business risk process, the Company assesses,
amongst other things, the impact the (temporary) loss of a store has
on the business. That loss could occur through any number of reasons,
including considerations of climate drivers such as extreme weather
events and physical risk impacts; the Environmental Committee will
provide input into the business risk process with climate-related specific
risks and opportunities.
Incentives and Remuneration
Climate-related performance is incorporated into remuneration through
our Long-Term Incentive Plans (“LTIP”). A defined proportion of LTIP
vesting is linked to delivery of climate-related objectives, including
progress against our Scope 1 and Scope 2 emissions reduction target
through solar, battery and energy efficiency projects and external debt
facilities being green loans.
Climate-Related Disclosures Statement
Annual Report and Accounts 2026 Big Yellow Group PLC52
Performance against these metrics is assessed over a multi-year
performance period consistent with our decarbonisation pathway
and transition plan milestones. The Sustainability Committee reviews
performance outcomes prior to final determination by the Remuneration
Committee. This structure aligns executive incentives with the climate
transition strategy and long-term value creation objectives.
iii. Linkage Between Climate Governance and
Financial Reporting
Climate-related matters are integrated within Big Yellow’s financial
governance and reporting framework under the oversight of the
Chief Financial Officer (“CFO”). The CFO is responsible for ensuring
that climate-related assumptions, capital commitments and risk
assessments are appropriately reflected in financial planning, budgeting
processes and, where relevant, accounting estimates and disclosures
within the consolidated financial statements. Sustainability data
and climate-related metrics are subject to defined ownership, review
and validation controls prior to publication, with oversight from the
Sustainability Committee and review by the Audit Committee as part of
the annual reporting cycle. Internal control processes are designed to
provide consistency between climate-related disclosures and financial
reporting, including reconciliation of climate-aligned capital expenditure,
verification of greenhouse gas data inputs, and assessment of potential
impacts on asset values, useful lives, provisions and other material
accounting judgements. The Board retains ultimate responsibility for
approval of climate-related disclosures as part of the general purpose
financial reporting.
For more detail on our governance structure and management’s role in
assessing and managing climate-related risks and opportunities, please
see the link below. This is kept as an independent document as this is of
interest to some of our stakeholders separately from our annual report
and accounts.
https://corporate.bigyellow.co.uk/download_file/view/996/236
4. Strategy
i. Climate-Related Risks and Opportunities
Big Yellow’s UK property portfolio is exposed to both acute and chronic
physical climate risks, including heat stress, flooding, temperature
variability and precipitation changes. These risks may affect operating
costs, maintenance expenditure, insurance premiums and, in certain
cases, asset resilience and customer confidence. These risks and
opportunities are also considered within the context of the Group’s
business model and long-term strategic planning. Big Yellow plans to
quantify the impact and financial effects of their risks and opportunities
in the following reporting year to strengthen its alignment with the UK
SRS S2 disclosure requirements.
Physical risks
Heat stress and rising average temperatures may increase cooling
demand and place additional strain on HVAC systems. Flooding and
extreme rainfall events may result in episodic repair costs, business
interruption exposure and potential reputational impacts where
customer assets are affected. Over the long term, these risks may
require targeted capital investment to maintain operational resilience
and asset integrity.
While exposure varies across the portfolio, physical risks are assessed
as manageable within the existing asset management and capital
planning framework. Over the next reporting year, Big Yellow aims to
quantify the potential impacts of the identified material physical risks.
Transitional risks
Transition risks arise from regulatory, market and policy responses to
climate change, including tightening building performance standards,
evolving carbon pricing mechanisms, increased reporting requirements
and changing investor and customer expectations.
The most significant transition exposure relates to the risk of stranded
assets should properties fail to meet future energy performance
requirements. This risk is mitigated through proactive energy efficiency
upgrades, EPC improvement programmes and alignment with
decarbonisation pathways.
Additional transition risks include potential increases in carbon-related
taxation, energy cost volatility and enhanced sustainability reporting
obligations. These are monitored through regulatory horizon scanning
and integrated within the Company’s strategic planning processes.
Climate related opportunities
The transition to a lower-carbon economy presents opportunities to
enhance asset performance, reduce operating costs and strengthen
customer value propositions. Investment in renewable energy
generation, battery storage, electrification of heating systems and
energy efficiency improvements supports emissions reduction
objectives while increasing resilience to energy market volatility.
Customer demand for low-carbon infrastructure, including electric
vehicle charging and renewable-powered facilities, may further
enhance brand positioning and long-term asset attractiveness.
ii. Scenario Analysis
To assess the resilience of its business model and portfolio under a
range of plausible climate futures, scenario analysis is undertaken,
incorporating both transition and physical risk pathways.
Scenarios used
Three IPCC AR6 scenarios were modelled:
• SSP1-2.6, a low-emissions pathway representing an orderly
transition broadly aligned with the goals of the Paris Agreement
and a 1.5–2°C temperature outcome;
• SSP5-8.5, representing a higher-emissions pathway characterised
by more severe long-term physical climate impacts; and
• SSP2-4.5, representing a moderate-emissions pathway where
development follows historical trends; greenhouse gas emissions
increase then decrease mid-century.
These scenarios enable assessment of risks arising from accelerated
regulatory and market transition dynamics as well as heightened
physical hazard exposure under delayed mitigation. For all risks, with the
exception of flooding, the low and high emissions pathway is used within
the risk platform. For flood risk the platform uses the low-emissions and
moderate-emissions pathway due to model availability constraints on
the higher-emissions pathway within the platform.
Time horizons
Risks were evaluated across defined short, medium and long-term
horizons (2026–2031, 2032–2050 and 2051+). These modelling periods
have been mapped, to our internal strategic planning cycles and asset
life considerations. Although financial planning does not extend to the
long-term modelling horizon, long-term projections inform resilience
assessment for long-lived real estate assets.
Annual Report and Accounts 2026 Big Yellow Group PLC 53
Strategic Report Governance Report Financial Statements
Climate-Related Disclosures Statement continued
Risk timeframes
Business planning
periods Comments
Short
2026-2040
2026-2031
2032-2040
Combining short and medium-term business
planning periods
Medium
2041-2050
2041-2050 In line with long-term business planning
Long
2051+
2051+ Exceeds business planning to wider
climate context
Methodology overview
Physical hazard exposure was assessed using a recognised climate
risk modelling platform applying downscaled climate projections to
individual asset locations. The analysis considered projected changes
in temperature, precipitation and flood exposure and evaluated
potential implications for operating costs, maintenance expenditure
and asset resilience.
Transition risk analysis considered regulatory developments,
decarbonisation pathways, building performance standards and
market expectations relevant to the UK real estate sector.
Key Findings
Under an orderly transition pathway (SSP1-2.6), transition risks,
particularly regulatory tightening and energy performance requirements,
represent the primary financial consideration in the short to medium
term. This is repeated in the higher-emissions pathway (SSP5-8.5).
The results of this analysis inform the financial materiality assessment,
resilience evaluation and climate transition planning.
iii. Value Chain Considerations
In assessing climate-related risks and opportunities, we consider
impacts not only within our directly managed operations but also across
our upstream and downstream value chain. This approach is consistent
with the GHG Protocol Scope 3 framework and reflects the requirement
under IFRS S2 to assess climate exposure across the full business model.
Upstream exposure
Upstream climate-related risks primarily arise from:
• construction materials and capital goods used in new store
developments and refurbishments;
• facilities management and maintenance services;
• energy procurement and utilities; and
• waste management contractors and service providers.
Transition risks within the upstream value chain include increasing
embodied carbon regulation, tightening building performance standards,
supplier decarbonisation requirements and volatility in low-carbon
technology costs. These risks may lead to increased input costs,
changes to procurement practices, and greater complexity in project
design and delivery.
To manage this, we assess embodied carbon in capital projects through
Whole Life Carbon Assessments, and monitor supplier-related emissions
using a combination of activity-based and spend-based methodologies.
These exposures are incorporated into our transition planning and capital
allocation decisions.
Physical climate risks may also affect supplier continuity where key
contractors operate in regions exposed to extreme weather events.
This may lead to increased project delays and costs, influencing project
viability, timing, and cost structure considerations.
Downstream exposure
Downstream exposure primarily relates to our customers and occupiers
who rely on our assets for secure storage and workspace. Physical
climate risks, including flooding and heat stress, could directly affect
stored goods and indirectly impact customer confidence and brand
reputation while also increasing operating expenditure.
Transition-related opportunities include growing customer preference
for energy-efficient, low-carbon storage solutions, renewable
energy provision and electric vehicle charging infrastructure.
Regulatory developments affecting property energy standards and
building performance also influence future customer demand and
asset desirability.
No material climate-related risks have been identified in downstream
transport, processing or product use categories, consistent with our
business model as a property operator.
While the majority of financial climate-related risks and opportunities
exposure arises from our owned and operated estate, we recognise
that material risks and opportunities extend across our value chain.
These considerations are integrated into our scenario analysis,
resilience assessments and long-term strategic planning.
iv. Materiality Assessment
Risk prioritisation logic
For the purposes of this climate disclosure, climate-related risks
and opportunities have been assessed primarily through a financial
materiality lens, consistent with IFRS S2 requirements. While our broader
ESG reporting considers double materiality, the impacts described within
this section focus on those that could reasonably be expected to affect
the Group’s cash flows, access to finance or cost of capital over the short,
medium and long term. To assess the significance of climate-related
risks and opportunities, we apply a combined view of potential
financial and business impacts over short, medium, and long-term
time horizons. Impacts are classified into four categories: negligible,
low, medium, and high, based on the scale of disruption or opportunity
they represent to our operations, financial performance, and strategic
objectives. This framework allows us to prioritise climate-related risks
and opportunities by considering both the likelihood and magnitude
of impact across different timeframes, ensuring our climate resilience
planning is proportionate and forward-looking.
• Negligible – impact is minimal or not expected to result in any
meaningful environmental, social, or financial consequences.
• Low – impact is limited in scope or scale, with only minor implications
for the business or affected stakeholders. It may be monitored but
does not require strategic intervention.
• Medium – impact is notable and may influence operational,
reputational, or regulatory outcomes. It warrants active
management and integration into risk and opportunity assessments.
• High – impact is significant, likely to influence decision-making,
financial performance, or stakeholder expectations. It requires
ongoing management and is material to strategy and reporting.
Annual Report and Accounts 2026 Big Yellow Group PLC54
Risk Type Description Risk Theme Scenario
Potential Materiality
(1)
For visibility
Short-Term Medium-Term Long-Term Strategic Response
Physical Risks
Heat Stress Increase in energy costs due
to increased cooling needs.
Chronic
physical
IPCC SSP1-2.6
Installation of solar systems and
energy efficiency measures across the
estate reduce dependency on the grid.
IPCC SSP5-8.5
Temperature
Variability
Increase in maintenance
costs following higher
extreme usage.
Chronic
physical
IPCC SSP1-2.6 Refurbing our stores to ensure air
conditioning units are properly sized
for ourreception areas.
IPCC SSP5-8.5
Precipitation
hydrological variability
Risk of more frequent roof
leaks from faulty gutters.
Chronic
physical
IPCC SSP1-2.6 Annual gutter maintenance reduces
risk of leaks.
IPCC SSP5-8.5
Cold Wave Increased energy needs in
heating reception areas and
office spaces
Acute
physical
IPCC SSP1-2.6 Installation of solar systems, battery
systems and energy efficiency
measures across the estate reduce
dependency on the grid.
IPCC SSP5-8.5
Flooding
(2)
Increase surface flooding
damaging subterranean floors.
Acute
physical
IPCC SSP1-2.6 Flood attenuation tanks for new
built stores.
IPCC SSP2-4.5
IPCC SSP5-8.5
Storms Increases in strong winds
damaging roofs and other
external parts of our stores
Acute
physical
IPCC SSP2-2.6 Annual maintenance reduces the risk
of severe damage
IPCC SSP5-8.5
Resultant Impact Materiality:
Negligible Low Medium High
Risk Type Description Risk Theme
Potential Materiality
(1)
For visibility
Short-Term Medium-Term Long-Term Strategic Response
Stranded assets Assets no longer complaint
with future regulations.
Market
We will continue to monitor the current estate through
Carbon Risk Real Estate Monitor (“CRREM”) analysis
and emerging regulations to ensure our stores
remain compliant.
Reputational risk Affecting stakeholder trust
and market position
Reputation
We will continue to update and deliver on our strategy
Increase in carbon/
emission taxation
& fines
Exposure to taxation increases
Current
regulation
We will continue to reduce our Scope 1 & 2 emissions.
Building Standards Increase in standards,
especially for buildings
Emerging
regulation
We will continue to monitor emerging regulations to
ensure our stores remain compliant.
Scope 3 reporting A significantly higher financial
reporting burden including
Scope 3
Emerging
regulation
We have invested in a new platform to manage
Scope 3 reporting
Transitional risks are not able to be quantified during the reporting year.
Resultant Impact Materiality:
Negligible Low Medium High
Annual Report and Accounts 2026 Big Yellow Group PLC 55
Strategic Report Governance Report Financial Statements
Potential Materiality
(1)
For visibility
Climate-related Opportunity Company Response Short-Term Medium-Term Long-Term
Growth in demand for renewable energy Investment into retrofitting existing stores with PV systems
Aim for all new stores to be fitted with minimum 100kWp PV system
Purchasing 100% renewable energy
Growth in solar and battery markets driven
by decarbonisation
Investing in battery energy storage systems
Investing into retrofitting existing stores with batteries.
Transition away from fossil fuelled heating
and Natural Gas
Investing into retrofitting existing gas boilers with heat pumps.
Resource Efficiency Deploying energy efficiency measures throughout our stores
Growth of EV transport market Deploying electric vehicle chargers for all new stores
Importance:
Negligible Low Medium High
(1)
Short-term is determined to be from 2026 to 2040, Medium-term from 2041 to 2050 and Long-term 2051 +
v. Resilience Assessment
Based on the scenario analysis undertaken, including both low-
emissions and higher-emissions pathways, the Group considers its
business model and portfolio to be resilient to the climate-related risks
identified over the short, medium and long term. While certain physical
risks, particularly heat stress and flooding, may increase maintenance
expenditure and insurance costs over time, and transition risks may
require continued capital investment to meet evolving regulatory
standards, these impacts are not expected to threaten the viability of
the Group’s strategy or asset base. The Group’s ongoing programme of
energy efficiency improvements, renewable energy deployment, EPC
upgrades and proactive asset management supports resilience under
a range of plausible climate futures. Climate-related risks will continue
to be monitored and reassessed as part of the Group’s principal risk
management and capital planning processes.
Under the low-emissions SSP1-2.6 pathway, the Group’s transition
strategy, including renewable energy deployment, energy efficiency
upgrades and portfolio-wide EPC improvements, supports continued
compliance with evolving regulation and mitigates exposure to carbon
pricing and stranded asset risk. Under the higher-emissions SSP5-8.5
pathway, although physical risks such as heat stress and flooding
intensify over the longer term, the projected financial impacts remain
manageable within the context of the Group’s diversified portfolio
and proactive asset management framework. Based on the analysis
performed, the Group does not consider climate-related risks under either
scenario to threaten the long-term viability of its business model, though
ongoing monitoring and adaptive capital planning remain necessary.
vi. Current and Anticipated Financial Effects
In accordance with IFRS S2, the Group has assessed the current and
anticipated financial effects of climate-related risks and opportunities
on its financial position, financial performance and cash flows
over the short, medium and long term. The qualitative assessment
considers both physical and transition risks, as well as climate-related
opportunities, and evaluates potential impacts on revenues, operating
costs, capital expenditure, asset values, financing and insurance.
The Group is working towards conducting a quantitative assessment
of current and anticipated financial effects of climate-related risks and
opportunities and aims to disclose a single amount or range in the next
reporting year.
Operating costs
Physical risks, including increased heat stress, temperature variability
and storms, may result in incremental increases in operating expenditure
associated with higher energy consumption for cooling, increased
maintenance activity and periodic repair works. Insurance premiums
may also increase over time, particularly for assets located in areas with
elevated flood exposure. Under the modelled scenarios, these costs are
expected to rise gradually rather than abruptly and are not currently
assessed as material to overall operating margins at a portfolio level,
though individual asset impacts may vary.
Heat stress is expected to affect financial performance through higher
cooling costs and reduced work force productivity. In a low-emissions
scenario (RCP 2.6), the estimated impact is £1.6 million in the short
term, increasing to £1.8 million in the long term. Under a high-emissions
scenario (RCP 8.5), costs are projected to rise from £1.2 million to
£3.3 million over the same period.
Temperature variability is expected to affect financial performance
primarily through increased maintenance costs and operational
inefficiencies. More frequent fluctuations between heating and cooling
requirements can lead to accelerated wear and tear on HVAC systems,
increased servicing requirements, and reduced operational efficiency
across the estate. In a low-emissions (RCP 2.6) pathway, the estimated
financial impact is approximately £0.1 million in the short-term, reducing
to £0.07 million in the long-term as systems adapt and mitigation
measures are implemented. Under a high-emissions scenario (RCP 8.5),
costs are projected at £0.08 million in the short-term, increasing to
£0.11 million in the long-term due to greater variability in seasonal
temperature extremes.
Climate-Related Disclosures Statement continued
Annual Report and Accounts 2026 Big Yellow Group PLC56
Storm-related risks are expected to impact financial performance
through damage to roofs and guttering, external structures and
building fabric, as well as increased reactive maintenance, insurance
claims and potential short-term business disruption. Strong wind
events may also lead to temporary store closures, minor structural
repairs and increased inspection and safety compliance costs. Under
a high-emissions scenario (RCP 8.5), the estimated financial impact is
approximately £0.07 million in the short-term, increasing to £0.11 million
in the long-term as the frequency and severity of storm events intensify
over time.
Flood-related risks are expected to impact financial performance through
lost revenue due to rooms being taken offline following a flood event.
In a low emissions scenario (RCP 2.6) this is estimated at £0.1 million
in the short-term rising to £0.41 million in the long term. In a high
emissions scenario this increases to £21 million in the short-term rising
to £23 million in the long-term.
Transition risks may also increase operating costs where enhanced
building performance standards or carbon pricing mechanisms are
introduced
2
. These risks are partially mitigated through the Group’s
procurement of 100% renewable electricity and progressive energy
efficiency improvements.
Capital expenditure
The Group anticipates continued capital deployment in renewable energy
installations, battery storage, heating system upgrades and energy
efficiency measures to mitigate transition risk and enhance resilience
to physical impacts. Approximately £2 million per annum has been
allocated through to 2028 for retrofit and decarbonisation initiatives,
subject to project viability and Board approval.
Failure to adapt assets to evolving regulatory standards could increase
the risk of accelerated capital expenditure requirements or constrained
leasing potential. The Group’s programme of EPC improvements and
CRREM pathway analysis is designed to mitigate stranded asset risk
and preserve asset value.
Asset values
Climate-related risks may affect long-term asset valuations through
changes in regulatory requirements, tenant demand for energy-efficient
buildings and exposure to physical climate hazards. At the reporting date,
only flooding and storms have been identified as having the potential
to cause direct asset damage; asset damage is calculated using % of a
store’s asset value at risk. Within a low-emissions (RCP 2.6) pathway,
asset damage by flooding is estimated as a potential £3 million in the
short-term increasing to £20 million in the long-term.
In a high-emissions pathway (RCP 4.5), the project impact is higher
with an estimated impact £320 million in the short-term, reducing to
£230 million in the long-term. This elevated projected financial impact is
due to coastal flooding from sea level rise in a high-emission pathway.
Climate assumptions, including capital upgrade requirements and
operational resilience measures, are considered in long-term asset
planning and valuation sensitivity assessments where relevant.
Revenues
Transition-related opportunities, including customer preference for
energy-efficient storage solutions and electric vehicle infrastructure,
may support occupancy and brand positioning. No material adverse
revenue impacts have been identified under the modelled scenarios in
the short to medium term. Longer-term revenue effects remain subject
to regulatory developments and market evolution.
Financing
Climate performance influences investor expectations, access to
sustainable finance instruments and sustainability-linked lending
arrangements. The Group has sustainability-linked loan facilities
which include performance indicators relating to primary Scope 3 data
coverage. Failure to meet agreed targets could affect margin ratchets,
although this exposure is not currently considered material to overall
financing capacity.
Insurance
Physical risk exposure, particularly flooding, may result in increased
insurance costs or changes in coverage availability over time. The Group
monitors insurer feedback and maintains mitigation measures at
higher-risk sites to manage potential premium volatility.
Based on current modelling and scenario analysis, climate-related
risks are expected to result primarily in incremental operating and
capital expenditure over time rather than sudden or systemic financial
disruption. Under both modelled scenarios, the Group considers the
financial effects to be manageable within existing capital planning
and risk management frameworks. The Group will continue to refine
quantification methodologies and enhance scenario-linked financial
modelling as data quality and regulatory expectations evolve.
vii. Climate Transition Plan
Climate Transition Plan
The Group has established a structured transition plan designed to
support alignment with a 1.5°C pathway and mitigate exposure to
transition and stranded asset risks. The plan integrates emissions
reduction targets, capital investment strategy, asset management
priorities and governance oversight within the Group’s broader financial
planning framework.
Strategic Objective
The objective of the transition plan is to:
• Deliver a 70% absolute reduction in Scope 1 and Scope 2 emissions
by FY2031/32 (from a FY2019/20 baseline);
• Reduce Scope 3 emissions intensity in line with the Group’s validated
Science Based Target;
• Maintain regulatory compliance with evolving UK building standards;
• Minimise exposure to carbon pricing and energy market volatility; and
• Preserve long-term asset value and portfolio resilience.
(2)
Transitional risks are not able to be quantified during the reporting year.
Annual Report and Accounts 2026 Big Yellow Group PLC 57
Strategic Report Governance Report Financial Statements
Decarbonisation Levers
The principal measures supporting delivery of this plan include:
• Installation of on-site solar photovoltaic systems across
the estate (minimum 100kWp for all new stores, subject to
structural feasibility);
• Progressive deployment of battery energy storage systems;
• Removal of natural gas heating systems and electrification of
heating across the portfolio;
• Energy efficiency upgrades including lighting, controls and
HVAC optimisation; and
• Continuous improvement in Scope 3 primary data coverage to
support supply chain decarbonisation.
Capital Allocation
The Group has committed approximately £2 million per annum through
to 2028 to support renewable energy deployment, electrification and
efficiency upgrades, subject to Board approval and project viability.
Climate-aligned capital expenditure is incorporated into annual budgeting
and long-term financial planning and is reviewed by the Sustainability
Committee and Board.
Milestones and Time Horizons
Key milestones include:
• 100% of stores achieving EPC rating B or above by 2028;
• Completion of gas heating removal across the owned estate;
• Expansion of solar and battery systems across structurally
suitable sites; and
• Progressive increase in primary Scope 3 data coverage linked to
sustainability-linked loan KPIs.
Governance and Oversight
Delivery of the transition plan is overseen by the Sustainability
Committee, with financial oversight provided by the CFO and review by
the Audit Committee where climate-related assumptions intersect with
financial reporting. Progress against targets is reviewed annually and
reported within the Group’s general purpose financial reporting.
Dependencies and Assumptions
Successful delivery of the transition plan is dependent upon:
• Continued access to renewable electricity markets;
• Availability and affordability of low-carbon technologies;
• Stability of regulatory frameworks; and
• No material changes to portfolio boundary or asset
ownership structure.
The plan is reviewed periodically and updated where necessary in
response to regulatory, technological or market developments.
5. Risk Management
The Group maintains a structured risk management framework through
which climate-related risks and opportunities are identified, assessed,
prioritised and monitored. Climate related risks are embedded within the
Group’s principal risk management process and is subject to the same
governance, review and control mechanisms as other strategic and
operational risks.
i. Identification and Assessment Processes
Climate-related risks and opportunities are identified through
a combination of:
• Scenario analysis and physical climate modelling;
• Regulatory horizon scanning and monitoring of emerging
policy developments;
• Ongoing operational review by the Environmental Committee; and
• Integration within the Group’s principal risk assessment cycle.
Identified risks are categorised as either physical or transition risks
and assessed using the Group’s established probability and impact
scoring framework. Financial impact thresholds, as described in the
Financial Materiality Assessment section, are applied to evaluate the
potential effect on revenues, operating costs, capital expenditure, asset
values and financing. Risks are assessed over defined short, medium
and long-term time horizons to ensure alignment with strategic planning
cycles and asset life considerations.
ii. Integration with Business Risk Framework
Climate-related risks are incorporated within the Group’s principal risk
register where they are considered capable of materially affecting the
business model or financial performance. The Environmental Committee
conducts periodic reviews of climate-related exposures and reports
findings to the Sustainability Committee, which meets twice annually.
Climate-related matters are escalated to the Executive Leadership Team
and, where appropriate, to the Board.
The Audit Committee reviews principal risks, including climate-related
risks, as part of its annual oversight of risk management and internal
control systems. This ensures that climate considerations are embedded
within enterprise risk management, capital planning and strategic
decision-making processes.
iii. Monitoring and Controls
The Group applies ongoing monitoring mechanisms to track
climate-related risk exposure and emerging trends.
For physical risks, monitoring includes:
• Annual site inspections conducted by Executive Directors and
the Head of Estates and Facilities;
• Review of maintenance expenditure trends through the
budgeting process;
• Periodic reassessment of flood exposure and mitigation
infrastructure; and
• Engagement with insurers regarding evolving risk profiles and
coverage terms.
For transition risks, monitoring includes:
• Regulatory and policy horizon scanning;
• Review of building performance standards and EPC compliance;
• Monitoring of sustainability-linked loan performance metrics; and
• Oversight of progress against emissions reduction and energy
efficiency targets.
Where monitoring identifies material changes in exposure or
performance, these are escalated through established governance
channels for consideration of mitigating actions, capital allocation
adjustments or strategic response.
Climate-Related Disclosures Statement continued
Annual Report and Accounts 2026 Big Yellow Group PLC58
Through this structured framework, climate-related risks are integrated
into ongoing operational oversight and strategic planning, ensuring that
risk management processes remain proportionate, forward-looking and
aligned with the Group’s financial governance framework.
6. Metrics and Targets
We have created a broad range of environmental metrics and targets with
the intention of enabling our stakeholders to make informed decisions.
The full comprehensive list has been compiled in response to the full
Double Materiality Assessment that has been conducted in 2024.
We have also aligned these metrics with other reporting frameworks,
including but not restricted to CDP, GRESB, EPRA, CRREM and GRI.
i. Greenhouse Gas Emissions
GHG emissions are prepared in accordance with the Greenhouse Gas
Protocol Corporate Standard and Corporate Value Chain (Scope 3)
Standard. Emissions are reported using the operational control approach
and include all assets and activities under our operational control within
the United Kingdom for the year ended 31 March 2026.
Our baseline year for Scope 1, Scope 2 and Scope 3 emissions is FY
2019/20, consistent with our Science Based Target (SBT).
Emissions Scope
FY 2019/20
total (tCO₂e)
FY 2025/26
total (tCO₂e) Assurance level
Scope 1 248 23* Reasonable
Scope 2 – location-based 2,911 1,443* Reasonable
Scope 2 – market-based 1,410 0* Reasonable
Scope 3 – total
(SBT footprint)
3.3 kgCO₂e/
Sqft
3.5* kgCO₂e/
Sqft
Limited
(Intensity figure)
Scope 3 – total
(whole footprint) 33,372 35,148 None
• Scope 1 emissions comprise natural gas consumption, refrigerant leakage and
company-owned vehicle use.
• Scope 2 emissions arise from purchased electricity. We report both:
– Location-based emissions using UK grid average factors; and
– Market-based emissions reflecting procurement of 100% REGO-backed
renewable electricity.
• Scope 3 emissions are calculated across relevant upstream and downstream
categories as defined under the GHG Protocol.
* Externally assured by SGS
We apply two defined Scope 3 boundaries:
• Whole Footprint Boundary – covering all material categories
identified in our Basis of Reporting; and
• SBT Boundary – covering categories included within our validated
Science Based Target.
The principal Scope 3 categories included within our SBT footprint are:
• Category 1: Purchased goods and services (construction, facilities,
stock and water);
• Category 2: Capital goods (whole life carbon assessments and
PG&S data); and
• Category 3: Fuel and energy-related activities.
Additional calculated categories (not within SBT boundary):
• Category 1: Purchased goods and services (all other categories);
• Category 5: Waste generated in operations;
• Category 6: Business travel;
• Category 7: Employee commuting;
• Category 9: Downstream transport and distribution; and
• Category 12: End of life treatment.
Upstream transportation, downstream leased assets, franchises and
investments are not material to our current business model and are
excluded in accordance with GHG Protocol guidance.
ii. Methodologies and Data Quality
Scope 1 and 2 methodology
Scope 1 and Scope 2 emissions are calculated using actual consumption
data from:
• Utilities invoices;
• Energy management systems; and
• Service records (refrigerants).
Emission factors are sourced from the latest UK Government
(DESNZ/DEFRA) conversion factors applicable to the reporting year.
Solar generation is excluded from upstream emission calculations
where no material upstream emissions arise.
Scope 3 methodology
A combination of methodologies is applied:
• Activity-based: Water and waste emissions calculated using
metered volumes or contractor weight data multiplied by DEFRA
emission factors;
• Lifecycle assessment (LCA): Capital goods emissions derived
from externally conducted Whole Life Carbon Assessments
(RIBA Stage 6); and
• Spend-based (EEIO): Purchased goods and services mapped to CEDA
emission factors using supplier spend data.
Transmission and distribution losses associated with electricity and gas
are included within Category 3.
Data quality
We continue to increase the proportion of primary and supplier-specific
data used in emissions calculations.
• Scope 1 and 2: 100% primary activity data.
• Scope 3:
– Category 1 – Purchased goods and services: predominantly
secondary, spend-based emission factors;
– Category 2 – Capital goods: a mixture of primary LCA data and
secondary, spend-based emission factors; and
– Category 3 – Water and waste: primarily activity-based.
primary data.
Annual Report and Accounts 2026 Big Yellow Group PLC 59
Strategic Report Governance Report Financial Statements
Overall, approximately 57%* of Scope 3 Cat 1 & 2 emissions are currently
derived from primary or supplier-specific data, with the remainder based
on recognised secondary emission factor databases. This figure is
audited by a third party.
Improving primary data coverage across Scope 3 remains a strategic
priority and linked to one of our sustainability linked loans.
Scope 1 and Scope 2 emissions are considered low estimation
uncertainty due to reliance on metered energy data and assured
conversion factors.
Scope 3 emissions carry a higher inherent degree of uncertainty,
particularly where spend-based methodologies are applied. Key sources
of uncertainty include:
• Variability in supplier carbon intensity not reflected in average
EEIO factors;
• Timing differences between capital expenditure and
embodied emissions; and
• Partial data coverage for new assets.
We apply conservative assumptions to minimise risk of underreporting.
Based on internal review and assurance findings:
• Scope 1 & 2: Low uncertainty;
• Scope 3 (activity-based & LCA categories): Moderate
uncertainty;and
• Scope 3 (spend-based categories): Moderate to elevated uncertainty.
We continue to refine supplier mapping and data granularity to reduce
uncertainty over time.
Selected environmental indicators, including Scope 1, Scope 2 and
defined Scope 3 categories (Categories 1, 2 and 3 within the SBT
boundary), are subject to independent third-party assurance in
accordance with ISAE3000 assurance standard.
Categories outside the assurance scope have undergone internal
validation and variance analysis.
During the reporting year, we enhanced our data management systems
to improve Scope 3 capture and supplier mapping. We expect the
proportion of primary Scope 3 data to increase materially in future
reporting cycles. We have an assured indicator to track the progress
of this, with the ambition of achieving primary data acquisition of
Categories 1 & 2 by 2028.
The metrics found below are taken from the Double Materiality
Assessment results and are those that are relevant to the main risk
themes defined by the TCFD framework detailed at the beginning of
the report.
iii. Industry-Based Metrics
In addition to entity-wide greenhouse gas disclosures, we monitor and
report sector-specific performance indicators aligned with industry-based
guidance incorporated within the ISSB standards for the Real Estate
industry. These metrics provide investors with asset-level insight into
operational efficiency, transition risk exposure and climate resilience.
The following industry-relevant climate metrics are monitored across our directly managed UK portfolio:
Metric Unit
FY 24–25
restated FY 25–26 Target / Commentary
Total energy consumption MWh 12,425
11,750*
Monitored annually
Energy intensity (per CLA) MWh / m² 0.021
0.19*
Continuous efficiency improvement
GHG emissions intensity (Scope 1 & 2) tCO₂e / m² CLA 0.032
0.024*
Aligned with Sustainability Strategy
% electricity from renewable sources (market-based) % 100%
100%*
Maintain 100% renewable procurement
% total energy from renewable sources (solar + grid renewable) % 100%
100%*
100%+ by 2030
Portfolio EPC rating – % B or above % of stores 94%
98.2%*
100% B or above by 2028
EPC distribution (A+ – D) % breakdown A+ 5.5
A+ 6.2
Supporting stranded asset mitigation
A 27. 5
A 38.1
B 61.5
B 54.0
C 4.6
C 1.8
D 0.9
D 0
% stores with on-site solar PV % of portfolio 71.6%
75.2%
Solar installed where structurally feasible
Total installed renewable capacity MWp 8.5
9.6*
Expand annually
% stores identified as high flood risk (scenario-based) % of portfolio New of 2025/26
16%
Mitigation measures in place where material
Stores with flood mitigation infrastructure # / % 11%
14%
All new builds incorporate attenuation where required
Climate-aligned capital expenditure £m 6.0
4.5
c. £2m p.a. to 2028
Climate-aligned capex as % of total capex % 6%
4%
Monitored as part of transition plan
Climate-Related Disclosures Statement continued
Annual Report and Accounts 2026 Big Yellow Group PLC60
iv. Capital Allocation and Carbon Pricing
Capital allocation
During the reporting period, the Group invested £4 million towards
addressing climate-related risks and opportunities. This includes
capital expenditure on solar photovoltaic installations, battery energy
storage systems, building energy efficiency upgrades and associated
infrastructure works.
Climate-related capital expenditure represented 4% of total capital
expenditure for the year.
These investments are directed toward reducing operational emissions,
mitigating regulatory exposure, improving energy resilience and
supporting delivery of our Science Based Target.
Looking forward, the Group has committed to investing approximately
£2 million per annum through to 2028 in retrofit and energy efficiency
initiatives across the estate, subject to project viability and Board
approval. All new store developments are designed to incorporate
low-carbon technologies as standard, including a minimum 100kWp solar
photovoltaic installation where structurally feasible.
Climate-related capital allocation decisions are reviewed through
established governance processes and integrated into annual budgeting
and long-term strategic planning.
Carbon pricing and offsetting
The Group does not currently apply an internal carbon price in capital
allocation decisions or investment appraisal processes. Climate-
related investments are assessed based on energy cost savings,
regulatory compliance requirements and strategic decarbonisation
objectives. The Board will continue to monitor developments in carbon
pricing frameworks and may consider internal pricing mechanisms as
regulatory environments evolve.
Big Yellow does not use carbon offsets or purchased credits to meet its
emissions reduction targets, and reported greenhouse gas reductions
reflect gross emissions abatement achieved through operational and
energy efficiency measures.
Carbon-related remuneration
Climate-related performance is incorporated into remuneration through
our LTIP, linking the delivery of climate-related objectives, including
progress against our Scope 1 and Scope 2 emissions reduction target
to executive remuneration.
v. Targets
The Group has established climate-related targets designed to mitigate
transition risks, enhance asset resilience and support delivery of our
long-term decarbonisation strategy. These targets are aligned with
our identified material climate-related risks and opportunities and are
reviewed periodically to ensure continued relevance.
Topic Target
2026 Target/
Interim target
(if applicable) 2026 Performance
Target and
target year
Emission
reduction
(SBTi
validated)
70% absolute
reduction in
Scope 1 and
2 emissions
(market-
based) vs.
FY2019/20
baseline of
3,159
2,053 or 35%
reduction from
baseline
1,466*
54% reduction
from baseline
948 by
2032
Scope 3 data
quality
40% primary
data for Scope
3 Cat 1&2 by
2028
20% 57%* 40% by
2028
Portfolio
energy
performance
100% of stores
achieve an
EPC rating of B
or above
96% 98.2% 100% by
2028
* Externally assured by SGS
The Group has decided to focus on Scope 3 data quality initially as
it believes improving the accuracy of the data initially will enable
improvement and increased engagement with the value chain.
Emissions Reduction Targets
The Group has adopted Science Based Targets aligned with a 1.5°C
pathway. Our targets combine an absolute reduction pathway for
operational emissions (Scope 1 and 2) with an intensity-based target
for Scope 3 emissions.
The Scope 1 and 2 absolute reduction target to reduce absolute Scope 1
and 2 GHG emissions 70% by FY2032 from a FY2020 base year has been
set to mitigate exposure to:
• Carbon pricing and taxation;
• Energy price volatility;
• Regulatory tightening of building standards; and
• Stranded asset risk.
The Scope 3 intensity target to reduce Scope 3 GHG emissions from
purchased goods and services, capital goods, and fuel and energy related
activities by 61.1% per square foot also by 2032 reflects the structure
of our value chain emissions and is normalised to current lettable area
(“CLA”) to ensure comparability over time as the portfolio evolves.
Progress against both targets is monitored annually through verified GHG
disclosures and overseen by the Sustainability Committee and Board.
Annual Report and Accounts 2026 Big Yellow Group PLC 61
Strategic Report Governance Report Financial Statements
Portfolio Energy Performance Target
To mitigate regulatory and market risks associated with tightening
building standards, the Group has committed to ensuring:
100% of stores achieve an EPC rating of B or above by 2028.
At the reporting date, 98%* of the portfolio meets this threshold.
This target supports:
• Compliance with evolving UK Minimum Energy Efficiency
Standards (“MEES”);
• Reduced exposure to regulatory penalties;
• Enhanced asset attractiveness and tenant retention; and
• Alignment with CRREM decarbonisation pathways.
Where assets fall below threshold, targeted refurbishment, solar
deployment and heating system upgrades are prioritised.
7. Connectivity with Financial Statements
i. Accounting Assumptions and Estimates
In accordance with IFRS S2, the Group has considered the extent to
which climate-related risks and opportunities are reflected within the
consolidated financial statements and related accounting estimates.
Climate-related assumptions are incorporated, where relevant, into
impairment assessments, useful economic lives of assets, capital
expenditure planning and long-term cash flow projections.
Property valuations and impairment testing consider expected future
capital expenditure required to maintain regulatory compliance, including
upgrades necessary to meet evolving building performance standards
and energy efficiency requirements. Where applicable, forecast
operating costs reflect anticipated changes in energy consumption,
maintenance expenditure and insurance costs arising from physical
climate risk exposure.
At the reporting date, no material impairments have been recognised
as a direct consequence of climate-related factors. However, the
Group continues to monitor regulatory developments, carbon pricing
mechanisms and emerging physical risk data which may influence
future asset valuations and capital allocation decisions.
ii. Capital Commitments and Financing
Capital Commitments and Transition Investments
Climate-aligned capital expenditure disclosed within this report is
consistent with capital expenditure reported within the consolidated
financial statements. Investments in solar photovoltaic systems,
battery storage, heating system electrification and energy efficiency
upgrades are recognised within property, plant and equipment additions
in the period incurred. Forward-looking retrofit commitments are
incorporated within approved capital budgets and long-term financial
planning assumptions.
Provisions, Contingent Liabilities and Insurance
The Group has assessed whether climate-related risks give rise
to provisions or contingent liabilities under applicable accounting
standards. At the reporting date, no material climate-specific provisions
have been recognised. Insurance arrangements are reviewed periodically
to ensure appropriate coverage for physical climate risks, including
flooding and extreme weather events. Any changes in premium costs or
deductibles are recognised within operating expenditure in the relevant
reporting period.
Financing and Sustainability-Linked Arrangements
The Group’s sustainability-linked loan facilities contain performance
metrics associated with climate-related targets. Where applicable,
margin adjustments arising from performance against these metrics
are reflected within finance costs. These arrangements link climate
performance directly to financing terms, reinforcing alignment between
sustainability objectives and financial reporting.
iii. Reconciliation and Cross-Referencing
Climate-related metrics, capital expenditure disclosures and emissions
data presented within this section are prepared using the same
reporting boundary and consolidation basis as the consolidated
financial statements, unless otherwise stated. Cross-references
have been provided where climate-related assumptions materially
interact with accounting judgements or forward-looking disclosures
to ensure consistency and transparency across general purpose
financial reporting.
8. Sign off and Approval
Approved by the Board of Directors on 18 May 2026 and signed on its
behalf by:
John Trotman
Chief Financial Officer
The Board retains overall responsibility for climate-related governance
and disclosure.
Climate-Related Disclosures Statement continued
Annual Report and Accounts 2026 Big Yellow Group PLC62
In performing this Section 172 requires a Director to have regards among
other matters to:
• the likely consequences of any decision in the long-term;
• the interests of the Company’s employees;
• the need to foster the Company’s business relationships with
suppliers, customers and others;
• the impact of the Company’s operations on the community and
the environment;
• the desirability of the Company maintaining a reputation for
high standards of business conduct; and
• the need to act fairly with members of the Company.
The Directors give careful consideration to the factors set out above in
discharging their duties under section 172. The Board’s obligations under
Section 172 are considered at Board meetings within each relevant
section of the Board pack. The stakeholders we consider in this regard
are our employees, our customers, our shareholders, our suppliers, and
the environment. The Board recognises that building strong relationships
with our stakeholders will help us to deliver our strategy in line with our
long-term values and operate the business in a sustainable way.
The Board regularly receives reports from management on issues
concerning customers, the environment, suppliers, employees, and
investors, which it takes into account in its discussions and in its
decision-making process under Section 172.
Stakeholder engagement
The Board is committed to effective engagement with all of our key
stakeholders. The importance of each matter may differ to each
stakeholder group, and hence the Group seeks to understand the
relevant interests and priorities of each stakeholder Group, and to have
regard to these in its decision making. The Board does acknowledge
that not every decision that it makes will necessarily result in a positive
outcome for all stakeholders.
Information on interaction with our key stakeholders is included in the
Corporate Governance Report on pages 86 to 89.
Further information
You can read further information on stakeholder engagement and our
approach to S172 in the following places:
Employees
Chief Executive’s Statement (page 20)
ESG Report (page 73)
Governance (page 89)
Customers
Chief Executive’s Statement (page 18)
Operating and Financial Review (page 28)
Governance (page 88)
Suppliers
ESG report (page 71 and 74)
Governance (page 88)
Investors
Chairman’s Statement (page 16)
Our Strategy (page 22)
Our Investment Case (page 24)
Governance (page 87)
Environment
Chief Executive’s Statement (page 20)
Climate-Related Disclosures Statement (pages 52 to 62)
ESG Report (pages 64 to 74)
Long term
Chairman’s Statement (page 16)
Chief Executive’s Statement (page 20)
Our Strategy (page 22)
Our Investment Case (page 24)
Viability Statement (page 51)
Section 172 Statement
Section 172 of the Companies Act 2006 requires a Director of a Company
to act in the way they consider, in good faith, would be the most likely
to promote the success of the Company for the benefit of its members as
a whole.
Annual Report and Accounts 2026 Big Yellow Group PLC 63
Strategic Report Governance Report Financial Statements
Environmental, Social and
Governance Report
1. Introduction
Our approach to sustainability is grounded in a simple principle: a resilient business is a sustainable business. The decisions we make across our
estate, our operations and our value chain shape both our long-term financial performance and the impact we have on the environment and
communities we serve.
We recognise that our activities have environmental and social impacts, and we are committed to managing these responsibly. This includes
reducing our emissions, improving the efficiency of our operations, supporting our people and communities, and maintaining strong governance
and ethical standards.
This report summarises how we manage ESG risks and opportunities and how our sustainability strategy is embedded into the way we design,
operate and invest in our business. It should be read alongside the wider disclosures in our Annual Report and Accounts, including our
climate-related disclosures aligned with TCFD.
Big Yellow Group PLC operates a national portfolio of self storage facilities,
providing secure and accessible space for both businesses and individuals.
Annual Report and Accounts 2026 Big Yellow Group PLC64
2. ESG executive summary
2.1 Chief Executive’s Statement
This year marks a significant milestone in our sustainability journey,
with Big Yellow achieving CDP A List recognition for climate leadership.
This reflects the strength of our strategy, governance and delivery
across our estate.
We have continued to invest in our energy infrastructure, increasing
our solar capacity to 9.6MWp and expanding our battery programme to
enhance energy resilience and optimise the use of on-site generation.
These initiatives, alongside our energy efficiency programme, have
contributed to a 9% reduction in energy costs, demonstrating that
environmental investment delivers real operational value.
We have also made significant progress in improving the quality and
performance of our assets. Our EPC programme is nearing completion,
with all but one store rated B or above, reinforcing the resilience and
long-term value of our portfolio.
Beyond our operations, we continue to create meaningful social
value through the Big Yellow Foundation, expanding our support for
communities through funding, donated space and volunteering.
The path forward is clear. Responsible business practices and
commercial success are aligned, and our continued investment in
sustainability is fundamental to the long-term resilience of our business.
Jim Gibson
Chief Executive Officer | May 2026
2.2 Key Highlights
• CDP A List for climate leadership
• 9.6MWp of installed solar capacity
• Expansion of battery storage across the estate
• £700,000 investment into energy efficiency upgrades
• 9% reduction in energy costs
• Near elimination of gas across the estate
• Continued investment in community partnerships
Annual Report and Accounts 2026 Big Yellow Group PLC 65
Strategic Report Governance Report Financial Statements
3. Our Strategy & KPIs
Our sustainability strategy is structured around three core pillars: Environmental Responsibility, Social Value and Transparent Governance.
These pillars reflect the areas where we have the greatest impact and where we can create long-term value for our stakeholders.
Following our Double Materiality Assessment, we have refined our focus to ensure that we are addressing the most relevant environmental
and social issues, while also responding to the risks and opportunities that sustainability presents to our business.
Progress is tracked through a suite of KPIs aligned to our material topics. These metrics enable us to monitor performance, track progress
against targets and ensure accountability across the business.
Our Science-Based Targets underpin our environmental strategy, providing a clear pathway for reducing emissions while supporting
continued business growth.
Environmental, Social andGovernance Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC66
UN SDG Topic CSRD KPI Progress
Our Environment
Scope 1&2 Emissions Energy Management 70% reduction to 948 tCO
2
e by 2032 1,466 tCO
2
e*, 54% reduction
from baseline
Total installed solar Renewable Energy Total installed capacity increase to
11,479 kWp by March 2028
9,592 kWp* 84% progress
towards target
Scope 3 / Embodied carbon Carbon Management 40% primary data for Scope 3 Cat
1&2 by 2028
(1)
57% *
Our People
Turnover of full-time staff Maintain turnover below average UK
Retail levels
(2)
of 33%
15.6%*
A staff training KPI Increase year-on-year of total hours
trained, both male and female
21,875*
25% increase in hours
Our Communities
Free space donation to local charities Access & Affordability Trajectory in line with targets in
revolving credit facility
£1,210,308* exceeding this
year’s target
Customer donations & matched funds Raise a minimum of £220k a year £466,858*
Our Buildings
Estate EPCs Sustainable self storage design Have all stores achieve a B or above
by 2028
111* stores (98%) with a B or
above rating
Biodiversity Average Biodiversity Net Gain
(“BNG”)
(3)
per new store of over 10%
Staines 10%
Queensbury 472%
Slough Bath Road 100%
Wembley 6668%
Our Suppliers
Prompt payment Pay 95% of invoices within 60 days 99.8% paid within 60 days
Our Health, Safety & Information Security
Staff annual incident rate AIIR to stay lower than industry
(4)
category average of 1,169
0.1
Information security breaches Cyber & Data Security Maintain a minimal level of
reportable breaches
Achieved – there was only 1*
reportable ICO incident in the year
Our Governance
ESG related LTIP vesting criteria –
solar retrofit
Board Ownership & Responsibility Fitting solar panels on 40 stores
between 2023 – 2026
52* stores retrofitted to date
ESG related LTIP vesting criteria –
green loan debt facility
Board Ownership & Responsibility 30-50% of the Group’s total debt
facilities being green loans by 2026
68%* of the Group’s total debt
facilities at 31 March 2026 are
green loans
* Externally assured by SGS
(1)
New KPI for 2026.
(2)
UK Retail levels of 33% – ONS Employee turnover levels and rates by industry section, UK.
(3)
BNG is a mandatory planning requirement that all developers must deliver a minimum BNG of 10% This means a development will result in more or better-quality natural habitat than there was
before development.
(4)
Industry – Warehousing and support activities for transportation. SIC 52 – HSE Work-related non-fatal injuries to employees in Great Britain by detailed industry.
Annual Report and Accounts 2026 Big Yellow Group PLC 67
Strategic Report Governance Report Financial Statements
Environmental, Social andGovernance Report continued
4. Our governance
Our sustainability agenda is overseen by the Board-level Sustainability Committee, supported by management teams across the
business. This structure ensures that ESG considerations are embedded into decision-making at all levels of the organisation.
Our approach is informed by our Double Materiality Assessment, which considers both the impact of our activities on the environment
and society, and the financial risks and opportunities arising from sustainability issues. This ensures that our strategy is aligned with
both stakeholder expectations and long-term business resilience.
Climate-related risks and opportunities are assessed in line with TCFD and integrated into our broader risk management and investment
planning processes. The operational programmes outlined in this report represent the practical delivery of these mitigation actions.
We report in line with established frameworks including SECR, the GHG Protocol and EPRA, and align with emerging standards such as
CSRD. We also participate in external benchmarks including CDP, GRESB and FTSE4Good.
Selected environmental and social data within this report has been externally assured by SGS. Assured metrics are indicated throughout
with an asterisk (*).
Annual Report and Accounts 2026 Big Yellow Group PLC68
5.1 Projects
Our environmental performance is driven by targeted investment in three
core programmes: solar generation, battery storage and energy efficiency.
These initiatives are designed to work together, reducing energy demand,
increasing on-site generation and improving operational resilience.
Solar Generation
Our solar programme continues to expand across both new developments
and existing stores. During the year, installations were completed across
7 additional roofs, including both new stores and retrofit projects,
increasing total installed capacity to 9.6MWp.
Alongside expansion, we have begun upgrading some of our earliest
installations to improve performance and extend asset life. This reflects
a shift from deployment to optimisation, ensuring that existing systems
continue to deliver value.
This programme supports our strategic target to generate more
electricity than we consume by 2030, with interim milestones of 9.5MW,
11MW and 11.5MW. We have already exceeded our initial capacity target
for the year, demonstrating strong delivery against this pathway.
Battery Storage
Our battery programme has progressed from pilot to early-stage
deployment. During the year, battery systems were installed and
commissioned at four new stores, alongside the rollout of retrofit
installations across existing sites.
This brings total installed capacity to 715kWh across 15 stores
(once fully commissioned), with a further 416kWh planned across
eight additional stores next year.
The programme builds on a multi-year pilot phase, which has enabled
us to refine system design and delivery. As a result, newer installations
are smaller, more modular and require reduced civil works, while still
delivering flexibility and resilience against rising grid costs.
This phased approach has enabled us to scale deployment efficiently
while improving performance and cost effectiveness.
Energy Efficiency
Our energy efficiency programme has moved from pilot to scaled rollout.
Building on last year’s trial, we have refined the solutions deployed,
focusing primarily on lighting controls and system optimisation.
During the year, 24 stores were upgraded, delivering energy savings of
approximately 25% at those locations. These savings have been achieved
through a combination of motion sensors in storage areas, lux-based
lighting controls in reception spaces and improved lighting management
in loading bays.
In addition to technical interventions, we have used data analysis to
identify operational inefficiencies at specific stores and worked directly
with site teams to address them. For example, correcting control settings
on electric heating systems at one store resulted in a 15% reduction in
energy consumption.
The programme has delivered a strong financial return, with over
£700,000 invested to date and a payback period of three to four years.
Based on this performance, we have committed to rolling out upgrades
across the remainder of the estate in FY27.
5. Our environment
Annual Report and Accounts 2026 Big Yellow Group PLC 69
Strategic Report Governance Report Financial Statements
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
0
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
13,945
11,758
12,517
13,312
14,476
14,346
13,802
Total energy consumed onsite Solar generated percentage of total consumed
2019/20 2020/21 2021/22 2023/24 2025/262024/252022/23
Environmental, Social andGovernance Report continued
5.2 Buildings
Sustainability is embedded in the way we design and develop our stores.
New developments are designed to incorporate solar generation, energy-
efficient systems and optimised building performance from the outset.
We have embedded Whole Life Cycle Assessments into our development
process, enabling us to better understand and manage the embodied
carbon of our buildings. This allows us to make more informed design
decisions and reduce emissions over time.
We also integrate biodiversity considerations into our developments,
delivering Biodiversity Net Gain and supporting improvements to the
natural environment.
Across our existing estate, ongoing investment in solar and energy
efficiency has significantly improved EPC ratings, with the majority of
stores now rated B or above.
5.3 Energy
Our energy strategy is transforming how our estate is powered.
Through investment in solar generation, battery storage and energy efficiency, we are reducing reliance on grid electricity, lowering emissions and
improving cost efficiency.
With 9.6MWp of installed solar capacity, we are generating an increasing proportion of our electricity on-site. Battery storage is improving utilisation
of this energy, while efficiency measures are reducing demand.
Together, these initiatives form an integrated energy system that enhances resilience and supports long-term value creation.
Total energy consumed and solar generated
EPC by No of Stores
EPC Certified – C: 2
EPC Certified – A: 43
EPC Certified – B: 61
EPC Certified – A+: 7
Annual Report and Accounts 2026 Big Yellow Group PLC70
0
500
1000
1500
2000
2500
3000
3500
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Absolute Scope 1&2 emissions (TCO
2
e)
Scope 1&2 emissions Trajectory
5.4 Emissions
Our emissions performance reflects the cumulative impact of sustained investment in energy infrastructure and operational efficiency.
We have set Science-Based Targets to reduce Scope 1 and Scope 2 emissions by 70% by 2032, alongside an intensity-based target for Scope 3
emissions. These targets provide a clear framework for action and ensure alignment with long-term climate goals.
Scope 1 & 2
Despite continued growth in the business, our Scope 1 and Scope 2 emissions have reduced year-on-year. This has been driven by three structural
changes: the removal of gas from our owned estate, increased on-site renewable energy generation, and reductions in energy consumption through
efficiency measures.
The removal of gas has been particularly significant, simplifying our energy profile and materially reducing direct emissions. This transition
to an increasingly electrified estate allows us to maximise the benefit of renewable electricity, both generated on-site and procured through
renewable-backed contracts.
At the same time, our growing solar capacity is reducing reliance on grid electricity, while energy efficiency improvements are lowering overall demand.
These combined effects are driving a sustained reduction in emissions intensity across the portfolio.
We remain ahead of the trajectory required to meet our Science-Based Target, demonstrating that our approach is delivering measurable and
durable outcomes.
SBT absolute Scope 1&2 trajectory
We remain ahead of our Scope 1 and Scope 2 reduction trajectory, demonstrating that our strategy is delivering measurable results.
Scope 3 & supplier engagement
Our Scope 3 emissions are primarily driven by our supply chain, the embodied carbon of our developments and customer use.
We are improving data quality through the implementation of a new data management platform, enabling a transition from spend-based estimates to
primary data. This improves both the accuracy of our reporting and our ability to identify opportunities for reduction.
Metric FY 2020 2026 Target
% Primary Data (Cat 1 & 2) 0% 57% 40% by 2028
Data platform implementation Initial Implemented Full utilisation
Engagement with our suppliers is central to this approach. We are working collaboratively to improve transparency, strengthen data quality and support
emissions reduction across our value chain.
Annual Report and Accounts 2026 Big Yellow Group PLC 71
Strategic Report Governance Report Financial Statements
5.5 Water and resource use
While water consumption is not a material driver of our environmental
impact, we continue to manage it responsibly across our estate, with a
focus on monitoring, efficiency and risk mitigation.
During the year, we expanded the rollout of remotely read water meters,
improving visibility of consumption across our stores. This enhanced
monitoring capability allows us to identify anomalies more quickly and
respond proactively, providing a stronger foundation for managing water
use as the estate grows.
Measurement unit Indicator
Better Building
Partnership
benchmark 2026
litres/m² /year – using CLA Water Intensity 386 0.047*
Our water intensity remains significantly below the Better Buildings
Partnership benchmark, reflecting both the nature of our operations
and the effectiveness of our control measures.
In addition to water, we continue to manage waste and resource use
across our operations. Waste generated at our stores is primarily
associated with customer use and operational activities.
Our approach focuses on:
• ensuring appropriate waste segregation at site level;
• maximising recycling rates where practical; and
• reducing unnecessary material use across operations.
We continue to review opportunities to improve resource efficiency,
particularly in relation to operational processes and construction
activities, where material use and waste generation are more significant.
Together, these measures support a broader approach to responsible
resource management, ensuring that environmental impacts are
minimised across our estate.
Environmental, Social andGovernance Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC72
6. Our Social Value
Our approach to social value is focused on creating meaningful and
measurable impact across our people, our communities and our
wider stakeholders. We aim to create long-term value by investing
in our people, supporting the communities in which we operate and
maintaining responsible business practices across our supply chain.
6.1 People
Our people are central to the success of our business, and we
are committed to creating a working environment that supports
development, wellbeing and long-term retention.
Our approach focuses on three key areas: building capability through
training, maintaining a safe and supportive working environment, and
fostering engagement across the business.
Training and Development
We continue to invest in structured training programmes to support both
operational performance and career development.
During the year, training was delivered across a range of roles, with a
focus on improving accessibility and consistency through increased
use of digital delivery. This has enabled us to reach a broader proportion
of the workforce while maintaining quality and reducing disruption to
day-to-day operations.
While total training hours reduced compared to the previous year, this
reflects a shift in delivery model rather than a reduction in investment.
Training remains targeted and aligned with business needs, ensuring
employees have the skills required to perform effectively and progress
within the organisation.
Employee Retention and Engagement
We maintain a stable and engaged workforce, with employee turnover
significantly below the UK retail sector average. This reflects both the
strength of our employment proposition and the effectiveness of our
approach to engagement and development.
Low turnover supports operational consistency, reduces recruitment
costs and ensures that knowledge and experience are retained within
the business.
We continue to review employee feedback and engagement levels,
using this insight to inform improvements across working practices
and employee support. Our most recent employee survey in 2025 saw
a record response rate of 100%.
Health, Safety and Wellbeing
The health and safety of our employees remains a priority.
During the year, we maintained strong performance across our estate,
with no reportable injuries recorded. This reflects a proactive approach
to risk management and a strong safety culture across the business.
We continue to provide a safe and supportive working environment,
supported by clear processes, training and ongoing monitoring
of performance.
Annual Report and Accounts 2026 Big Yellow Group PLC 73
Strategic Report Governance Report Financial Statements
Workforce Highlights
Indicator Progress to target Target
Employee turnover 15.6%* Maintain turn-over below average
UK Retail levels
(1)
of 33%
Training hours 21,875*
25% increase in hours
Increase year on year of total
hours trained
Reportable injuries 0.1 AIIR to stay lower than industry
(2)
category average of 1,169
Employee volunteering
participation
20% Year on year improvement
(1)
UK Retail levels of 33% – ONS Employee turnover levels and rates by industry section, UK
(2)
Industry – Warehousing and support activities for transportation. SIC 52 – HSE Work-related
non-fatal injuries to employees in Great Britain by detailed industry
Together, these initiatives support a stable, skilled and engaged
workforce. By investing in our people and maintaining strong operational
standards, we are able to deliver consistent performance across our
estate while supporting long-term business resilience.
6.2 Communities
Through the Big Yellow Foundation, we support a range of charitable
organisations focused on improving social mobility and helping individuals
into employment. Our approach is to provide targeted support that
enables our partners to deliver meaningful and measurable outcomes.
Environmental, Social andGovernance Report continued
During the year, we increased both financial contributions and the
provision of free storage space to charities and community organisations.
This support reduces operational costs for our partners while enabling
them to expand their activities and reach more beneficiaries.
Indicator Amount raised
Free Space donated for community or charity use £1,210,308*
1-99% discounted space donated for community or charity use £510,784
Total employee Big Yellow Foundation fundraising & Big Yellow
matched funds £10,359
Foundation matched funds from customer donations £233,429*
Paid work placements £28,391
Total Community Investment £1,993,271
* Externally assured by SGS
The scale of our support reflects our commitment to long-term
partnerships rather than one-off contributions. By combining financial
donations, in-kind support and employee volunteering, we are able to
deliver a broader and more sustained impact across the communities in
which we operate.
In addition to financial support, we continue to encourage employee
volunteering, providing staff with opportunities to engage directly
with our charity partners. This strengthens our connection with local
communities while supporting the delivery of charitable programmes.
Our community investment is focused on organisations that deliver
tangible outcomes, ensuring that our support contributes to meaningful
and lasting social value.
6.3 Responsible business practices
We recognise that our responsibilities extend beyond our direct
operations to include how we work with suppliers and partners.
We maintain strong payment performance across our supply chain,
supporting the financial resilience of suppliers, particularly small and
medium-sized businesses. During the year, we continued to achieve
high levels of compliance with payment targets.
Year ended 31 March 2024 2025 2026
Within 30 days 92% 92.5% 94.6%
Between 30 and 60 days 8% 7.2% 5.3%
Over 60 days 0% 0.4% 0.2%
Average time to pay an invoice 23 days 23 days 22 days
In addition to payment practices, we maintain clear expectations for
ethical conduct across our supply chain, including compliance with
modern slavery legislation and broader responsible sourcing standards.
We are currently transitioning to the Fair Payment Code and will continue
to report against the existing framework until adoption is complete.
Annual Report and Accounts 2026 Big Yellow Group PLC74
Nature of the assurance/verification
SGS United Kingdom Ltd (hereinafter referred to as SGS) was
commissioned by Big Yellow Group PLC (hereinafter referred to as
Big Yellow) to conduct an independent assurance of selected KPIs
included in the report ‘Sustainability Report 2025/26’ (herein referred
to as the report).
Intended users of this assurance statement
This Assurance Statement is provided with the intention of informing all
of the Big Yellow Group PLC’s Stakeholders.
Responsibilities
The information in the Report and its presentation are the responsibility
of the Directors and the management of Big Yellow Group PLC, and SGS
has not been involved in the preparation of any of the material included
in the Report. Our responsibility is to express an opinion on the text, data,
graphs and statements within the scope of verification with the intention
to inform all of the Big Yellow Group PLC’s stakeholders.
Assurance standards, type
and level ofassurance
This assurance engagement had been carried out according to the
ISAE3000 (Revised, International Standard on Assurance Engagements)
Assurance Engagements Other than Audits or Reviews of Historical
Financial Information and standard EN ISO14064-3:2019 Specification
with guidance for the validation and verification of Greenhouse Gas
assertions, to establish conformance with the requirements of the
applicable reporting criteria.
As indicated within this statement against each assured KPI,
a ‘reasonable’ and ‘limited’ level of assurance was obtained.
Reporting criteria
Reporting Criteria – GHG & Environmental KPIs
1 WRI/WBCSD GHG Protocol – A Corporate Accounting & Reporting
Standard and its amendments
2 WRI/WBCSD GHG Protocol – Corporate Value Chain (Scope 3)
Accounting and Reporting Standard
Reporting Criteria – Social & Governance KPIs
1 Internal Policies & Procedures of Big Yellow Group PLC
Assurance Statement
SGS United Kingdom Ltd’s report on selected KPIs pertaining to
sustainability activities in the sustainability report 2025/26 of
Big Yellow Group PLC for the review period 1st April 2025 to
31st March 2026
Scope of assurance
The scope of the assurance included assessment of specified
performance information for the following KPIs as per the level of
assurance indicated below:
GHG & Environmental KPIs – reasonable level of assurance
• Total electricity consumption (MWh)
• Like-for-like total electricity consumption (MWh)
• Total fuel consumption (MWh)
• Like-for-like total fuel energy consumption (MWh)
• Total amount of energy used in yr by current lettable area
(MWh/m
2
/year)
• Total direct (scope 1) GHG emissions (tCO
2
e)
• Total indirect (scope 2) GHG emissions location-based (tCO
2
e)
• Total indirect (scope 2) GHG emissions market-based (tCO
2
e)
• Total Scope 1 & 2 Abs all operations – location based (tCO
2
e)
• Scope 1 & 2 location- based intensity by current lettable area
(tCO
2
e /m
2
/year)
• Number of estate EPCs with a B or above
• Total installed renewables capacity (kWh)
• Number of solar retrofit stores installed between 1
st
April 2022 and
31
st
March 2026
• Number of energy efficiency projects completed
GHG & Environmental KPIs – limited level of assurance
• Total water withdrawal by source (m
3
)
• Like-for-like total water consumption (m
3
)
• Building water intensity (m
3
/m
2
/year)
• Total installed renewables capacity (kW)
• Total weight of waste by disposal route (metric tonnes)
• Like-for-like total weight of waste by disposal route (metric tonnes)
• Proportion of Scope 3 Cat 1 & 2 data using primary rather than
spend data (%)
• Scope 3 SBT Boundary (Cat 1 construction/facilities/stock, Cat 2 and
Cat 3) Carbon intensity by CLA (tCO
2
e /ft2/year)
Annual Report and Accounts 2026 Big Yellow Group PLC 75
Strategic Report Governance Report Financial Statements
Social & Governance Indicators –
limited level of assurance
Material
Objective Indicator Title / KPI
Unit of
Reporting Male Female
Emp-Training Employee training and
development – Ave
hr 43.489 46.22
Emp-Dev Employee performance
appraisals
% 98.72% 99.46%
Diversity-Emp Employee gender diversity % 54.62% 45.38%
Gov-Board Composition of the highest
governance body
# 6 3
Material Objective Indicator Title / KPI
Unit of
Reporting Value Reported
Emp-Training Employee training and
development – total
hr 21875
Emp-Turnover New hires rate % 26%
Emp-Turnover Turnover rate % 15.6%
H&S-Emp-Injury Employee health and safety –
Injury rate
injury
rate
0.1
H&S-Emp-Absent Employee health and safety –
Absentee rate
absentee
rate
3.8
H&S-Emp-Fatal Employee health and safety –
Number of work-related fatalities
# 0
H&S-Asset Store asset health and safety
assessments
% 1
H&S-Comp Total number of raised incidents # 3
Community Eng. % Assets offering free space
donated for community or
charity use
% 98.23%
Free-Space Free space donated for
community or charity use
£ £1,210,308.09
Matched-Funds Foundation matched funds from
customer donations
£ £466,857.70
Security-Breaches Reportable information security
breaches
# 1
Assurance methodology
GHG & Environmental KPIs
CO
2
emissions from own operations and value chain were verified at a
reasonable or limited level of assurance as detailed above according
to standard EN ISO 14064-3:2019 Specification with Guidance for
the Validation and Verification of Greenhouse Gas Assertions, to
establish conformance with the requirements of Big Yellow’s reporting
methodology as stated in its ‘Basis of Reporting 2025/26’ and the
WRI/WBCSD GHG Protocol – A Corporate Accounting and Reporting
Standard (‘The WRI/WBCSD GHG Protocol’), within the scope of the
verification. The materiality required of the verification was considered
by SGS to be below 5% for a reasonable level of assurance and below 10%
for a limited level of assurance, based on the needs of the intended user.
The engagement included verification of emissions from anthropogenic
sources of greenhouse gases included within the organisation’s
boundary and meeting the requirements of Big Yellow’s ‘Basis of
Reporting 2025/26’ and the WRI/WBCSD GHG Protocol. The organisational
boundary was established following the operational control approach.
• Description of activities: Self-Storage services
• Location/boundary of the activities: United Kingdom
• Physical infrastructure, activities, technologies and processes of
the organisation: Self-storage stores and administrative offices
• GHG sources, sinks and/or reservoirs included:
– Scope 1 – stationary combustion, mobile combustion and
fugitive emissions;
– Scope 2 – purchased electricity;
– Scope 3 – category 1 (PG&S), category 2 (Capital Goods),
category 3 (FERA), and category 5 (Waste in Operations).
• Types of GHGs included: CO
2
, N2O, CH4, HFCs (PFCs, SF6 and NF3
are excluded)
• Directed actions: none
Data and information supporting the CO
2
equivalent statement were
historical in nature and proven by evidence or estimated based on
the best available data and in accordance with the methodologies
defined within Big Yellow’s ‘Basis of Reporting 2025/26’ and the criteria
listed above.
Social & Governance KPIs
The assurance comprised a combination of:
• Preliminary research and desk-based reviews.
• Remote interviews with the head of sustainability, data compliance
officer, financial accountant, the managers with responsibility for
risk assessment, control, and reporting processes associated with
the KPIs, metrics, and disclosures.
• Remote interviews with the managers responsible for internal data
collection for each KPI.
• Document review of relevant management systems, policies
and procedures.
• Remote interrogation of and testing of relevant data collection
systems and procedures, including interviews with relevant data
analysts and data accuracy checking.
• Final data verification checks to ensure KPI data is accurate and
aligns with expectations.
• Reviewing Report content against our findings and making
recommendations for improvement.
Verification was conducted upon all KPIs within the verification scope
as an evaluation of historical data and information to determine
whether the reported KPI data is materially correct and conforms to the
criteria described above. SGS’ approach is risk-based, drawing on an
understanding of the risks associated with modelling KPI information and
the controls in place to mitigate these risks. Our examination included
assessment, on a sample basis, of evidence relevant to the voluntary
reporting of KPIs, including emission information.
Assurance Statement continued
Annual Report and Accounts 2026 Big Yellow Group PLC76
The procedures performed in a limited assurance engagement vary in
nature and timing from, and are less in extent than for, a reasonable
assurance engagement. Consequently, the level of assurance obtained
in a limited assurance engagement is substantially lower than the
assurance that would have been obtained had a reasonable assurance
engagement been performed.
Limitations and mitigation
Financial data drawn directly from independently audited financial
accounts has not been checked back to source as part of this assurance
process. The reliability of the assured information is subject to inherent
uncertainties, given the available methods for determining, calculating,
estimating or testing of the verified information.
Statement of independence
and competence
The SGS Group of companies is the world leader in inspection, testing and
verification, operating in more than 140 countries and providing services
including management systems and service certification; quality,
environmental, social and ethical auditing and training; environmental,
social and sustainability report assurance. SGS affirm our independence
from the Big Yellow Group PLC, being free from bias and conflicts of
interest with the organisation, its subsidiaries and stakeholders.
In conducting assurance engagements, SGS is governed by the ‘SGS
Code of Conduct’ and the ‘SAGSP Assurance Ethics’, which has been
established with the requirements of the IESSA (International Ethics
Standard for Sustainability Assurance), which is founded on fundamental
principles of integrity, objectivity, professional competence and due
care, confidentiality and professional behaviour.
At SGS assurance quality control is governed through the Sustainability
Assurance Global Systems Procedure (SAGSP). This quality management
system complements the requirements of ISAEs and are designed
to be as demanding as quality control requirements stipulated by
ISO17029:2019, and the ISQM1.
The assurance team was assembled based on their knowledge,
experience and qualifications for this assignment, and comprised
auditors registered with relevant bodies. The assurance team comprised
of; Lead Assurance Practitioners / Assessors – Indika Edussuriya, Laura
Berns, Assurance Practitioner – Elisa Zandanel and Technical Reviewers
– Finn Han & Abdullah Buhidma.
Assurance opinion
GHG & Environmental KPIs
Big Yellow provided the GHG assertion based on the requirements of
its ‘Basis of Reporting 2025/26’ and the WRI/WBCSD GHG Protocol.
The GHG information for the period 1st April 2025 to 31st March 2026
disclosing gross emissions of 26,490 metric tonnes of CO
2
equivalent
(Location-Based) and 25,047 metric tonnes of CO
2
equivalent (Market-
Based) are verified by SGS to a reasonable level of assurance for scope 1
and 2 and to a limited level of assurance for scope 3, consistent with the
agreed verification scope, objectives, and criteria.
Verified emissions by scope are as follows:
Scope 1 – 23 tCO
2
e
Scope 2 (location-based) – 1,443 tCO
2
e
Scope 2 (market-based) – 0 tCO
2
e
Scope 3 Category 1 (PG&S) – 4,680 tCO
2
e
Scope 3 Category 2 (Capital Goods) – 19,772 tCO
2
e
Scope 3 Category 3 (FERA) – 562 tCO
2
e
Scope 3 Category 5 (Waste in Operations) – 10 tCO
2
e
SGS’ approach is risk-based, drawing on an understanding of the risks
associated with modelling GHG emission information and the controls
in place to mitigate these risks. Our examination included assessment,
on a sample basis, of evidence relevant to the voluntary reporting of
emissions information.
SGS concludes with reasonable assurance that the presented KPIs
listed on pages 1 and 2, and the scope 1 and scope 2 CO
2
equivalent
assertion is materially correct and is a fair representation of the KPI
and CO
2
equivalent data and information and is prepared following
the requirements of Big Yellow’s ‘Basis of Reporting 2025/26’ and
the WRI/WBCSD GHG Protocol.
SGS concludes with limited assurance that there is no evidence to
suggest that the presented KPIs listed on page 2, and the scope
3 CO
2
equivalent assertion is not materially correct and is not a
fair representation of the CO
2
equivalent data and information and
is not prepared following the requirements of Big Yellow’s ‘Basis
of Reporting 2025/26’ and the WRI/WBCSD GHG Protocol and
its amendments.
We planned and performed our work to obtain the information,
explanations, and evidence that we considered necessary to provide a
reasonable level of assurance for scope 1 and 2 and the KPIs listed in
pages 1 and 2, and a limited level of assurance for scope 3 and the KPIs
listed in page 2, that the CO
2
equivalent emissions and environmental
KPIs for the period 1st April 2025 to 31st March 2026 are fairly stated.
This statement shall be interpreted with the CO
2
equivalent assertion of
Big Yellow as a whole.
Social & Governance KPIs
On the basis of the methodology described and the verification work
performed, nothing has come to our attention that causes us to believe
that the specified performance information included in the scope of
assurance is not fairly stated and has not been prepared, in all material
respects, in accordance with the reporting criteria.
Signed for and on behalf of SGS UNITED KINGDOM LTD:
Terry Coyle
Sustainability Services Manager Frimley, Surrey, 08th May 2026.
WWW.SGS.COM
Annual Report and Accounts 2026 Big Yellow Group PLC 77
Strategic Report Governance Report Financial Statements
Dear Shareholder,
I am pleased to present the Corporate Governance Report
for 2026. This report should be read in conjunction with the
report on pages 83 to 89, which set out how we have complied
with the UK Corporate Governance Code in 2026.
As outlined in my report on pages 16 to 17, 2026 has seen
revenue, adjusted profit, adjusted earnings per share and
dividends all up on the prior year.
Governance
The Board believes that the effective delivery of the
Company’s strategy requires the underpinning of strong
corporate governance. The governance of the Group is
supported by a robust structure which allows for constructive
debate and challenge by its members. This allows the
Directors to make effective decisions.
Engagement with our stakeholders
The Board is conscious that there are a number of
stakeholders in our business and considers the interests
of each of our stakeholder groups in its discussions.
We have a comprehensive investor relations programme
in place, with the Executive team carrying out a significant
number of meetings with our shareholders during the year.
The Non-Executive Directors engage with our shareholders as
appropriate. Independent feedback on presentations by the
Executive Board Directors to major shareholders is provided
to the Non-Executive Directors on a regular basis.
The culture of the business is a key part of our success. In the
year to 31 March 2026, the Executive Board Directors have
continued to visit each of the Group’s stores and maintain a
flat, apolitical, non-hierarchical culture within the business.
We continue to monitor the Net Promoter Score that we receive
from our customers, which remains at a very high level of 85.0
(2025: 82.8).
Looking ahead
Following our performance this year, our attention for the
coming year is focused on continuing to drive the operating
performance of the business to deliver shareholder value.
We will continue to invest in our Big Yellow Foundation
and its partner charities and also work with local charities
throughout our network assisting with space which they
need to deliver their programmes.
We will continue to focus on delivering attractive
long-term shareholder returns, behaving responsibly to
our stakeholders including shareholders, employees,
customers, suppliers, and the community, and
appropriately managing risk.
Nicholas Vetch CBE
Executive Chairman | 18 May 2026
Executive Chairman’s Introduction
Annual Report and Accounts 2026 Big Yellow Group PLC78
How We Are Structured
The Board has overall responsibility for the manner in which the
Company runs its affairs:
Position Responsible for More information
The Board
Nicholas Vetch
Executive Chairman
− setting the strategic direction of the business
− setting the culture and values of Big Yellow
− overseeing the internal control system of the Group and its
risk management
− approving the annual business plan for the Group
− approving site and store acquisitions and major items of
capital expenditure
− approving the Group’s financing structure
− ensuring a positive dialogue with our stakeholders is maintained
Page 85
Executive Directors
− implementing the Group’s business plan and strategy
− managing the risk of the business
− focusing on financial performance
Page 84
Nomination Committee
− reviewing the structure, size and composition of the Board
− succession planning for Directors and other senior Executives
− promoting diversity
Pages 90 to 93
Audit Committee
− overseeing the Group’s financial reporting
− overseeing the Group’s internal control framework and risk
management process
− overseeing the relationship with the external auditor and monitoring
their independence
Pages 118 to 121
Remuneration Committee
− setting, reviewing and recommending the policy on the remuneration
of the Executive Directors
− overseeing the senior management team and general workforce
remuneration approach
− monitoring the implementation of the Remuneration policy
− overseeing the alignment of reward, incentives and culture
Pages 96 to 117
Sustainability Committee
− overseeing the Group’s sustainability framework and strategy
− monitoring sustainability performance
− providing guidance on emerging environmental issues, including
environmental risk, and their impact on the Group’s business
− overseeing the Group’s ESG reporting, including external
audit/assurance mechanisms
Pages 94 to 95
Annual Report and Accounts 2026 Big Yellow Group PLC 79
Financial StatementsStrategic Report Governance Report
Directors, Officers and Advisers
Executive Directors
Nicholas Vetch CBE
Executive Chairman
Appointment to the Board
Nicholas co founded Big Yellow
in 1998 and has served as
Executive Chairman since
July 2003. Prior to this he held
the position of CEO, having co
founded Big Yellow in 1998.
Jim Gibson
Chief Executive Officer
Appointment to the Board
Jim has served as Chief
Executive Officer since 2003.
Prior to this he was Finance
Director, having co-founded
Big Yellow in 1998.
John Hunter
Chief Operating Officer
Appointment to the Board
John joined Big Yellow as Chief
Operating Officer in April 2024
and was appointed to the Board
in July 2025.
John Trotman
Chief Financial Officer
Appointment to the Board
John joined Big Yellow as Chief
Financial Officer in 2007, having
originally trained as a Chartered
Accountant with Deloitte LLP.
Relevant experience and contribution
He brings more than 35 years’
experience in property, retail and
entrepreneurial businesses and
has played a central role in building
Big Yellow into the UK’s market-leading
self storage platform.
Nicholas provides long-term strategic
leadership to Big Yellow, with a
particular focus on capital discipline
and sustainable growth. In 2023, he
was appointed a Commander of the
British Empire (“CBE”). Along with his
co-founder, Jim Gibson and the CEO-
Designate John Hunter, he continues to
develop the strategy of the business.
External appointments
Nicholas is a Trustee of the Royal
Drawing School and the Universal
Sponsorship Pathway UK, and a
Non-Executive Director of Conduit
Holdco Limited.
Relevant experience and contribution
Jim has led the business through
multiple economic cycles and has been
instrumental in developing its strategy,
maintaining Big Yellow’s market-
leading position and managing the
business through recent geo-political
uncertainties. He brings a wealth of
experience in self storage operations
and real estate, combined with strong
financial and commercial expertise.
Prior to Big Yellow, Jim held Finance
Director roles at Edge Properties and
Heron Property having trained as a
chartered accountant specialising in
real estate and construction at Arthur
Andersen & Co.
He is responsible for strategy
execution across the Group and brings
an external perspective through his
Non-Executive roles. Jim is retiring
from the business on 20 July.
External appointments
Jim is a shareholder and Non-Executive
Director of AnyJunk Limited and
CityStasher Limited, an investor in
Moby Self Storage (Brazil), Chair of
Trustees of the London Children’s
Ballet, Chair of Trustees of The
Big Yellow Foundation and a Trustee of
the Bede’s Development Foundation.
Relevant experience and contribution
John brings over 20 years’ experience
in retail and consumer services, having
held a range of senior management
roles at Carphone Warehouse, Geek
Squad and HomeServe. A Chartered
Accountant who qualified with Arthur
Andersen, John combines strong
financial discipline with extensive
hands on operational leadership.
He is responsible for the day to day
operations of the business, driving
performance, customer service
and operational efficiency across
Big Yellow’s store network and
digital platforms. John’s breadth of
experience supports the Group’s focus
on scalable, customer led operations
and continuous improvement.
John will take over as Chief Executive
Officer upon the retirement of Jim
Gibson in July 2026.
External appointments
None.
Relevant experience and contribution
John has extensive financial
experience in real estate finance,
accounting and corporate governance.
He oversees the Group’s financial
strategy, capital structure, reporting,
treasury and risk management,
supporting disciplined investment and
long-term value creation. His depth
of technical expertise and sector
knowledge has meant he’s played
a key role in maintaining robust
financial controls while enabling
Big Yellow’s development pipeline
and sustainability ambitions.
He is involved in all aspects of the
day-to-day strategy and operations
of the business.
External appointments
None.
Annual Report and Accounts 2026 Big Yellow Group PLC80
Laela Pakpour Tabrizi
Independent
Non-Executive Director
N
A
R
S
Appointment to the Board
Laela was appointed to the Board inJuly 2020.
Vince Niblett
Senior Independent
Non-Executive Director
N
A
R
S
Appointment to the Board
Vince was appointed to the Board inJune 2017.
Dr Anna Keay OBE
Independent
Non-Executive Director
N
A
R
S
Appointment to the Board
Anna joined the Board in March 2018 and brings
senior leadership experience from the heritage
and charitable sectors. She also writes and
broadcasts widely, presenting on history and
buildings for Channel 4.
N
Nominations Committee
A
Audit Committee
R
Remuneration Committee
S
Sustainability Committee Committee Chair
Committee key
Non-Executive Directors
Relevant experience and contribution
Anna supports the Board’s focus on people, as the
designated Non-Executive Director for workforce
engagement, where she provides a formal link between
employees and the Board, bringing deep expertise in
governance and organisational culture. As an historian,
she provides an external perspective to the Board as
well as deep operational experience and was awarded
an OBE for services to heritage.
External appointments
Anna has been CEO of the Landmark Trust since 2012.
She is also a Trustee of the Royal Collection Trust and
Director of both the Architrave Historical Services and
the Lundy Company.
Relevant experience and contribution
He brings significant experience in audit, governance
and professional services, having previously been
Global Managing Partner for Audit at Deloitte. Vince has
many years of financial and commercial experience,
and provides independent oversight of Board
processes, risk management and financial governance,
supporting effective engagement with shareholders.
He also leads Board composition, ensuring an
appropriate balance of skills and experience at
the Company.
External appointments
Vince is also a Non-Executive Director and Chair of
the Audit Committee of Forterra plc, a Non-Executive
Director of Target Healthcare REIT plc, and a Trustee of
the Ruth Strauss Foundation.
Relevant experience and contribution
Laela has a wealth of corporate and financial
experience in high growth businesses, providing deep
expertise and international experience from senior
finance roles across technology, digital and media
businesses. Her experience supports the Board’s
oversight of financial resilience, investment decisions
and governance standards.
External appointments
Laela is Finance Director of Consumer Converged at
Virgin Media O2. She also currently serves as a Trustee
of the British Library.
Annual Report and Accounts 2026 Big Yellow Group PLC 81
Financial StatementsStrategic Report Governance Report
Heather Savory
Independent
Non-Executive Director
N
A
R
S
Appointment to the Board
Heather joined the Board in March 2021.
Michael O’Donnell
Independent
Non-Executive Director
N
A
R
S
Appointment to the Board
Michael joined the board of the BigYellow in
September 2021.
Relevant experience and contribution
She brings significant experience in technology
and public policy, gained through senior leadership
roles at the Office for National Statistics and with
United Nations data initiatives. Heather supports the
Board’s oversight of environmental strategy, ESG
reporting and emerging regulatory requirements,
helping embed sustainability into long-term business
planning. Her background strengthens the Board’s
understanding of data, transparency and risk,
particularly in relation to sustainability.
External appointments
Heather is also an advisory partner for Conquer.ai,
an AI consultancy and Trustee of the Universal
Sponsorship Pathway Charity (“USPUK”).
Company Secretary
and registeredoffice
Shauna Beavis
2 The Deans
Bridge Road
Bagshot
Surrey
GU19 5AT
Company Registration No.
03625199
Bankers
Aviva Commercial Finance Limited
Barclays Bank plc
HSBC Bank plc
Lloyds Bank plc
M&G Investments Limited
Pricoa Private Capital
Solicitors
CMS Cameron McKenna Nabarro Olswang LLP
Fladgate LLP
Lester Aldridge LLP
Shoosmiths LLP
Slaughter and May
Financial advisers
and stockbrokers
J P Morgan Cazenove
Statutory Auditor
KPMG LLP
Chartered Accountant and Statutory Auditors
Valuers
Jones Lang LaSalle
Relevant experience and contribution
He has a strong background in private equity and
investment, having previously been a Partner at LGV
Capital. Michael brings significant expertise in high
growth businesses and of listed Company governance.
As Chair of the Remuneration Committee, he leads on
performance management, incentive structures and
value creation, supporting shareholder alignment and
providing remuneration oversight.
External appointments
Michael has been Chair of Home REIT plc since January
2024 and Lighthouse Funerals since August 2025.
Directors, Officers and Advisers continued
N
Nominations Committee
A
Audit Committee
R
Remuneration Committee
S
Sustainability Committee Committee Chair
Committee key
Annual Report and Accounts 2026 Big Yellow Group PLC82
Introduction
The Board also takes account of the Corporate Governance guidelines of
institutional shareholders and their representative bodies.
At Big Yellow, we aim to create a culture in which integrity, openness and
fairness are rewarded.
We continue to review the composition of the Board to ensure that it
has the appropriate skills, knowledge, and balance for the effective
stewardship of the Company. The Board has overall responsibility for
the manner in which the Company runs its affairs.
Statement of compliance with the Code
Throughout the year ended 31 March 2026, the Company has been in
compliance with the Code provisions set out in section 1 of the 2924 UK
Corporate Governance Code, with the exception of Provision 19 in that
the Executive Chairman of the Company has served in position for longer
than the recommended period of nine years (see below).
The Group will be providing disclosures in respect of Provision 29 in
our annual report for the year ended 31 March 2027, the first year the
Provision is applicable to the Group.
Chairman’s position
During the year ended 31 March 2020, which was the Company’s first
operating under the principles of the 2018 UK Corporate Governance Code,
Richard Cotton (then Senior Independent Non-Executive Director) and Vince
Niblett (current Senior Independent Non-Executive Director) consulted
with a number of the Company's largest shareholders about the length of
Nicholas Vetch's tenure as Executive Chairman (currently 23 years), which
diverges from the best practice set out in the UK Corporate Governance
Code. It is advised as governance best practice that the Chairman should
serve for a maximum of nine years. The Board considers the necessity for
the extension of the Chairman’s tenure very carefully and it is the view of
the Board that it is in the Company's best interest for Nicholas Vetch to
continue as Executive Chairman for the foreseeable future.
1. The necessity is driven by our Executive Chairman’s unique and
market-leading real estate skills. Whilst the Company is able to
recruit the operational excellence required as demonstrated by
the recruitment of John Hunter, it recognises that the contribution
from the founding property entrepreneur is hard to replicate.
2. The Board is mindful that it also does not want to lose the
value to shareholders of Nicholas Vetch’s outstanding track
record of delivering consistently strong returns and share price
outperformance. In the twenty six years since flotation in May 2000,
Big Yellow has delivered a Total Shareholder Return (“TSR”), including
dividends reinvested, of 11.4% per annum, in aggregate 1,527.2% at
the closing price of £8.45 on 31 March 2026. This compares to 3.7%
per annum for the FTSE Real Estate Index and 5.9% per annum for the
FTSE All Share index over the same period. He has been an integral
part of the business since inception.
3. Big Yellow has a strong culture, which has benefited from stable and
consistent leadership of the business. The Board looks forward to the
fresh perspective that John Hunter will be able to bring, but we are
also mindful that with the departure of the co-founder Jim Gibson,
Nicholas Vetch’s continuing contribution becomes even more
valuable in the medium term.
Moreover, the Board have looked at the governance checks and balances,
which are, in their opinion, strong and effective. It is recognised that
having a founder Director in post as Chairman for considerably longer
than advised, needs robust checks and balances:
1. The Board has five independent NEDs who have a wide range
of corporate experience and provide effective challenge to the
Chairman and the other Executive Directors, which was endorsed by
the external appraisal undertaken by Simon Robertson Associates
in 2026.
2. The Board has separate committees for Audit, Nomination,
Remuneration and Sustainability, each of which are chaired by a
Non-Executive Director, and we have a Senior Independent Director
who is considered important in sharing the role of Chairman’s duties.
Specific examples of the board discussion include examination and
engagement in the acquisition of new sites, funding decisions, and
the Group’s sustainability investments.
3. We welcome the recruitment of Helen Gordon as our new SID from
June 2027. She brings wide and extensive hands-on property
expertise that can provide an extremely valuable sounding board
for the Chairman and the Board on property strategy matters.
4. As a Board, we have contingency plans in place in the event one
of the Executive Directors cannot fulfil their responsibilities, with
a matrix of who would step in to cover their roles. Considerable
thought has been given by the Board to succession, which has been
approached in the context of a very successful senior team of whom
the majority have been in post since the Company was listed in 2000.
More detail is provided in the Nominations Committee Report.
The Board has been encouraged by the support of its major independent
shareholders as it chooses to explain rather than comply with the Code
on this issue.
The FRC has made it clear in its guidance that departures from the Code
are acceptable, specifically stating in a guidance paper the following:
“The Code establishes best practice, but importantly it offers flexibility.
This flexibility is an opportunity, not a threat; it allows boards to take
a thoughtful approach to governance. Where companies depart from
the Provisions of the Code they need to provide clear and compelling
explanations for why the approach taken is the right one for the particular
circumstances of the Company.” (Source: FRC Review of Corporate
Governance Reporting November 2020). The Company believes that the
reasons set out above for Nicholas Vetch serving as Executive Chairman
do provide that clear and compelling explanation.
Corporate Governance Report
The Company is committed to the principles of corporate governance
contained in the UK Corporate Governance Code issued by the Financial
Reporting Council in 2024.
Annual Report and Accounts 2026 Big Yellow Group PLC 83
Financial StatementsStrategic Report Governance Report
Corporate Governance Report continued
Statement about applying the principles
ofthe Code
The Company has applied the principles set out in the Code, including
both the main principles and the supporting principles, by complying
with the Code as reported above. Further explanation of how the
principles and supporting principles have been applied is set out below
and in the Nominations Committee Report, the Remuneration Report,
and the Audit Committee Report.
Leadership
The Board’s role is to provide entrepreneurial leadership of the Company
within a framework of prudent and effective controls which enables risk
to be assessed and managed.
Chairman and Chief Executive
The division of responsibilities between the Chairman and the Chief
Executive has been agreed by the Board and encompasses the
following parameters:
• the Chairman’s role is to provide continuity, experience, governance,
and strategic advice, while the Chief Executive provides leadership,
drives the day-to-day operations of the business, and works with the
Chairman on overall strategy;
• the Chairman, working with the Senior Independent Non-Executive
Director, is viewed by investors as the ultimate steward of the
business and the guardian of the interests of all the shareholders;
• the Board believes that the Chairman and the Chief Executive work
together to provide effective and complementary stewardship;
• the Chairman:
– takes overall responsibility for the composition and capability
of the Board;
– takes overall executive responsibility for the property
development team; and
– consults regularly with the Chief Executive and is available
on a flexible basis for providing advice, counsel, and support
to the Chief Executive.
• the Chief Executive:
– manages the other Executive Directors and the Group’s
day-to-day activities;
– prepares and presents to the Board strategic options for
growth in shareholder value;
– sets the operating plans and budgets required to deliver
agreed strategy; and
– ensures that the Group has in place appropriate risk
management and control mechanisms.
The Directors believe it is essential for the Group to be led and controlled
by an effective Board that provides entrepreneurial leadership within
a framework of sound controls which enables risk to be assessed and
managed. The Board is responsible for setting the Group’s strategic
aims, its values and standards and ensuring the necessary financial and
human resources are in place to achieve its goals. The Board ensures that
its obligations to shareholders and other stakeholders are understood
and met. The Board also regularly reviews the performance of the
Executive Directors.
Effectiveness
Composition of the Board
The Nominations Committee is responsible for reviewing the Board
Composition and makes recommendations to the Board on the
appointment of Directors. There are presently five independent
Non-Executive Directors on the Board, with Vince Niblett being the Senior
Independent Director. The Company complies with the UK Corporate
Governance Code in that at least half of the Board, excluding the Chair,
is comprised of independent Non-Executive Directors.
All of the Non-Executive Directors bring considerable knowledge,
judgement, and experience to Board deliberations. Non-Executive
Directors do not participate in any of the Company’s share option or
bonus schemes and their service is non-pensionable. The Non-Executive
Directors are encouraged to communicate directly with Executive
Board Directors between formal Board meetings. The Non-Executive
Directors meet at least once a year without the Executive Board Directors
being present.
The Non-Executive Directors scrutinise the performance of management
in meeting agreed goals and objectives and monitor the reporting of
performance. They are required to satisfy themselves on the integrity
of the financial information and that financial controls and systems of
risk management are robust and defensible. They are responsible for
determining appropriate levels of remuneration for Executive Board
Directors and have a prime role in appointing and, where necessary,
removing Executive Board Directors, and in succession planning.
The tenure of the independent Non-Executive Directors at 31 March 2026
is set out below:
0 1 2 3 4 5 6 7 8 9 10
4.6
5.1
5.8
8.1
8.8
Michael O’Donnell
Heather Savory
Laela Pakpour Tabrizi
Anna Keay
Vince Niblett
Changes to the Board and its Committees
There have been no changes to the composition of the Board and its
Committees during the year, other than the appointment of John Hunter
with effect from the AGM in July 2025.
Annual Report and Accounts 2026 Big Yellow Group PLC84
The board and its committees
Standing committees of the Board
The Board has Audit, Remuneration, Nominations and Sustainability
Committees, each of which has written terms of reference. They deal
clearly with the authorities and duties of each Committee and are
formally reviewed annually. Copies of these terms of reference are
available on the Company’s website. Each of these Committees is
comprised of Independent Non-Executive Directors of the Company
who are appointed by the Board on the recommendation of the
Nominations Committee.
Other members of the senior leadership team attend Board meetings
on invitation.
The Board meets approximately once every two months to discuss a
whole range of significant matters including strategic decisions, major
asset acquisitions and performance. A procedure to enable Directors to
take independent professional advice if required has been agreed by the
Board and formally confirmed by all Directors.
There is a formal schedule of matters reserved for the Board’s attention
including the approval of Group strategy and policies; major acquisitions
and disposals, major capital projects and financing, Group budgets and
material contracts other than in the normal course of business. The Board
also considers matters such as cyber security, reputational risks, and
other non-financial risks as part of its review of the Group’s risk register.
At each Board meeting, the latest available financial information is
produced which consists of detailed management accounts with the
relevant comparisons to budget. A current trading appraisal is given
by the Executive Board Directors.
Attendance at meetings of the individual Directors at the Board Meetings that they were eligible to attend is shown in the table below:
Director Position Number of meetings attended
Jim Gibson Chief Executive Officer
John Hunter Chief Operating Officer
Anna Keay Non-Executive Director
Vince Niblett Non-Executive Director
Michael O’Donnell Non-Executive Director
Laela Pakpour Tabrizi Non-Executive Director
Heather Savory Non-Executive Director
John Trotman Chief Financial Officer
Nicholas Vetch Executive Chairman
attended absent not applicable
All the Committees are authorised to obtain legal or other professional
advice as necessary; to secure, where appropriate, the attendance of
external advisers at its meetings and to seek information required from
any employee of the Company in order to perform its duties.
The Chair of each Committee reports the outcome of the meetings to the
Board. The Company Secretary is secretary to each Committee.
Information and professional development
All Directors are provided with detailed financial information
throughout the year. On a weekly basis they receive a detailed occupancy
report showing the performance of each of the Group’s open stores.
Management accounts are circulated to the Executive monthly and a
detailed Board pack is distributed a week prior to each Board meeting.
All Directors are kept informed of changes in relevant legislation and
changing commercial risks with the assistance of the Company’s
external advisers where appropriate. All Directors have access to the
advice of the Company Secretary on governance matters.
The professional development requirements of Executive Board
Directors are identified and progressed as part of each individual’s
annual appraisal. All new Directors are provided with a full induction
programme on joining the Board.
Non-Executive Directors are encouraged to attend seminars and
undertake external training at the Company’s expense in areas they
consider to be appropriate for their own professional development.
Each year, the programme of senior management meetings is tailored
to enable meetings to be held at the Company’s stores. During the year,
the Executive Board Directors made visits to all the Group’s stores.
Annual Report and Accounts 2026 Big Yellow Group PLC 85
Financial StatementsStrategic Report Governance Report
Corporate Governance Report continued
Accountability
Risk management and internal control
The Group operates a rigorous system of risk management and internal
control, which is designed to ensure that the possibility of misstatement
or loss is kept to a minimum. There is a comprehensive system in place
for financial reporting and the Board receives a number of reports to
enable it to carry out these functions in the most efficient manner.
These procedures include the preparation of management accounts,
forecast variance analysis and other ad hoc reports. There are clearly
defined authority limits throughout the Group, including those matters
which are reserved specifically for the Board.
The Board has established a continuous process for identifying,
evaluating, and managing the significant risks the Group faces and for
determining the nature and extent of the significant risks it is willing to
take in achieving its strategic objectives. The Board regularly reviews
the process, which has been in place from the start of the year to the
date of approval of this report and which is in accordance with the FRC’s
guidance on risk management, internal control and related reporting
that was issued in September 2014. The Board is also responsible for the
Group’s system of internal control and for reviewing its effectiveness.
Such a system is designed to manage rather than eliminate the risk of
failure to achieve business objectives and can only provide reasonable
and not absolute assurance against material misstatement or loss.
The Board regularly reviews the effectiveness of the Group’s risk
management and internal control systems. In anticipation of the revised
requirements set out in the 2024 UK Corporate Governance Code, with
Provision 29 coming into effect for periods commencing on or after 1
January 2026, the Group has continued to take proactive steps during
the year to enhance its risk management and internal control framework.
The Board, supported by the Audit Committee, has overseen a structured
programme of work to strengthen the Group’s internal controls
environment. This programme has focused on ensuring the Group is
well-positioned to meet the Code’s enhanced expectations around the
effectiveness of internal controls and the associated Board declaration.
The Board’s monitoring covers all controls, including financial, operational
and compliance controls and risk management. It is based principally
on reviewing reports from management to consider whether significant
risks are identified, evaluated, managed, and controlled and whether
any significant weaknesses are promptly remedied and indicate a need
for more extensive monitoring. The Board has also performed a specific
assessment for the purpose of this annual report. This assessment
considers all significant aspects of risk management and internal control
arising during the period covered by the report, including the work carried
out by the Group’s Store Compliance team. The Audit Committee assists
the Board in discharging its review responsibilities.
A formal risk identification and assessment exercise has been carried
out resulting in a risk framework document summarising the key risks,
potential impact and the mitigating factors or controls in place. The key
risks the Group faces are detailed on pages 46 to 50 in the Operating
and Financial Review. The Board has a stated policy of reviewing
this risk framework at least once a year or in the event of a material
change. The risk identification process also considered significant
non-financial risks.
During the reviews in the year, the Directors:
• challenged the framework to ensure that the list of significant risks
to business objectives is still valid and complete;
• considered new and emerging risks to business objectives and
included them in the framework if significant;
• ensured that any changes in the impact or likelihood of the risks are
reflected in the risk framework; and
• ensured that there are appropriate action plans in place to address
unacceptable risks.
The results of this exercise have been communicated to the Board
and the Audit Committee. This was in the form of a summary report
which included:
• a prioritised summary of the key risks and their significance;
• any changes in the list of significant risks or their impact and
likelihood since the last assessment;
• new or emerging risks that may become significant to business
objectives in the future;
• progress on action plans to address significant risks; and
• any actual or potential control failures or weaknesses during the
period (including “near misses”).
During the course of its review of the risk management and internal
control systems, the Board has not identified, nor been advised of
any failings or weaknesses which it has determined to be significant,
consistent with the prior year. Therefore, a confirmation in respect of
necessary actions has not been considered appropriate.
All management are encouraged to stay abreast of all technical and
other competitive advances that could impact the business.
Going concern
The Group’s activities, and a fair review of the business, are included
in the Strategic Report on pages 18 to 74. The financial position of the
Group, including its cash flow, liquidity, and committed debt facilities are
discussed in the Financial Review on pages 40 to 45.
The Directors have a reasonable expectation that the Group and Company
have adequate resources to continue operations for the foreseeable
future. They have therefore continued to adopt the going concern basis
in preparing the financial statements.
Engagement with stakeholders
The long-term success of our business is dependent on the way we
work with our various stakeholders. The table below shows our key
stakeholder groups, how we engage with them, and how the results of
this engagement are reported up to the Board and influence the decision
making with the business. Not all the information is reported directly to
the Board, however it informs business-level decisions with an overview
of developments being reported on a regular basis to the Board.
The Board has identified a number of key stakeholders which it seeks to
engage with on a regular basis. The key stakeholders are our employees,
our shareholders, our customers, our suppliers, and our communities.
Annual Report and Accounts 2026 Big Yellow Group PLC86
Stakeholder Group Form of engagement How this influenced the Board during the year
Our employees
We carried out an engagement survey of our staff in May 2025,
which showed a very pleasing engagement score of 86% and a
response rate of 100%.
The Directors have continued to visit every store in the
portfolio over the course of the year.
Further detail is provided below on how Anna Keay, the
designated Workforce Engagement Director has carried
out her role during the year.
Our commitment to exceptional customer service is based upon
creating a supportive workplace and empowering our team.
We prioritise attracting, retaining, and motivating individuals
who uphold strong values. By investing substantially in training,
we attain high standards and encourage professional growth
across our workforce. Our recruitment process values personality
and diversity above formal qualifications, ensuring we bring in
people who are the best cultural fit. We foster collaboration and offer
benefits such as bonus schemes, share incentives, and highlight
individual contribution and achievements through our Recognition
Points Scheme.
We are constantly striving to enhance our work environment
and the benefits of being part of Big Yellow. During the past year
this has included enhancing our careers pages and launching a
vacancies mini-site, developing diversity-focused dashboards and
promotion toolkits and partnering with apprenticeship providers to
support employee progression and foster an inclusive workplace.
We also undertook a thorough review of our Inclusivity and
Diversity Committee, establishing gender and ethnicity-focused
sub-committees, introduced a Harassment Policy and provided
assessments and tailored support for neuro diverse team members.
A range of initiatives have been implemented to support
employee development, including career insights videos, virtual
masterclasses, expanded eLearning and workshops, mentoring
and a video-based induction for part-time staff. These measures,
alongside new performance reviews and talent mapping, aim to
increase flexibility, accessibility, personal growth and succession
planning across the business.
There is further detail on how the Board engage with our people on
page 89.
Our shareholders
The Company has an active dialogue with its shareholders
through a programme of investor meetings which include
formal presentation of the full and half year results.
The Executive Board Directors have participated in a
number of investor conferences and meetings during
the year. During the year ended 31 March 2026, the Chief
Executive and other Executive Board Directors carried out
304 meetings with UK and overseas institutional shareholders
and potential investors. These meetings comprised group and
individual presentations.
The Board also welcomes the interest of private investors
and believes that, in addition to the Annual Report and the
Company’s website, the Annual General Meeting is an ideal
forum at which to communicate with investors and the
Board encourages their participation.
The Board receives regular feedback on investor perceptions about
the Company. After each set of results, key investors are interviewed
on their perceptions of the performance of the business and
management. The findings are reviewed by the Board.
At each Board Meeting, the Board is updated on any shareholder
meetings that have taken place, and any views expressed, or issues
raised by the shareholders in these meetings.
Annual Report and Accounts 2026 Big Yellow Group PLC 87
Financial StatementsStrategic Report Governance Report
Corporate Governance Report continued
Stakeholder Group Form of engagement How this influenced the Board during the year
Our customers
The Group sends surveys to all customers who have moved in
and moved out of the business. A high response rate is received
to these surveys, which show a net promoter score of 85.0
(2025: 82.8).
The net promoter scores are reported to the Board at each Board
meeting and any recurring themes highlighted to allow discussion
around the approach to our customers.
The Directors discuss Net Promoter Scores, Google reviews and
Trustpilot scores, with store teams on their regular visits to the
Group’s stores.
The net promoter scores achieved from our customers are used as
one of the metrics in the bonus plan of the Executive Directors.
Our suppliers
Regular meetings are held between suppliers and their
Big Yellow contact. Appropriate external tendering is carried
out for any new suppliers.
On anti-corruption and anti-bribery matters, we expect all our
suppliers to be compliant with the Modern Slavery Act and
we work closely with our suppliers to promote best practice.
During the prior year we engaged with suppliers we had
identified as being within potentially high-risk categories and
carrying out audits of their compliance with these regulations
and providing support to them.
The Board annually approves the Group’s Modern Slavery statement.
The Group is a member of the Fair Payment Code.
During the year we continued our work with our suppliers on supply
chain ethics. No material issues were noted, albeit we have been
working with them during the year to improve standards further.
Our communities
We demonstrate Big Yellow’s culture and commitment to our
communities through the work of the Big Yellow Foundation
which aims to help vulnerable people lead better lives, working
in partnership with several charities.
Big Yellow matches any donations from our customers at
move-in and move-out. We also match any funds raised by our
employees and allow each member of our team one paid day
per year for volunteering.
We also support approximately 200 local charities with free or
discounted space throughout our network.
The Board receives regular updates regarding the Foundation’s
activities. The Board endorses the culture of giving back time to
support these charities and the financial commitment made by
Big Yellow.
Jim Gibson, CEO, is the Chair of the Trustees of the
Big Yellow Foundation.
Our environment
We engage relevant subject matter experts to assess the
impact our business has in the first instance as part of the
planning and construction process. Our partners perform
detailed assessment on likely impacts on land, water,
biodiversity, air quality and other key aspects. It is our aim
to not just minimize any negative aspects, but also ‘listen’
carefully and enhance where possible, through the installation
of green roofs or bird or bat nesting boxes for example.
We extensively report on our Operational impacts, such as
energy consumption, carbon emissions, waste we create, and
water we use, as part of our Full ESG Report and have systems
and processes in place to manage material aspects, such
as energy.
The Board receives regular updates on our environmental
performance and activities.
The Board endorses the Group’s commitment to investing at
all stages of our stores’ lifespan to ensure our impact on the
Environment is minimised. It signs off on the budgets to deliver
solar installations and electric vehicle charging pods for example.
The Board established a formal Sustainability Committee in 2020
chaired by Non-Executive Director Heather Savory.
Annual Report and Accounts 2026 Big Yellow Group PLC88
Employee relations and companyculture
Our teams are a key resource of the business. From the start we have
always aimed to create a culture which is accessible, apolitical, inclusive,
non-hierarchical, socially responsible, and very importantly, an enjoyable
place to work. We believe in the employees benefiting from the success
of the business. All staff are eligible for an annual bonus; a Sharesave
scheme is open to all employees; and the Company’s Long Term Incentive
Plan is provided to a significant number of employees.
The Executive Board Directors spend a considerable amount of time
meeting with the Group’s employees and visit every store at least once
a year. We recognise the value of the culture of the business and these
visits create an opportunity for it to be cascaded from the boardroom.
The Group’s Non-Executive Directors also participate in some of these
visits, allowing them to develop and maintain a greater insight into the
business, producing an informed and higher quality Board discussion
on employee matters, and to assess how the Group’s culture has been
embedded within the business.
The Group carries out regular engagement surveys of its staff and carried
out a full survey in May 2025, which showed a very pleasing engagement
score of 86% and a response rate of 100%. These surveys tell us what
our staff value about the business and the importance of continued
personal development. Detailed action plans are created following these
engagement surveys and a number of changes to the way we operate
have been made as a result of these surveys. The level of employee
engagement evidenced by these surveys remained very high, and
gives the Board insight into how the culture has been embedded within
the business.
Regular training is provided to the Group’s employees, and detailed
courses are provided to allow employees to further their careers and
seek promotion opportunities within the business.
The Board has, in conjunction with the work of the Audit Committee,
reviewed the whistleblowing policies that are in place for the Group’s
employees. There have been no significant issues raised under the
Group’s whistleblowing arrangements during the financial year.
Workforce Engagement Director
The Code requires that the Board should understand the views of its
key stakeholders, with a particular reference to engagement with the
workforce. Specifically, it states that for engagement with the workforce,
one or a combination of the following methods should be used:
• A Director to the main Board should be appointed from the workforce;
• A formal workforce advisory panel should report to the Board; and / or
• A designated Non-Executive Director should sit on the workforce
advisory panel.
A designated Non-Executive Director, Anna Keay, has been chosen as the
primary method of workforce engagement for Big Yellow.
She oversees and is responsible for the following:
• involvement in the Workforce Engagement Group discussions and
occasional attendance at Workforce Engagement Group meetings;
• involvement in key employee project groups where for example
employee views are sought on the business or policy and
procedural changes;
• maintaining an awareness of the suggestions made under
the Company’s Bright Ideas Scheme to include key trends and
awards made;
• along with all the Company’s Non-Executive Directors, participation
on store tours (pre-planned visits to individual stores);
• along with all the Company’s Non-Executive Directors attending the
Annual Sales Conference;
• provision of feedback to the Board on the bi-annual employee
engagement survey, with assistance from the Human Resources
team and our survey partner;
• receiving detailed feedback from the Executive Board Directors on
their interaction with employees;
• regular meetings with the Head of HR to discuss employee relations
and issues;
• annual face-to-face sessions with groups of employees in different
areas of the business to hear views and concerns;
• acting as an alternative contact to whom employees can report
confidential matters and raise concerns under the Company’s
Whistleblowing Policy; and
• reporting back to the Board and Non-Executive Directors on
the above.
Annual Report and Accounts 2026 Big Yellow Group PLC 89
Financial StatementsStrategic Report Governance Report
Committee members
and attendance
Member
Number
of meetings
attended
Vince Niblett – Chair and Senior IndependentDirector
Anna Keay – Member
Michael O’Donnell – Member
Laela Pakpour Tabrizi – Member
Heather Savory – Member
attended
absent
not applicable
Nominations Committee Report
The Committee is responsible for reviewing the Composition of the
Board. It also makes recommendations for membership of the Board
and considers succession planning for Directors. The Committee is also
responsible for evaluating Board and Committee performance.
Introduction
The Nominations Committee is responsible for reviewing the structure,
size and composition of the Board and giving consideration to succession
planning for Directors and other senior Executives. Where changes
are required, it is also responsible for the identification, selection and
proposal to the Board for approval of persons suitable for appointment
or reappointment to the Board, whether as Executive or Non-Executive
Directors and to seek approval from the Remuneration Committee of
the remuneration and terms and conditions of service of any proposed
Executive Director appointment. The Chair of the Committee reports to
the Board as appropriate to enable the Board as a whole to agree the
appointments of new Directors. The Committee meets at least once
a year and otherwise as required and as determined by its members.
The Committee reviews the Board’s effectiveness on an annual basis,
using external advisors every three years to assist with this.
The terms and conditions of appointment for the Non-Executive Directors
are available for inspection at the Company’s Head Office during normal
working hours. They are also available for inspection at the Company’s AGM.
Board performance review
In line with the recommended three-year cycle for externally facilitated
reviews, the Board commissioned Simon Robertson Associates LLP
(“SRA”) to carry out an independent external review of its effectiveness
during the 2026 financial year. The review was to evaluate the operation
of the Board and understand how effectively it supports the Company’s
strategy, governance and long-term success. The FRC’s updated 2024
Code was considered within the bounds of the review.
An overview of the process is as follows.
January 2026
SRA appointed to undertake review. Scope, process and
timetable agreed with Senior Independent Director (SID).
Particular focus to be paid to governance and internal
controls in line with updated 2024 Code.
February –
April 2026
SRA provided with requested information (incl. board
papers, investor feedback and broker research) and spoke
individually with each Director, the Company Secretary and
other non-Board members who attend or support the Board
and its Committees including external advisers
March 2026
SRA attended and observed the scheduled Board meeting.
Preliminary findings discussed with both the Chairman and
the SID.
April – May 2026
SRA attended the May Board meeting to discuss its findings
and talk through its recommendations
SRA finalised its report and produced a summary document
for inclusion in the Company’s 2026 Annual Report
Annual Report and Accounts 2026 Big Yellow Group PLC90
Context of review
This is the third consecutive external Board review that SRA has
undertaken for the Company.
The review comes at an opportune moment. During the course of the
financial year, the Company was subject to a public approach and
also effected a planned CEO succession. The current macroeconomic
environment provides a heightened test of the Company’s long term and
successful strategy. These conditions and events, both scheduled and
unscheduled, provide a real world context for an evaluation of the Board’s
approach and handling of varied matters.
Findings
Overall, the review concluded that the Board and its Committees
continue to operate effectively and that the Board demonstrates strong
oversight, and leadership, of the Company’s strategic priorities, financial
performance, risk management and governance framework. SRA was
particularly complimentary of the thoughtful succession planning,
and carefully orchestrated execution, that has led to the new CEO
appointment. The distinct entrepreneurial culture of the organisation is
still evident and well embedded in the Company’s culture and values.
It is a particular feature of the Company that the Board strikes a
balance between detailed Board materials, executive briefings and
open discussion. There is appropriate coverage of risk, financial, ESG
and legal matters while allowing for extensive discussion of high level
strategic and commercial issues. Discussion at the Board is driven by a
culture of dynamic informality allowing for open debate and varied input.
This is reinforced by an open and low ego mindset and the high quality of
the participants.
SRA’s main recommendations were:
• continue planning for the next phase of succession across all key
Board roles and ensure contingency arrangements are in place;
• foster engagement between senior management and Board
members, building on the positive foundations already in place; and
• maintain the quality of information flow to the Board – with input
from both internal and external parties – to ensure it provides
appropriate analysis to support informed discussion, challenge
and decision-making. There should be a focus around evolving
technology, particularly AI, and its potential impact on the business.
The Board has discussed the findings of the review and agreed actions
to support these recommendations. Progress against these areas will
be monitored during the year and will inform subsequent internal Board
reviews within the broader review cycle.
Director evaluation
During the current year, the Executive Chairman evaluated the
performance of the other Executive Board Directors, and the
performance of the Chairman was evaluated by the Senior Independent
Non-Executive Director. It was considered that the individuals were
operating effectively, with appropriate procedures put in place for
minor areas identified for improvement.
Succession planning
It is a key responsibility of the Committee to advise the Board on
succession planning. The Committee ensures that any future changes
in the Board’s composition are foreseen and effectively managed.
The Board comprises a team of four Executive Board Directors,
two of whom were co-founders of the Company, complemented by
Non-Executive Directors who have wide business experience and
skills as well as a detailed understanding of the Group’s philosophy
and strategy. The Executive Board Directors have worked together for
a significant length of time. Continuity of experience and knowledge,
particularly of self storage, within the executive team is important in a
long-term focused business such as Big Yellow.
Jim Gibson, CEO, has announced his intention to retire from the
Company at the Annual General Meeting in 2026. As part of the
Company’s succession planning for this eventuality, John Hunter was
recruited as Chief Operating Officer in 2024 and will step up to replace
Jim from the AGM. Nicholas Vetch and the other Executive Directors have
confirmed individually and collectively that they all remain committed to
the business for the foreseeable future. With Jim Gibson, the co-founder
of the business, retiring, the board has welcomed the other co-founder,
Nicholas Vetch’s, continuing commitment to the Group. The risk of
unforced succession within the business is therefore low.
The Directors work closely together across the various departments
that each manages, and so each carries knowledge of the way
the whole business operates and would be able to take over the
running of that department in the short-term should a vacancy arise.
Equally important is the strength of the Senior Management team
within the business. The majority of department heads have worked
for the business for a substantial period of time and are highly capable
individuals. The Committee has confidence that they would be able to
step up if there is a gap in the Executive Director team at any point.
In the event of unforeseen changes, the Committee ensures that
management and oversight of the Group’s business and long-term
strategy will not be affected.
The Committee also addresses the development and continuity of
the Senior Management team below Board level and has considered
succession planning for this team during the year. The Committee also
considers the succession planning for Non-Executive Directors being
cognisant of when the nine year terms expire for each Non-Executive.
Annual Report and Accounts 2026 Big Yellow Group PLC 91
Financial StatementsStrategic Report Governance Report
Nominations Committee Report continued
Senior Independent Director
Helen Gordon will be joining the Board on 1 June 2027 and will be
appointed as the SID replacing Vince Niblett, who will step down from
the Board at this point.
The Board and the Committee have asked Vince Niblett to serve an
extra year as the Senior Independent Director until Helen is able to join
the Board. The Code sets out that serving for nine years could appear
to impair the independence of a Non-Executive Director, however if
that circumstance applies, and the board nonetheless considers that
the Non-Executive Director is independent, a clear explanation should
be provided.
In the case of Vince Niblett, he formerly held a number of senior
leadership roles within Deloitte, including as Global Managing Partner
Audit, which highlights his independent judgement. He also has no
material business relationships with the Company, its officers or major
shareholders. The external board evaluation carried out this year
highlighted that Vince and the other Non-Executive Directors proved an
effective challenge to the Executive Directors. For these reasons set out
above, the Board considers Vince to remain independent as carries out
the role of Senior Independent Directors to assist with the transition to
the new CEO, and ahead of Helen Gordon replacing him on 1 June 2027.
Big Yellow Executive team
Big Yellow operates with a leadership team of fifteen, comprising of
four Executive Board Directors, supported by eleven key executives
within the business. The Group does not have a formal Executive
Committee or formal Operating Board, as a more flexible approach to
the day-to-day management of the business is used within a relatively
flat management structure.
In addition to the three Executive Board Directors, the other members
of the Executive team cover finance, sales and marketing, operations,
facilities, construction, property acquisitions, human resources,
information technology and digital security, and ESG.
The business is run through small sub-groups of decision-making
committees, which meet regularly throughout the year around
particular key delivery areas which contribute to our growth and success.
These committees are attended by members across the leadership team
and other employees as required. All of these meetings are also attended
by at least one of the Executive Board Directors, and in many cases more
than one Executive Director. All strategic and acquisition decisions are
made at the PLC Board level and then the Committees implement and
take the detailed decisions to drive operational performance and deliver
growth. There are also specific thematic executive committees, such as
an Environmental Committee and a Health and Safety Committee.
Gender identity reporting under LR9.8.6R(9)
and LR9.8.6R(10)
All aspects of diversity, including gender are considered at every
level of recruitment. All appointments to the Board are made on merit.
The Board’s policy states that the Board seeks a composition with the
right balance of skills and diversity to meet the demands of the business.
The listing rules set out a target of 40% representation of the Board as
women. At 31 March 2026, 33% of the Board were women. Following the
retirement of Jim Gibson in July 2026, the proportion of women on
the Board will be 37.5%, with three of the eight Board positions filled
by women.
The listing rules also target Boards to have at least one woman in the
roles of Chair, Senior Independent Director ("SID") and/or as CEO or CFO.
As mentioned above, Helen Gordon will be joining the Board in June 2027
and will be appointed as the SID replacing Vince Niblett, who will step
down from the Board in June 2027. We will therefore have met the target
next year of having at least one woman in these roles, and the proportion
of women on the Board will be 50%.
Gender diversity of the Board, Key Executives and Company at
31 March 2026 is set out below:
Number
of board
members
% of
the board
Number
of senior
positions
(CEO, CFO,
SID and
Chair)
Number in
executive
management
Percentage
of executive
management
Men 6 66.7% 4 5 45%
Women 3 33.3% 6 55%
Not specified/
prefer not to say
The data in the table was collected via written submissions completed by
each relevant individual within scope of the reporting requirements set
out in Listing Rule 9.8.6R(10).
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Board Key
Executives
Board
and Key
Executives
All
employees
55%
45%
33.3%
66.7%
45%
55%
46%
54%
Female
Male
Annual Report and Accounts 2026 Big Yellow Group PLC92
Ethnic background identity reporting under
LR9.8.6R(9) and LR 9.8.6R(10)
As at 31 March 2026, being the relevant reference date for the purposes
of Listing Rule 9.8.6R(9)(a), two of the Board’s nine members identified
as non-white (22%), exceeding the target set in the Listing Rules and the
Parker Review.
Number
of board
members
% of
the board
Number
of senior
positions
(CEO, CFO,
SID and
Chair)
Number in
executive
management
Percentage
of executive
management
White British
or other White
(including
minority-white
groups) 7 78% 3 11 100%
Mixed/Multiple
Ethnic Groups 1 11% 1
Asian/Asian
British
Black/African/
Caribbean/Black
British
Other ethnic
group, including
Arab 1 11%
Not specified/
prefer not to say
The data in the table was collected via written submissions completed by
each relevant individual within scope of the reporting requirements set
out in Listing Rule 9.8.6R(10).
External appointments
On making new appointments, the Board takes into account the other
demands on a Director’s time. Prior to any appointment, significant
commitments are disclosed with an indication of the time involved.
Any additional external appointments are only undertaken with prior
approval of the Board. The Group’s Executive Board Directors may not
take on more than one Non-Executive Directorship within a FTSE 350
company or other significant and time-consuming appointment.
Directors standing for re-election
All of the Directors will retire in accordance with the UK Corporate
Governance Code and will offer themselves for re-election at the Annual
General Meeting, with the exception of Jim Gibson, who is retiring from
the Board at the AGM.
Following a performance appraisal process, the Board has concluded that
the Directors retiring are effective, committed to their roles and operate
as effective members of the Board.
The Board, on the advice of the Committee, therefore recommends the
re-election of each Director standing for re-election. Full biographical
details of each Director are available on pages 80 to 82.
Vince Niblett
Nominations Committee Chair | 18 May 2026
Annual Report and Accounts 2026 Big Yellow Group PLC 93
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Committee members
and attendance
Member
Number
of meetings
attended
Heather Savory – Chair
Anna Keay – Member
Vince Niblett – Member
Michael O’Donnell – Member
Laela Pakpour Tabrizi – Member
Nicholas Vetch – Member
Jim Gibson – Member
John Hunter – Member
John Trotman – Member
attended
absent
not applicable
Introduction
The Sustainability Committee is responsible for:
• overseeing the Group’s sustainability framework and strategy;
• monitoring sustainability performance against agreed targets;
• providing guidance on environmental risks and opportunities and
their impact on the business; and
• overseeing ESG-related disclosures, including external assurance.
The Committee maintains a primary focus on environmental matters,
reflecting the most material impacts and opportunities for the Group.
Social and governance matters are considered at Board level and
through other governance structures, with appropriate oversight and
coordination across the business.
Governance and oversight
The Sustainability Committee meets twice a year: in September and
in March, attended by all Big Yellow Board Members and the Head of
Sustainability.
The Head of Sustainability and the delivery of Big Yellow’s Sustainability
Strategy are supported through an executive-level, cross-disciplinary
Environmental Committee of Big Yellow staff, with external experts called
in to assist as and when required.
During the year, the Committee has continued to oversee the evolution
of Big Yellow’s sustainability approach, ensuring that it remains aligned
with regulatory developments, stakeholder expectations and long-term
business strategy.
Strategy and performance
Big Yellow’s sustainability strategy continues to focus on reducing
environmental impact while supporting long-term operational and
financial resilience.
During 2025/26, the Committee oversaw continued delivery against
key strategic priorities, including energy generation, energy efficiency
and emissions reduction. Big Yellow remains committed to its long-term
target of self-generating more power than we consumer across
the estate by 2030 and to delivering its Science-Based Targets for
emissions reduction.
Progress during the year demonstrates that the strategy is delivering
measurable outcomes, supported by sustained investment and
operational focus.
Sustainability Committee Report
Annual Report and Accounts 2026 Big Yellow Group PLC94
Operational delivery
The Committee reviewed progress across Big Yellow’s core retrofit
programmes, which continue to form an integrated approach to energy
and emissions management.
Progress was made in the expansion of solar generation across the
estate, with total installed capacity reaching 9.6MW*. Installations were
completed across both new developments and existing stores, alongside
the initial upgrade of older systems to improve long-term performance.
The battery storage programme has progressed from pilot to early-stage
rollout, with systems installed at new stores and additional retrofit
locations. This builds on a multi-year pilot phase and reflects a more
refined, scalable approach to deployment.
Energy efficiency initiatives have also been expanded, with upgrades
delivered across 24 stores* during the year. These projects have
achieved approximately 25% energy savings at upgraded locations and
demonstrated strong financial returns, supporting a wider rollout across
the estate.
Together, these programmes are transforming Big Yellow’s energy model,
reducing reliance on grid electricity, improving resilience and delivering
measurable cost savings.
Emissions and Data
The Committee continues to oversee progress against the Group’s
Science-Based Targets, which cover Scope 1, Scope 2 and relevant
Scope 3 emissions.
During the year, Scope 1 and Scope 2 emissions reductions have been
driven by structural changes, including the near elimination of gas from
the estate, increased on-site renewable energy generation and improved
energy efficiency. The Group remains ahead of the trajectory required to
meet its targets.
In relation to Scope 3, the Committee has focused on improving data
quality and strengthening the foundations for long-term emissions
management. A new data management platform has been implemented,
enabling improved visibility of emissions across key categories and
supporting a transition from spend-based estimates to primary data.
Work has also continued on understanding embodied carbon through
Whole Life Cycle Assessments, providing greater insight into the
impact of development activities and supporting more informed
decision-making.
Looking Ahead
The Committee will continue to oversee the delivery of the Group’s
sustainability strategy, with a focus on maintaining momentum while
strengthening data, governance and reporting capabilities.
Key priorities for the coming year include:
• continued expansion of solar and battery infrastructure;
• rollout of energy efficiency measures across the remaining estate;
• further improvements in Scope 3 data quality and supplier
engagement; and
• integration of carbon considerations into procurement and
development decisions.
The Committee remains confident that the Group is well positioned to
deliver against its long-term targets, supported by a clear strategy,
strong governance and a track record of operational delivery.
Chair’s Statement
I am pleased to report that Big Yellow has made strong progress in
the delivery of its sustainability strategy during 2025/26.
Big Yellow has continued to demonstrate that environmental
performance and commercial value are closely aligned, with
investments in energy infrastructure and efficiency delivering
both emissions reductions and financial benefits.
The achievement of CDP A List recognition during the year is a
clear indication of the strength of the Group’s approach, reflecting
both the maturity of its governance and the effectiveness of its
operational delivery.
The Committee will continue to support the business in maintaining
this momentum, ensuring that sustainability remains embedded in
decision-making and aligned with long-term value creation.
Heather Savory
Sustainability Committee Chair | 18 May 2026
* Figures assured by SGS
Annual Report and Accounts 2026 Big Yellow Group PLC 95
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Attendance at Remuneration
Committee meetings
Attendance at meetings of the individual Directors at the
Remuneration Committee Meetings that they were eligible
to attend is shown in the table below
Committee members
and attendance
Member
Number
of meetings
attended
Michael O’Donnell – Chair
Anna Keay – Member
Vince Niblett – Member
Laela Pakpour Tabrizi – Member
Heather Savory – Member
attended
absent
not applicable
This report has been prepared by the Remuneration Committee and
approved by the Board. It has been prepared in accordance with
Schedule 8 of the Large and Medium-size Companies and Groups
(Accounts and Report) (Amendment) Regulations 2013 (the “Regulations”).
Introduction
The report is divided into three main sections:
• The Annual Statement – which summarises the remuneration
outcomes in the year ended 31 March 2026 and how the
Remuneration Policy will be operated in the year ending
31 March 2027;
• The Remuneration Policy Report – which sets out the current
Remuneration Policy which was approved by shareholders at
the 2025 AGM; and
• The Annual Report on Remuneration – which sets out the link
between Company performance and remuneration and payments
and awards made to the Directors in respect of the year just ended.
The Companies Act 2006 requires the auditor to report to the
shareholders on certain parts of the Remuneration Report and to state
whether, in their opinion, those parts of the report have been properly
prepared in accordance with the Regulations. The parts of the Annual
Report on Remuneration that are subject to audit are indicated in
the report.
Remuneration Committee Report
Annual Report and Accounts 2026 Big Yellow Group PLC96
The Committee and its Work
During the Year
Committee Chair: Michael O’Donnell
Current Committee members: Vince Niblett, Anna Keay, Laela
Pakpour Tabrizi and Heather Savory
Terms of Reference: https://corporate.bigyellow.co.uk/
investors/corporate-governance
The Committee met four times during the year under review.
The Committee’s main activities during the year ended
31 March 2026 (full details are set out in the relevant sections
of this report) included:
• Agreeing Executive Director base salary increases
from 1 April 2026 (and from appointment in respect
of John Hunter’s promotion to CEO upon Jim Gibson’s
forthcoming retirement);
• Agreeing the cash annual bonus awards for the year ended
31 March 2025 and setting the targets for the year ended
31 March 2026;
• Agreeing the deferred annual bonus plan awards for the year
ended 31 March 2025 and setting the targets for the year
ended 31 March 2026;
• Reviewing the EPS and Total Shareholder Return (“TSR”)
performance targets and determining the percentage
vesting for the 2022 LTIP awards which vested in 2025;
• Reviewing the CEO Pay Ratio calculations and disclosures;
• Reviewing the Company’s Gender Pay calculations
and disclosures;
• Reviewing the Company’s Ethnicity Pay calculations and
disclosures; and
• Reviewing the 2025 AGM voting results and considering
shareholder feedback received.
Annual Statement
Dear Shareholder
I am pleased to present the Directors’ Remuneration Report for the year
ended 31 March 2026.
Performance, Decisions and Reward Outcomes for the
year ended 31 March 2026
The business conditions and performance of the Group in the year ended
31 March 2026 are described more fully in the Chairman’s Statement and
the Operating and Financial Review of this Annual Report. In summary:
• The business of the Group performed resiliently despite the current
geopolitical and economic headwinds;
• Big Yellow remains the clear UK brand leader in self storage and
delivered growth in revenue, and adjusted profit for the seventeenth
year in a row;
• Revenue and adjusted profit before tax both increased by 2%; and
• Dividends are up by 2% on the prior year.
Payments made to the Executive Board Directors under the cash annual
bonus plan for the year ended 31 March 2026 amounted to 6.7% of salary
(out of a maximum of 25% of salary), based on performance against
pre-set targets for occupancy, store profitability, store audits and
customer satisfaction. The targets set, and the out-turn, were identical
to the average bonus awarded across the stores and head office.
Awards made to the Executive Board Directors under the deferred annual
bonus plan for the year ended 31 March 2026 amounted to 67.8% of
salary (out of a maximum of 125% of salary), based on performance
against financial and non-financial performance targets linked to the
business plan.
In respect of the Long Term Incentive Plan (“LTIP”) awards granted in
2022, which vested in July 2025, three-year EPS and TSR performance
resulted in 20% of awards vesting.
Further details of the targets, and performance against the targets, for
cash and deferred annual bonus plans and share award vesting levels are
set out in the Annual Report on Remuneration.
Operation of the Policy and use of discretion
The Remuneration Policy operated as intended for the year ended
31 March 2026, and no discretion was applied.
Annual Report and Accounts 2026 Big Yellow Group PLC 97
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Remuneration Committee Report continued
Implementing the Policy for the Year Ending 31 March 2027
Base salary
The Committee continues to operate a policy of targeting base salaries “close to (but generally just below) median” although current base salary
levels are well below the market level for a FTSE 250 company of Big Yellow’s size and complexity. From 1 April 2026, Executive Director salary levels
were increased by 2.5% which was in line with the increase across the wider workforce (albeit a proportion of lower paid team members received a
higher increase).
Chief Executive
(Jim Gibson)
Executive Chairman
(Nicholas Vetch)
Chief Financial Officer
(John Trotman)
Chief Operating Officer
(John Hunter)
From 1 April 2025 £519,925 £443,125 £384,050 £384,050
From 1 April 2026 £532,925 £454,225 £393,675 £393,675
% increase 2.5% 2.5% 2.5% 2.5%
As announced on 2 March 2026, Jim Gibson will retire as CEO with effect from the AGM on 20 July 2026 and John Hunter has been appointed to replace
him as CEO from that date. Reflecting the change in role and responsibilities, John Hunter’s salary will be increased from £393,675 to £475,000
from appointment.
Pension & benefits
Pension provision for the Executive Directors will continue at 6% of salary, which is in line with the pension offered to the general workforce.
Benefit provision will remain unchanged (private fuel, private medical insurance, permanent health insurance, life assurance and relocation
allowances, where relevant).
Annual bonus
Annual bonus potential will continue to be capped at 150% of salary for the year ending 31 March 2027.
Up to 25% of salary will continue to be aligned to the workforce annual bonus (measured against store performance, through occupancy growth, store
profitability, store audits and customer satisfaction scores). Any bonus earned under this part will be payable in cash, following the year ending
31 March 2027.
The remaining 125% of salary will continue to be measured against financial, operational, real estate and strategic targets measured over the financial
year ending 31 March 2027. Any award under this part will be delivered in Big Yellow shares in line with the Directors’ Remuneration Policy.
LTIP
The LTIP will continue to operate in its current form and the targets for the 2026 LTIP awards are as follows:
Weighting
Threshold
(25% of this part of an award vests, other than for
adjusted EPS where 0% vests at threshold)
Maximum
(100% of this part of an award vests)
Adjusted EPS
50% 2% p.a. 6% p.a.
Relative TSR
30% Median Upper Quintile
Installation of solar and batteries at the Group’s stores
10% Install solar panels on 12 stores, and
batteries on 8 stores
Install solar panels on 20 stores and
batteries on 12 stores
Energy efficiency retro-fit project
10% 45 of the Group’s stores having the energy
efficiency retro-fit programme installed
60 of the Group’s stores having the energy
efficiency retro-fit programme installed
In setting this year’s targets the Committee has taken into account the current macroeconomic climate, the Group’s business plan and market
expectations of Big Yellow’s performance.
Annual Report and Accounts 2026 Big Yellow Group PLC98
Shareholding guidelines – in employment
The guideline to build and maintain a holding of at least 200% of salary in shares of the Company will continue to apply. Where a recently appointed
Executive Director does not meet the 200% of salary ‘in employment’ shareholding guideline in the future, 100% of the net of tax shares which vest
under any discretionary share award are to be retained.
Shareholding guidelines – post employment
The post-cessation shareholding guideline whereby Executive Directors will need to retain shares equal to 100% of the shareholding guideline (or the
actual number of shares held against the guideline if the guideline is not met at cessation) up until the second anniversary of cessation will continue
to apply.
Non-Executive Directors
Non-Executive Director base fees for the year ending 31 March 2027 have been increased by 2.5% (in line with the general workforce increase)
to £50,325. The increment for Committee Chairs and additional responsibilities has also been increased by 2.5% to £12,500 for the year ending
31 March 2027. These increases took effect from 1 April 2026.
Conclusion
I hope that, at the AGM on 20 July 2026, you will support the resolution on the remuneration paid to the Directors in the last financial year, and the
implementation of the Remuneration Policy for the forthcoming year.
I would like to extend my thanks to my fellow colleagues on the Committee for their support and work in 2025/26.
Michael O’Donnell
Chair of the Remuneration Committee | 18 May 2026
Directors’ Remuneration Policy
This section of the Remuneration Report contains the Company’s Directors’ Remuneration Policy (the “Policy”) which governs the Company’s approach
to remuneration. The full Policy as approved by shareholders is set out in the Annual Report and Accounts 2025.
It is the policy of the Company to ensure that the executive remuneration packages are designed to attract, motivate, and retain Directors of a high
calibre and reward the executives for enhancing value to shareholders.
As a result, a substantial element of the remuneration of the Executive Board Directors is structured to be dependent on the performance of the
Company. The policy aims to support a performance culture where there is appropriate reward for the achievement of strong Company performance
without creating incentives which will encourage excessive risk-taking or unsustainable Company performance.
Policy scope
The Policy applies to the Executive Board Directors and Non-Executive Directors.
Policy duration
The current Directors’ Remuneration Policy Report was approved by a binding shareholder vote at the AGM on 17 July 2025.
Annual Report and Accounts 2026 Big Yellow Group PLC 99
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Remuneration Committee Report continued
Summary Policy table (Executive Board Directors)
The main components of the Directors’ Remuneration Policy, and how they are linked to and support the Company’s business strategy
ware summarised below:
Executive Board Directors
Purpose and link
tostrategy Operation Maximum potential value
Performance conditions
andassessment
Base salary
To provide competitive
fixed remuneration
that will attract
and retain key
employees and reflect
their experience
and position in
the Company.
Base salary is normally set annually on 1 April.
When considering any increases to base salaries
in the normal course (as opposed to a change in
role or responsibility), the Committee will take
into consideration:
• level of skill, experience, scope of responsibilities
and performance;
• business performance, economic climate, and
market conditions;
• pay and employment conditions of employees
throughout the Group, including increases
provided to staff;
• inflation; and
• increases provided to Executive Board Directors
in comparable companies (although such data
would be used with caution).
Salaries are typically set after
considering the salary levels in
companies of a similar size and
complexity in the FTSE 250.
Our overall policy is normally to target
salaries at close to (but generally just
below) median levels.
Base salaries are intended to increase
in line with inflation and general
employee increases in salary.
Higher increases may apply if there is
a change in role, level of responsibility
or experience or if the individual is new
to the role.
There is no maximum salary cap
in place.
None.
Annual bonus
The annual bonus
aligns reward to
key Group strategic
objectives and
drives short-term
performance.
Executive Board Directors participate in an annual
performance-related bonus scheme.
Up to 25% of salary will be paid in cash.
If shareholding guidelines are met: Up to 125%
of salary will be payable against the Deferred
Bonus targets with two thirds awarded in shares
which vest immediately and one third awarded
in shares which vest after three years subject to
continued employment.
If shareholding guidelines are not met: Up to 125% of
salary payable against the Deferred Bonus targets
with 100% awarded in shares which vest after three
years subject to continued employment.
Dividend equivalents may be payable on deferred
share awards.
The annual bonus plan rules contain clawback and
malus provisions.
150% of salary. Assessed annually
and determined by the
Committee based on
financial, strategic and/
or personal performance
against the Group’s
business plan for each
financial year.
Long Term
Incentive Plan
The Long Term
Incentive Plan aligns
Executive Director
interests with those
of shareholders
and rewards value
creation.
Awards are made annually to the Executive Board
Directors (and certain senior managers who are in a
position to significantly influence the performance
of the Group) in the form of nil-paid options.
The awards granted under the Long Term Incentive
Plan are subject to performance conditions to be
met over a performance period of three years.
Dividend equivalents may be payable on LTIP awards
during the vesting period, to the extent awards vest.
The LTIP contains malus and clawback provisions.
A two year post vesting holding period applies to LTIP
awards granted to Executive Directors following the
2018 AGM.
200% of salary, albeit actual award
levels may be lower.
Vesting under
the LTIP will be
based on financial,
share-price, strategic
and/or ESG related
performance measures.
Annual Report and Accounts 2026 Big Yellow Group PLC100
Purpose and link
tostrategy Operation Maximum potential value
Performance conditions
andassessment
Pension
To provide competitive
levels of retirement
benefit.
Contribution made into Executive Director’s personal
pension plan, or a cash supplement of equivalent
value paid in lieu of pension contribution.
Workforce aligned
(currently 6% of salary)
None.
Other benefits
To provide competitive
levels of employment
benefits.
Benefits include:
• Private fuel;
• Private medical insurance;
• Permanent health insurance;
• Company car via salary sacrifice;
• Life assurance of four times base salary; and
• Relocation allowances (where relevant).
Other benefits may be provided where appropriate.
The type and level of benefits provided is reviewed
annually to ensure they remain market competitive.
Maximum opportunity is the total cost
of providing the benefits. There is no
monetary cap on benefits.
None.
Shareholding
policy – in
employment
To ensure that
Executive Board
Directors’ interests
are aligned with those
of shareholders over a
longer time horizon.
Requirement to build and maintain a holding of
shares in the Company, through retaining at least
100% of post-tax shares vesting in discretionary
share-based incentive plans if this guideline has not
been met.
200% of salary. N/A.
Shareholding
policy – post
employment
Requirement to retain shares equal to 100% of the
shareholding guideline (or the actual number of
shares held against the guideline if the guideline
is not met at cessation) up until the second
anniversary of cessation.
Own shares purchased and share awards granted
prior to the 2021 AGM are excluded from the post-
cessation guideline.
All Employee
Scheme
To encourage
share ownership
by all employees.
This allows them
to align their
interests with
those of investors
and to share in the
long-term success of
the Company.
Executive Board Directors may participate in any
HMRC tax favoured all employee arrangements.
In line with the prevailing HMRC limits. None.
Annual Report and Accounts 2026 Big Yellow Group PLC 101
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Remuneration Committee Report continued
Notes to the policy table
The key principle for the short and long-term incentives is to provide a strong link between reward and individual and Group performance to align the
interests of Executive Board Directors with those of shareholders.
1. Annual bonus performance measures and targets
Annual bonuses for the Executive Board Directors are based on:
• 25% of salary cash bonus: the average of the stores’ performance against their quarterly targets providing direct alignment of the Directors’
bonuses to performance (and the bonus levels) of the staff. The four Key Performance Indicators used to assess store performance are occupancy
growth, store profitability, store audits and customer satisfaction. Store targets are set every quarter and an average of the four quarters is taken.
• 125% of salary deferred share bonus: measured against pre-set financial, operational, real estate, strategic and ESG-related targets.
2. Long Term Incentive Plan performance measures and targets
Performance metrics and targets for LTIP awards will provide a direct link between the incentive for the Executive Board Directors and the long-term
value created for shareholders. The main two performance metrics, which may be supplemented by strategic and/or ESG-related metrics are:
• Relative TSR against the constituents of the FTSE Real Estate Index, given that Big Yellow’s historic performance has been closely aligned to the
performance of this Index.
• Adjusted EPS figure as reported in the audited results of the Group for the last complete financial year ending before the start of the performance
period and the last complete financial year ending before the end of the performance period.
3. Malus and clawback
The cash annual bonus, deferred annual bonus plan and LTIP include malus and clawback provisions.
Malus is the adjustment of outstanding deferred bonus and LTIP awards as a result of the occurrence of one or more of the circumstances listed below.
The adjustment may result in the value being reduced to zero. Malus will apply for the three year period from grant to vesting for the deferred bonus and
LTIP awards.
Clawback is the recovery of payments/vestings under the cash bonus and LTIP as a result of the occurrence of one or more circumstances listed below.
Clawback will apply for three years post payment of a cash bonus/grant of deferred share awards and three years post vesting for LTIP awards.
The circumstances in which malus and clawback could apply are as follows:
• discovery of a material misstatement resulting in an adjustment in the audited consolidated accounts of the Company;
• the assessment of any performance target or condition in respect of an award was based on error, or inaccurate or misleading information;
• the discovery that any information used to determine the amount of an award was based on error, or inaccurate or misleading information;
• corporate failure or the occurrence of an insolvency event;
• action or conduct of an award holder which, in the reasonable opinion of the Board, amounts to fraud or gross misconduct; and
• events or behaviour which have led to the censure of the Company by a regulatory authority or have had a significant detrimental impact on the
reputation of any Group Company.
4. Discretion
The Committee has discretion in several areas of policy as set out in this report. The Committee may also exercise operational and administrative
discretion under relevant plan rules approved by shareholders as set out in those rules. In addition, the Committee has the discretion to amend policy
with regard to minor or administrative matters where it would be, in the opinion of the Committee, disproportionate to seek or await shareholder approval.
In certain circumstances, the Committee will be required to exercise its discretion, taking into consideration the particular circumstances of an
Executive Director’s departure and/or the recent performance of the Company in determining the specific level of payments to be made.
In addition to the discretion under the terms of the annual bonus plan (both cash and deferred shares) and LTIP, the Committee has discretion to
determine whether an individual is classified as a “good leaver”.
It should be noted that it is the Committee’s policy to only apply its discretion if the circumstances at the time are, in its opinion, sufficiently exceptional,
and to provide a full explanation to shareholders where discretion is exercised. The Committee does not currently intend to amend or waive any
performance conditions.
Annual Report and Accounts 2026 Big Yellow Group PLC102
5. Differences in remuneration policy for all employees
All employees are currently entitled to base salary, benefits, pensions, and the Sharesave Scheme. Additionally, all employees are eligible for annual
bonuses with the maximum opportunity available based on the seniority and responsibility of the role held.
The Company’s LTIPs are granted to a number of key team members within Head Office, the area manager team and also to store managers.
Illustrations of application of Remuneration Policy
The graphs below seek to demonstrate how pay varies with performance for the Executive Directors (noting that John Hunter will replace Jim Gibson as
CEO from the 2026 AGM) based on the current Remuneration Policy.
The assumptions used in determining the level of pay out under given scenarios are as follows:
Scenario Description
Fixed Pay
Chief Executive Officer
(John Hunter*)
Executive Chairman
(Nicholas Vetch)
Chief Financial Officer
(John Trotman)
Base salary £475,000 £454,225 £393,675
Estimated Benefits £5,000 £5,000 £2,000
Pension (% of salary) 6% 6% 6%
On-target
50% of annual bonus award being paid and 50% vesting of the LTIP.
Maximum
100% of annual bonus award being paid (i.e. 150% of salary) and 100% vesting of the LTIP
(i.e. 200% of salary, albeit actual awards levels may be lower).
Maximum Plus 50% share
price growth
As per the Maximum scenario but assuming 50% share price growth on LTIP awards.
* From the 2026 AGM
Chief Executive Officer Executive Chairman Chief Financial Officer
£3,000
£2,500
£2,000
£1,000
£1,500
£0
£500
Minimum Target Maximum Maximum
with share
price growth
£508,500
£1,339,750
£2,171,000
£2,646,000
27%
33% 27%
36%
44% 36%
18%
100% 37% 23% 19%
Share price growth
LTIP
Annual Bonus
Fixed Pay
Minimum Target Maximum Maximum
with share
price growth
£419,296
£1,108,227
£ 1, 79 7,15 8
£2,190,833
27%
33% 27%
36%
44% 36%
18%
100% 37% 23% 19%
Minimum Target Maximum Maximum
with share
price growth
£486,479
£1,281,372
£2,076,266
£2,530,491
27%
33% 27%
36%
44% 36%
18%
100%
37% 23% 19%
Annual Report and Accounts 2026 Big Yellow Group PLC 103
Financial StatementsStrategic Report Governance Report
Summary Policy table (Non-Executive Directors)
Objective and link
to the strategy Operation Maximum potential value
Performance conditions
and assessment
Fees
To attract Non-Executive
Directors with the
requisite skills
and experience.
Fee levels are normally reviewed annually
in March.
The Non-Executive Director fee structure is
a matter for the full Board.
Non-Executive Directors may be entitled
to benefits relating to travel and office
support and such other benefits as may be
considered appropriate.
Fee levels are normally set at broadly median
levels for comparable roles at companies of a
similar size and complexity within the FTSE 250.
Fees are normally intended to increase in line
with inflation.
N/A
Non-Executive Directors’ fees comprise of a base fee, with an additional fee for Committee Chairs, the Senior Independent Non-Executive Director and
the Employee Representative Director.
Approach to recruitment remuneration of Executive Directors
The table below summarises our key policies with respect to recruitment remuneration:
Salary and
benefits
• Set by reference to market and taking account of individual experience and expertise in the context of the role.
• Salary would also be set with reference to the salary of any departing Executive Director and the remaining Executive Board Directors.
• The Executive Director would be eligible to receive benefits in line with Big Yellow Group’s benefits policy as set out in the remuneration policy table
– this includes either a contribution to a personal pension scheme or cash allowance in lieu of pension benefits in line with the policies set out in the
policy table.
Maximum
variable
incentive
• Annual bonus of up to 150% of base salary.
• Long term incentive plan award of equivalent to 200% of base salary.
Sign-on
payments
• The Company does not provide sign-on payments to Executive Board Directors.
Share
buy-outs
• Any previous outstanding share awards which the Executive Director holds which would be forfeited on cessation of his or her previous employment
may be compensated.
• Where this is the case, the general principle is that the outstanding award will be valued based on the consideration of the following factors:
– The proportion of the performance period completed on the date of the Director’s cessation of employment;
– The performance conditions attached to the vesting of the incentives and the likelihood of them being satisfied; and
– Any other terms and conditions having a material impact on their value.
• The valuation will be conducted using a recognised valuation methodology by an independent party and the equivalent ‘fair value’ may be awarded
as a one-off LTIP on date of joining under the Company’s existing long-term incentive plan. To the extent that this is not possible, a bespoke
arrangement will be used.
• To ensure effective retention of the Executive Director upon recruitment, any new award will be granted subject to performance conditions and
vesting may be over the same period as those forfeited from the previous employer or a new three year period.
• The exact terms will be determined by the Remuneration Committee on a case-by-case basis taking into account all relevant factors.
Relocation
policies
• In instances where the new Executive Director is relocating from one work location to another, the Company may provide, as a one-off or otherwise, a
relocation allowance as part of the Director’s relocation benefits.
• The level of the relocation package will be assessed on a case-by-case basis but will take into consideration any cost of living differences, housing
allowance and schooling.
Remuneration Committee Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC104
Service contracts
The Company’s policy on Directors’ service contracts is that they should be on a rolling basis without a specific end-date providing for one year’s notice.
All Executive Board Directors have contracts which reflect this policy.
The Non-Executive Directors do not have service contracts with the Company. Their appointments are governed by letters of appointment which
are available for inspection on request at the Company’s registered office and which will be available for inspection at the Company’s AGM. Each
appointment is for a period of up to three years, although the continued appointment of all Directors is put to shareholders at the AGM on an annual
basis. In addition, the appointment is terminable by either party giving notice of three months.
Payments for loss of office
Element Approach
Salary and
benefits
Salary and benefits may be paid in lieu of notice. In cases where a contract is terminated other than on the terms of the service contract, the Company
will seek to mitigate any damages payable.
There will be no compensation for normal resignation or in the event of termination by the Company due to misconduct.
Annual bonus
If the individual is a good leaver, any bonus will be paid/awarded on a pro-rata basis in respect of the period from the start of the financial year.
Deferred share awards would normally vest at the normal vesting date (although may vest at the date of cessation).
A good leaver is defined as an individual ceasing employment due to ill-health, disability, redundancy, or retirement or in any other circumstances which
the Committee permits.
A bad leaver is an Executive Director who does not fall within the category of “good leaver” and bad leavers will forfeit any entitlement to a bonus
payment in respect of the current financial year or any completed financial year in respect of which the bonus has not been paid at the cessation date.
Long term
incentives
(LTIP)
A proportion of the LTIP awards held by good leavers will vest at the Committee’s discretion determined by taking into account whether, and to what
extent, any performance conditions have been satisfied and the length of time the LTIP award has been held at the date of cessation of employment.
The LTIP awards will not normally vest until the end of the performance period with performance tested at that time, although exceptionally such awards
may, at the discretion of the Committee, vest at cessation of employment.
A good leaver is defined as an individual ceasing employment as a result of ill-health, injury, disability, redundancy, retirement, or the sale out of the
Group of his employing business or any other reason which the Committee in its absolute discretion permits.
A bad leaver is an Executive Director who does not fall within the category of good leaver, and bad leavers will forfeit any unvested awards.
Other
The Group may meet relocation and other incidental expenses on termination of employment, the fees of legal or other professional advisers,
outplacement, compensation in respect of statutory rights under relevant employment protection legislation and accrued but untaken holiday.
It may also elect to continue to provide certain benefits rather than making payment in lieu of the benefit in question.
Statement of consideration of shareholders’ views
The views of our shareholders are very important to the Committee, and we actively consulted with our major shareholders and the main representative
bodies to help formulate the current Remuneration Policy.
Any consultations on remuneration with shareholders and representative bodies will usually be led by the Chair of the Remuneration Committee.
The Remuneration Committee also considers shareholder feedback received in relation to the AGM each year at its first meeting following the relevant
AGM. This feedback, as well as any additional feedback received during any other meetings with shareholders throughout the year, is then considered as
part of the Company’s annual review of remuneration policy.
The Remuneration Committee notes that shareholders do not speak with a single voice, but we engage with our largest shareholders to ensure
we understand the range of views which exist on remuneration issues. When any material changes are proposed to the Remuneration Policy, the
Remuneration Committee Chair will consult major shareholders in advance and will offer a meeting to discuss these.
Annual Report and Accounts 2026 Big Yellow Group PLC 105
Financial StatementsStrategic Report Governance Report
Shareholder voting
The Company has an annual advisory vote from shareholders on its Remuneration Report, and a binding vote on its Remuneration Policy when a
new policy is proposed. The Group is committed to ongoing shareholder dialogue and takes an active interest in voting outcomes. Where there are
substantial votes against resolutions in relation to Directors’ remuneration, the reasons for that voting will be sought and any actions in response
will be detailed here. There have been no significant issues raised by shareholders in respect of remuneration in the year.
The table below shows the advisory vote on the 2025 Remuneration Report at the AGM held on 17 July 2025, and the binding vote on the Remuneration
Policy at the AGM held on 17 July 2025.
Votes for % Votes Against % Votes withheld
2025 Remuneration Report 155,446,919 97. 4 % 4,150,043 2.6% 787,450
2025 Remuneration Policy 156,472,693 98.0% 3,124,359 2.0% 787,360
Annual Report on Remuneration
This section of the Remuneration Report contains details of how the Directors’ Remuneration Policy was implemented during the year ended
31 March 2026.
Single total figure of remuneration (Audited)
The table below sets out the single total figure of remuneration and breakdown for each Executive Director paid in the year ended 31 March 2026.
Fixed pay
Salary
£
Taxable benefits
1
£
Pensions
2
£
Total fixed pay
£
2026 2025 2026 2025 2026 2025 2026 2025
Nicholas Vetch 443,125 434,425 9,500 9,426 26,588 26,066 479,213 469,917
Jim Gibson 519,925 509,725 11,813 13,468 31,196 30,584 562,934 553,777
John Hunter
(4)
270,413 – 2,515 – 16,225 – 289,153 –
John Trotman 384,050 376,500 2,522 2,998 23,043 22,590 409,615 402,088
Total 1,617,513 1,320,650 26,350 25,892 97,052 79,240 1,740,915 1,425,782
Variable pay Total pay
Annual bonus – cash
£
Annual
bonus – deferred
£
Long term incentive
3
£
Total variable pay
£ £
2026 2025 2026 2025 2026 2025 2026 2025 2026 2025
Nicholas Vetch 29,689 42,574 300,494 278,304 110,163 325,881 440,346 646,759 919,559 1,116,676
Jim Gibson 34,835 49,953 352,574 326,543 129,258 382,367 516,667 758,863 1,079,601 1,312,640
John Hunter
(4)
18,118 – 183,374 – – – 201,492 – 490,645 –
John Trotman 25,731 36,897 260,434 241,195 71,604 282,433 357,7 69 560,525 767,384 962,613
Total 108,373 129,424 1,096,876 846,042 311,025 990,681 1,516,274 1,966,147 3,257,189 3,391,929
(1)
Taxable benefits comprise medical cover, permanent health insurance, life insurance, company car via salary sacrifice, and private fuel usage.
(2)
Nicholas Vetch, Jim Gibson and John Trotman receive a cash supplement in lieu of their full pension contributions.
(3)
The values shown in long-term incentives in the current year are the LTIP award granted in 2022 which vested on 21 July 2025 to 20% of its maximum value and is valued using the share price on that
date of £9.48.
(4)
John Hunter joined the Board on 17 July 2025. His remuneration shown in the tables above is for the period from 17 July 2025 to 31 March 2026.
The average salary increase across the Group in the year was 3.2%.
Remuneration Committee Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC106
Cash Annual Bonus Plan awards – cash (25% of salary maximum)
The policy of the Company is that the cash bonus paid to the Executive Board Directors is the same as the average of the bonus awards (as a % of salary)
paid to all the Group’s stores on achieving their targets during the course of the year. It is an important part of the Group’s culture that the Executive
team are rewarded with the same level of annual bonus as the average for all staff.
In respect of the year under review, and in line with the average bonus as a percentage of salary paid across the stores the Executive Board Directors
received a cash bonus of 6.7% of salary (out of a maximum of 25% of salary).
Overview of the staff (and Executive Director) cash bonus scheme
The staff bonus scheme is designed on a quarterly basis, to reward each store with a bonus of up to 25% of their quarterly salary, made up of the
following four key elements set out below.
Following feedback received from our shareholders on previous remuneration reports to increase the disclosure around the annual bonus, we have
shown the average annual distribution of performance against target for each of the bonus measures across our stores and the corresponding average
pay-out as a percentage of salary which directly corresponds to the bonus percentage pay-out for the Executive Board Directors. The individual store
targets have not been disclosed as it would be impractical and commercially sensitive to disclose the targets for every one of our stores in this report.
The average performance against the four key targets and the associated bonus reward for the stores totalling 6.7% were as follows:
1. Occupancy
Stores that have recently opened receive occupancy targets on a quarterly basis, and their performance against this occupancy target contributes to
their bonus. The bonus awarded to each store increases as the store moves further ahead of target. No bonus is awarded if the store fails to meet its
target. The significant majority of the Group’s stores are bonused solely on profitability. The weighted average bonus paid to the newly opened stores
for performance against occupancy targets was 0.1% of salary for the year.
2. Profitability
Each store is set a quarterly target for profitability. The weighting of the contribution of these metrics to the bonus varies based on store occupancy,
with higher occupied stores having a higher weighting towards their performance against their profitability target.
The bonus awarded to each store increases as the store moves further ahead of target. The performance distribution of the stores’ performance against
their individual targets are provided below.
Performance against target Below target
0 to 1% ahead
of target
1 to 2% ahead
of target
2 to 3% ahead
of target
>3% ahead
of target Total
No of stores 76 19 8 4 3 110
Average bonus paid 0.3% 5.9% 15.6% 21.4 % 20.2% 3.6%
The weighted average bonus paid to stores for performance against profitability targets is therefore 3.6% of salary for the year.
3. Store audits
Stores receive a bonus if they receive a certain audit score based on visits carried out by the Group’s store compliance team. There were 98 instances of
stores receiving an audit bonus score across the year, leading to a weighted average bonus paid to the stores of 1.3% of salary.
4. Customer satisfaction
Stores are rewarded based on two elements of customer satisfaction, net promoter scores and individual customer service awards. The awards based
on net promoter scores are summarised in the table below.
NPS score <75 >75 Total
No of stores 15 95 110
Average bonus paid 0% 2% 1.7%
The weighted average bonus paid to stores for performance against net promoter scores is therefore 1.7% of salary for the year.
Annual Report and Accounts 2026 Big Yellow Group PLC 107
Financial StatementsStrategic Report Governance Report
Summary
The bonus received by the stores against their targets in the year is summarised as follows.
Category
Actual %
weighting for
category
Average % of
salary bonus paid
across stores
1. Occupancy 1.5% 0.1%
2. Profitability 53.7% 3.6%
3. Store audits 19.4% 1.3%
4. Customer satisfaction 25.4% 1.7%
Total 100% 6.7%
In line with the Remuneration Policy an award of 6.7% of salary has therefore also been paid to the Executive Board Directors for the year, which equated
to the following payments:
Nicholas Vetch £29,689
Jim Gibson £34,835
John Trotman £25,731
John Hunter £25,731
* John Hunter jointed the Board on 17 July 2025, the amount shown here is the full year value of the bonus.
Deferred Annual Bonus Plan awards – deferred shares (125% of salary maximum)
The Group operates a deferred annual bonus plan. The Remuneration Committee sets targets at the start of the financial year across a broad range of
financial and non-financial targets. The targets and the performance against them in the year is shown in the table below:
Sliding scale targets (60% weighting):
Pay-out 0% 100% Performance Pay-out
1. Revenue
Weight: 25% <£208m >£215m Revenue for the year was £209.1 million, an increase of 2% from the prior year. 16%
2. Adjusted earnings per share
Weight: 25% <57.5p >61.0p
The Group’s adjusted earnings per share for the year was 59.0p, an increase of 2%
from the prior year.
43%
3. Staff turnover
Weight: 5% >21 <15 Staff turnover for the year was 15.6% (2025: 14.5%). 90%
4. Net promoter score
Weight: 5% <70 >80
The Group’s net promoter score for the year was 85.0 (2025: 82.8), representing
exceptional levels of customer service.
100%
Remuneration Committee Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC108
Other targets (40% weighting):
Fail Pass
Pay-out 0% 100% Actual performance Pay-out
5. Property Acquisitions
Weight: 10% Acquire at least one new site for the Group during the year, either
through new site acquisition, or through the purchase of existing
self storage centres, which complement the existing portfolio and
which are consistent with the Group’s strategy and long-term plans.
During the year, the Group acquired a development
site in Bethnal Green, a high quality zone 2 London
development site, and a high quality site in
central Coventry.
100%
6. Planning
Weight: 10% Obtain planning on at least two of the Group’s development sites
during the year.
During the year, the Group obtained planning
consent on its development sites at Leamington Spa
and Leicester.
100%
7. Harrow and Staines
Weight 10% Complete the construction of the Staines Industrial Scheme
and dispose of at least one of the Harrow and Staines industrial
schemes by the end of the financial year.
This target was not met. 0%
8. Foundation
Weight 10% Raise sufficient funds through our store network and matched
contributions from the Group sufficient to provide grants of a
minimum of £300,000 to our partner charities
The income raised through fundraising, matching
donations, customer donations, move-in donations
and gift-aid enabled us to provide grants of £414,000
to our charity partners over the year.
100%
Summary table
The performance against each target, and its contribution to the deferred bonus payable is summarised in the table below:
Target % achieved Weighting
Contribution to
plan vesting (%)
Revenue 16% 25% 4%
Earnings per share 43% 25% 10.75%
Staff turnover 90% 5% 4.5%
Net promoter score 100% 5% 5%
Site acquisitions 100% 10% 10%
Planning 100% 10% 10%
Harrow and Staines 0% 10% 0%
Foundation 100% 10% 10%
Total 100% 54.25%
The above performance assessment of 54.25% translates into a 67.8% award, of the 125% maximum potential. In addition to performance against the
targets detailed above, the Committee has also reviewed the stakeholder experience in respect of the year ended 31 March 2026. Based on this review,
the Committee considers the 67.8% of maximum award level to be appropriate.
The value of award for each of the Executive Board Directors is shown below:
Director Value of award
Nicholas Vetch £300,494
Jim Gibson £352,574
John Trotman £260,434
John Hunter £260,434*
* John Hunter jointed the Board on 17 July 2025, the amount shown here is the full year value of the award
The number of shares will be calculated by reference to the closing share price on the date of grant, which will be after the Company’s Preliminary
Announcement in May 2026. The awards will vest three years after the date of grant of each award.
Annual Report and Accounts 2026 Big Yellow Group PLC 109
Financial StatementsStrategic Report Governance Report
Long Term Incentive Plan (“LTIP”) awards (Audited)
The awards granted under the LTIP are subject to performance conditions to be met over a performance period of three years. There is no retesting of
performance conditions and, if they are not satisfied, the awards will lapse.
The performance conditions applicable to the LTIP which vested in the year, which relate to EPS and TSR, are set out below. The Committee assessed
the extent to which the EPS and TSR performance condition has been satisfied for the 2022 award which vested in 2025, with the following results:
Condition Weighting
Threshold Performance
required
Maximum Performance
Required
LTIP value for meeting
threshold and maximum
performance (% salary) Performance achieved Vesting %
Adjusted eps growth 50% Adjusted average annual
compound EPS growth
of 4%
Adjusted average annual
compound EPS growth
of 9%
25% to 100% 3.4% growth per annum 0%
Relative TSR 30% Median of comparator
group of real estate
companies
Upper quintile of the
comparator group
25% to 100% 26
th
out of 39 in comparator
group of companies in the
FTSE Real Estate Index
0%
Fitting of solar panels
on the Group’s estate
10% Fitting of solar panels on
30 of the Group’s stores
Fitting of solar panels on
40 of the Group’s stores
25% to 100% Between 1 April 2022 and
31 March 2025, the Group
carried out solar retrofits
on 54 stores, with a total
capacity of 7.4 MWp.
100%
Proportion of Group’s
external debt facilities
that are green loans
10% 30% of the Group’s total
debt facilities being
green loans
50% of the Group’s total
debt facilities being
green loans
25% to 100% 67.2% of the Group’s debt
facilities were green loans.
100%
Total 100% 20%
The vesting of the 2022 LTIP award in 2025, equated to the following value for the Executive Board Directors based on the share price at the date
of vesting:
Director Shares Awarded
Shares vested
(based on 20%
vesting) Value at Vesting
Nicholas Vetch 58,103 11,621 £110,163
Jim Gibson 68,174 13,635 £129,258
John Trotman 37, 76 6 7, 55 3 £71,604
LTIP awards granted in year ended 31 March 2026 (Audited)
The table below sets out the details of the long-term incentive awards granted in the year ended 31 March 2026 where vesting will be determined
according to the achievement of performance conditions that will be tested in future reporting periods.
Director Award Type
Awards as a %
of salary
Face value
of award
(1)
Percentage of award
vesting at threshold
performance
Maximum percentage
of face value that
could vest
Performance
Period end date
Performance
conditions
Nicholas Vetch
Annual cycle of
awards over nil
cost options
200% of salary £886,250
25% 100% 31 July 2028
Adjusted EPS growth,
Total Shareholder
Return, ESG metrics
Jim Gibson 200% of salary £1,039,850
John Trotman 150% of salary £576,075
John Hunter 150% of salary £576,075
(5)
The face value of the award is calculated using the average share price three days prior to the grant date of 1 August 2025 (average share price of £9.28).
Remuneration Committee Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC110
The performance conditions applicable to the awards granted in July 2025 are set out below:
Condition Weighting
Threshold Performance
required
Maximum Performance
Required
LTIP value for meeting
threshold and max
performance (% salary) Basis for measurement
Relative TSR 30% Median of comparator
group of real estate
companies
Upper quintile of the
comparator group
25% to 100% The average of the Group’s closing mid-market share
price over the three months preceding the start of
the performance period and preceding the end of the
performance period will be used, including dividends
re-invested.
Adjusted EPS 50% 2% p.a. 6% p.a. 0% to 100% The adjusted EPS figure reported in the audited
results of the Group for the last complete financial
year ending before the start of the performance
period and the last complete financial year ending
before the end of the performance period will
be used.
Installation of solar
and batteries at the
Group’s stores
10% Install solar panels on
12 stores, and batteries
on 8 stores
Install solar panels on
20 stores and batteries
on 12 stores
25% to 100% Based on the number of completed projects over the
award period.
Energy efficiency
retro-fit project
10% 45 of the Group’s stores
having the energy
efficiency retro-fit
programme installed
60 of the Group’s stores
having the energy
efficiency retro-fit
programme installed
25% to 100% Based on the number of completed projects over the
award period.
Sharesave Scheme
The Group’s Sharesave Scheme is open to all UK employees (including Executive Board Directors) with a minimum of six months’ service and meets UK
HMRC requirements, thus giving all eligible employees the opportunity to acquire shares in the Company in a tax efficient manner. All of the Executive
Board Directors participated in the scheme during the financial year. The details of the Sharesave scheme options are shown on page 113.
Pension entitlements
The Company pays pension contributions into the Executive Board Directors’ personal pension plans or makes a cash contribution in lieu of pension
contributions. They do not participate in any defined benefit scheme. For the year ended 31 March 2026, the Company contribution was 6% of salary
for the Executive Board Directors, in line with the contribution for the Company’s employees.
Implementing the Policy for the Year Ending 31 March 2027
Details of how the Policy will be implemented for the year ending 31 March 2027 are set out in the Annual Statement.
Board Changes (Audited)
As detailed in the Annual Statement, John Hunter, who was appointed to the Board as COO on 17 July 2025, will be appointed CEO with affect from
the 2026 AGM upon Jim Gibson’s retirement. John Hunter’s salary will be increased from £393,675 to £475,000 from appointment and no changes will
be made in respect of the rest of his remuneration package.
In respect of Jim Gibson stepping down from the Board, he will receive his salary, pension and benefits up to the 2026 AGM and will be entitled to
an annual bonus award for the year ending 31 March 2027 subject to performance testing and time pro-rating. No further LTIPs will be granted to
Jim Gibson. Post stepping down from the Board, Jim Gibson will remain an employee for a period of 12 months, albeit on a significantly reduced base
salary, to assist with the transition after which he will retire from Big Yellow.
There were no other board changes during the year. In respect of the financial year ended 31 March 2026, no payments:
• of money or any other assets were made to any former Director of the Company in respect of qualifying services as a Director
(2025: no payments); and
• were made to any Director in respect of loss of office (2025: no payments).
Annual Report and Accounts 2026 Big Yellow Group PLC 111
Financial StatementsStrategic Report Governance Report
Non-Executive Directors (Audited)
The table below sets out the single total figure of remuneration and breakdown for each Non-Executive Director paid in the year ended 31 March 2026.
2026
£
2025
£
Anna Keay 61,275 60,060
Vince Niblett 73,475 72,020
Michael O’Donnell 61,275 60,060
Laela Pakpour Tabrizi* 63,394 60,060
Heather Savory 61,275 60,060
Total 320,694 312,260
* includes a benefit in kind from participating in an electric car scheme of £2,119. No other Non-Executive Director received taxable benefits for the year ended 31 March 2026.
Statement of Directors’ shareholding (Audited)
The Executive Board Directors are required to build and maintain a holding of two times base salary. These requirements have been met by all Executive
Board Directors throughout the year, with the exception of John Hunter, who was appointed to the Board during the year. Non-Executive Directors are not
subject to a shareholding requirement. Details of the Directors’ interests in shares are set out below (all interests are beneficial interests).
The table below shows, in relation to each Director, the total number of shares and share options in which they have an interest at 31 March 2026:
Executive Director
Share ownership
requirement
(multiple of
salary)
Share ownership
requirements
met
Holding as
multiple of
March 2026
salary
Beneficially
owned shares
LTIP awards
subject to
performance
conditions
Deferred bonus
plan awards
Unexercised LTIP
options
Unexercised
Sharesave
options
Options
exercised in the
financial year
Nicholas Vetch 2x Yes 125x 6,556,334 244,688 127, 9 48 74,337 – –
Jim Gibson 2x Yes 30x 1,848,060 287,099 150,125 87,222 – –
John Hunter 2x No 0x – 62,077 – – 2,289 –
John Trotman 2x Yes 5x 242,896 159,047 181,140 61, 907 1,962 –
Non-Executive Directors’ shareholdings (Audited)
Non-Executive
Beneficially
owned shares
Michael O’Donnell 9,000
Vince Niblett 3,000
Anna Keay –
Laela Pakpour Tabrizi –
Heather Savory –
Remuneration Committee Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC112
Directors’ share awards (Audited)
To provide further context on the shareholding of the Executive Board Directors, options in respect of ordinary shares for Directors who served in the
year are as below:
Name
Date option
granted Scheme
No. of shares
under option
at 31 March
2025
Granted
during the
year
Exercised
during the
year
(1)
Lapsed
during the
year
No. of shares
under option
at 31 March
2026
Exercise
price
Market price
at date of
exercise
Date from whichfirst
exercisable Expiry Date
Nicholas Vetch 5 August 2020 LTIP 35,099 – – – 35,099 nil p – 5 August 2023 4 August 2030
22 July 2021 LTIP 27, 617 – – – 27, 617 nil p – 22 July 2024 21 July 2031
8 June 2022 DBP 34,442 – – – 34,442 nil p – 8 June 2025 7 June 2032
21 July 2022 LTIP 58,103 – – (46,482) 11, 621 nil p – 21 July 2025 20 July 2032
8 August 2022 SAYE 1,697 – – (1,697) – 1060.3p – 8 August 2025 8 February 2026
20 July 2023 DBP 41, 216 – – – 41,216 nil p – 20 July 2026 19 July 2033
20 July 2023 LTIP 78,243 – – – 78,243 nil p – 20 July 2026 19 July 2033
21 May 2024 DPB 23,658 – – – 23,658 nil p – 21 May 2027 20 May 2034
18 July 2024 LTIP 70,944 – – – 70,944 nil p – 18 July 2027 17 July 2034
27 May 2025 DBP – 28,632 – – 28,632 nil p – 27 May 2028 26 May 2035
1 August 2025 LTIP – 95,501 – – 95,501 nil p – 1 August 2028 31 July 2035
Jim Gibson 5 August 2020 LTIP 41,183 – – – 41,183 nil p – 5 August 2023 4 August 2030
22 July 2021 LTIP 32,404 – – – 32,404 nil p – 22 July 2024 21 July 2031
8 June 2022 DBP 40,412 – – – 40,412 nil p – 8 June 2025 7 June 2032
21 July 2022 LTIP 68,174 – – (54,539) 13,635 nil p – 21 July 2025 20 July 2032
8 August 2022 SAYE 848 – – (848) – 1060.3p – 8 August 2025 8 February 2026
20 July 2023 DBP 48,360 – – – 48,360 nil p – 20 July 2026 19 July 2033
20 July 2023 LTIP 91,805 – – – 91,805 nil p – 20 July 2026 19 July 2033
21 May 2024 DPB 27, 759 – – – 27, 759 nil p – 21 May 2027 20 May 2034
18 July 2024 LTIP 83,241 – – – 83,241 nil p – 18 July 2027 17 July 2034
27 May 2025 DBP – 33,594 – – 33,594 nil p – 27 May 2028 26 May 2035
1 August 2025 LTIP – 112,053 – – 112,053 nil p – 1 August 2028 31 July 2035
John Trotman 23 May 2019 DBP 25,190 – – – 25,190 nil p – 23 May 2022 22 May 2029
15 June 2020 DBP 17, 735 – – – 17, 73 5 nil p – 15 June 2023 14 June 2030
5 August 2020 LTIP 30,419 – – – 30,419 nil p – 5 August 2023 4 August 2030
22 July 2021 DBP 27, 329 – – – 27, 329 nil p – 22 July 2024 21 July 2031
22 July 2021 LTIP 23,935 – – – 23,935 nil p – 22 July 2024 21 July 2031
8 June 2022 DBP 29,850 – – – 29,850 nil p – 8 June 2025 7 June 2032
21 July 2022 LTIP 37,7 6 6 – – (30,213) 7, 55 3 nil p – 21 July 2025 20 July 2032
20 July 2023 DBP 35 ,719 – – – 35,719 nil p – 20 July 2026 19 July 2033
20 July 2023 LTIP 50,857 – – – 50,857 nil p – 20 July 2026 19 July 2033
21 May 2024 DPB 20,503 – – – 20,503 nil p – 21 May 2027 20 May 2034
18 July 2024 LTIP 46,113 – – – 46,113 nil p – 18 July 2027 17 July 2034
10 July 2024 SAYE 1,962
– – – 1,962 945.1p – 1 September 2027 1 March 2028
27 May 2025 DBP – 24,814 – – 24,814 nil p – 27 May 2028 26 May 2035
1 August 2025 LTIP – 62,077 – – 62,077 nil p – 1 August 2028 31 July 2035
John Hunter 9 July 2025 SAYE – 2,289 – – 2,289 801.6p – 1 September 2028 1 March 2029
1 August 2025 LTIP – 62,077 – – 62,077 nil p – 1 August 2028 31 July 2035
(6)
The aggregate gains made by Directors for the year ended 31 March 2026 on share options totals £nil (2025: £4,247,000)
Annual Report and Accounts 2026 Big Yellow Group PLC 113
Financial StatementsStrategic Report Governance Report
Performance and pay
The graph below shows the Group’s performance, measured by TSR, compared with the performance of the FTSE All Share Real Estate Index and the
FTSE All Share Index for the period since flotation. The FTSE All Share Real Estate Index is used for the assessment of the Company’s LTIP.
FTSE All Share Index
Big Yellow Group
FTSE 350 Real Estate Index
Source: Datastream
at 31 March 2026
1,527.2%
(11.4% p.a.)
158.7%
(3.7% p.a.)
345.9%
(5.9% p.a.)
0
500
1,000
1,500
3,000
2,000
2,500
2000 2002 2005 2007 2010 2012 2015 2017 2022 20252020
CEO Remuneration
The table below sets out the details of remuneration of the CEO over the past ten financial years.
Year
CEO single figure
of total remuneration
(£)
Annual bonus (cash)
pay-out % against maximum
of25% of salary
Annual bonus (deferred)
pay-out % against maximum
of125% of salary
Long term incentive
weighted average
vestingrates against
maximum opportunity
%
2026 1,079,601 26.8% (6.7% of salary) 54.25% (67.8% of salary) 20%
2025 1,312,640 39.2% (9.8% of salary) 51.25% (64.1% of salary) 100%
2024 1,335,753 34% (8.5% of salary) 53.8% (67.25% of salary) 95%
2023 1,543,941 39.6% (9.9% of salary) 88.85% (110.6% of salary) 90.1%
2022 1,380,532 41.2% (10.3% of salary) 95.4% (119.25% of salary) 61.6%
2021 1,393,490 62.8% (15.7% of salary) 95% (118.75% of salary) 83.6%
2020 1,136,633 37.2% (9.3% of salary) 47.5% (59.4% of salary) 100%
2019 1,182,482 40.8% (10.2% of salary) 81.875% (102.3% of salary) 100%
2018 2,178,066 51.6% (12.9% of salary) n/a 95%
2017 850,619 40% (10% of salary) n/a 100%
The single figure of remuneration for 2018 is higher than in other years due to the vesting of the three year Long Term Bonus Performance Plan in that
year delivering a reward of £1,343,995 (93.33% vesting) for the three year period ended in that year.
Remuneration Committee Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC114
Percentage change in the Director remuneration
The table below compares the percentage change in each Director’s annual remuneration (i.e. salary/fees, benefits, and annual bonus) with the
remuneration of Big Yellow Group employees.
% Change from 2020/2021
to 2021/2022
% Change from 2021/2022
to 2022/2023
% Change from 2022/2023
to 2023/2024
% Change from 2023/2024
to 2024/2025
% Change from 2024/2025
to 2025/2026
Salary/
Fee Benefits Bonus
Salary/
Fee Benefits Bonus
Salary/
Fee Benefits Bonus
Salary/
Fee Benefits Bonus
Salary/
Fee Benefits Bonus
Nicholas Vetch 4% 3% (30%) 4% (6%) 0% 5% 28% (10%) 4% 57% 20% 2% 1% (30%)
Jim Gibson 4% 6% (30%) 4% 17% 0% 5% 11% (10%) 4% 58% 20% 2% (12%) (30%)
John Trotman 4% 18% (30%) 4% 10% 0% 5% 2% (10%) 4% 39% 20% 2% (16%) (30%)
John Hunter n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Adrian Lee 3% 11% (30%) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Anna Keay 3% n/a n/a 4% n/a n/a 5% n/a n/a 4% n/a n/a 2% n/a n/a
Vince Niblett 3% n/a n/a 23% n/a n/a 5% n/a n/a 4% n/a n/a 2% n/a n/a
Michael O’Donnell n/a n/a n/a n/a n/a n/a 5% n/a n/a 4% n/a n/a 2% n/a n/a
Laela Pakpour Tabrizi 3% n/a n/a 9% n/a n/a 5% n/a n/a 4% n/a n/a 2% n/a* n/a
Heather Savory 3% n/a n/a 4% n/a n/a 5% n/a n/a 4% n/a n/a 2% n/a n/a
Average employees 2% 2% (29%) 5% 5% 1% 5.6% 21% (9%) 4.8% 13% 21% 3.2% 12% (29%)
Where a Director has not served on the Board for the full financial year, “n/a” is shown in the salary/fee column of the above table. For Laela Pakpour
Tabrizi the “n/a*” is because in the current year she has participated in an electric car scheme and received a benefit in kind in respect of this.
There were no amounts in the prior year.
CEO pay ratio
The data shows how the CEO’s single figure remuneration for the year ended 31 March 2025 (as taken from the single figure remuneration
table) compares to equivalent single figure remuneration for full-time equivalent UK employees, on a Group basis, ranked at the 25th, 50th and
75th percentile.
Year Method
25
th
percentile
pay ratio
Median
pay ratio
75
th
percentile
pay ratio
2026 Option A 34 to 1 33 to 1 21 to 1
2025 Option A 45 to 1 39 to 1 28 to 1
2024 Option A 50 to 1 42 to 1 28 to 1
2023 Option A 55 to 1 49 to 1 31 to 1
2022 Option A 58 to 1 50 to 1 36 to 1
2021 Option A 58 to 1 47 to 1 30 to 1
2020 Option A 50 to 1 42 to 1 28 to 1
No components of pay and benefits have been omitted for the purpose of the above calculations. Option A was selected given that this method
of calculation was considered to be the robust approach in respect of gathering the required data. The underlying quartiles for salary and total
remuneration numbers for full-time equivalent UK employees are set out below. The CEO’s remuneration in each year includes LTIPs that have vested
(but not yet been exercised); for employees the total pay includes proceeds from LTIP exercises, rather than vested LTIPs.
Salary Total pay and benefits
Year 25
th
%tile Median 75
th
%tile 25
th
%tile Median 75
th
%tile
2026 £26,291 £29,702 £40,747 £31,237 £31,831 £49,453
2025 £25,563 £29,037 £39,749 £29,057 £33,809 £47,108
2024 £24,375 £28,392 £38,251 £26,876 £31,864 £47,516
2023 £23,005 £26,790 £ 37, 4 4 0 £28,148 £31,398 £48,746
2022 £21,278 £24,669 £34,445 £23,535 £27,286 £38,098
2021 £20,862 £24,190 £34,008 £24,109 £29,406 £46,162
2020 £20,495 £24,035 £35,330 £22,555 £27,232 £40,975
Annual Report and Accounts 2026 Big Yellow Group PLC 115
Financial StatementsStrategic Report Governance Report
Statement of consideration of employment conditions elsewhere in the Group
The Committee reviews the reward and retention of the whole employee population periodically throughout the year to ensure that it can attract
and retain top talent. Consideration is given to the general basic salary increase, remuneration arrangements and employment conditions.
Furthermore, the annual cash bonus awarded to Executive Board Directors is directly linked to the bonuses awarded to all staff.
The Directors are invited to be present at this review of the proposals for salary increase for the employee population generally and on any other
changes to remuneration policy within the Company. The information presented at this review is taken into consideration when setting the pay levels
of the executive population. Additionally, the Committee has guidelines for the grant of all LTIP awards across the Company and responsibility for
approving the total annual bonus cost of the Company.
The Company, through the Workforce Engagement Non-Executive Director, invited employees to comment on the remuneration of Directors during
the year, and has engaged with the workforce to explain how executive remuneration aligns with the wider Company pay policy. When considering
remuneration levels to apply, the Committee takes into account base pay increases, bonus payments and share awards made to the Company’s
employees generally.
Relative importance of spend on pay
The graph below sets out the relative importance of spend on pay in the year ended 31 March 2026 and 31 March 2025 compared with other
disbursements from profit, being the distributions to shareholders and retained earnings (comprehensive gain for the year less dividends).
120,000
£000s
80,000
100,000
60,000
40,000
20,000
0
Total employee
pay (including
Directors)
Profit distributed
by way of
dividend
Retained
earnings
(2)%
5%
(72%)
2025
2026
Gender and ethnicity pay
The Group has reported on its gender pay gap for April 2025, within our Inclusivity and Diversity Report. The full report can be found on our investor
relations website http://corporate.bigyellow.co.uk/investors.aspx. The Group’s mean gender pay gap was 24% (2024: 20%), with a median gap of
6% (2024: 4%). Excluding Executive Board Directors, the mean gender pay gap falls to 11% (2024: 9%) with a median gap of 5% (2024: 4%). The slight
increase in the mean gap reflects changes in the composition of our most senior roles, including the appointment of a male manager to a new senior
position, and the hiring of a male director to fill a role that was vacant at the last snapshot date. All staff are paid equally according to job role.
The Group has also analysed its ethnicity pay for April 2025. The Group’s mean ethnicity pay gap was 6% (2024: 5%), with a median gap of 6% (2024: 7%).
Our Mean Ethnicity Pay Gap has increased due to the appointment of an additional Director. Encouragingly, the Median Pay Gap has continued to move
in the right direction, reducing to 6% from 7% in April 2024, reflecting positive progress across the wider workforce. All staff are paid equally according
to job role.
We believe that diversity and inclusion are key to a successful and sustainable business, and we are committed to creating a culture where all team
members can be themselves, feel empowered to succeed and deliver a customer experience that is second to none. We encourage and enable all
employees, regardless of their gender, race, background, or any other characteristics, to reach their full potential as we believe that having a diverse
workforce with fair representation is strategically important and generates value to our stakeholders.
In the year we have continued to collect ethnicity data to better understand the ethnic mix of our workforce. To date, 98% of our team have volunteered
their ethnicity data. This data indicates that 22% of Big Yellow’s team members belong to a Black, Asian, Mixed or other ethnic group, compared with
18.3% of people who make up this group in the UK (2021 census data).
Over the last 12 months we have continued the work of our Inclusivity and Diversity Committee, actively listening to feedback from our colleagues
across the business to drive change and improve awareness. Here are just some of our key achievements during this time:
Remuneration Committee Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC116
Policy and Strategy
• In line with our strategy of improving our brand awareness and recognition as an employer of different diverse groups, we have continued to include
posts on Facebook and LinkedIn throughout the year relating to our culture, religious festivals / celebrations, LGBTQ+, gender and mental health.
• All members of the Inclusivity and Diversity Committee have been trained as Inclusivity and Diversity Experts, allowing them to offer improved advice
and support to team members on inclusion and diversity matters. We now have a total of 13 Inclusivity and Diversity Experts within the Company.
• To encourage team member involvement and feedback, a series of Inclusivity and Diversity Coffee Mornings have been introduced at our Head
Office. During these sessions, team members can discuss any topics they would like to raise with the Inclusivity and Diversity Committee.
• We introduced a new Disability Support Policy to highlight the Company’s approach to creating an inclusive and supportive environment with
regards to hiring, supporting, and making reasonable adjustments for employees with disabilities or long-term health conditions.
Recruitment / Talent
• During the course of the year we worked with five of our Foundation Charities (Downs Syndrome Association, Breaking Barriers, Working Chance,
Back Up Trust and Street League) to offer fourteen work placements within our Distribution Centre and our stores.
• The number of females promoted internally has remained high at 58% in 2026 (2025: 59%).
• The proportion of our female Store Managers increased to 39% (2025: 33%).
• 31% of new starters in our stores in the year ended 31 March 2026 were of an ethnic minority group (2025: 42%).
• 18% of our team members in stores are over 50, a slight reduction from 21% in 2025.
• Our team members speak over 40 different languages details of which are all accessible through our Intranet, to support both our customers
and colleagues.
Learning and Development
• We have designed an Interview Skills Workshop that we will run on an ongoing basis for our Foundation charities, offering advice and support to help
those they assist in securing employment.
• Nine team members from Bagshot and the Stores participated in a Mentoring People with Convictions Workshop to better support new team
members and individuals on work placements within the Company.
• In line with National Dyslexia Awareness Week, a series of videos were produced showcasing team members with dyslexia and highlighting the
support that the Company provides.
Whilst our Gender Pay Gap is reducing on a gradual basis and we will continue to work to reduce it further, we recognise that it would be unrealistic to
close this gap quickly, given that the Executive Directors are male and two of them were founders of the business over 25 years ago.
We have however, made significant progress in relation to inclusion and diversity initiatives over the last four years and will continue to challenge our
thinking around how we recruit new skills and manage and develop existing talent going forward.
We will continue to drive change via our Inclusivity and Diversity Committee and through listening to feedback from our people.
Our future initiatives include advancing the work of our Inclusivity and Diversity subcommittees and developing a strategy to create employment
opportunities for people with disabilities. We will also collaborate with our Foundation charities and team members to further promote employee
volunteering and fundraising.
We will continue to work with our Big Yellow Foundation charity partners to help vulnerable people such as ex-offenders, refugees, ex-service personnel
and people living with disabilities to find employment and create a better future for themselves. We also intend to create a programme of volunteering
opportunities through which our team members can support the charities themselves, for which they will be given time off during their working day.
Advisers to the Remuneration Committee
In undertaking its responsibilities, the Committee seeks independent external advice as necessary. FIT Remuneration Consultants LLP have been
advisers to the Committee since 2017. The Committee is comfortable that the FIT team provides independent remuneration advice to the Committee
and does not have any other connections with Big Yellow that may impair their independence. FIT is a founding member and signatory of the Code of
Conduct for Remuneration Consultants, details of which can be found at www.remunerationconsultantsgroup.com. FIT provides no other services to
the Company. The fees paid to FIT in respect of work carried out for the year under review were £6,000 (ex VAT).
Approval
This policy report was approved by the Board of Directors on 18 May 2026 and signed on its behalf by
Michael O’Donnell
Remuneration Committee Chair
Annual Report and Accounts 2026 Big Yellow Group PLC 117
Financial StatementsStrategic Report Governance Report
The Audit Committee is appointed by the Board from the Non-Executive
Directors of the Company. The Audit Committee’s terms of reference
include all matters indicated by Disclosure Guidance and Transparency
Rule 7.1, the UK Corporate Governance Code, and the new FRC
ethical standard.
Introduction
The terms of reference are considered annually by the Audit
Committee and are then referred to the Board for approval.
The terms of reference are available on the Company’s website.
https://corporate.bigyellow.co.uk/investors/corporate-governance
The Audit Committee is responsible for:
• monitoring the integrity of the financial statements of the Group
and any formal announcements relating to the Group’s financial
performance and reviewing significant financial reporting
judgements contained therein;
• reviewing the Group’s internal financial controls and the Group’s
internal control and risk management systems, including
consideration of the need for an internal audit function;
• making recommendations to the Board, for a resolution to be put
to the shareholders for their approval in general meetings, on
the appointment of the external auditor, and the approval of the
remuneration and terms of engagement of the external auditor;
• assessing and challenging estimates and judgements included
within the financial statements;
• reviewing and monitoring the external auditor’s independence
and objectivity and the effectiveness of the audit process, taking
into consideration relevant UK professional and regulatory
requirements; and
• ensuring the external auditor only provides those services permitted
by the Ethical Standard of the FRC.
The Audit Committee is required to report its findings to the Board,
identifying any matters on which it considers that action or improvement
is needed, and make recommendations on the steps to be taken.
This year the Committee has continued to focus on the narrative
reporting and corporate governance disclosures in the Annual Report.
The Committee was asked by the Board to review the statement by
the Directors that the Annual Report presents a fair, balanced, and
understandable view of the Group’s position and performance, strategy,
and business model. The Committee also reviewed the Group’s going
concern and viability statements.
All Audit Committee members are expected to be financially literate.
Furthermore, the Audit Committee structure requires the inclusion of
one financially qualified member (as recognised by the Consultative
Committee of Accountancy Bodies). Vince Niblett, as a Fellow of
the Institute of Chartered Accountants of England and Wales and
Laela Pakpour Tabrizi as an experienced Finance Director, currently
carrying out that role at Consumer Converged at Virgin Media O2, fulfil
that requirement.
Audit Committee Report
Committee members
and attendance
Member
Number
of meetings
attended
Laela Pakpour Tabrizi – Chair
Anna Keay – Member
Vince Niblett – Member
Michael O’Donnell – Member
Heather Savory – Member
attended
absent
not applicable
Annual Report and Accounts 2026 Big Yellow Group PLC118
The Group provides an induction programme for new Audit Committee
members and ongoing training to enable all of the Committee members
to carry out their duties. The induction programme covers the role of the
Audit Committee, its terms of reference and expected time commitment
by members and an overview of the Group’s business, including the
main business and financial dynamics and risks. New Committee
members also meet some of the Group’s staff. Ongoing training includes
attendance at formal conferences, internal company seminars and
briefings by external advisers.
Meetings
The Audit Committee is required to meet three times per year and has an
agenda linked to events in the Group’s financial calendar. The agenda is
predominantly cyclical and is therefore approved by the Audit Committee
Chair on behalf of her fellow members. Each Audit Committee member
has the right to require reports on matters of interest in addition to the
cyclical items.
The Audit Committee invites the Chief Executive, Chief Financial Officer,
Financial Controller, and senior representatives of the external auditor
to attend its meetings in full, although it reserves the right to request
any of these individuals to withdraw. The Committee meets as required
with the external auditor without the Executive Board Directors or senior
management present. Other senior management are invited to present
such reports as are required for the Committee to discharge its duties.
Overview of the actions taken by the Audit
Committee to discharge its duties
Since the beginning of the financial year the Audit Committee has:
• reviewed published financial information including the year-end
results, Annual Report, half year results and the Quarterly Trading
Statements, including review of Alternative Performance Measures
used by the Group;
• considered whether the Annual Report provides a fair, balanced,
and understandable view of the Group’s position and performance,
strategy, and business model;
• assessed and concluded on the Group’s viability statement and
the going concern assessment for the annual and half yearly
financial statements;
• considered the output from the Group-wide process used to identify,
evaluate, and mitigate risks;
• reviewed the effectiveness of the Group’s internal controls and
disclosures made in the annual report and financial statements on
this matter, and considered the impact of the new Combined Code
and the BEIS review on the Group;
• reviewed and agreed the scope of the audit work to be undertaken by
the external auditor;
• agreed the fees to be paid to the external auditor for their audit of the
financial statements and review of the half-yearly report;
• considered and agreed the approach of performing Directors’
valuations of investment properties for the half-year report;
• undertaken an assessment of the qualification, expertise and
resources, and independence of the external auditor and the
effectiveness of the audit process;
• considered the audit partner, and her replacement as this is the fifth
year she will have signed the accounts;
• considered audit firm rotation with an audit tender taking place in the
year ending 31 March 2027;
• undertaken an evaluation of the performance of the external auditor
and assessed its effectiveness;
• held discussions with the auditors on key judgements;
• considered the need for an internal audit function;
• considered the FRC ethical standard governing non-audit services
and audit committees;
• reviewed the arrangements for “whistleblowing” by employees
to ensure that there is a consistent policy in the Group to enable
employees to voice concerns particularly in respect of possible
financial reporting improprieties. A whistleblowing policy is included
in the employee handbook and there is an external whistleblowing
monitoring service;
• met the Group’s external valuers and considered their competence
and independence;
• met the Group’s Store Compliance Manager;
• agreed updated Terms of Reference, incorporating Provision 29 of the
Corporate Governance Code;
• reviewed the Audit Committee’s Report; and
• reviewed its own effectiveness.
Adoption of the FRC Minimum Standard on
Audit Committees and the External Audit
The Audit Committee has adopted the Financial Reporting Council’s Audit
Committees and the External Audit: Minimum Standard. The Committee
has applied the principles of the Standard in overseeing the Company’s
relationship with the external auditor, with a particular focus on audit
quality, independence and effectiveness. During the year, the Committee
carried out a robust assessment of the effectiveness of the external
audit, having regard to the auditor’s delivery against the agreed audit
plan, the quality and depth of challenge provided to management, the
auditor’s judgements on significant accounting matters, and feedback
from management and internal audit. The Committee also considered
relevant audit quality indicators and the findings of regulatory inspection
reports relating to the audit firm and discussed with the auditor the
actions taken in response. The Committee maintains oversight of auditor
independence and objectivity, including approval and monitoring of non
audit services in accordance with the Company’s policy, to ensure that
such services do not compromise independence or limit the Company’s
future choice of auditor. The Audit Committee is satisfied, based on the
evidence considered, that the external audit was effective and of a high
quality. The Committee will continue to apply the Minimum Standard
and report on its application in future years, including in relation to audit
tendering when applicable.
Annual Report and Accounts 2026 Big Yellow Group PLC 119
Financial StatementsStrategic Report Governance Report
Audit Committee Report continued
Based on the above, the Committee concluded that the financial
statements appropriately apply the key estimates and critical
judgements, in respect of the disclosures and the amounts reported.
The Committee also concluded that the annual report and financial
statements, taken as a whole, are fair, balanced, and understandable
and provide the information necessary for shareholders to assess the
Group's position and performance, strategy, and business model.
External auditor
The Audit Committee is responsible for the development, implementation,
and monitoring of the Group’s policy on external audit. The policy assigns
oversight responsibility for monitoring the independence, objectivity,
and compliance with ethical and regulatory requirements to the Audit
Committee, and day-to-day responsibility to the Chief Financial Officer.
The policy states that the external auditor is jointly responsible to the
Board and the Audit Committee and that the Audit Committee is the
primary contact.
To fulfil its responsibility regarding the independence of the external
auditor, the Audit Committee reviewed:
• the external auditor’s plan for the current year, noting the role of the
senior statutory audit partner, who signs the audit report and who,
in accordance with professional rules, has not held office for more
than five years, and any changes in the key audit staff;
• the arrangements for day-to-day management of the
audit relationship;
• a report from the external auditor describing their arrangements
to identify, report and manage any conflicts of interest; and
• the overall extent of non-audit services provided by the external
auditor, in addition to its case-by-case approval of the position of
non-audit services by the external auditor.
Audit rotation
During 2016 following a robust tender process, the Committee appointed
KPMG LLP as auditors, with effect from the year ended 31 March 2018.
As part of the tender process, the Committee reviewed KPMG’s proposals
for the audit and determined that they had an appropriate plan in place
to carry out an effective audit. KPMG confirmed to the Committee that it
maintained appropriate internal safeguards to ensure its independence
and objectivity. Anna Jones is the current audit partner, and this is
the fifth year that she has been the signatory to the Group’s financial
statements, A new audit partner from KPMG, Craig Steven-Jennings,
will sign the 2027 financial statements.
The Company’s policy is to rotate audit partners every five years, and to
tender its audit to include new firms at least every ten years.
The Company complies with the requirements of the Statutory Audit
Services for Large Companies Market Investigation (Mandatory Use of
Competitive Tender Processes and Audit Committee Responsibilities)
Order 2014 and the Code. To comply with the Order the Company intends
to conduct a formal tender process for audit services during the financial
year ending 31 March 2027, so that should a new firm be appointed,
they will be able to shadow KPMG during the audit of the 31 March 2027
financial statements.
Financial reporting and significant
financial judgements
The Committee reviews all financial information published by the Group in
year-end and half-year financial statements, including the presentation
and disclosure of the financial information. It also considers the
appropriateness of the accounting policies adopted by the Group and the
accounting judgements made by management in the preparation of the
financial information.
The Committee has considered whether the Annual Report for the year
ended 31 March 2026 provides a fair, balanced, and understandable
view of the Group’s position and performance, strategy, and business
model and whether it provides the necessary information to enable
shareholders and prospective shareholders to assess the Group’s
position and performance, strategy, and business model. The Committee
is satisfied that the Annual Report for the year ended 31 March 2026
provides a fair, balanced, and understandable view and includes the
necessary information as set out above. The Committee has confirmed
this to the Board, whose statement is included in the Statement of
Directors’ Responsibilities on page 127.
The Committee focuses on matters it considers important in their impact
on the reported results of the Group, and on matters where there is a high
degree of complexity and/or judgement.
The critical accounting estimate that the Committee focuses on at the
reporting date is the valuation of the investment property portfolio.
This is carried out by independent external valuers, but by its nature
it is subjective, with significant judgement applied to the valuation,
particularly given the lack of transactional evidence for prime self
storage assets. The Chair of the Committee met the external valuers
to discuss the valuations, review the key judgements, and discussed
whether there were any disagreements with management. This year the
Committee reviewed and challenged the valuers on the cap rates, rental
growth assumptions and stabilised occupancy levels, to agree on the
appropriateness of the assumptions adopted. The Chair of the Committee
also met with the external valuers and satisfied herself on their
independence, their quality control processes (including peer partner
review) and qualifications to carry out the valuations. Management also
have processes in place to review the external valuations. In addition, the
external auditor use valuation specialists to review the valuations and
report its findings and conclusions to the Audit Committee.
The Committee has also considered a number of other judgements
made by management in the preparation of the financial statements.
The Committee has concluded that there are not significant levels of
judgements involved.
There has been no change to the other key judgement included in
the financial statements, which is that the Group’s stores should be
accounted for as Investment Property.
Management has reported to the Audit Committee that it is satisfied that
it is not aware of any material misstatements in the financial statements.
Annual Report and Accounts 2026 Big Yellow Group PLC120
Annual auditor assessment
The Audit Committee has adopted a formal framework in its review of
the effectiveness of the external audit process and audit quality which
include the following areas:
• the arrangements for ensuring the external auditor’s independence
and objectivity;
• the senior statutory auditor and the audit team;
• the external auditor’s fulfilment of the agreed audit plan and
variations from the plan;
• the quality of the formal audit report to shareholders;
• the effectiveness of the external audit process, taking into
consideration relevant UK professional and regulatory requirements;
• the robustness and perceptiveness of the auditor in his handling of
the key accounting and audit judgements; and
• the content of the external auditor’s comments on control
improvement recommendations.
Regard is paid to the nature of, and remuneration received, for other
services provided by KPMG LLP to the Group and, inter alia, confirmation
is sought from them that the fee payable for the annual audit is adequate
to enable them to perform their obligations in accordance with the scope
of the audit. The only non-audit service provided is the auditors’ review of
the half year report.
Non-audit work
The Group’s policy on external audit sets out the categories of non-audit
services which the external auditor will and will not be allowed to
provide to the Group, including those that are pre-approved by the Audit
Committee and those which require specific approval before they are
contracted for, subject to de minimis levels. The Group’s non-audit policy
reflects the Ethical Standard on Non-audit Services which came into
effect on 15 March 2020. The Committee’s policy is that the auditors will
not be asked to carry out non-audit work with the exception of the half
year review and regulatory and bank required reporting.
More generally, the auditors may not provide a service which places
them in a position where they may be required to audit their own work.
Specifically, they are precluded from providing services relating to
bookkeeping, financial information system design and implementation,
appraisal or evaluation services, actuarial services, any management
functions, taxation advisory services, investment banking services, legal
services unrelated to the audit or advocacy services.
In respect of the year ended 31 March 2026, the auditor’s remuneration
comprised £668,000 for audit work and £68,000 for other work, solely
relating to the interim review. Over a three year rolling period, the level of
non-audit fees is below the audit fee, with non-audit fees representing
11% of audit fees in 2025 and 11% in 2024.
Risk management and internal control
The Committee and the Board are responsible for establishing and
maintaining the effectiveness of the Group’s risk management and
internal control framework. During the year, the Committee and Board
have reviewed the internal control processes of the business and the
Group’s risk register during the year. The risks and uncertainties facing
the Group, and its internal control processes are considered in the
Strategic Report on pages 46 to 51.
The Committee remains focused on ensuring that finance and risk capability
is appropriate to the scale of the business, whilst also acknowledging an
increasingly regulated environment. The Board and its Committees have
continued to monitor external and regulatory developments in relation
to risk management and internal controls, including the introduction of
provision 29 in the UK Corporate Governance Code 2024. The Group’s
processes and procedures in this area have been documented and
presented to the Board and the Committee to ensure their appropriateness
ahead of that provision coming into force for our year ending 31 March 2027.
A full update on the Company’s compliance against that provision will be
set out in its 2027 Annual Report, in which the Board will provide its first
declaration of effectiveness of the Company’s material controls.
Internal audit
The Committee has considered the Board’s view that, given the
relatively straightforward nature of the Group’s business and the
control environment in place, no formal internal audit function is required.
The Group has a store compliance team, which effectively carries out an
internal audit role for the Group’s stores, visiting each store at least once
every nine months. This provides the Committee comfort over the store
related aspects of the Group’s business. The Committee meets with the
Store Compliance Manager as required, and at least once a year.
Additionally, on a regular cycle, the Board appoints external consultants
to assess specific business areas of risk and provide a report to the
Board and the Committee on this area. The cycles covered by this activity
include construction expenditure, treasury, taxation, and facilities
management. This gives the Committee comfort over the controls over
key business cycles within the Company.
With the combination of the store internal audit and the external
assessment of the key business cycles, the Committee considers
that this provides a robust internal audit assessment for the Group.
Overview
As a result of its work during the year, the Audit Committee has concluded
that it has acted in accordance with its terms of reference and has
ensured the independence and objectivity of the external auditor.
The Chair of the Audit Committee will be available at the Annual General
Meeting to answer any questions about the work of the Committee.
Approved by the Audit Committee and signed on its behalf by:
Laela Pakpour Tabrizi
Audit Committee Chair | 18 May 2026
Annual Report and Accounts 2026 Big Yellow Group PLC 121
Financial StatementsStrategic Report Governance Report
The Directors present their annual report on the affairs of the Group,
together with the audited financial statements and auditor’s report for
the year ended 31 March 2026. The Report on Corporate Governance
on pages 83 to 89 forms part of this report.
Details of significant events since the balance sheet date are included
in note 25 to the financial statements. An indication of likely future
developments in the business of the Company is included in the
strategic report.
Included in note 18 are the Group’s financial risk management objectives
and policies and an indication of the Group’s exposure to certain risks.
Those elements of that note form part of this report and are incorporated
by reference.
Dividends
The Directors are recommending the payment of a final dividend of
23.4 pence per share for the year (2025: 23.8 pence per ordinary
share). An interim dividend of 23.8 pence per share was paid in the
year (2025: 22.6 pence per share).
All of the 47.2 pence per share payable for the year is a Property
Income Distribution.
Subject to approval by shareholders at the Annual General Meeting to
be held on 20 July 2026, the final dividend will be paid on 24 July 2026.
The Ex-div date is 2 July 2026 and the Record date is 3 July 2026.
From April 2018 dividend tax credits have been replaced by an annual
£2,000 tax-free allowance on dividend income across an individual’s
entire share portfolio. Above this amount, individuals will pay tax on their
dividend income at a rate dependent on their income tax bracket and
personal circumstances. The Company will continue to provide registered
shareholders with a confirmation of the dividends paid by Big Yellow
Group PLC, and this should be included with any other dividend income
received when calculating and reporting total dividend income received.
It is the shareholder’s responsibility to include all dividend income when
calculating any tax liability.
Directors’ Report
SECR and mandatory GHG reporting
The Companies (Directors’ Report) and Limited Liability Partnerships
(Energy and Carbon Report) Regulations 2018 (“SECR”) came into force
on 1 April 2019 and apply to companies with financial years starting on
or after 1 April 2019.
The 2018 Regulations define what must be included in the Directors’
Report, namely:
• Annual Greenhouse Gas (“GHG”) emissions from activities for
which the Company is responsible including combustion of fuel
and operation of any facility, such as our flexi-office gas heating,
reception area air conditioner coolant replacement, one Company
van diesel fuel use emissions and fit-out ‘diesel’ use emissions
(assuming qualifying fit-out activities have taken place during
the year);
• Annual emissions from the purchase of electricity, heat, steam or
cooling by the Company for its own use, such as the electricity for
our stores and construction fit-out activities;
• Underlying global energy use;
• Previous year’s figures for energy use and GHG;
• At least one intensity ratio metric;
• Energy efficiency action taken; and
• Methodology used.
Voluntary GHG emissions from our waste and water supply chains have
been assessed as not material to the Group’s overall emissions profile.
We will also retain the practice of reporting our previous few years of
performance to show longer term trends.
The ‘Market based emission’ reported here reflect the emissions
associated with the electricity tariff we have purchased; whereas
‘Location-based emissions’ are emissions associated with the UK grid
and applies the required DEFRA conversion factors. Where we have not
indicated market-based or location-based figures, location-based can
be assumed.
Please note, our operations are solely based in the UK, and we therefore
will be reporting a single geographical scope – UK and offshore area
only. This disclosure covers all operations under the Group’s operational
control within the UK.
Throughout this report (*) denotes values externally assured by SGS.
Annual Report and Accounts 2026 Big Yellow Group PLC122
A) Data
Scope 1 emissions arise from gas combustion, company vehicles and construction-related fuel use. Scope 2 emissions arise from purchased electricity
used across our estate.
Measurement unit Indicator
2024/25
restated* 2025/26
tonnes CO
2
e Total Scope 1 Emissions (location-based) store and non-store 53.5 22.6*
tonnes CO
2
e Total Scope 2 Emissions (location-based) store and non-store 1,874.6 1,443.1*
tonnes CO
2
e Total Scope 2 Emissions (market-based) store and non-store 0.0
∆
0.0*
tonnes CO
2
e Total Scope 1& 2 Emissions (location-based) store and non-store 1,928.1 1,465.7*
tonnes CO
2
e Total Scope 1& 2 Emissions (market-based) store and non-store 53.5 22.6*
kgCO
2
e/ revenue (000's£) Greenhouse Gas (GHG) emissions intensity from building energy consumption (location-based) 9.4 7. 0
kgCO
2
e/ revenue (000's£) Greenhouse Gas (GHG) emissions intensity from building energy consumption (market-based) 0.3 0.1
kgCO
2
e/ Occupied space (1,000m
2
) Greenhouse Gas (GHG) emissions intensity from building energy consumption (scope 1 and 2 location-based) 4.1 3.2
kgCO
2
e/ CLA (1,000m
2
) Greenhouse Gas (GHG) emissions intensity from building energy consumption (scope 1 and 2 location-based) 3.2 2.4
kWh Total UK energy consumption (kWh) underpinning Scope 1 and Scope 2 emissions 9,627,691 8,241,567*
tonnes CO
2
e Cat 1 – Purchased goods & services 5,717 4,676*
tonnes CO
2
e Cat 1 – Water 3 4*
tonnes CO
2
e Cat 2 – Capital expenditure 16,273 19,772*
tonnes CO
2
e Cat 3 – Fuel- and energy-related activities
(2)
651 562*
tonnes CO
2
e Cat 5 – Waste generated in operations 70 62
tonnes CO
2
e Cat 6 – Business travel 210 212
tonnes CO
2
e Cat 7 – Employee commuting 386 398
tonnes CO
2
e Cat 9 – Downstream transport and distribution 7, 36 8 9,333
tonnes CO
2
e Cat 12 – End of life treatment 76 69
∆ 0 due to REGO-backed electricity
* regarding restating each year, the last 3 months of our emissions data is reported using the prior year's conversion factors, due to an emission factor publication lag – we operate on a 'best available
data' principle and will therefore restate each year.
B) Methodology for calculating emissions
Scope 1, Gas
Data collection: Gas data – is metered and automatically transmitted
into our energy and emission reporting platform, UL360. Gas use for
the remaining stores with gas is obtained from supplier invoices and
manually uploaded onto UL360. This process is part of the assurance
work undertaken by SGS each year. Any gaps are accrued.
Calculations: Our software platform, UL360, contains our consumption
data as well as the current DESNZ emission factors. These are used
to calculate emissions automatically when our reports are produced.
Our annual data straddles two emission factor years; as soon as the
latest factors are released, our partners ensure UL360 contains the
most up to date set and this is applied against the relevant data set.
Scope 1, Van
Data collection: our maintenance manager records any miles driven
to service our stores. The data is collected quarterly and sent to our
partners for uploading into UL360. UL360 commutes the mileage data
into emissions.
Calculations: km travelled x emission conversion factor for a diesel
average van (up to 3.5 tonnes) in km/kgCO
2
e / 1000 to convert to tCO
2
e.
In the reporting period we switched to a hybrid vehicle and thus the
calculation was updated.
Calculations: km travelled x emission conversion factor for a PHEV
average van (up to 3.5 tonnes) in km/kgCO
2
e / 1000 to convert to tCO
2
e.
Scope 1, Fit-out diesel
Data collection: diesel consumption used on our fit-out construction
projects is collected manually by the construction team and reported
weekly in the Construction Fit-Out report. The final report for the financial
year is used to assess the overall diesel consumption during the year.
Calculations: the total diesel consumption in litres converted to kWh
using the gross CV kWh/litre for Diesel (average biofuel blend) x emission
conversion factor in kWh (Gross CV)/kgCO
2
e for a Diesel (average biofuel
blend) / 1000 to convert to tCO
2
e.
As Big Yellow is not the principal contractor for certain developments
during the year, associated fit-out emissions are reported as 0 tCO₂e
for the Fit-out at our new stores Queensbury, Staines, Slough Bath Road
and Wembley.
Scope 2, Location-based, electricity
Data collection: Big Yellow electricity data – and most of our Armadillo
electricity data – is metered and automatically transmitted into our
energy and emission reporting platform, UL360. Electricity used for
the remaining stores is obtained from supplier invoices and manually
uploaded onto UL360. This process is part of the assurance work
undertaken by SGS each year. Any gaps are accrued.
Calculations: Our software platform, UL360, contains our consumption
data as well as the current DESNZ emission factors. These are used
to calculate emissions automatically when reports are produced.
Our annual data straddles two emission factor years; as soon as the
latest factors are released, our partners ensure UL360 contains the
most up to date set and this is applied against the relevant data set.
Annual Report and Accounts 2026 Big Yellow Group PLC 123
Financial StatementsStrategic Report Governance Report
Scope 2, Market-based, electricity
Data collection: the same as for location-based electricity.
Calculations: instead of applying the location-based emission factors, we
manually set electricity emissions at 0 as we have been purchasing 100%
Rego backed electricity since 1st October 2019. For total Scope 1 & 2
emissions, market-based, we set Scope 2 at 0 and Scope 1 the same as per
above. Market-based emissions have been calculated in accordance with
the GHG Protocol Scope 2 Guidance using REGO-backed electricity tariffs.
Scope 3, Category 1: Purchased goods and service
Data collection: Supplier Spend, Supplier mapping UL260, CEDA library.
Calculations: Purchase ledger mapped to the descriptions of emission
factors from the Comprehensive Environmental Data Archive (CEDA).
CEDA purchaser price emission factors were used to calculate the
emissions from each line of spend.
Scope 3, Category 2: Capital expenditure
Data collection: RIBA Stage 4 or 6 WLCA, Supplier Spend, Supplier mapping
UL260 and CEDA library.
Calculations: Full whole lifecycle carbon assessment conducted by
external consultants. Purchase ledger mapped to the descriptions of
emission factors from the Comprehensive Environmental Data Archive
(CEDA). CEDA purchaser price emission factors were used to calculate the
emissions from each line of spend.
Scope 3, Category 3: Fuel and energy related activities
Data collection: we use data collected for the location-based grid bought
electricity data stored in our system UL360 The conversion factors used
are those on the .gov website.
Calculations: Emissions were calculated by combining the activity data
with the appropriate emission factors. T&D and T&D WTT emissions were
included for electricity, natural gas and company owned van emissions.
There are no upstream emissions generated upstream emissions
associated with Solar. Therefore, Solar data is excluded from this calculation.
Scope 3, Category 5: Waste
Data collection: BIFFA provides waste weights per store and waste
stream. For Macclesfield waste data is provided by the contractor serving
this store. All data is uploaded into our UL360 platform, and we use DEFRA
emissions factors to convert.
Calculations: Data details weights sent to each waste stream "Landfill",
"Recycled" and "Non-Landfill". Relevant weight-based DEFRA 2025
emission factors were applied to the weights for each waste stream to
calculate the emissions. Macclesfield data also split “landfill”, “recycled”
and “non-landfill” using portions from the rest of our sites.
Scope 3, Category 6: Business travel
Data collection: we use our employee expenses reimbursement data held
in our Finance system to calculate business miles travelled.
Calculations: using ‘cars (by size) Average car’ conversion factors, we
multiply the miles travelled reimbursed with the BEIS/DEFRA factor to
arrive at the emissions, for business travel.
Scope 3, Category 7: Employee Commuting
Data collection: monthly average full time equivalent employees for
Big Yellow stores and the head office. Emission factors were from DEFRA
for the corresponding reporting year.
Calculations: As per Big Yellow policy, the work from home percentage for
head office employees was assumed to be 40% (2 days per week), while
store employees are assumed to work from the store 5 days per week.
FTE data was input into a scope 3 cat 7 proprietary Home Working and
Commuting emissions calculation Tool. Input data for the tool is taken
from 2017 DALIA Research, which compiled an extensive transportation
survey worldwide, covering 52 countries, in 2017. Data for the average
speed of modes of transport was taken from a published paper, which
has taken data from the Mobility in Cities Database.
Scope 3, Category 9: Downstream Transportation
and Distribution
Data collection: customers data for each store, including the distance
from the store (in miles), customer type, and the number of days upon
each customer entered the store. Emission factors were from DEFRA for
the corresponding reporting year.
Calculations: emission factors mapped to the vehicle types present in
the raw data. The categories 'private car/van' and 'Taxi – non-uber' were
mapped to average car emission factors, whilst 'Rental car/van' and
'Removal company' were mapped to van emission factors. All stores
where the vehicle type was unknown domestic customers had an average
of the car and business customers had a van emission factor applied.
Where the vehicle Type was known, the total distance per customer
was calculated by multiplying the number of visit days by the
customer distance, and doubling this to account for two-way travel.
These distances were aggregated by store and customer type. For stores
where the number of customer trips and/or distance is not recorded, the
average number of trips to the store, and the average trip distance from
the stores was applied. The total distance was calculated by multiplying
the trip distance by the number of trips, and a vehicle-specific or
average DEFRA emissions factor (Inc. WTT) was applied to calculate the
emissions. Business customers with journeys with a distance >100 miles
are assumed to be businesses using head office addresses rather than
local addresses, hence the actual journey would be shorter. To account for
this, any journeys over 100 miles have had an average distance applied.
Scope 3, Category 12: End of Life Treatment of
Sold Products
Data collection: Sales volumes and product weights of stock sold in store
and online. Waste disposal emission factors from DEFRA and EcoInvent
for the relevant reporting year.
Calculations: Products were mapped to their product categories. The total
sales number and the product weight were multiplied to calculate the
total sales weight per product. Relevant waste disposal emission factors
based on the material components of each product were then applied to
calculate the emissions associated with the end-of-life treatment of each
sold product.
Directors’ Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC124
C) Energy projects
Big Yellow has continued to make progress across its core energy
optimisation programmes, which collectively support a more integrated
and efficient approach to energy and emissions management. During the
year, solar generation capacity increased to 9.6MW*, with installations
completed across both new developments and existing stores. Alongside
this expansion, the initial upgrade of earlier systems has begun, ensuring
that installed capacity continues to operate efficiently over the long term.
The battery storage programme has also advanced beyond its pilot phase,
with systems deployed at new stores and selected retrofit locations.
This reflects a more mature and scalable delivery model, developed
through several years of testing and refinement. The integration of
battery storage with on-site generation is improving the utilisation of
renewable energy and providing greater flexibility in managing demand.
Energy efficiency measures have been further scaled, with upgrades
implemented across 24 stores* during the year. These interventions,
primarily focused on lighting controls and system optimisation, have
delivered energy savings of approximately 25% at upgraded sites.
The programme has demonstrated strong financial returns and will
support continued rollout across the estate. Together, these initiatives
are reducing reliance on grid electricity, strengthening operational
resilience and delivering measurable cost and carbon benefits.
The four new stores that were opened during the year (Queensbury,
Staines, Slough Bath Road and Wembley) were fitted with a total of
481kWp solar installation and a total of 200kW battery storage.
Most recent ESOS assessment findings & resulting actions
We have completed our ESOS Phase 3 assessment and submitted a
progress report to our Action Plan. The assessment reaffirmed that
the most material energy reduction opportunities remain aligned with
our ongoing investment in solar generation and energy efficiency
programmes. Our independent ESOS assessor recommendations
have remained similar to that of our Phase 2 assessor; we have
continued to focus on increasing our Solar PV estate in line with our
sustainability strategy.
During the year, we have installed solar systems at:
• Four newly build/acquired stores, with a total installed capacity
of 481kWp
• Three stores were retrofitted with solar totalling a capacity
of 978kWp
During the year, we have generated 6,506 MWh of solar energy
(an increase of 34% from the previous year), thereby (a) reducing our
energy demand from the grid by the kWh we are using on-site and (b)
increasing the grid’s renewable mix by exporting part of our energy as
the size of our solar installations exceed our demand.
Capital structure
Details of the authorised and issued share capital, together with details
of the movements in the Company’s issued share capital during the year
are shown in note 22. The Company has one class of ordinary shares
which carry no right to fixed income. Each share carries the right to one
vote at general meetings of the Company.
There are no specific restrictions on the size of a holding nor on the
transfer of shares, which are both governed by the general provisions of
the Articles of Association and prevailing legislation. The Directors are not
aware of any agreements between holders of the Company’s shares that
may result in restrictions on the transfer of securities or on voting rights.
Details of employee share schemes are set out in note 23, and details of
shares held by the Company’s Employee Benefit Trust are set out in note 22.
No person has any special rights of control over the Company’s share
capital and all issued shares are fully paid.
With regard to the appointment and replacement of Directors, the
Company is governed by its Articles of Association, the Corporate
Governance Code, the Companies Acts and related legislation.
The Articles themselves may be amended by special resolution of
the shareholders. The powers of Directors are described in the Report
on Corporate Governance on page 84.
There are a number of agreements that take effect, alter, or terminate
upon a change of control of the Company such as commercial contracts,
bank loan agreements, property lease arrangements and employee
share plans. The Directors are not aware of any agreements between the
Company and its Directors or employees that provide for compensation
for loss of office or employment that occurs because of a takeover bid.
During the year the Company issued 103,875 shares to satisfy the
exercise of share options (2025: 519,409).
Directors
The Directors of the Company who served throughout the year and to
the date of approval of the financial statements (except as noted below)
were as follows:
Jim Gibson Chief Executive Officer
John Hunter Chief Operating Officer (appointed to the Board
on 17 July 2025)
Anna Keay Non-Executive Director
Vince Niblett Senior Independent Director
Michael O’Donnell Non-Executive Director
Heather Savory Non-Executive Director
Laela Pakpour Tabrizi Non-Executive Director
John Trotman Chief Financial Officer
Nicholas Vetch Executive Chairman
The Company’s policy is that all Directors who are seeking re-election will
be put forward to a shareholder vote at each Annual General Meeting.
Biographical details of the Executive and Non-Executive Directors
standing for re-election are set out on pages 80 to 82.
Directors’ indemnities
The Company purchases liability insurance covering the Directors and
officers of the Company and its subsidiaries, which remains in force at
the date of these accounts.
Annual Report and Accounts 2026 Big Yellow Group PLC 125
Financial StatementsStrategic Report Governance Report
Political contributions
No political donations were made by the Company in either the current or
preceding financial year.
Substantial shareholdings
The Company had been notified, in accordance with Chapter 5 of
the Disclosure Guidance and Transparency rules, of the following
voting rights as a shareholder of the Company at 31 March 2026
and 14 May 2026.
No. of
ordinary
shares
31 March
2026
Percentage of
voting rights
and issued
share capital
31 March
2026
No. of
ordinary
shares
14 May 2026
Percentage of
voting rights
and issued
share capital
14 May 2026
Blackrock Inc 18,527,548 9.4% 18,556,282 9.4%
Resolution Capital 12,883,794 6.6% 12,006,831 6.1%
The Vanguard Group Inc 10,975,273 5.6% 10,914,618 5.6%
CPP Investment Board 7,370,532 3.7% 7,370,532 3.7%
First Eagle Investment
Management LLC 6,109,406 3.1% 6,113,584 3.1%
The interest of the Directors in the share capital of the Company is shown
on page 112 of the Remuneration Report.
Purchase of own shares
The Company was granted authority at the AGM in 2025 to purchase its
own shares up to a total aggregate value of 10% of the issued nominal
capital. That authority expires at this year’s AGM and a resolution will
be proposed for its renewal. During the year the Company made no
purchases of its own shares.
Suppliers and customers
Details on how the Group engages with Suppliers, Customers, and
others in business relationships with the Company can be found on
pages 87 to 88.
Employee consultation
The Group seeks to ensure employee commitment to its objectives in
a number of ways. Strategic changes are communicated directly to all
staff who are encouraged to address queries to the Executive Directors.
The Directors’ executive meetings are frequently held in stores and
in addition Directors and senior management visit the stores on a
regular basis. Furthermore, there are regular team briefings at store
level to provide employees with information about the performance
of and initiatives in their store. A wide range of information is also
communicated across the Group’s Intranet, including the e-publication
of the Group’s financial results and all press releases, and regular
updates from each Department.
As discussed in the Corporate Governance Report, the Board has
appointed a designated Non-Executive Director, Anna Keay, to act as the
primary method of workforce engagement for Big Yellow in accordance
with the Corporate Governance Code.
Employees are encouraged to participate in the Group’s performance
through Employee Share Schemes and performance related bonuses.
46% of eligible employees participate in the Group’s Sharesave Scheme.
The Group’s recruitment policy is committed to promote equality, judging
neither by race, nationality, religion, age, gender, disability, sexual
orientation, nor political opinion and to treat all stakeholders fairly.
Disabled employees
Applications for employment by disabled persons are always fully
considered. In the event of members of staff becoming disabled every
effort is made to ensure that their employment with the Group continues
and that appropriate training is arranged. It is the policy of the Group
that the training, career development and promotion of disabled persons
should, as far as possible, be identical to that of other employees.
Human Rights
Big Yellow respects Human Rights and aims to provide assurance to
internal and external stakeholders that we are committed to human
rights and the principles of the Universal Declaration of Human Rights.
We are committed to creating and maintaining a positive and professional
work environment that reflects and respects the basic rights of freedom
to lead a dignified life, free from fear or want, and where stakeholders are
free to express their independent beliefs. Our employment policies and
practices reflect a culture where decisions are made solely on the basis of
individual capability and potential in relation to the needs of the business.
Modern Slavery Act
The Group is committed to ensuring that there is no modern slavery or
human trafficking in our supply chains or in any part of our business.
Our Anti-slavery Policy reflects our commitment to acting ethically and
with integrity in all our business relationships and to implementing and
enforcing effective systems and controls to ensure slavery and human
trafficking is not taking place anywhere in our supply chains. Our policy
is published in full on our website.
Auditor
In accordance with Section 489 of the Companies Act 2006, a resolution
for the re-appointment of KPMG LLP as auditor of the Company is to be
proposed at the forthcoming Annual General Meeting.
Disclosure of information to auditor
The Directors who held office at the date of approval of this Directors’
Report confirm that, so far as they are each aware, there is no relevant
audit information of which the Company’s auditor is unaware; and each
Director has taken all the steps that he/ she ought to have taken as a
Director to make himself/ herself aware of any relevant audit information
and to establish that the Company’s auditors is aware of that information.
This confirmation is given and should be interpreted in accordance with
s418 of the Companies Act 2006.
Approved by the Board of Directors and signed on behalf of the Board.
Shauna Beavis
Company Secretary | 18 May 2026
Directors’ Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC126
Statement of Directors’ Responsibilities in Respect
of the Annual Report and the Financial Statements
The Directors are responsible for preparing the Annual Report and the
Group and parent Company financial statements in accordance with
applicable law and regulations.
Company law requires the Directors to prepare Group and parent
Company financial statements for each financial year. Under that
law they are required to prepare the Group financial statements in
accordance with UK-adopted international accounting standards and
applicable law and have elected to prepare the parent Company financial
statements in accordance with UK accounting standards and applicable
law, including FRS 101 Reduced Disclosure Framework.
Under company law the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair view of
the state of affairs of the Group and parent Company and of the Group’s
profit or loss for that period. In preparing each of the Group and parent
Company financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable, relevant, and
reliable and, in respect of the parent Company financial statements
only, prudent;
• for the Group financial statements, state whether they have
been prepared in accordance with UK-adopted international
accounting standards;
• for the parent Company financial statements, state whether
applicable UK accounting standards have been followed, subject
to any material departures disclosed and explained in the parent
Company financial statements;
• assess the Group and parent Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern; and
• use the going concern basis of accounting unless they either intend
to liquidate the Group or the parent Company or to cease operations,
or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the parent Company’s
transactions and disclose with reasonable accuracy at any time the
financial position of the parent Company and enable them to ensure that
its financial statements comply with the Companies Act 2006. They are
responsible for such internal control as they determine is necessary
to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error, and have general
responsibility for taking such steps as are reasonably open to them to
safeguard the assets of the Group and to prevent and detect fraud and
other irregularities.
Under applicable law and regulations, the Directors are also responsible
for preparing a Strategic Report, Directors’ Report, Directors’
Remuneration Report and Corporate Governance Statement that
complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
Legislation in the UK governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
In accordance with Disclosure Guidance and Transparency Rule (“DTR”)
4.1.16R, the financial statements will form part of the annual financial
report prepared under DTR 4.1.17R and 4.1.18R. The auditor’s report on
these financial statements provides no assurance over whether the annual
financial report has been prepared in accordance with those requirements.
Responsibility statement of the Directors in
respect of the annual financial report
We confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with the applicable
set of accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as a whole; and
• the strategic report includes a fair review of the development and
performance of the business and the position of the issuer and
the undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and uncertainties
that they face.
We consider the annual report and accounts, taken as a whole, is fair,
balanced and understandable and provides the information necessary
for shareholders to assess the Group’s position and performance,
business model and strategy.
This responsibility statement was approved by the Board of Directors on
18 May 2026 and is signed on its behalf by:
Jim Gibson John Trotman
Chief Executive Officer Chief Financial Officer
Annual Report and Accounts 2026 Big Yellow Group PLC 127
Financial StatementsStrategic Report Governance Report
1. Our opinion is unmodified
We have audited the financial statements of Big Yellow Group PLC
(“the Company”) for the year ended 31 March 2026 which comprise the
Consolidated Statement of Comprehensive Income, Consolidated Balance
Sheet, Consolidated Statement of Changes in Equity, Consolidated
Cash Flow Statement, Company Balance Sheet, Company Statement
of Changes in Equity, and the related notes, including the accounting
policies in note 2 and 29.
In our opinion:
• the financial statements give a true and fair view of the state of the
Group’s and of the parent Company’s affairs as at 31 March 2026 and
of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in
accordance with UK-adopted international accounting standards;
• the parent Company financial statements have been properly
prepared in accordance with UK accounting standards, including FRS
101 Reduced Disclosure Framework; and
• the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on
Auditing (UK) “ISAs (UK)” and applicable law. Our responsibilities are
described below. We believe that the audit evidence we have obtained
is a sufficient and appropriate basis for our opinion. Our audit opinion is
consistent with our report to the Audit Committee.
We were first appointed as auditor by the shareholders on 20 July 2017.
The period of total uninterrupted engagement is for the nine financial
years ended 31 March 2026. We have fulfilled our ethical responsibilities
under, and we remain independent of the Group in accordance with, UK
ethical requirements including the FRC Ethical Standard as applied to
listed public interest entities. No non-audit services prohibited by that
standard were provided.
Overview
Materiality:
Group financial statements
as a whole
£23.4m (2025: £22.4m)
0.74% (2025: 0.74%) of total assets
Key audit matters vs 2025
Recurring risks
Valuation of Investment Property,
including Investment Property
Under Construction
Recoverability of amounts owed
by Group undertakings (Parent
Company only)
2. Key audit matters:
our assessment of risks
of material misstatement
Key audit matters are those matters that, in our professional judgement,
were of most significance in the audit of the financial statements and
include the most significant assessed risks of material misstatement
(whether or not due to fraud) identified by us, including those which
had the greatest effect on: the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the engagement team.
We summarize below the key audit matters (unchanged from 2025), in
decreasing order of audit significance, in arriving at our audit opinion
above, together with our key audit procedures to address those matters
and, as required for public interest entities, our results from those
procedures. These matters were addressed, and our results are based
on procedures undertaken, in the context of, and solely for the purpose
of, our audit of the financial statements as a whole, and in forming our
opinion thereon, and consequently are incidental to that opinion, and
we do not provide a separate opinion on these matters.
Independent Auditor's Report to the
Members of Big Yellow Group PLC
Annual Report and Accounts 2026 Big Yellow Group PLC128
The risk Our response
Valuation of
Investment Property,
including Investment
Property under
Construction
Investment Property
£2,944.5 million;
(2025: £2,807.5m)
Investment Property
Under Construction
£166.7 million;
(2025: £185.2m)
Refer to page 120
(Audit Committee
Report), page 145
(accounting policy)
and pages 158 to 160
(financial disclosures).
Subjective valuation:
Investment property valuation is subjective and inherently
judgemental in nature and therefore results in a risk
of error.
Investment property values are calculated using actual
and subjective assumptions inputs such as store
occupancy, future growth in net rent, discount rates and
exit capitalisation rates for investment property and in
addition, capital expenditure forecasts for investment
property under construction.
The Group engages an external valuer to apply
professional judgment concerning market conditions
and factors impacting individual properties.
The investment market for prime self storage is subject
to inherent uncertainty due to the low volume of
comparable transactions.
The effect of these matters is that, as part of our risk
assessment, we determined that the value of investment
properties including investment property under
construction has a high degree of estimation uncertainty,
with a potential range of reasonable outcomes greater
than our materiality for the financial statements as a
whole, and possibly many times that amount.
Disclosure quality:
The financial statements (note 15) disclose the sensitivity
estimated by the Group.
The Directors’ assessment of the extent of the disclosure
is based on an evaluation of the inherent risks to
the valuation.
The risk for our audit is whether or not those disclosures
adequately address the uncertainties within the valuation.
Our procedures included:
• Assessment of accounting policy application: We assessed whether the valuation,
presentation and disclosure of Investment Properties and Investment Property
under Construction is in accordance with the Group accounting policy and applicable
accounting standards.
• Assessment of valuer’s credentials: With the assistance of our valuation specialist
we assessed the external valuer’s qualifications and expertise and read its terms
of engagement with the Group to determine whether there were any matters that
might have affected their independence and objectivity or may have imposed scope
limitations upon their work.
• Methodology choice: With the assistance of our valuation specialist we read the
external valuation report which covers 100% of the investment properties (including
those under construction) and assessed whether the valuation approach was in
accordance with the Royal Institution of Chartered Surveyors (RICS) standards and
suitable for use in determining the value for the purpose of the financial statements.
• Personnel interview: We met with the external valuer, the Group’s senior Management
and the Audit Committee chair with our own internal valuation specialist to discuss the
valuation process, key assumption inputs such as occupancy, future growth in net
rent, exit capitalisation rates for investment property, capital expenditure forecasts for
investment property under construction and discount rates, and the rationale behind
significant or unusual valuation movements during the year.
• Our sector experience: With the assistance of our valuation specialist, we used our
knowledge of the entity, our experience of the real estate industry and observed
industry norms when assessing the key assumptions and the significant or
unusual valuation movements and, for investment property under construction,
we considered the judgement made by the and external valuers for planning risk
for non-consented sites.
• Data provided to the valuer: We tested the accuracy of information used to generate
key inputs to the valuation such as current lettable area, store occupancy and net
rental income by testing a sample of rooms rented back to contract and cash receipts.
• Independent re-calculation: Using our own internally produced model and the external
valuer and Directors’ inputs we assessed the accuracy of the valuation as produced by
the external valuer.
• Tests of detail: For investment property under construction, we agreed a sample of
costs incurred to date to third party supporting information. For cost to complete
we compared forecasts, supplied to the valuer, to third party estimates and where
appropriate third-party contracts. We also obtained evidence that planning permission
had been granted for those development sites for which this was applicable. In addition,
for a sample of properties under construction our valuation specialist assessed the
assumptions inputs and their application in line with the valuation methodology.
• Assessed valuation changes: We critically assessed the changes between the draft
external valuation report subject to Director review, and the final external valuation
report including tie through to the financial statements, to ensure changes were
appropriately substantiated.
• Assessed transparency: We assessed whether the Group’s disclosure about the
sensitivity of the valuation of investment properties to changes in key assumptions
adequately reflect the related risks.
We performed the detailed tests above rather than seeking to rely on any of the Group’s
controls because our knowledge of the design of these controls indicated that we would
not be able to obtain the required evidence to support reliance on controls.
Our results
• We found the valuation of investment properties, and investment properties under
construction and the disclosure of the associated level of uncertainty to be acceptable
(2025: acceptable).
Annual Report and Accounts 2026 Big Yellow Group PLC 129
Financial StatementsStrategic Report Governance Report
The risk Our response
Recoverability of
amounts owed by
Group undertakings
(Parent Company
only)
£859.4 million;
(2025: £697.2m)
Refer to pages 145
to 147 (accounting
policy) and page 180
(financial disclosures).
Low risk, high value:
The carrying amount of amounts owed by Group
undertakings represents 95% (2025: 94%) of the
Company’s total assets at 31 March 2026.
Their recoverability is not at a high risk of material
misstatement or subject to significant judgement.
However, due to their materiality in the context of
the parent Company financial statements, this is
considered to be the area that had the greatest effect
on our overall parent Company audit.
We performed the tests below rather than seeking to rely on any of the parent Company’s
controls because the nature of the balance is such that we would expect to obtain audit
evidence primarily through the detailed procedures described.
Our procedures included:
• Tests of detail: We assessed 100% of amounts owed by Group undertakings to identify,
with reference to the relevant debtors’ balance sheet, whether they have a positive net
asset value and therefore coverage of the debt owed, as well as assessing whether
those debtors’ companies have historically been profit making.
Our results
• We found the conclusion that that there is no impairment of the amounts owed by
Group undertakings balance to be acceptable (2025: acceptable)
Independent Auditor's Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC130
3. Our application of materiality and an
overview of the scope of our audit
Materiality for the Group financial statements as a whole was set at
£23.4 million (2025: £22.4 million), determined with reference to a
benchmark of total assets of which it represents 0.74% (2025: 0.74%).
Materiality for the parent Company financial statements as a whole
was set at £7.6 million (2025: £7.9 million), determined with reference
to a benchmark of Company total assets, of which it represents 0.84%
(2025: 1%).
In line with our audit methodology, our procedures on individual
account balances and disclosures were performed to a lower threshold,
performance materiality, so as to reduce to an acceptable level the
risk that individually immaterial misstatements in individual account
balances add up to a material amount across the financial statements
as a whole.
Performance materiality was set at 75% (2025: 75%) of materiality for
the financial statements as a whole, which equates to £17.5 million
(2025: £16.8 million) for the Group and £5.7 million (2025: £5.92 million)
for the parent Company. We applied this percentage in our determination
of performance materiality because we did not identify any factors
indicating an elevated level of risk.
We agreed to report to the Audit Committee any corrected or uncorrected
identified misstatements exceeding £1.2 million (2025: £1.1 million) and
in addition to other identified misstatements that warranted reporting on
qualitative grounds.
In addition, we applied a materiality of £5.3 million to Revenue, Cost of
sales, Cash and cash equivalents, and Deferred income (part of account
caption accruals and deferred income) (2025: £4.9 million to Revenue,
Cost of sales, Admin Expenses, Finance costs, Trade receivables,
Cash and cash equivalents, Deferred income (part of account caption
accruals and deferred income), trade payables and other payables)
for which we believe misstatement of a lesser amount than materiality
for the financial statements as a whole could be reasonably expected
to influence the Company’s members’ assessment of the financial
performance of the Group. In relation to these balances, we applied
performance materiality of £3.9 million (2025: £3.7 million) and we
agreed to report to the Audit Committee any corrected or uncorrected
identified misstatements exceeding £260k (2025: £245k), in addition
to other identified misstatements that warranted reporting on
qualitative grounds.
Impact of controls on our audit
We identified the finance system and the billing system to be the
main IT systems relevant to our audit. We didn’t plan to rely on general
IT controls having considered the efficiency and effectiveness of
approaches to gaining the appropriate audit evidence in the context of
the nature of the organisation and balances, and considering control
deficiencies identified.
We tested operating effectiveness and placed reliance on manual
controls in some areas of the audit such as cash. However, as we did
not rely on IT controls we performed substantive procedures over
journals and revenue. A direct testing approach was taken to assessing
the completeness and reliability of system information used in those
manual controls and where we performed substantive procedures that
utilised data from the IT systems. In the other areas of the audit a fully
substantive approach was performed.
Overview of the scope of our audit
The Group team performed the audit of the Group as a single component.
The audit was performed using the materiality and performance
materiality levels set out above.
4. The impact of climate change
on our audit
In planning our audit, we have considered the potential impact of
risks arising from Group’s business and its financial statements.
Further information is provided in the Group’s strategic report
(pages 52 to 62), the Environmental, Social and Governance report
(pages 64 to 74) and the corporate governance report (pages 83 to 89)
which have been incorporated into the 2026 Annual Report.
Climate change risks and opportunities have had a limited impact on
the Group.
As part of our audit we performed a risk assessment of the impact of
climate change risk on the Group’s Financial statements and our audit
approach. This included making enquiries to understand management's
assessment of the potential impact of climate change risk on the Group's
financial statements including their risk assessment process.
We also read the climate related information in the front half of the Annual
Report and considered consistency with the financial statements and our
audit knowledge.
On the basis of our risk assessment, we concluded that the risk of
climate change to the financial statements was not significant when we
considered the nature of the assets and relevant contractual terms. As a
result, there was no material impact from this on our key audit matters.
Annual Report and Accounts 2026 Big Yellow Group PLC 131
Financial StatementsStrategic Report Governance Report
5. Going concern
The Directors have prepared the financial statements on the going
concern basis as they do not intend to liquidate the Group or the
Company or to cease their operations, and as they have concluded
that the Group’s and the Company’s financial position means that
this is realistic. They have also concluded that there are no material
uncertainties that could have cast significant doubt over their ability
to continue as a going concern for at least 18 months from the date of
approval of the financial statements (“the going concern period”).
We used our knowledge of the Group, its industry, and the general
economic environment to identify the inherent risks to its business
model and analysed how those risks might affect the Group’s and
Company’s financial resources or ability to continue operations over
the going concern period. The risk that we considered most likely to
adversely affect the Group’s and Company’s available financial resources
and metrics relevant to debt covenants over this period were:
• The impact of macro-economic trends on customer activity,
particularly customer occupancy rates.
We considered whether this risk could plausibly affect the liquidity
and covenant compliance in the going concern period by assessing the
Directors sensitivities over the level of available financial resources and
covenant thresholds indicated by the Group’s financial forecasts taking
account of severe, but plausible adverse effects that could arise from
this risk individually and collectively.
Our procedures also included:
• Critically assessing assumptions in base case and downside
scenarios relevant to covenant metrics, in particular in relation to
customer performance (namely occupancy rates and net rent levels)
by comparing to historical trends in severe economic situations and
overlaying knowledge of the entity’s trading performance to date,
historical accuracy in budgeting and our knowledge of the entity and
the sector in which it operates.
• We inspected confirmations from the lender on the level of
committed financing, the associated covenant requirements and
restrictions on the use of funds.
• We considered whether the going concern disclosure in note 2 to
the financial statements gives a full and accurate description of the
Directors’ assessment of going concern, including the identified
risks, dependencies, and related sensitivities.
Our conclusions based on this work:
• we consider that the Directors’ use of the going concern basis
of accounting in the preparation of the financial statements
is appropriate;
• we have not identified, and concur with the Directors’ assessment
that there is not, a material uncertainty related to events or
conditions that, individually or collectively, may cast significant
doubt on the Group or Company's ability to continue as a going
concern for the going concern period;
• we have nothing material to add or draw attention to in relation to
the Directors’ statement in note 2 to the financial statements on
the use of the going concern basis of accounting with no material
uncertainties that may cast significant doubt over the Group and
Company’s use of that basis for the going concern period, and we
found the going concern disclosure in note 2 to be acceptable; and
• the related statement under the UK Listing Rules set out on page 51
is materially consistent with the financial statements and our
audit knowledge.
However, as we cannot predict all future events or conditions and as
subsequent events may result in outcomes that are inconsistent with
judgements that were reasonable at the time they were made, the above
conclusions are not a guarantee that the Group or the Company will
continue in operation.
Independent Auditor's Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC132
6. Fraud and breaches of laws and
regulations – ability to detect
Identifying and responding to risks of material
misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”)
we assessed events or conditions that could indicate an incentive or
pressure to commit fraud or provide an opportunity to commit fraud.
Our risk assessment procedures included:
• Enquiring of Directors, the Audit Committee, and the store
compliance function and inspection of policy documentation as
to the Group’s high-level policies and procedures to prevent and
detect fraud, including the Group’s channel for “whistleblowing”,
as well as whether they have knowledge of any actual, suspected
or alleged fraud.
• Inspecting Board and Audit Committee minutes.
• Considering remuneration incentive schemes and performance
targets for Directors and management including the adjusted
EPS target, LTIP scheme (long term incentive plan), SAYE scheme
(employee share save scheme) and deferred bonus plan
• Using analytical procedures to identify any unusual or
unexpected relationships.
• Involvement of forensic: Our forensic professionals assisted us
in identifying key fraud risks. This included attending the Risk
Assessment and Planning Discussion and holding a discussion
with the engagement partner, engagement manager and
engagement team.
We communicated identified fraud risks throughout the audit team and
remained alert to any indications of fraud throughout the audit.
As required by auditing standards, we perform procedures to address the
risk of management override of controls, in particular the risk that Group
management may be in a position to make inappropriate accounting
entries and the risk of bias in accounting estimates and judgements such
as the valuation of investment property and investment property under
construction. On this audit we do not believe there is a fraud risk related
to revenue recognition because there are limited judgemental aspects to
the Group’s low value, high volume revenue streams. We did not identify
any additional fraud risks.
We performed procedures including:
• Identified journal entries to test based on risk criteria and compared
the identified entries to supporting documentation. These included
journal entries with unusual characteristics compared to the total
journal population, entries with narratives that contain key words,
and entries made by users who do not typically post journals.
• Assessed whether the judgements made in making accounting
estimates are indicative of a potential bias including assessing
fair value of investment property and investment property under
construction for bias.
Identifying and responding to risks of material
misstatement due to non-compliance with laws
and regulations
We identified areas of laws and regulations that could reasonably be
expected to have a material effect on the financial statements from our
general commercial and sector experience and through discussion with
the Directors and other management (as required by auditing standards)
and discussed with the Directors and other management the policies and
procedures regarding compliance with laws and regulations.
As the Group is regulated, our assessment of the risks involved gaining
an understanding of the control environment including the entity’s
procedures for complying with regulatory requirements.
We communicated identified laws and regulations throughout our team
and remained alert to any indications of non-compliance throughout
the audit.
The potential effect of these laws and regulations on the financial
statements varies considerably.
Firstly, the Group is subject to laws and regulations that directly affect
the financial statements including financial reporting legislation
(including related companies legislation), distributable profits
legislation, Real Estate Investment Trust (REIT) legislation and taxation
legislation, and we assessed the extent of compliance with these
laws and regulations as part of our procedures on the related financial
statement items.
Secondly, the Group is subject to many other laws and regulations where
the consequences of non-compliance could have a material effect on
amounts or disclosures in the financial statements, for instance through
the imposition of fines or litigation. We identified the following areas as
those most likely to have such an effect: health and safety, anti-bribery,
employment law, data protection laws, building safety legislation and
certain aspects of company legislation recognising the financial and
regulated nature of the Company’s activities and its legal form. Auditing
standards limit the required audit procedures to identify non-compliance
with these laws and regulations to enquiry of the Directors and
inspection of regulatory and legal correspondence, if any.
Therefore, if a breach of operational regulations is not disclosed to
us or evident from relevant correspondence, an audit will not detect
that breach.
Annual Report and Accounts 2026 Big Yellow Group PLC 133
Financial StatementsStrategic Report Governance Report
Context of the ability of the audit to detect fraud
or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable
risk that we may not have detected some material misstatements in
the financial statements, even though we have properly planned and
performed our audit in accordance with auditing standards. For example,
the further removed non-compliance with laws and regulations is from
the events and transactions reflected in the financial statements,
the less likely the inherently limited procedures required by auditing
standards would identify it.
In addition, as with any audit, there remained a higher risk of
non-detection of fraud, as these may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal
controls. Our audit procedures are designed to detect material
misstatement. We are not responsible for preventing non-compliance
or fraud and cannot be expected to detect non-compliance with all
laws and regulations.
7. We have nothing to report on the other
information in the Annual Report
The Directors are responsible for the other information presented in
the Annual Report together with the financial statements. Our opinion
on the financial statements does not cover the other information and,
accordingly, we do not express an audit opinion or, except as explicitly
stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so,
consider whether, based on our financial statements audit work, the
information therein is materially misstated or inconsistent with the
financial statements or our audit knowledge. Based solely on that work
we have not identified material misstatements in the other information.
Strategic report and Directors’ report
Based solely on our work on the other information:
• we have not identified material misstatements in the strategic report
and the Directors’ report;
• in our opinion the information given in those reports for the financial
year is consistent with the financial statements; and
• in our opinion those reports have been prepared in accordance with
the Companies Act 2006.
Directors’ remuneration report
In our opinion the part of the Directors’ Remuneration Report to be
audited has been properly prepared in accordance with the Companies
Act 2006.
Disclosures of emerging and principal risks and
longer-term viability
We are required to perform procedures to identify whether there is a
material inconsistency between the Directors’ disclosures in respect of
emerging and principal risks and the viability statement, and the financial
statements and our audit knowledge.
Based on those procedures, we have nothing material to add or draw
attention to in relation to:
• the Directors’ confirmation within the Viability Statement on page 51
that they have carried out a robust assessment of the emerging and
principal risks facing the Group, including those that would threaten
its business model, future performance, solvency and liquidity;
• The principal risks and uncertainties disclosures describing these
risks and how emerging risks are identified, and explaining how they
are being managed and mitigated; and
• the Directors’ explanation in the Viability Statement of how they have
assessed the prospects of the Group, over what period they have
done so and why they considered that period to be appropriate, and
their statement as to whether they have a reasonable expectation
that the Group will be able to continue in operation and meet its
liabilities as they fall due over the period of their assessment,
including any related disclosures drawing attention to any necessary
qualifications or assumptions.
We are also required to review the Viability Statement, set out on page 51
under the UK Listing Rules. Based on the above procedures, we have
concluded that the above disclosures are materially consistent with the
financial statements and our audit knowledge.
Our work is limited to assessing these matters in the context of only the
knowledge acquired during our financial statements audit. As we cannot
predict all future events or conditions and as subsequent events may
result in outcomes that are inconsistent with judgements that were
reasonable at the time they were made, the absence of anything to report
on these statements is not a guarantee as to the Group’s and parent
Company’s longer-term viability.
Independent Auditor's Report continued
Annual Report and Accounts 2026 Big Yellow Group PLC134
Corporate governance disclosures
We are required to perform procedures to identify whether there is a
material inconsistency between the Directors’ corporate governance
disclosures and the financial statements and our audit knowledge.
Based on those procedures, we have concluded that each of the
following is materially consistent with the financial statements and
our audit knowledge:
• the Directors’ statement that they consider that the annual report
and financial statements taken as a whole is fair, balanced and
understandable, and provides the information necessary for
shareholders to assess the Group’s position and performance,
business model and strategy;
• the section of the annual report describing the work of the Audit
Committee, including the significant issues that the audit committee
considered in relation to the financial statements, and how these
issues were addressed; and
• the section of the annual report that describes the review of
the effectiveness of the Group’s risk management and internal
control systems.
We are required to review the part of the Corporate Governance
Statement relating to the Group’s compliance with the provisions of
the UK Corporate Governance Code specified by the UK Listing Rules
for our review.
We have nothing to report in this respect
8. We have nothing to report on the other
matters on which we are required to report
by exception.
Under the Companies Act 2006, we are required to report to you if, in
our opinion:
• adequate accounting records have not been kept by the parent
Company, or returns adequate for our audit have not been received
from branches not visited by us; or
• the parent Company financial statements and the part of the
Directors’ Remuneration Report to be audited are not in agreement
with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are
not made; or
• we have not received all the information and explanations we require
for our audit.
We have nothing to report in these respects.
9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 127, the
Directors are responsible for: the preparation of the financial statements
including being satisfied that they give a true and fair view; such internal
control as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether
due to fraud or error; assessing the Group and parent Company’s ability
to continue as a going concern, disclosing, as applicable, matters related
to going concern; and using the going concern basis of accounting unless
they either intend to liquidate the Group or the parent Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue our opinion in an auditor’s
report. Reasonable assurance is a high level of assurance, but does
not guarantee that an audit conducted in accordance with ISAs
(UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material
if, individually or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the
financial statements.
A fuller description of our responsibilities is provided on the FRC’s website
at www.frc.org.uk/auditorsresponsibilities.
The Company is required to include these financial statements in
an annual financial report prepared under Disclosure Guidance and
Transparency Rule 4.1.17R and 4.1.18R. This auditor’s report provides
no assurance over whether the annual financial report has been prepared
in accordance with those requirements.
10. The purpose of our audit work and to
whom we owe our responsibilities
This report is made solely to the Company’s members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
audit work has been undertaken so that we might state to the Company’s
members those matters we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the
Company and the Company’s members, as a body, for our audit work,
for this report, or for the opinions we have formed.
for and on behalf of KPMG LLP , Statutory Auditor
Chartered Accountants
2 Forbury Place
33 Forbury Road Reading
RG1 3AD
18 May 2026
Annual Report and Accounts 2026 Big Yellow Group PLC 135
Financial StatementsStrategic Report Governance Report
Consolidated Statement of Comprehensive Income
Year ended 31 March 2026
| 2026 | 2025 | |||
| Note | £000 | £000 | ||
Revenue | 3 | |||
Cost of sales | ( | ( | ||
Gross profit | ||||
Administrative expenses | ( | ( | ||
Operating profit before fair value changes on property assets | ||||
Gain on the revaluation of investment properties | 14a,15 | |||
Gain on disposal of non-current asset | 14a | |||
Operating profit | ||||
Other income | 3 | |||
Share of profit of joint venture | 13d | |||
Investment income | – interest receivable | 7 | ||
– fair value movement on derivatives | 7 | |||
Finance costs | – interest payable | 8 | ( | ( |
Profit before taxation | ||||
Taxation | 9 | ( | ( | |
Profit for the year (attributable to equity shareholders) | 5 | |||
Total comprehensive income for the year (attributable to equity shareholders) | ||||
Basic earnings per share | 12 | |||
Diluted earnings per share | 12 |
Adjusted earnings per share are shown in Note 12.
All items in the statement of comprehensive income relate to continuing operations.
The accompanying notes on pages 140 to 174 form part of the financial statements.
Annual Report and Accounts 2026 Big Yellow Group PLC136
Consolidated Balance Sheet
| 2026 | 2025 | ||
| Note | £000 | £000 | |
| Non-current assets | |||
Investment property | 14a | ||
Investment property under construction | 14a | ||
Right-of-use assets | 14a | ||
Plant, equipment, and owner-occupied property | 14b | ||
Intangible assets | 14c | ||
Investment in joint venture | 14d | ||
Investment | 14d | ||
| Current assets | |||
Inventories | |||
Trade and other receivables | 16 | ||
Cash and cash equivalents | |||
Total assets | |||
| Current liabilities | |||
Trade and other payables | 17 | ( | ( |
Borrowings | 19 | ( | ( |
Obligations under lease liabilities | 21 | ( | ( |
( | ( | ||
| Non-current liabilities | |||
Borrowings | 19 | ( | ( |
Obligations under lease liabilities | 21 | ( | ( |
Derivative financial instruments | 18c | ( | ( |
( | ( | ||
Total liabilities | ( | ( | |
Net assets | |||
| Equity | |||
Share capital | 22 | ||
Share premium account | |||
Reserves | |||
Equity shareholders’ funds |
Company Registration No. 03625199
The accompanying notes on pages 140 to 174 form part of the financial statements.
Annual Report and Accounts 2026 Big Yellow Group PLC 137
Governance Report Financial StatementsStrategic Report
Consolidated Statement of Changes in Equity
Year ended 31March 2026
| Share | Other non- | Capital | |||||
| Share | premium | distributable | redemption | Retained | Own | ||
| capital | account | reserve | reserve | earnings | shares | Total | |
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
At | ( | ||||||
Total comprehensive income for the year | |||||||
Issue of share capital | |||||||
Dividend | ( | ( | |||||
Use of own shares to satisfy share options | ( | ||||||
| Credit to equity for equity-settled | |||||||
share-based payments | |||||||
At | ( |
The other non-distributable reserve arose in the year ended 31 March 2015 following the placing of 14.35 million ordinary shares.
The issue of share capital is net of expenses.
Year ended 31 March 2025
| Share | Other non- | Capital | |||||
| Share | premium | distributable | redemption | Retained | Own | ||
| capital | account | reserve | reserve | earnings | shares | Total | |
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
At 1 April 2024 | ( | ||||||
Total comprehensive income for the year | |||||||
Issue of share capital | |||||||
Dividend | ( | ( | |||||
Use of own shares to satisfy share options | ( | ||||||
| Credit to equity for equity-settled | |||||||
share-based payments | |||||||
At 31 March 2025 | ( |
The accompanying notes on pages 140 to 174 form part of the financial statements.
Annual Report and Accounts 2026 Big Yellow Group PLC138
| 2026 | 2025 | ||
| Note | £000 | £000 | |
Cash generated from operations | 26 | ||
Bank interest paid | ( | ( | |
Interest on obligations under lease liabilities | ( | ( | |
Interest received | |||
Other operating income received | |||
Tax paid | ( | ( | |
Cash flows from operating activities | |||
| Investing activities | |||
Purchase of non-current assets | ( | ( | |
Investment in joint venture | ( | ||
Disposal of non-current asset | |||
Cash flows from investing activities | ( | ( | |
| Financing activities | |||
Issue of share capital | |||
Payment of lease liabilities | ( | ( | |
Equity dividends paid | ( | ( | |
Loan arrangement fees paid | ( | ( | |
Increase in borrowings | 26b | ||
Cash flows used in financing activities | ( | ( | |
Net increase/(decrease) in cash and cash equivalents | ( | ||
Opening cash and cash equivalents | |||
Closing cash and cash equivalents |
The accompanying notes on pages 140 to 174 form part of the financial statements.
Consolidated Cash Flow Statement
Year ended 31 March 2026
Annual Report and Accounts 2026 Big Yellow Group PLC 139
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
1. General information
and limited by shares. The address of the registered office is 2 The Deans, Bridge Road, Bagshot, Surrey, GU19 5AT . The nature of the Group’s
operations and its principal activities are set out in note 4 and in the Strategic Report on pages 18 to 51.
2. Significant accounting policies
Annual Report and Accounts 2026 Big Yellow Group PLC140
2. Significant accounting policies continued
Annual Report and Accounts 2026 Big Yellow Group PLC 141
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
2. Significant accounting policies continued
Annual Report and Accounts 2026 Big Yellow Group PLC142
2. Significant accounting policies continued
Annual Report and Accounts 2026 Big Yellow Group PLC 143
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
2. Significant accounting policies continued
Annual Report and Accounts 2026 Big Yellow Group PLC144
2. Significant accounting policies continued
Annual Report and Accounts 2026 Big Yellow Group PLC 145
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
2. Significant accounting policies continued
Annual Report and Accounts 2026 Big Yellow Group PLC146
2. Significant accounting policies continued
Annual Report and Accounts 2026 Big Yellow Group PLC 147
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
2. Significant accounting policies continued
Annual Report and Accounts 2026 Big Yellow Group PLC148
3. Revenue
Analysis of the Group’s operating revenue can be found below and in the Portfolio Summary on page 33.
| 2026 | 2025 | |
| £000 | £000 | |
| Open stores | ||
Self storage income | 181,072 | 17 7, 823 |
Enhanced liability service income | 18,901 | 18,563 |
Packing materials income | 2,644 | 2,815 |
Other income from storage customers | 2,577 | 2,285 |
Ancillary store rental income | 2,421 | 1,638 |
Total store revenue | 207, 615 | 203,124 |
Non-storage income | 1,469 | 1, 371 |
Total revenue | 209,084 | 204,495 |
Non-storage income derives principally from rental income earned from tenants of properties awaiting development.
The Group earned other income of £0.2 million in the current year from a payment for dilapidations on a development property. In the prior year
the Group earned other income of £4.0 million. This related to insurance proceeds for loss of income following the destruction of the Group’s
Cheadle store by fire in 2022, with the claim having been settled with the insurers in 2025.
The Group has considered IFRS 17 in respect of our sale of the Enhanced Liability Service and concluded any impact from IFRS 17 would be
immaterial in both the current and prior year.
4. Segmental information
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by
the Chief Executive to allocate resources to the segments and to assess their performance. Given the nature of the Group’s business, there is one
segment, which is the provision of self storage and related services.
Revenue represents amounts derived from the provision of self storage and related services which fall within the Group's ordinary activities after
deduction of trade discounts and value added tax. The Group’s non-current assets, revenue and profit before tax are attributable to one activity,
the provision of self storage and related services. These all arise in the United Kingdom in the current year and prior year.
Annual Report and Accounts 2026 Big Yellow Group PLC 149
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
| 2026 | 2025 | ||
| Note | £000 | £000 | |
Depreciation of plant, equipment, and owner-occupied property | 14b | 922 | 837 |
Depreciation of interest in leasehold properties | 1,473 | 1,624 | |
Gain on the revaluation of investment property | (7,574) | (79,667) | |
Cost of inventories recognised as an expense | 1,293 | 1,310 | |
Employee costs | 6 | 25,277 | 25,826 |
| 2026 | 2025 | |
| £000 | £000 | |
Fees payable to the Company’s auditor for the audit of the Company’s annual accounts | 612 | 587 |
Fess payable to the Company’s auditor for the subsidiaries’ annual accounts | 56 | 54 |
Total audit fees | 668 | 641 |
Audit related assurance services – interim review | 68 | 65 |
Total non-audit fees | 68 | 65 |
Total audit and non-audit fees paid to KPMG LLP | 736 | 706 |
6. Employee costs
The average monthly number of full-time equivalent employees (including Executive Directors) was:
| 2026 | 2026 | |
| Number | Number | |
Sales | 389 | 396 |
Administration | 64 | 63 |
459 |
At 31 March 2026 the total number of Group employees was 482 (2025: 485). The average number of employees for the year was 484
(2025: 496).
| 2026 | 2025 | |
| £000 | £000 | |
| Their aggregate remuneration comprised: | ||
Wages and salaries | 19,243 | 19,138 |
Social security costs | 3,269 | 2,981 |
Other pension costs | 871 | 852 |
Share-based payments | 1,894 | 2,855 |
25,277 | 25,826 |
Details of Directors’ Remuneration is given on pages 96 to 117. The Directors are the employees assessed as key management personnel.
Annual Report and Accounts 2026 Big Yellow Group PLC150
| 2026 | 2025 | |
| £000 | £000 | |
Bank interest receivable | 179 | 161 |
Fair value movement on derivatives | 1,164 | 547 |
Total investment income | 1,343 | 708 |
| 2026 | 2025 | |
| £000 | £000 | |
Interest on bank borrowings | 23,382 | 23,269 |
Capitalised interest | (10,575) | (7,898) |
Interest on obligations under lease liabilities | 747 | 557 |
Total interest payable | 13,554 | 15,928 |
Annual Report and Accounts 2026 Big Yellow Group PLC 151
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
9. Taxation
As a REIT, the Group does not pay UK corporation tax on the profits and gains from its qualifying rental business in the UK provided that it meets
certain conditions. Non-qualifying profits and gains of the Group are subject to corporation tax as normal. The Group monitors its compliance with
the REIT conditions. There have been no breaches of the conditions to date.
| 2026 | 2025 | |
| UK current tax | £000 | £000 |
- Current year | 2,427 | 2,504 |
- Prior year | (1,128) | (541) |
1,299 | 1,963 |
A reconciliation of the tax charge is shown below:
| 2026 | 2025 | |
| £000 | £000 | |
Profit before tax | 126,212 | 203,854 |
Tax charge at 25% (2025 – 25%) thereon | 31,553 | 50,964 |
| Effects of: | ||
Revaluation of investment properties | (1,893) | (19,917) |
Share of results of joint venture | 35 | – |
Other permanent differences | 229 | (8) |
Utilisation of brought forward losses | (35) | – |
Profits from the tax-exempt business | (27,462) | (28,535) |
Current year tax charge | 2,427 | 2,504 |
Prior year adjustment | (1,128) | (541) |
Total tax charge | 1,299 | 1,963 |
The prior year adjustment arose due to prudent assumptions made during the assessment of the corporation tax provision for the prior year
accounts. On completion of the tax computations for the prior year, the actual charge was £1.1 million lower than had been provided in the
accounts. (2025: £0.5 million lower).
At 31 March 2026 the Group has unutilised tax losses from the non-REIT taxable business of £34.2 million (2025: £34.2 million) available for
offset against certain types of future taxable profits. All losses can be carried forward indefinitely. The losses have not been recognised as a
deferred tax asset, as there is no certainty over their future use.
10. Adjusted profit
| 2026 | 2025 | |
| £000 | £000 | |
Profit before tax | 126,212 | 203,854 |
Gain on revaluation of investment properties | (7,574) | (79,667) |
Gain on disposal of non-current asset | – | (8,754) |
Change in fair value of interest rate derivatives | (1,164) | (547) |
EPRA adjusted profit before tax | 117, 474 | 114,886 |
Costs associated with closure of Slough leasehold store | – | 694 |
Adjusted profit before tax | 117, 474 | 115,580 |
Tax | (1,299) | (1,963) |
Adjusted profit after tax | 116,175 | 113,617 |
Adjusted profit before tax which excludes gains and losses on the revaluation of investment properties, changes in fair value of interest rate
derivatives, net gains and losses on disposal of investment property, and material non-recurring items of income and expenditure have been
disclosed as, in the Board’s view, this provides a clearer understanding of the Group’s underlying trading performance.
Annual Report and Accounts 2026 Big Yellow Group PLC152
11. Dividends
| 2026 | 2025 | |
| £000 | £000 | |
| Amounts recognised as distributions to equity holders in the year: | ||
Final dividend for the year ended 31 March 2025 of | 46,602 | 44,135 |
Interim dividend for the year ended 31 March 2026 of 23.8p (2025: 22.6p) per share. | 46,621 | 44,244 |
93,223 | 88,379 | |
Proposed final dividend for the year ended 31 March 2026 of | 45,892 | 46,608 |
Subject to approval by shareholders at the Annual General Meeting to be held on 20 July 2026, the final dividend will be paid on 24 July 2026.
The ex-div date is 2 July 2026 and the record date is 3 July 2026.
The Property Income Distribution (“PID”) payable for the year is 47.2 pence per share (2025: 46.4 pence per share).
12. Earnings per share
Year ended 31 March 2026 | Year ended 31 March 2025 | |||||
| Earnings | Shares | Earnings | Shares | |||
| £m | million | Pence per share | £m | million | Pence per share | |
Basic | 124.9 | 195.9 | 63.8 | 201.9 | 195.6 | 103.2 |
Dilutive share options | – | 1.0 | (0.4) | – | 0.8 | (0.4) |
Diluted | 124.9 | 196.9 | 63.4 | 201.9 | 196.4 | 102.8 |
| Adjustments: | ||||||
Gain on revaluation of investment properties | (7.5) | – | (3.8) | (79.7) | – | (40.6) |
Gain on disposal of non-current asset | – | – | – | (8.7) | – | (4.5) |
Change in fair value of interest rate derivatives | (1.2) | – | (0.6) | (0.6) | – | (0.3) |
EPRA earnings | 116.2 | 196.9 | 59.0 | 112.9 | 196.4 | 57. 4 |
Costs associated with closure of Slough leasehold store | – | – | – | 0.7 | – | 0.4 |
Adjusted – diluted | 116.2 | 196.9 | 59.0 | 113.6 | 196.4 | 57. 8 |
Adjusted – basic | 116.2 | 195.9 | 59.3 | 113.6 | 195.6 | 58.1 |
The calculation of basic earnings is based on profit after tax for the year. The weighted average number of shares used to calculate diluted
earnings per share has been adjusted for the conversion of share options.
EPRA earnings and adjusted earnings per ordinary share have been disclosed to give a clearer understanding of the Group’s underlying
trading performance.
Annual Report and Accounts 2026 Big Yellow Group PLC 153
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
13. Net assets per share
EPRA’s Best Practices Recommendations guidelines for Net Asset Value (NAV) metrics are EPRA Net Tangible Assets (NTA), EPRA Net
Reinstatement Value (NRV) and EPRA Net Disposal Value (NDV).
EPRA NTA is considered to be most consistent with the nature of Big Yellow’s business which provides sustainable long-term progressive returns.
EPRA NTA is shown in the table below. This measure is further adjusted by the adjustment the Group makes for purchaser’s costs, which is the
Group’s Adjusted Net Asset Value (or Adjusted NAV).
Net assets per share are equity shareholders’ funds divided by the number of shares at the year end. The shares currently held in the Group’s
Employee Benefit Trust are excluded from both net assets and the number of shares. Adjusted net assets per share include the effect of those
shares issuable under employee share option schemes and the effect of alternative valuation methodology assumptions (see note 15).
Year ended 31 March 2026 | Year ended 31 March 2025 | |||||
| Equity | Equity | |||||
| attributable | attributable | |||||
| to ordinary | to ordinary | |||||
| shareholders | shareholders | |||||
£000 | Shares | Pence per share | £000 | Shares | Pence per share | |
Basic NAV | 2,599,206 | 195,959,174 | 1,326.4 | 2,565,546 | 195,833,336 | 1,310.1 |
Share and save as you earn schemes | 695 | 2,467,439 | (16.1) | 584 | 2,022,198 | (13.1) |
Diluted NAV | 2,599,901 | 198,426,613 | 1,310.3 | 2,566,130 | 197,855,534 | 1,297.0 |
Fair value of derivatives | 119 | – | – | 1,283 | – | 0.6 |
Intangible assets | (1,433) | – | (0.7) | (1,433) | – | (0.7) |
EPRA NTA | 2,598,587 | 198,426,613 | 1,309.6 | 2,565,980 | 197,855,534 | 1,296.9 |
Valuation methodology assumption (see note 15) (£000) | 120,730 | – | 60.8 | 116,110 | – | 58.7 |
Adjusted NAV | 2,719,317 | 198,426,613 | 1,370.4 | 2,682,090 | 197,855,534 | 1,355.6 |
Annual Report and Accounts 2026 Big Yellow Group PLC154
| Investment | ||||
| Investment | property under | Right-of-use | ||
| property | construction | assets | Total | |
| £000 | £000 | £000 | £000 | |
At 31 March 2024 | 2,718,525 | 146,485 | 17,15 2 | 2,882,162 |
Additions | 14,955 | 55,280 | 101 | 70,336 |
Transfer on opening | 17, 39 4 | (17,394) | – | – |
Disposal | (22,152) | – | (112) | (22,264) |
Revaluation (see note 15) | 78,813 | 854 | – | 79,667 |
Depreciation | – | – | (1,490) | (1,490) |
At 31 March 2025 | 2,807,535 | 185,225 | 15,651 | 3,008,411 |
Additions | 8,183 | 102,566 | 3,821 | 114,570 |
Transfer on opening | 113,038 | (113,038) | – | – |
Reclassification from plant, equipment and owner-occupied property | 62 | – | – | 62 |
Revaluation (see note 15) | 15,677 | (8,103) | – | 7, 574 |
Depreciation | – | – | (1,346) | (1,346) |
At 31 March 2026 | 2,944,495 | 166,650 | 18,126 | 3,129,271 |
Annual Report and Accounts 2026 Big Yellow Group PLC 155
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
14. Non-current assets continued
| Fixtures, fittings | |||||||
| Freehold | Leasehold | Plant and | Motor | & office | Right of use | ||
| property | improvements | machinery | vehicles | equipment | assets | Total | |
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
| Cost | |||||||
At 31 March 2024 | 2,369 | 59 | 769 | 32 | 1,521 | 1,006 | 5,756 |
Retirement of fully depreciated assets | – | – | (98) | (32) | (560) | – | (690) |
Additions | 80 | – | 79 | 40 | 722 | – | 921 |
Disposals | – | – | (7) | – | (15) | – | (22) |
At 31 March 2025 | 2,449 | 59 | 743 | 40 | 1,668 | 1,006 | 5,965 |
Retirement of fully depreciated assets | – | – | (265) | – | (763) | (219) | (1,247) |
Additions | 1 | – | 186 | – | 803 | 227 | 1,217 |
Transfer to investment property | (62) | – | – | – | – | – | (62) |
At 31 March 2026 | 2,388 | 59 | 664 | 40 | 1,708 | 1,014 | 5,873 |
| Depreciation | |||||||
At 31 March 2024 | (732) | (24) | (258) | (32) | (283) | (557) | (1,886) |
Retirement of fully depreciated assets | – | – | 98 | 32 | 560 | – | 690 |
Charge for the year | (51) | (3) | (176) | (6) | (601) | (134) | (971) |
Disposals | – | – | 4 | – | 11 | – | 15 |
At 31 March 2025 | (783) | (27) | (332) | (6) | (313) | (691) | (2,152) |
Retirement of fully depreciated assets | – | – | 265 | – | 763 | 219 | 1,247 |
Charge for the year | (51) | (4) | (155) | (10) | (702) | (127) | (1,049) |
At 31 March 2026 | (834) | (31) | (222) | (16) | (252) | (599) | (1,954) |
| Net book value | |||||||
At 31 March 2026 | 1,554 | 28 | 442 | 24 | 1,456 | 415 | 3,919 |
At 31 March 2025 | 1,666 | 32 | 411 | 34 | 1,355 | 315 | 3,813 |
Annual Report and Accounts 2026 Big Yellow Group PLC156
14. Non-current assets continued
| 31 March 2026 | |
| £000 | |
At the beginning of the year | – |
Transfer from investment | 588 |
Acquisition of additional shares | 1,010 |
Share of results | 139 |
Investment in joint venture | 1,737 |
| Period from | |
| 1 August 2025 to | |
| 31 March 2026 | |
| 100% | |
Revenue | 1,243 |
Cost of sales | (449) |
Administrative expenses | (590) |
Operating profit | 204 |
Finance costs | (16) |
Profit attributable to shareholders | 188 |
| Period from | |
| 1 August 2025 to | |
| 31 March 2026 | |
| Group share (74%) | |
Revenue | 920 |
Cost of sales | (332) |
Administrative expenses | (437) |
Operating profit | 151 |
Finance costs | (12) |
Profit attributable to shareholders | 139 |
Annual Report and Accounts 2026 Big Yellow Group PLC 157
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
15. Valuation of investment property
| Revaluation on | |||
| Deemed cost | deemed cost | Valuation | |
| £000 | £000 | £000 | |
| Freehold (including long leasehold) | |||
At 31 March 2025 | 1,089,575 | 1,695,060 | 2,784,635 |
Transfer from investment property under construction | 119,092 | (6,054) | 113,038 |
Transfer from plant, equipment and owner-occupied property | 62 | – | 62 |
Movement in year | 7, 8 61 | 15,699 | 23,560 |
At 31 March 2026 | 1,216,590 | 1,704,705 | 2,921,295 |
| Leasehold | |||
At 31 March 2025 | 21,112 | 1,788 | 22,900 |
Movement in year | 322 | (22) | 300 |
At 31 March 2026 | 21,434 | 1,766 | 23,200 |
| Total investment property | |||
At 31 March 2025 | 1,110,687 | 1,696,848 | 2,807,535 |
Transfer from investment property under construction | 119,092 | (6,054) | 113,038 |
Transfer from plant, equipment and owner-occupied property | 62 | – | 62 |
Movement in year | 8,183 | 15,677 | 23,860 |
At 31 March 2026 | 1,238,024 | 1,706,471 | 2,944,495 |
| Investment property under construction | |||
At 31 March 2025 | 215,360 | (30,135) | 185,225 |
Transfer to investment property | (119,092) | 6,054 | (113,038) |
Movement in year | 102,566 | (8,103) | 94,463 |
At 31 March 2026 | 198,834 | (32,184) | 166,650 |
| Valuation of all investment property | |||
At 31 March 2025 | 1,326,047 | 1,666,713 | 2,992,760 |
Movement in year | 110,811 | 7, 574 | 118,385 |
At 31 March 2026 | 1,436,858 | 1,674,287 | 3,111,145 |
The Group has classified the fair value investment property and the investment property under construction within Level 3 of the fair value
hierarchy. There has been no transfer to or from Level 3 in the year.
The Group’s freehold and leasehold investment properties have been valued at 31 March 2026 by external valuers, Jones Lang Lasalle (“JLL”).
The Valuation has been prepared in accordance with the version of the RICS Valuation – Global Standards (incorporating the International
Valuation Standards) and the UK national supplement (“the Red Book”) current as at the valuation date. The valuation of each of the investment
properties and the investment properties under construction has been prepared on the basis of either Fair Value or Fair Value as a fully equipped
operational entity, having regard to trading potential, as appropriate.
The valuation has been provided for financial reporting purposes and as such, is a Regulated Purpose Valuation as defined in the Red Book.
In compliance with the disclosure requirements of the Red Book, JLL have confirmed that:
• this is JLL’s fifth annual valuation for these purposes on behalf of the Group;
• JLL do not provide other significant professional or agency services to the Group;
• in relation to the preceding financial year of JLL, the proportion of the total fees payable by the Group to the total fee income of the firm is less
than 5%; and
• the fee payable to JLL is a fixed amount per asset and is not contingent on the appraised value.
Annual Report and Accounts 2026 Big Yellow Group PLC158
15. Valuation of investment property continued
The self storage properties have been valued on the basis of Fair Value as fully equipped operational entities, having regard to trading potential.
Due to the specialised nature and use of the buildings, the approach is to adopt a profits method of valuation in an explicit Discounted Cash Flow
calculation and then consider the results in the context of recent comparable evidence of transactions in the sector.
The profits method requires an estimate of the future cash flow that can be generated from the use of the building as a self storage facility,
assuming a reasonably efficient operator. Judgements are made as to the trading potential and likely long term sustainable occupancy.
Stable occupancy depends upon the nature of demand, size of property and nearby competition, and allows for a reasonable vacancy rate to
enable the operator to sell units to new customers. The cash flow runs for an explicit period of 10 years, after which it is capitalised at an all
risks yield which reflects the implicit future growth of the business, or a hypothetical sale. This is a valuer’s shortcut: maintaining the cash flow
into perpetuity would provide the same result. The comparison with recent transactions requires the evidence to be considered in terms of the
multiple on net operating profit (or EBITDA/EBITDAR), value per square foot, yield profile etc and then adjusted to reflect differences in location,
building factors, tenure, trading maturity and trading risk.
This mirrors the typical approach of purchasers in the self storage market. However, in view of the relatively limited availability of comparable
market evidence this requires a degree of valuer judgment. In particular, most of the transactions have comprised share sales due to the nature
of the asset class and the terms of those transactions have mostly been kept confidential between the parties.
Portfolio Premium
JLL’s valuation report confirms that the properties have been valued individually but that if the portfolio was to be sold as a single lot or in
selected groups of properties, the total value could differ. JLL state that in current market conditions they are of the view that there could be
a portfolio premium.
Assumptions
A. Net operating income is based on projected revenue received less projected operating costs, which include a management fee to take
account of central/head office costs. The initial net operating income is calculated by estimating the net operating income in the first
12 months following the valuation date.
B. The net operating income in future years is calculated assuming either straight-line absorption from day one actual occupancy or variable
absorption over years one to five of the cash flow period, to an estimated stabilised/mature occupancy level. In the valuation the assumed
stabilised occupancy level for the 113 trading stores (both freeholds and leaseholds) open at 31 March 2026 averages 87% (31 March 2025: 87%).
The projected revenues and costs have been adjusted for estimated cost inflation and revenue growth.
C. The future rental growth incorporated into the valuation averages 2.2% per annum (2025: 2.3% per annum)
D. The capitalisation rates applied to existing and future net cash flow have been estimated by reference to underlying yields for asset types
such as industrial, distribution and retail warehousing, yields for other trading property types such as student housing and hotels, bank
base rates, ten-year money rates, inflation and the available evidence of transactions in the sector. The valuation included in the accounts
assumes rental growth in future periods. The net initial yield for the 113 stores is 4.7% (31 March 2025: 5.0%). The weighted average exit
capitalisation rate adopted (for both freeholds and leaseholds) is 5.5% (31 March 2025: 5.5%).
E. The future net cash flow projections (including revenue growth and cost inflation) have been discounted at a rate that reflects the
risk associated with each asset. The weighted average annual discount rate adopted (for both freeholds and leaseholds) is 7.1%
(31 March 2025: 7.1%).
F. Purchaser’s costs of 6.8% have been adopted reflecting current progressive Stamp Duty Land Tax rates.
Short leasehold
The same methodology has been used as for freeholds, but the exit capitalisation rate is adjusted to reflect the unexpired lease term at exit.
The average unexpired term of the Group’s five short leasehold properties is 13.4 years (31 March 2025: 11.4 years unexpired).
Annual Report and Accounts 2026 Big Yellow Group PLC 159
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
15. Valuation of investment property continued
Sensitivities
As noted in ‘Significant judgements and key estimates’ on page 148, self storage valuations are complex, derived from data which is not widely
publicly available and involve a degree of judgement. For these reasons we have classified the valuations of our property portfolio as Level 3
as defined by IFRS 13. Inputs to the valuations, some of which are ‘unobservable’ as defined by IFRS 13, include capitalisation yields, stable
occupancy rates, and rental growth rates. The existence of an increase of more than one unobservable input would augment the impact on
valuation. The impact on the valuation could be mitigated by the inter-relationship between unobservable inputs moving in opposite directions.
For example, an increase in stable occupancy may be offset by an increase in yield, resulting in no net impact on the valuation. A sensitivity
analysis showing the impact on the investment property valuation of changes in yields and stable occupancy is shown below:
| Impact of a change in | Impact of a change in stabilised | |||
| capitalisation rates | occupancy assumption | |||
25 bps decrease | 25 bps increase | 1% increase | 1% decrease | |
2026 | 4.9% | (4.5%) | 1.0% | (1.1%) |
2025 | 4.9% | (4.5%) | 1.0% | (1.1%) |
A sensitivity analysis has not been provided for a change in the rental growth rate adopted as there is a relationship between this measure and
the discount rate adopted. So, in theory, an increase in the rental growth rate could give rise to a corresponding increase in the discount rate and
the resulting value impact would be limited.
Investment properties under construction
JLL have valued the stores in development adopting the same methodology as set out above but on the basis of the cash flow projection
expected for the store at opening and after allowing for the outstanding costs to take each scheme from its current state to completion and full
fit-out. JLL have allowed for holding costs and construction contingency, as appropriate. Two of the schemes valued do not yet have planning
consent and JLL have reflected the planning risk in their valuation (Bethnal Green has not been valued as the Group has not yet completed the
acquisition of the site). The cost to complete for the investment property under construction amounts to £169.9 million (2025: £218.2 million).
Valuation assumption for purchaser’s costs
The Group’s investment property assets have been valued for the purposes of the financial statements after deducting notional weighted
average purchaser’s cost of 6.8% on the net value, as if they were sold directly as property assets. The valuation is an asset valuation which
is entirely linked to the operating performance of the business. The assets would have to be sold with the benefit of operational contracts,
employment contracts and customer contracts, which would be very difficult to achieve except in a corporate structure. This approach follows
the logic of the valuation methodology in that the valuation is based on a capitalisation of the net operating income after allowing a deduction
for operational cost and an allowance for central administration costs. Sale in a corporate structure would result in a reduction in the assumed
Stamp Duty Land Tax but an increase in other transaction costs reflecting additional due diligence resulting in a reduced notional purchaser’s
cost of 2.75% of gross value. All the significant sized transactions that have been concluded in the UK in recent years were completed in a
corporate structure. The Group therefore instructed JLL to carry out an additional valuation on the above basis, and this results in a higher
property valuation at 31 March 2026 of £3,231.8 million (£120.7 million higher than the value recorded in the financial statements) translating
to 60.8 pence per share. We have included this revised valuation in the adjusted diluted net asset calculation (see note 13).
Valuer rotation
On 19 October 2023 the RICS published guidelines on a new time-limited, mandatory rotation cycle for regulated purposes valuations. Rules are
effective from 1 May 2024, and require, after a two-year transition period, a valuation firm to be rotated after 10 consecutive years of valuing
a given asset. These guidelines match our existing voluntary policy of 10 yearly valuation rotation, therefore our planned valuer rotation cycle
remains unchanged.
Annual Report and Accounts 2026 Big Yellow Group PLC160
| 31 March | 31 March | |
| 2026 | 2025 | |
| £000 | £000 | |
| Current | ||
Trade receivables | 2,131 | 1,580 |
Other receivables | 460 | 505 |
Prepayments and accrued income | 5,617 | 3,737 |
8,208 | 5,822 |
Annual Report and Accounts 2026 Big Yellow Group PLC 161
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
16. Trade and other receivables continued
Year ended 31 March 2026 | Not past due | <31 days | 31-45 days | >45 days | Total |
Expected credit loss rate (%) | 1.2% | 11.1% | 21.7% | 50% | 18.4% |
Gross carrying amount (£000) | 903 | 930 | 83 | 694 | 2,610 |
Lifetime ECL (£000) | (11) | (103) | (18) | (347) | (479) |
Net trade receivables at 31 March 2026 | 892 | 827 | 65 | 347 | 2,131 |
Year ended 31 March 2025 | Not past due | <31 days | 31-45 days | >45 days | Total |
Expected credit loss rate (%) | 2.0% | 33.5% | 34.7% | 50.0% | 28.2% |
Gross carrying amount (£000) | 814 | 468 | 72 | 848 | 2,202 |
Lifetime ECL (£000) | (16) | (157) | (25) | (424) | (622) |
Net trade receivables at 31 March 2025 | 798 | 311 | 47 | 424 | 1,580 |
| 2026 | 2025 | |
| £000 | £000 | |
Balance at the beginning of the year | 622 | 579 |
Amounts provided in year | 142 | 326 |
Amounts written off as uncollectible | (285) | (283) |
Balance at the end of the year | 479 | 622 |
| 31 March 2026 | 31 March 2025 | |
| £000 | £000 | |
| Current | ||
Trade payables | 4,911 | 9,006 |
Other payables | 16,115 | 14,624 |
Accruals and deferred income | 31,794 | 28,479 |
52,820 | 52,109 |
Annual Report and Accounts 2026 Big Yellow Group PLC162
| 2026 | 2025 | |
| £000 | £000 | |
Debt | (485,968) | (397,451) |
Cash and cash equivalents | 9,224 | 8,765 |
Net debt | (476,744) | (388,686) |
Balance sheet equity | 2,599,206 | 2,565,546 |
Net debt to equity ratio | 18.3% | 15.2% |
Annual Report and Accounts 2026 Big Yellow Group PLC 163
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
18. Financial instruments continued
| 2026 | 2025 | |
| £000 | £000 | |
At 1 April | (1,283) | (1,830) |
Fair value movement in the year | 1,164 | 547 |
At 31 March | (119) | (1,283) |
| Financial | ||||
| liabilities | ||||
| Financial liabilities measured | measured at | |||
| at amortised cost | fair value | |||
| Obligations under | Interest rate | |||
| Loans | lease liabilities | derivatives | Total | |
| £000 | £000 | £000 | £000 | |
At 1 April 2025 | (397,451) | (17,079) | (1,283) | (415,813) |
Cash movement in the year | (88,517) | 1,307 | – | (87,210) |
Lease variations | – | (4,037) | – | (4,037) |
Fair value movement | – | – | 1,164 | 1,164 |
At 31 March 2026 | (485,968) | (19,809) | (119) | (505,896) |
Annual Report and Accounts 2026 Big Yellow Group PLC164
18. Financial instruments continued
| Financial | ||||
| liabilities | ||||
| Financial liabilities measured | measured at | |||
| at amortised cost | fair value | |||
| Obligations under | Interest rate | |||
| Loans | lease liabilities | derivatives | Total | |
| £000 | £000 | £000 | £000 | |
At 1 April 2024 | (394,768) | (18,727) | (1,830) | (415,325) |
Cash movement in the year | (2,683) | 1,816 | – | (867) |
Lease variations | – | (168) | – | (168) |
Fair value movement | – | – | 547 | 547 |
At 31 March 2025 | (397,451) | (17,079) | (1,283) | (415,813) |
Annual Report and Accounts 2026 Big Yellow Group PLC 165
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
18. Financial instruments continued
| Less than | One to | Two to | More than | |||
| Total | one year | two years | five years | five years | ||
2026 | Maturity | £000 | £000 | £000 | £000 | £000 |
| Debt | ||||||
Aviva loan | 148,968 | 3,658 | 310 | 145,000 | – | |
M&G loan payable at variable rate | 85,000 | – | – | 85,000 | – | |
M&G loan fixed by interest rate derivatives | 35,000 | – | – | 35,000 | – | |
Bank loan payable at variable rate | 187,000 | – | – | 187,000 | – | |
Bank loan fixed by interest rate derivatives | 30,000 | – | – | 30,000 | – | |
Total | 485,968 | 3,658 | 310 | 482,000 |
| Less than | One to | Two to | More than | |||
| Total | one year | two years | five years | five years | ||
2025 | Maturity | £000 | £000 | £000 | £000 | £000 |
| Debt | ||||||
Aviva loan | 152,451 | 3,483 | 3,658 | 145,310 | – | |
M&G loan payable at variable rate | 85,000 | – | – | 85,000 | – | |
M&G loan fixed by interest rate derivatives | 35,000 | – | – | 35,000 | – | |
Bank loan payable at variable rate | 125,000 | – | – | 125,000 | – | |
Total | 39 7, 451 | 3,483 | 3,658 | 390,310 | – |
Annual Report and Accounts 2026 Big Yellow Group PLC166
18. Financial instruments continued
| Trade and other | Interest rate | Borrowings and | Obligations under | ||
| payables | swaps | interest | lease liabilities | Total | |
| 2026 | £000 | £000 | £000 | £000 | £000 |
From five to twenty years | – | – | – | 24,169 | 24,169 |
From two to five years | – | (31) | 515,539 | 4,759 | 520,267 |
From one to two years | – | 40 | 22,863 | 1,657 | 24,560 |
Due after more than one year | – | 9 | 538,402 | 30,585 | 568,996 |
Due within one year | 21,026 | 89 | 26,309 | 1,657 | 49,081 |
Total | 21,026 | 98 | 564,711 | 32,242 | 618,077 |
| Trade and other | Interest rate | Borrowings and | Obligations under | |||
| payables | swaps | interest | lease liabilities | Total | ||
| 2025 | £000 | £000 | £000 | £000 | £000 | |
From five to twenty years | – | – | – | 20,315 | 20,315 | |
From two to five years | – | (485) | 429,640 | 3,067 | 432,222 | |
From one to two years | – | (232) | 28,528 | 1,878 | 30,174 | |
Due after more than one year | – | (717) | 458,168 | 25,260 | 4 82,711 | |
Due within one year | 23,630 | (131) | 23,465 | 1,878 | 48,842 | |
Total | 23,630 | (848) | 481,633 | 27, 13 | 8 | 531,553 |
| Unamortised | Borrowings and | |||
| Borrowings | Interest | borrowing costs | interest | |
| 2026 | £000 | £000 | £000 | £000 |
From five to twenty years | – | – | – | – |
From two to five years | 482,000 | 29,786 | 3,753 | 515,539 |
From one to two years | 310 | 22,553 | – | 22,863 |
Due after more than one year | 482,310 | 52,339 | 3,753 | 538,402 |
Due within one year | 3,658 | 22,651 | – | 26,309 |
Total | 485,968 | 74,990 | 3,753 | 564,711 |
| Unamortised | Borrowings and | |||
| Borrowings | Interest | borrowing costs | interest | |
| 2025 | £000 | £000 | £000 | £000 |
From five to twenty years | – | – | – | – |
From two to five years | 390,310 | 35,131 | 4,199 | 429,640 |
From one to two years | 3,658 | 24,870 | – | 28,528 |
Due after more than one year | 393,968 | 60,001 | 4,199 | 458,168 |
Due within one year | 3,483 | 19,982 | – | 23,465 |
Total | 39 7, 451 | 79,983 | 4,199 | 481,633 |
Annual Report and Accounts 2026 Big Yellow Group PLC 167
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
| 31 March | 31 March | |
| 2026 | 2025 | |
| Secured borrowings at amortised cost | £000 | £000 |
| Current liabilities | ||
Aviva loan | 3,658 | 3,483 |
3,658 | 3,483 | |
| Non-current liabilities | ||
Bank borrowings | 217,000 | 125,000 |
Aviva loan | 145,310 | 148,968 |
M&G loan | 120,000 | 120,000 |
Unamortised loan arrangement costs | (3,753) | (4,199) |
Total non-current borrowings | 478,557 | 389,769 |
Total borrowings | 482,215 | 393,252 |
Covenant | Covenant level | At 31 March 2026 |
Consolidated EBITDA to net finance costs | Minimum 1.5x | 6.2x |
Consolidated net tangible assets | Minimum £500m | £2,599.2m |
Bank loan interest cover | Minimum 1.75x | 7.9x |
Net debt to EBITDA ratio | Maximum 8x | 3.7x |
Aviva loan interest service cover ratio | Minimum 1.5x | 6.7x |
Aviva loan debt service cover ratio | Minimum 1.2x | 3.9x |
M&G interest cover | Minimum 1.5x | 3.2x |
Annual Report and Accounts 2026 Big Yellow Group PLC168
19. Borrowings continued
| Weighted average | |||||||
| Total | Floating rate | Fixed rate | Weighted average | Period for which | period until | ||
| £000 | £000 | £000 | interest rate | the rate is fixed | maturity | ||
| At 31 March 2026 | |||||||
Gross financial liabilities | 485,968 | 272,000 | 213,968 | 4.7% | 2.7 years | 2.8 years | |
| At 31 March 2025 | |||||||
Gross financial liabilities | 3 | 97,4 51 | 210,000 | 187,451 | 5.0% | 3.6 years | 3.5 years |
| Present value of minimum | |||||
| Minimum lease payments | lease payments | ||||
| 2026 | 2025 | 2026 | 2025 | ||
| £000 | £000 | £000 | £000 | ||
| Amounts payable under lease liabilities: | |||||
Within one year | 1,657 | 1,878 | 1,635 | 1,857 | |
Between one and five years inclusive | 6,416 | 4,945 | 5,710 | 4,533 | |
Greater than five years | 24,169 | 20,315 | 12,464 | 10,689 | |
27,13 | 32,242 | 8 | 19,809 | 17, 079 | |
Less: future finance charges | (12,433) | (10,059) | |||
Present value of lease liabilities | 19,809 | 17, 079 |
Annual Report and Accounts 2026 Big Yellow Group PLC 169
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
| Called up, allotted, and fully paid | ||
| 2026 | 2025 | |
| £000 | £000 | |
Ordinary shares of 10 pence each Movement in issued share capital | 19,682 | 19,671 |
Number of shares at 31 March 2024 | 196,195,287 | |
Exercise of share options – Share option schemes | 519,409 | |
Number of shares at 31 March 2025 | 196,714,696 | |
Exercise of share options – Share option schemes | 103,875 | |
Number of shares at 31 March 2026 | 196,818,571 |
| Number of | Number of | |||||
| Date option | Option price per | Date on which the | ordinary shares | ordinary shares | ||
| Granted | ordinary share | Type of option | Date first exercisable | exercise period expires | 2026 | 2025 |
21 July 2015 | nil p | LTIP | 21 July 2018 | 21 July 2025 | – | 239 |
22 July 2016 | nil p | LTIP | 22 July 2019 | 21 July 2026 | 665 | 1,415 |
2 August 2017 | nil p | LTIP | 2 August 2020 | 2 August 2027 | 606 | 2,320 |
24 July 2018 | nil p | LTIP | 24 July 2021 | 24 July 2028 | 1,552 | 1,552 |
19 July 2019 | nil p | LTIP | 19 July 2022 | 19 July 2029 | 7, 54 5 | 16,824 |
5 August 2020 | nil p | LTIP | 5 August 2023 | 5 August 2030 | 152,579 | 165,313 |
22 July 2021 | nil p | LTIP | 22 July 2024 | 22 July 2031 | 113,131 | 130,662 |
21 July 2022 | nil p | LTIP | 21 July 2025 | 21 July 2032 | 50,617 | 349,364 |
8 August 2022 | 1060.3p | SAYE | 1 September 2025 | 1 March 2026 | – | 45,660 |
20 July 2023 | nil p | LTIP | 20 July 2026 | 19 July 2033 | 543,721 | 570,838 |
1 August 2023 | 891.5p | SAYE | 1 September 2026 | 1 March 2027 | 50,853 | 65,553 |
10 July 2024 | 945.1p | SAYE | 1 September 2027 | 1 March 2028 | 49,304 | 80,726 |
18 July 2024 | nil p | LTIP | 18 July 2027 | 17 July 2034 | 522,579 | 548,499 |
9 July 2025 | 801.6p | SAYE | 1 September 2028 | 1 March 2029 | 86,439 | – |
1 August 2025 | nil p | LTIP | 1 August 2028 | 31 July 2035 | 761,938 | – |
2,341,529 | 1,978,965 |
Annual Report and Accounts 2026 Big Yellow Group PLC170
23. Share-based payments
The Company has three equity share-based payment arrangements, namely an LTIP scheme (with approved and unapproved components), an
Employee Share Save Scheme (“SAYE”) and a Deferred Bonus Plan. The Group recognised a total expense in the year related to equity-settled
share-based payment transactions of £1,894,000 (2025: £2,855,000).
Equity-settled share option plans
Since 2004 the Group has operated an Employee Share Save Scheme (“SAYE”) which allows any employee who has more than six months service
to purchase shares at a 20% discount to the average quoted market price of the Group shares at the date of grant. The associated savings
contracts are three years at which point the employee can exercise their option to purchase the shares or take the amount saved, including
interest, in cash. The scheme is administered by Globalshares.
On an annual basis since 2004 the Group awarded nil-paid options to senior management under the Group’s Long Term Incentive Plan (“LTIP”).
The awards are conditional on the achievement of challenging performance targets as described on page 98 of the Remuneration Report. The
weighted average share price at the date of exercise for options exercised in the year was £10.09 (2025: £12.60).
| 2026 | 2025 | |
| LTIP scheme | No. of options | No. of options |
Outstanding at beginning of year | 1,787,026 | 1,705,303 |
Granted during the year | 790,205 | 566,193 |
Lapsed during the year | (322,298) | (41,171) |
Exercised during the year | (100,000) | (443,299) |
Outstanding at the end of the year | 2,154,933 | 1 , 787, 026 |
Exercisable at the end of the year | 326,695 | 254,826 |
The weighted average fair value of options granted during the year was £2,460,000 (2025: £1,708,000).
Participants pay the nominal value of the shares when exercising options under the LTIP scheme.
Options outstanding at 31 March 2026 had a weighted average contractual life of 8.0 years (2025: 8.0 years).
Annual Report and Accounts 2026 Big Yellow Group PLC 171
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
23. Share-based payments continued
| 2026 | 2025 | |||
| Weighted average | Weighted average | |||
| 2026 | exercise price | 2025 | exercise price | |
| Employee Share Save Scheme (“SAYE”) | No. of options | (£) | No. of options | (£) |
Outstanding at beginning of year | 191,939 | £9.54 | 214,4 42 | £9.41 |
Granted during the year | 93,964 | £8.02 | 86,354 | £9.45 |
Forfeited during the year | (95,432) | £9.74 | (32,747) | £9.63 |
Exercised during the year | (3,875) | £10.08 | (76,110) | £9.01 |
Outstanding at the end of the year | 186,596 | £8.64 | 191,939 | £9.54 |
Exercisable at the end of the year | – | – | – | – |
Options outstanding at 31 March 2026 had a weighted average contractual life of 2.0 years (2025: 2.0 years).
The inputs into the Black-Scholes model for the options granted during the year are as follows:
LTIP | SAYE | |
Expected volatility | n/a | 26% |
Expected life | 3 years | 3 years |
Risk-free rate | 0% | 4.08 |
Expected dividends | 4.1% | 5.5% |
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the year prior to grant.
Deferred bonus plan
The Executive Directors receive awards under the Deferred Bonus Plan. This is accounted for as an equity instrument. The plan was set up in
July 2018. The vesting criteria and scheme mechanics are set out in the Directors’ Remuneration Report.
25. Events after the balance sheet date
In May 2026, the Group obtained planning consent for its proposed store at Old Kent Road, London.
In May 2026, the Group renewed its $225 million credit approved shelf facility with Pricoa Private Capital to be drawn in fixed sterling notes.
In May 2026, the Group exchanged contracts to acquire a site in Acton, West London for £11.5 million.
Annual Report and Accounts 2026 Big Yellow Group PLC172
26. Cash flow notes
a) Reconciliation of profit after tax to cash generated from operations
| 2026 | 2025 | ||
| Note | £000 | £000 | |
Profit after tax | 124,913 | 201,891 | |
Taxation | 1,299 | 1,963 | |
Other income | 3 | (196) | (4,047) |
Share of profit of joint venture | (139) | – | |
Investment income | (1,343) | (708) | |
Finance costs | 13,554 | 15,928 | |
Operating profit | 138,088 | 215,027 | |
Gain on the revaluation of investment properties | 14a, 15 | (7,574) | (79,667) |
Gain on disposal of non-current asset | 14a | – | (8,754) |
Depreciation of plant, equipment, and owner-occupied property | 14b | 922 | 837 |
Depreciation of right-of-use assets | 14a,14b | 1,473 | 1,701 |
Employee share options | 6 | 1,894 | 2,855 |
Cash generated from operations pre working capital movements | 134,803 | 131,999 | |
Decrease in inventories | 60 | 49 | |
Increase in receivables | (1,380) | (1,024) | |
(Decrease)/increase in payables | (1,273) | 3,599 | |
Cash generated from operations | 132,210 | 134,623 |
b) Reconciliation of net cash flow movement to net debt
| 2026 | 2025 | ||
| Note | £000 | £000 | |
Net increase/(decrease) in cash and cash equivalents in the year | 459 | (591) | |
Cash flow from increase in debt financing (1) | (88,517) | (2,683) | |
Change in net debt resulting from cash flows | (88,058) | (3,274) | |
Movement in net debt in the year | (88,058) | (3,274) | |
Net debt at the start of the year | (388,686) | (385,412) | |
Net debt at the end of the year | 18A | (476,744) | (388,686) |
(1)
Made up of a net increase of £92.0 million in the RCF facility and repayments of the Aviva facility of £3.5 million (2025: Made up of a net increase of £6.0 million in the RCF facility and
repayments of the Aviva facility of £3.3 million).
Annual Report and Accounts 2026 Big Yellow Group PLC 173
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
| 31 March 2026 | 31 March 2025 | |
| £000 | £000 | |
Short term employee benefits | 2,193 | 2,146 |
Post-employment benefits | 104 | 99 |
Share-based payments | 1,408 | 1,836 |
3,705 | 4,081 |
Annual Report and Accounts 2026 Big Yellow Group PLC174
Company Balance Sheet
Year ended 31March 2026
Note
2026
£000
2025
£000
Non-current assets
Plant, equipment, and owner-occupied property 30a 1,694 1,534
Investment in subsidiary companies 30b 43,916 42,022
Amounts owed by Group undertakings 31 859,442 69 7, 20 4
Derivative financial instruments 352 –
905,404 740,760
Current assets
Trade and other receivables 31 989 962
Cash and cash equivalents 1 1
990 963
Total assets 906,394 741,723
Current liabilities
Trade and other payables 32a (7,856) (7,303)
Amounts owed to Group undertakings 32a (38,639) (15,683)
Obligations under lease liabilities (30) (16)
(46,525) (23,002)
Non-current liabilities
Obligations under lease liabilities (194) –
Bank borrowings 32b (214,035) (121,948)
(214,229) (121,948)
Total liabilities (260,754) (144,950)
Net assets 645,640 596,773
Equity
Share capital 22 19,682 19,671
Share premium account 398,509 398,444
Reserves 28 227,449 178,658
Equity shareholders’ funds 645,640 596,773
The Company reported a gain for the financial year ended 31 March 2026 of £140.1 million (2025: gain of £40.5 million). The financial statements and
the income statement were approved by the Board of Directors and authorised for issue on 18 May 2026. They were signed on its behalf by:
Jim Gibson John Trotman
Director Director
Company Registration No. 03625199
The accompanying notes form part of the financial statements.
Annual Report and Accounts 2026 Big Yellow Group PLC 175
Governance Report Financial StatementsStrategic Report
Company Statement of Changes in Equity
Year ended 31March 2026
Share capital
£000
Share premium
account
£000
Other non-
distributable
reserve
£000
Capital
redemption
reserve
£000
Retained
earnings
£000
Own shares
£000
Total
£000
At 1 April 2025 19,671 398,444 74,950 1,795 102 ,712 (799) 596,773
Total comprehensive gain for the year – – – 140,120 – 140,120
Issue of share capital 11 65 – – – – 76
Dividend – – – – (93,223) – (93,223)
Use of own shares to satisfy share options – – – – (19) 19 –
Credit to equity for equity-settled
share-based payments – – – – 1,894 – 1,894
At 31 March 2026 19,682 398,509 74,950 1,795 151,484 (780) 645,640
The Company’s share capital is disclosed in note 22.
The own shares balance represents amounts held by the Employee Benefit Trust (see note 22).
Year ended 31 March 2025
Share capital
£000
Share premium
account
£000
Other non-
distributable
reserve
£000
Capital
redemption
reserve
£000
Retained
earnings
£000
Own shares
£000
Total
£000
At 1 April 2024 19,620 3 97, 6 8 6 74,950 1,795 14 7, 9 01 (997) 640,955
Total comprehensive gain for the year – – – – 40,533 – 40,533
Issue of share capital 51 758 – – – – 809
Dividend – – – – (88,379) – (88,379)
Use of own shares to satisfy share options – – – – (198) 198 –
Credit to equity for equity-settled
share-based payments – – – – 2,855 – 2,855
At 31 March 2025 19,671 398,444 74,950 1,795 102 ,712 (799) 596,773
The accompanying notes form part of the financial statements.
Annual Report and Accounts 2026 Big Yellow Group PLC176
28. Gain for the year
As permitted by section 408 of the Companies Act 2006, the statement of comprehensive income of the Company is not presented as part of
these financial statements. The gain for the year attributable to equity shareholders dealt with in the financial statements of the Company was
£140.1 million (2025: gain of £40.5 million).
29. Basis of accounting
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”).
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted
international accounting standards (“Adopted IFRSs”), but makes amendments where necessary in order to comply with Companies Act 2006
and has set out below where advantage of the FRS 101 disclosure exemptions has been taken:
• Cash Flow Statement and related notes;
• Comparative period reconciliations for plant, equipment and owner-occupied property and investment properties;
• Disclosures in respect of transactions with wholly owned subsidiaries;
• Disclosures in respect of capital management;
• The effects of new but not yet effective IFRSs; and
• Disclosures in respect of the compensation of Key Management Personnel.
As the consolidated financial statements include the equivalent disclosures, the Company has also taken the exemptions under FRS 101
available in respect of the following disclosures:
• IFRS 2 Share-Based Payments in respect of Group settled share-based payments; and
• Certain disclosures required by IFRS 13 Fair Value Measurement and the disclosures required by IFRS 7 Financial Instrument Disclosures.
The financial statements have been prepared on the historic cost basis except that derivative financial instruments are stated at fair value.
The Company’s principal accounting policies are the same as those applied in the Group financial statements.
The parent Company financial statements present information about the Company as a separate entity and not about its Group.
Going concern
See note 2 for the review of going concern for the Group and the Company.
Investment in subsidiaries
These are recognised at cost less provision for any impairment.
Bank borrowings
This is the Revolving Credit Facility Loan which is held by the Company. Please see note 19 for further information.
IFRIC 11, IFRS 2 Group and Treasury Share Transactions
The Company makes equity settled share-based payments to certain employees of certain subsidiary undertakings. Equity settled share-based
payments that are made to the employees of the Company’s subsidiaries are treated as increases in equity over the vesting period of the award,
with a corresponding increase in the Company’s investments in subsidiaries, based on an estimate of the number of shares that will eventually
vest. This is the only addition to investment in subsidiaries in the current year.
Annual Report and Accounts 2026 Big Yellow Group PLC 177
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
30. Non-current assets
a) Plant, equipment, and owner-occupied property
Freehold property
£000
Leasehold
improvements
£000
Fixtures,
fittings & office
equipment
£000
Right-of-use
assets
£000
Total
£000
Cost
At 31 March 2025 2,243 46 9 177 2,475
Additions 1 – – 226 227
At 31 March 2026 2,244 46 9 403 2,702
Accumulated depreciation
At 31 March 2025 (768) (10) (5) (158) (941)
Charge for the year (45) (1) (1) (20) (67)
At 31 March 2026 (813) (11) (6) (178) (1,008)
Net book value
At 31 March 2026 1,431 35 3 225 1,694
At 31 March 2025 1,475 36 4 19 1,534
b) Investments in subsidiary companies
Investment
in subsidiary
undertakings
£000
Cost
At 31 March 2025 42,022
Additions 1,894
At 31 March 2026 43,916
The additions in the year relate to the capitalisation of share-based payments in accordance with IFRS 2.
The Directors assessed the carrying value of the investment in subsidiary undertakings for indicators of impairment. There were no indications
of impairment.
Annual Report and Accounts 2026 Big Yellow Group PLC178
30. Non-current assets continued
The Group’s subsidiaries are all wholly-owned, the Group holds 100% of the voting power and the companies are incorporated, registered, and
operate in England and Wales. The registered office of all subsidiaries is 2 The Deans, Bridge Road, Bagshot, Surrey, GU19 5AT. All subsidiaries are
included in the consolidated accounts. The subsidiaries at 31 March 2026 are listed below:
Name of subsidiary Principal activity
Apollo Self Storage Limited Self storage
Armadillo Self Storage Limited Self storage
Armadillo Self Storage 2 Limited Self storage
Armadillo Storage Holding Company Limited Dormant
Armadillo Storage Holding Company 2 Limited Dormant
Armadillo Storage One Limited Holding Company
.Big Yellow Self Storage (GP) Limited General Partner
.Big Yellow Self Storage Company Limited Self storage
Big Yellow (Battersea) Limited Self storage
The Big Yellow Construction Company Limited Construction management
The Big Yellow Holding Company Limited Dormant
Big Yellow Limited Partnership Self storage
Big Yellow Nominee No. 1 Limited Dormant
Big Yellow Nominee No.2 Limited Dormant
Big Yellow Self Storage Company 1 Limited Dormant
Big Yellow Self Storage Company 2 Limited Dormant
Big Yellow Self Storage Company 3 Limited Dormant
Big Yellow Self Storage Company 4 Limited Dormant
Big Yellow Self Storage Company A Limited Self storage
Big Yellow Self Storage Company M Limited Self storage
Big Yellow (Wapping 2) Limited Self storage
BYRCO Limited Property management
BYSSCO A Limited Dormant
BYSSCO Limited Self storage
The Last Mile Company Limited Holding Company
Quickstore Storage Limited Self storage
In addition, the Group has a 100% interest in Pramerica Bell Investment Trust Jersey, a trust registered in Jersey, its registered office is First
Island House, Peter Street, St Helier, Jersey, Channel Islands, JE2 4SP.
The Group is also a joint venture partner in Doncaster Security Operations Centre Limited, a company registered in England and Wales.
Its registered office is 5 Hayfield Business Park Field Lane, Auckley, Doncaster, England, DN9 3FL.
Audit exemption statement
All subsidiary undertakings of Big Yellow Group PLC are included in the consolidated Financial Statements of the Group. The subsidiary
undertakings noted below are exempt from the Companies Act 2006 (the ‘Act’) requirements relating to the audit of their individual accounts
by virtue of Section 479A of the Act, as Big Yellow Group PLC has guaranteed the liabilities of them under Section 479C of the Act. The members
of these companies have not required them to obtain an audit of their financial statements for the year ended 31 March 2026:
Apollo Self Storage Limited Big Yellow Nominee No.2 Limited
Armadillo Self Storage Limited Big Yellow Self Storage Company 1 Limited
Armadillo Self Storage 2 Limited Big Yellow Self Storage Company 2 Limited
Armadillo Storage Holding Company Limited Big Yellow Self Storage Company 3 Limited
Armadillo Storage Holding Company 2 Limited Big Yellow Self Storage Company 4 Limited
Armadillo Storage One Limited Big Yellow (Wapping 2) Limited
.Big Yellow Self Storage (GP) Limited BYRCO Limited
Big Yellow (Battersea) Limited BYSSCO Limited
The Big Yellow Construction Company Limited BYSSCO A Limited
The Big Yellow Holding Company Limited The Last Mile Company Limited
Big Yellow Nominee No. 1 Limited Quickstore Storage Limited
Annual Report and Accounts 2026 Big Yellow Group PLC 179
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
30. Non-current assets continued
Under paragraph 7 of SI 2008 No 569 Big Yellow Limited Partnership is exempt from the requirement under paragraph 4 of that SI to prepare their
annual accounts and reports, and have them audited, on the basis that the partnership is dealt with on a consolidated basis in the consolidated
financial statements of the Company.
31. Trade and other receivables
31 March 2026
£000
31 March 2025
£000
Non-current
Amounts owed by Group undertakings 859,442 697, 20 4
Current
Prepayments and accrued income 989 962
Amounts owed by Group undertakings are unsecured. The Company recharges its external interest cost to its subsidiaries. Amounts owed
by Group undertakings have historically had immaterial levels of bad debt, and the Directors have assessed for Expected Credit Losses and
concluded that it is immaterial and has therefore not been recognised.
32a. Trade and other payables
31 March 2026
£000
31 March 2025
£000
Current (all due within one year)
Other payables 6,923 6,936
Amounts owed to Group undertakings 38,639 15,683
Accruals and deferred income 933 367
46,495 22,986
Amounts owed to Group undertakings are repayable on demand and accrues interest bi-annually at a rate of 1.25% over the Bank of England base
rate during the period, based on the average outstanding balance during the period.
32b. Bank borrowings
31 March 2026
£000
31 March 2025
£000
Bank loan 217,000 125,000
Unamortised loan arrangement costs (2,965) (3,052)
214,035 121,9 4 8
Annual Report and Accounts 2026 Big Yellow Group PLC180
33. Glossary
Absorption
The rate of growth in occupancy assumed within the external property valuations from the current occupancy level to
the assumed stable occupancy level.
Adjusted earnings
The IFRS profit after taxation attributable to shareholders of the Company excluding investment property revaluations,
one-off items of income and costs, gains/losses on investment property disposals and changes in the fair value of
financial instruments.
Adjusted earnings growth
The increase in adjusted eps year-on-year.
Adjusted NAV
EPRA NTA adjusted for an investment property valuation carried out at purchasers’ costs of 2.75%, see note 13.
Adjusted earnings per share
Adjusted earnings divided by the average number of shares in issue during the financial year, see note 12.
Adjusted Profit Before Tax
The Company’s pre-tax EPRA earnings measure with additional Company adjustments, see note 10.
APMs
Additional performance measures that help financial statement users to better understand the Group’s performance
and position.
Average net achieved rent per sq ft
Storage revenue divided by average occupied space over the financial year.
Average occupancy
The average space occupied by customers divided by the MLA expressed as a %.
Average rental growth
The growth in average net achieved rent per sq ft year-on-year.
BREEAM
An environmental rating assessed under the Building Research Establishment’s Environmental Assessment Method.
Cap rates
The exit capitalisation rates used in the external investment property valuation.
Carbon intensity
Carbon emissions divided by the Group’s average occupied space.
Closing net rent per sq ft
Annual storage revenue generated from in-place customers divided by occupied space at the balance sheet date.
Closing occupancy %
The space occupied by customers divided by the MLA at the balance sheet date expressed as a %.
Closing occupancy sq ft
The space occupied by customers at the balance sheet date in sq ft.
Committed facilities
Available undrawn debt facilities plus cash and cash equivalents.
Consolidated EBITDA
Consolidated EBITDA calculated in accordance with the terms of the Group’s Revolving Credit Facility Agreement.
Debt
Long-term and short-term borrowings, as detailed in note 19, excluding lease liabilities and debt issue costs.
Earnings per share (eps)
Profit for the financial year attributable to equity shareholders divided by the average number of shares in issue during
the financial year.
EBITDA
Earnings before interest, tax, depreciation, and amortisation.
EPRA
The European Public Real Estate Association, a real estate industry body. This organisation has issued Best Practice
Recommendations with the intention of improving the transparency, comparability, and relevance of the published
results of listed real estate companies in Europe.
EPRA earnings
The IFRS profit after taxation attributable to shareholders of the Company excluding investment property revaluations,
gains/losses on investment property disposals and changes in the fair value of financial instruments.
EPRA earnings per share
EPRA earnings divided by the average number of shares in issue during the financial year, see note 12.
EPRA NTA per share
EPRA NTA divided by the diluted number of shares at the year end.
EPRA net tangible asset value (EPRA NTA)
IFRS net assets excluding the mark-to-market on interest rate derivatives, deferred taxation on property valuations
where it arises, and intangible assets. It is adjusted for the dilutive impact of share options.
Equity
All capital and reserves of the Group attributable to equity holders of the Company.
Gross property assets
The sum of investment property and investment property under construction.
Gross value added
The measure of the value of goods and services produced in an area, industry, or sector of an economy.
Interest cover
The ratio of operating cash flow divided by interest paid (before working capital movements, exceptional finance costs,
capitalised interest, and changes in fair value of interest rate derivatives). This metric is provided to give readers a clear
view of the Group’s financial position.
Like-for-like store operating costs
Store operating costs excluding one-off items and the operating costs of a store opened in the preceding or current
financial year.
Like-for-like occupancy
Excludes the closing occupancy of new stores acquired, opened, or closed in the current financial year in both
the current financial year and comparative figures. In 2026 this excludes Staines, Queensbury, Slough Bath Road
and Wembley.
Like-for-like store revenue
Excludes the impact of new stores acquired, opened or stores closed in the current or preceding financial year in both
the current year and comparative figures. In 2026 this excludes Staines, Queensbury, Slough Bath Road and Wembley.
LTV (loan to value)
Net debt expressed as a percentage of the external valuation of the Group’s investment properties.
Maximum lettable area (MLA)
The total square foot (sq ft) available to rent to customers.
Move-ins
The number of customers taking a storage room in the defined period.
Move-outs
The number of customers vacating a storage room in the defined period.
NAV
Net asset value.
Net debt
Gross borrowings less cash and cash equivalents.
Annual Report and Accounts 2026 Big Yellow Group PLC 181
Governance Report Financial StatementsStrategic Report
Notes to the Financial Statements
Year ended 31March 2026
Net initial yield
The forthcoming year’s net operating income expressed as a percentage of capital value, after adding notional
purchaser’s costs pre administrative expenses.
Net operating income
Store EBITDA after an allocation of central overhead.
Net operating income on stabilisation
The projected net operating income delivered by a store when it reaches a stable level of occupancy.
Net promoter score (NPS)
The Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend
a company’s products or services to others. The Company measures NPS based on surveys sent to all its move-ins and
move-outs.
Net Renewable Energy Positive Our strategy as set out in https://corporate.bigyellow.co.uk/index.php/sustainability/strategy.
Net rent per sq ft
Storage revenue generated from in place customers divided by occupancy.
Net Zero Strategy
The Group’s published strategy to have Net Zero Scope 1 and 2 Emissions.
Non like-for-like stores
Stores excluded from like-for-like metrics, as they were acquired, opened or closed in the current or preceding financial
year. In 2026 these stores are Staines, Queensbury, Slough Bath Road and Wembley.
Occupancy
The space occupied by customers divided by the MLA expressed as a %.
Occupied space
The space occupied by customers in sq ft.
Other storage related income
Packing materials, insurance, and other storage related fees.
Pipeline
The Group’s development sites.
Property Income Distribution (PID)
A dividend, generally subject to withholding tax, that a UK REIT is required to pay from its tax-exempt property rental
business, and which is taxable for UK-resident shareholders at their marginal tax rate.
REG
Renewable Energy Guarantees of Origin
REIT
Real Estate Investment Trust. A tax regime which in the UK exempts participants from corporation tax both on UK rental
income and gains arising on UK investment property sales, subject to certain conditions.
REVPAF
Total store revenue divided by the average maximum lettable area in the year.
Store EBITDA
Store earnings before interest, tax, depreciation, and amortisation, see reconciliation in the portfolio summary on
page 33.
Store revenue
Revenue earned from the Group’s open self storage centres.
TCFD
Task Force on Climate Related Financial Disclosure.
Total shareholder return (TSR)
The growth in value of a shareholding over a specified period, assuming dividends are reinvested to purchase additional
units of shares.
33. Glossary continued
Annual Report and Accounts 2026 Big Yellow Group PLC182
2026
£m
2025
£m
2024
£m
2023
£m
2022
£m
2021
£m
2020
£m
2019
£m
2018
£m
2017
£m
Results
Revenue 209.1 204.5 199.6 188.8 171. 3 135.2 129.3 125.4 116.7 109.1
Operating profit before gains
and losses on property assets 130.5 126.6 128.4 120.0 106.6 81.5 80.0 76.7 70.9 65.3
Cash flow from
operating activities 108.9 114.6 104.8 112.0 10 7.1 76.7 73.6 72.2 63.0 55.9
Profit before taxation 126.2 203.9 241.0 75.3 698.9 265.8 93.4 126.9 134.1 99.8
Adjusted profit before taxation 117. 5 115.6 107. 3 106.0 96.8 74.6 71. 0 67. 5 61.4 54.6
Net assets 2,599.2 2,565.5 2,448.4 2,182.4 2,184.4 1,453.9 1,163.9 1,123.9 981.1 890.4
Diluted adjusted earnings
per share 59.0p 57.8p 55.9p 56.5p 52.5p 42.4p 42.1p 41.4p 38.5p 34.5p
Declared total dividend
per share 47.2p 46.4p 45.2p 45.2p 42.0p 34.0p 33.8p 33.2p 30.8p 27.6p
Key statistics
Number of stores open** 113 109 109 108 105 78 75 74 74 73
Store MLA (000 sq ft) 6,721 6,421 6,419 6,292 6,098 4,930 4,688 4,622 4,631 4,551
Sq ft occupied (000)** 4,985 5,056 5,029 5,088 5,107 4,201 3,781 3,810 3,730 3,551
Occupancy (decrease)/
increase in year (000 sq ft)* (71) 27 (59) (19) 906 420 (29) 80 179 188
Closing net rent per sq ft** £36.28 £35.17 £34.14 £32.48 £29.92 £28.71 £28.15 £27.28 £26.74 £26.03
Number of occupied rooms** 71,000 73,000 73,000 73,000 73,000 62,000 56,500 56,000 55,000 52,500
Average number of employees
during the year** 453 459 464 465 427 370 361 347 335 329
* the occupancy growth in 2017, 2022 and 2023 includes the acquisition of existing stores
** from 2022 this includes the Armadillo stores, which the Group acquired the remaining 80% of which it did not previously own on 1 July 2021
Ten Year Summary
Annual Report and Accounts 2026 Big Yellow Group PLC 183
Governance Report Financial StatementsStrategic Report
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You can access more information about us on our website
bigyellow.co.uk
Big Yellow Group PLC
2 The Deans, Bridge Road, Bagshot, Surrey GU19 5AT
01276 470190 info@bigyellow.co.uk