Big Yellow posts rise in pre-tax profits, dividend jumps

19th Nov 2013 11:59

- PTP up two per cent- Revenue down down one per cent- Net rent per sq ft up 2.9 per centThe second half saw Big Yellow Group post a two per cent rise in pre-tax profit, reduced net debt, and increased net rent per square foot (sq ft), it said Tuesday. Adjusted profit before tax for the six months ended September 30th rose from £13.9m to £14.2m year-on-year, on revenue of £35.9m (2012 H1: £36.2m). The net rent per sq ft rose 2.9% since the start of April, while net debt was reduced by £1.8m to £228.6m. The group achieved occupancy growth of 232,000 sq ft across all stores in the period (2012: occupancy growth of 243,000 sq ft). Revenue for the established stores decreased 5.8% compared to the same period last year, but was up 4.3% compared to the six months to the end of March. The fall compared to the same period last year was due to the decrease in average occupancy and the 5.8% decrease in the average net rent achieved over the period, offset by an increase in other storage related income, the group explained. Executive Chairman Nicholas Vetch said: "We have delivered a good performance with occupancy growth across the wholly owned portfolio in line with the same period last year. This occupancy growth, combined with an improvement in yield, has offset the adverse impact, particularly within the established portfolio, from the introduction of VAT in the second half of last year. "We achieved like for like revenue growth of 5.1% in October (the first month following the anniversary of the VAT introduction), demonstrating that the VAT impact is firmly in the past and we are now returning to more normal growth." The group also said its optimism earlier in the year now seems justified, given the improving economic picture and current trading. "We believe that the company will continue to deliver attractive sustainable returns, on a relatively low risk and limited volatility basis on a long term view," it added. "Our confidence in this outlook is reinforced by the power of our brand, our market leading operating platform and critically in our exposure to London and the South East." In line with its new dividend policy to distribute 80% of full year adjusted earnings per share, the interim payout was increased 60%. NR