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New stores boost momentum at Lok'nStore

Revenue is set to grow further as new sites come on stream
August 8, 2016

Demand for self-storage space helped Lok'nStore (LOK) push through a 2.2 per cent price increase in the year to 31 July. Like-for-like revenue (excluding £3.5m from the sale of the Swindon operation and the new Bristol store) grew by 5.2 per cent, while occupancy rates were up 2.2 per cent.

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Cash profits in the document storage division were double the previous year, thanks to greater efficiency and lower costs, and the number of boxes stored rose by nearly 9 per cent. Full-year revenue is likely to be boosted by the opening of two new stores in Bristol and Southampton, while next year should see the completion of a further two new stores in Gillingham and Wellingborough as well as two new managed stores in Broadstairs and Hemel Hempstead.

Leverage remains relatively low, with cash recycled into new premises coming from an additional £2m received for the sale of the old Reading site, £3.5m from the Swindon sales and an additional £3m from the sale of an undeveloped site in Portsmouth.