As the UK's second largest operator of self-storage space, Big Yellow (BYG) is benefiting from increased activity in the housing market. Its financial numbers are also starting to look much better now that the imposition of VAT in October 2012 has started to slip out of the year-on-year comparisons.
Occupancy rates at its 32 established stores - those it has owned as a portfolio since 2007 - rose from 72.8 per cent to 75.2 per cent. And rental income grew even faster than occupancy, assisted by a 6 per cent lift in rents to £26.15 per square foot.
A new store was opened in April this year at Gypsy Corner, West London, and the same month a 10-store portfolio called Armadillo was acquired for £19.75m through a joint venture with an Australian consortium. However, in the year to March, there were no new openings in London, and capacity in the capital may fall this year as some stores are closed for redevelopment. Net debt was marginally lower at £226m, but a £28m valuation uplift helped to reduce the loan-to-value ratio from 30 per cent to 28 per cent.
Analysts at Liberum are forecasting adjusted EPS of 23.7p and adjusted book value of 444p for the coming year (from 20.5p and 421p in 2014).
| BIG YELLOW (BYG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 502p | MARKET VALUE: | £711m | |
| TOUCH: | 500-504p | 12-MONTH HIGH: | 576p | LOW: 362p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 420p | NET DEBT: | 38% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 58.0 | 10.2 | 8.1 | 4 |
| 2011 | 61.9 | 6.9 | 5.3 | 9 |
| 2012 | 65.7 | -35.6 | -27.7 | 10 |
| 2013 | 69.7 | 31.9 | 24.4 | 11 |
| 2014 | 72.2 | 59.8 | 42.5 | 16.4 |
| % change | +4 | +87 | +74 | +49 |
Ex-div: 11 Jun Payment: 24 Jul | ||||
