Lok’n Store Group PLC (LON:LOK) saw its shares rise on Monday as the self-storage company said trading was strong in the first half of its fiscal year.
Revenue in the six months to the end of January was up 7.7% on the corresponding period a year earlier, with the self-storage business leading the way with revenue up 9.2% year-on-year.
As at the end of January, self-storage unit occupancy was up 8.0% and price per let square foot was up 1.4% compared to the same date 12 months ago.
"Our positive trading performance continues,” declared Andrew Jacobs, the chief executive officer of Lok’ Store said.
“Recently opened landmark stores are trading well and contributing to revenue growth. As most costs of trading additional self-storage centres are fixed, this revenue growth will have an increasing impact on EBITDA in the coming years. This underpins our confidence that our strong pipeline will add further momentum to our high-quality income stream,” he added.
In late morning trading, shares in Lok'n Store were 3.,6% higher at 435p.
In a note to clients, analysts at ‘house’ broker finnCap reiterated at 615p target price on the shares and said: “We reiterate our view that Lok’nStore has the balance sheet strength and proven management expertise to take advantage of the significant opportunities in the undersupplied self-storage market.”
-- Adds share price, analyst comment --