Big Yellow Group PLC (“Big Yellow”, “the Group” or “the Company”), the UK’s leading self storage brand, is pleased to announce results for the fourth quarter and the year ended 31 March 2012.
The Group’s occupancy, revenue and cash flow growth measures well against the weak macroeconomic background. Occupancy across all of our 65 stores increased by 328,000 sq ft during the financial year, compared to an increase of 215,000 sq ft across 62 stores in the prior year. The occupancy of the 51 wholly owned stores that were open at 31 March 2011 has grown to 64.9% from 59.3% at the same time last year.
The average net rent per sq ft achieved during the year, after all discounts and promotional offers, was in line with the prior year at £26.81. Since the year end the Group’s net rent has grown by 1.5%.
The Big Yellow Self Storage business model has proved to be relatively resilient during the downturn, in line with the experience in the more established US self storage market. Over the last five years the Group has reported a 12% compound annual adjusted eps growth. The free cash flow pre capital expenditure reported in the current year of £27.4 million is almost double that reported in the year to 31 March 2008 of £14.4 million, an annual compound increase of 17%. This performance is a reflection of the growing awareness of, and demand for, self storage at a time when new openings have slowed to a trickle. We are also seeing the benefits of our leading brand, strong online market share and our focus on London and the South East and other large metropolitan cities.
Financial results
Revenue for the year was £65.7 million (2011: £61.9 million), an increase of 6%; store revenue increased by 8% to £64.3 million (2011: £59.6 million). The lower % increase in total revenue reflects a fall in construction fees earned from Big Yellow Limited Partnership and a reduction in tenant income on sites where we have started development. EBITDA for the 53 wholly owned stores increased by £3.7 million (10%) to £40.8 million.
Store revenue for the fourth quarter increased by 10% to £16.1 million from £14.6 million for the same quarter last year. Store revenue in the second half of the year was £32.4 million, up 9% from £29.7 million for the second half of the year ended 31 March 2011.
Cash inflows from operating activities (after finance costs) increased by £3.9 million (17%) to £27.4 million for the year (2011: £23.5 million).
The Group made an adjusted profit before tax in the year of £23.6 million (2011: £20.2 million). This translated into an 18% increase in adjusted earnings per share to 18.22p (2011: 15.49p).
The Group made a statutory loss before tax for the year of £35.6 million, compared to a profit of £6.9 million last year. This reduction reflects the decrease in the valuation of the Group’s open stores, partially offset by the improved adjusted profit. The Financial Review contains more detail on the operating assumptions underpinning the ten year cash flow which have led to a 6% valuation fall of the store portfolio from the same time last year, principally caused by the valuer’s assessment of the impact of the proposed imposition of VAT on self storage from 1 October 2012.
The Group remains relatively conservatively geared with net bank debt of £273.9 million at 31 March 2012 (2011: £266.0 million). This represents approximately 35% (2011: 33%) of the Group’s gross property assets totalling £778.3 million (2011: £809.7 million) and 49% (2011: 45%) of the adjusted net assets of £561.0 million (2011: £591.4 million).
The Group’s income cover for the year expressed as the ratio of Group’s adjusted EBITDA post administrative expenses to net interest payable was 3.1 times (2011: 2.8 times).
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