Financial results
Revenue for the year was £65.7 million, an increase of £3.8 million (6%) from £61.9 million in the prior year. Store revenue increased by 8% in the year to £64.3 million (2011: £59.6 million). The overall increase in revenue was lower due to a fall in construction fees earned from Big Yellow Limited Partnership and a reduction in tenant income on sites where we have started development. Other sales (included within the above), comprising the selling of packing materials, insurance and storage related charges, represented 17.1% of storage income for the year (2011: 17.4%) and generated revenue of £9.4 million for the year, up 7% from £8.8 million in 2011.
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 seasonally weaker second half of the year was £32.4 million, compared to £31.9 million for the first half of the year, and up 9% from £29.7 million for the second half of the year ended 31 March 2011. Annualised store revenue at 31 March 2012 was £66.1 million, an increase of 10% from £60.0 million at 31 March 2011.
There was an increase in revenue of 3% for the 32 established stores and 20% for the 21 lease-up stores. The EBITDA margin for the 32 established stores was 65% (2011: 65%), the EBITDA margin for the 21 lease-up stores grew from 56% to 60%. The table below illustrates the performance of the 32 established stores and the lease-up stores during the year.
| Capacity | Occupancy | Revenue | EBITDA | ||||
|---|---|---|---|---|---|---|---|
| Wholly owned store performance | 000 sq ft | 31 March 12 000 sq ft |
31 March 11 000 sq ft |
31 March 12 000 sq ft |
31 March 11 000 sq ft |
31 March 12 000 sq ft |
31 March 11 000 sq ft |
| 32 established stores | 1,941 | 1,442 | 1,381 | 43,793 | 42,558 | 28,388 | 27,522 |
| 21 lease-up stores | 1,417 | 691 | 534 | 20,480 | 17,064 | 12,371 | 9,604 |
| Total | 3,358 | 2,133 | 1,915 | 64,273 | 59,622 | 40,759 | 37,126 |
The Group made a loss before tax in the year of £35.6 million, compared to a profit of £6.9 million in the prior year. This reduction in Group profitability reflects the decrease in the valuation of the Group’s open stores following the valuer’s assessment of the impact of VAT, partially offset by the improved adjusted profit.
After adjusting for the loss 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 £23.6 million, up 17% from £20.2 million in 2011.
| (Loss)/profit before tax analysis | 2012 £m |
2011 £m |
|---|---|---|
| (Loss)/profit before tax | (35.6) | 6.9 |
| Loss on revaluation of investment properties | 51.4 | 16.0 |
| Movement in fair value on interest rate derivatives | 8.0 | (0.2) |
| Gains on surplus land | (0.5) | (0.1) |
| Share of non-recurring losses/(gains)in associate | 0.3 | (2.4) |
| Adjusted profit before tax | 23.6 | 20.2 |
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 2011 | 20.2 |
| Increase in gross profit | 3.0 |
| Increase in net interest payable | (0.1) |
| Reduction in share of recurring loss of associate | 0.3 |
| Increase in capitalised interest | 0.2 |
| Adjusted profit before tax – year ended 31 March 2012 | 23.6 |
Diluted EPRA earnings per share based on adjusted profit after tax was up 18% to 18.22p (2011: 15.49p) (see note 12). Basic loss per share for the year was 27.68p (2011: earnings per share of 5.34p) and fully diluted loss per share was 27.40p (2011: earnings per share of 5.29p).
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