October 2010 - UK-based self-storage company Lok'n Store Group Plc (LOK.L: News ) Monday reported a return to profit in the year ended July 31, helped by a 4% increase in revenues and lower operating costs. The company also said that it is well positioned to continue to grow revenue against tightly controlled costs.
Pre-tax profit for the full year was GBP 0.43 million, as against a loss of GBP 0.66 million a year ago.
Profit attributable to owners of the parent was GBP 0.22 million versus a loss of GBP 0.60 million last year. On a per share basis, earnings for the year were 0.88, compared with a loss of 2.39 last year.
Revenue for the year rose 4.1% to GBP 10.42 million from GBP 10.01 million a year ago.
According to the company a 4% rise in occupancy and 4.9% increase in prices achieved for self-storage units demonstrates that self-storage continues to perform well, despite weak economic conditions.
Direct cost of sales expenditure (related to insurance, boxes and packaging materials) was down 20.4% to GBP 225 thousands from GBP 283 thousands last year, the company noted.
The company also said that adjusted net asset value per share rose 8.2% from GBP 2.07 per share last year, reflecting an increase in value of properties.
Further, the company said its board recommended a final dividend of 0.67 pence per share, to be paid on December 17 to shareholders on the register on November 19, making a full year payout of 1 pence per share.
Simon Thomas, chairman of the company said, "Lok'nStore's efficient operating business, strong cash flow and secure asset base leaves it well positioned within the growing UK self-storage market and we are confident of the future."
LOK.L is currently trading at 126.00 pence, down 2.00 pence or 1.56% on a volume of 22,026 shares on the London Stock Exchange. .