Big Yellow sees revenue hike

Big Yellow said that trading conditions remain challenging, but revenues for the quarter to 30 June rose 7%.

Morningstar.co.uk Editors 9 July, 2008 | 3:25PM
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Revenues were £14.5m, up 7% from £13.5m last year and up 4% from £13.9m the previous quarter. The group also reported an average rental of £26.21 per sq ft, up 8% from the same quarter last year. Average occupancy levels fell slightly from last year, but were up on the previous quarter.

The group opened a new store in Kennington, bringing the total number of stores to 48 with a capacity of 3m sq ft. It is planning a further five stores in the current financial year, including sites in Sheen and Bromley.

It sold off four development properties on 8 July for a total of £14.9m. £4.5m will be re-invested. It has acquired a new site in Stockport for the development of a 60,000 sq ft self storage centre. The group said in its last set of results that it had increased borrowings to fund this expansion.

Some fund managers have suggested that storage companies may do well from the current rout in the housing market as dispossessed homeowners are forced to use storage facilities. The shares moved up by 13p to 261p, around a third of the level they were a year ago. The group has created a valuable brand, but needs to show it can pull off its expansion plan before it becomes an attractive buy.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Big Yellow Group PLC956.00 GBX-0.62

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