Lok'nStore Group plc

Annual Report and Accounts

for the year ended 31 July 2022

Overview

02 Highlights

  1. Chairman's Statement
  1. Group at a Glance

Strategic Report

  1. The UK Self-Storage Market
  1. Our Business Model
  1. Our Strategy
  2. Managing Director's Review
  1. Key Performance Indicators
  1. Property Review
  1. Financial Review
  1. Section 172 Statement
  2. Principal Risks and Uncertainties

Environmental and Social Report

  1. Environmental Matters
  1. Social Matters

Governance

  1. Board of Directors and Advisers
  1. Corporate Governance
  1. Directors' Report
  2. Remuneration Report
  1. Statement of Directors' Responsibilities
  2. Independent Auditor's Report to the Members of Lok'nStore Group plc

Financial Statements

  1. Consolidated Statement of Comprehensive Income
  2. Consolidated Statement of Changes in Equity
  3. Company Statement of Changes in Equity
  4. Consolidated and Company Statements of Financial Position
  5. Consolidated Statement of Cash Flows
  6. Accounting Policies
  1. Notes to the Financial Statements
  1. Glossary
  2. Our Store Locations

Lok'nStore Group plc Annual Report and Accounts 2022

Dynamic new store opening schedule driving future growth.

We are a leading Company in the fast-growing UK self-storage market. We opened our first self-storage centre in February 1995 and have grown consistently over the last 27 years with 40 self-storage centres operating across England and Wales.

We have been listed on the AIM market since June 2000.

We operate our own stores and manage stores for third party owners. Storage services are available to both household and business customers at our highly branded Lok'nStore centres.

To find out more visit:

www.loknstore.co.uk/investors

Overview

Report Strategic

Environmental Social and

Governance

Statements Financial

01

Highlights

Lok'nStore, the fast-growing AIM listed self-storage company, is pleased to announce its Preliminary Results for the year ended 31 July 2022.

GROUP REVENUE

£26.9m

ADJUSTED TOTAL ASSETS4*

£370.9m

£21.9m

£294.8m

up 22.9%

21

22

up 25.8%

21

22

GROUP ADJUSTED

£16.4m

ADJUSTED NET ASSET

£9.72

£7.31

EBITDA1*

£11.9m

VALUE5* PER SHARE

up 37.5%

21

22

up 33.0%

21

22

OPERATING PROFIT

2*

£11.4m

ANNUAL DIVIDEND

17.25p

15.0p

(Before non-underlying items)

£7.6m

PER SHARE

up 49.8%

21

22

up 15.0%

21

22

"Lok'nStore's business has moved ahead significantly with revenue up 22.9% and EBITDA up 37.5% on last year. Demand for UK self-storage assets remains strong, and this has driven our Net Asset Value per share up by 33% to £9.72. Trading since the year-end has been good.

We are on site at four new Landmark stores which will open within the next 12 months and can be completed using cash on hand. At 31 July 2022, our secured pipeline of ten new sites increases owned space by 44.1%. This pipeline of new stores will add further momentum to sales and earnings growth. We have reduced our net debt to £20.3 million and our business model enables us to build out the pipeline as market circumstances dictate.

We aim to build more Landmark stores in the under-supplied UK market. We are growing the business from a strong financial platform that gives us great flexibility to respond to market circumstances. We have multiple levers to allocate our capital in ways which are most accretive to our shareholders through the economic cycle, and we are confident that we will continue to increase net assets, cash flows and dividends."

Andrew Jacobs

Executive Chairman

02 Lok'nStore Group plc Annual Report and Accounts 2022

Record

Significant

Dynamic

REVENUE

increase

Pipeline

AND PROFITS

IN NET ASSET VALUE

DRIVING FUTURE GROWTH

STRONG REVENUE AND PROFIT GROWTH

  • Group Revenue £26.9 million up 22.9% (2021: £21.9 million)
  • Group Adjusted EBITDA1* £16.4 million up 37.5% (2021: £11.9 million)
  • Operating Profit before non-underlying items2* £11.4 million up 49.8% (2021: £7.6 million)
  • Operating Profit after non-underlying items £17.2 million up 130.0% (2021: £7.5 million)

DRIVEN BY SOLID OPERATING METRICS

  • Achieved rate on occupied space up 13% to £25.6 per sq. ft (2021: £22.7 per sq. ft)
  • Managed store revenue £2.8 million up 107%
  • Cost Ratio13* reduced to 38.5% (2021: 44.9%)

CASH FLOW GROWTH DRIVES ELEVENTH CONSECUTIVE YEAR OF DIVIDEND INCREASE

  • Cash Available for Distribution (CAD)3* per share up 36.6% to 38.7 pence (2021: 28.4 pence)
  • Annual dividend increased by 2.25 pence to 17.25 pence per share up 15% (2021: 15 pence per share) - covered 2.24 times by CAD

SIGNIFICANT INCREASE

IN NET ASSET VALUE

  • Adjusted Net Asset Value5* per share up 33% to £9.72 per share (2021: £7.31 per share)

DISCIPLINED USE OF CAPITAL LEADS TO STRONG BALANCE SHEET AND LOW DEBT

  • Sale and manage back of four stores at a 22.8% premium to 31 July 2021 valuations delivering £37.9 million of net sale proceeds in cash
  • £46.5 million cash at year-end (2021: £9.1 million)
  • Net debt (excluding lease liabilities and deferred finance costs) reduced to £20.3 million (2021: £56.3 million)
  • Loan to value ratio6* down to 6.6% (2021: 21.0%)
  • £25 million accordion executed - increases bank facility to £100 million
  • Bank facility extended by one year to April 2026

DYNAMIC PIPELINE8* OF NEW LANDMARK STORES WILL DELIVER FURTHER GROWTH

  • 4 new stores currently on site will add over
    218,000 sq. ft. of new trading space
  • Secured store pipeline9* total of 10 sites will add 44.1% to owned new space over the coming years

WELL POSITIONED FOR THE FUTURE

  • New store openings and rate increases will lead to further revenue and profit growth
  • Trading momentum continues post year end with same-store revenue up 13.6% for August and September 2022 compared to the same period last year
  • Strategy unchanged - increase revenue from existing stores and open more new Landmark stores
  • Flexibility to respond to market circumstances

Overview

Report Strategic

Environmental Social and

Governance

Statements Financial

  • For all of the definitions of the terms used in the highlights above refer to our Key Performance Indicators on pages 24 and 25.

03

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Disclaimer

Lok'n Store Group plc published this content on 04 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2022 11:50:08 UTC.