Big Yellow upbeat amid strong self-storage space demand

20th May 2014 08:22

- Rents out more space at increased prices- Occupancy rates up as economy improves- Confident outlook amid scarcity of London self-storage facilitiesSelf-storage space provider Big Yellow reported a 15 per cent improvement in full-year profit as it rented out more space at increased prices.Adjusted pre-tax profit rose to £29.2m in the year ended march 31st from £25.5m the same time a year earlier. Revenue climbed 4% to £72.2m.Occupancy growth rose 15% to 200,000 sq ft while adjusted net asset value (NAV) per share rose to 446.5p from 419.2p before. Executive Chairman Nicholas Vetch said: "In an improving economy, we have delivered occupancy, revenue and cash flow growth for the fifth year in a row following the deep recession in 2008 and 2009. "Increasing political uncertainty and interference, combined with an exuberant housing market in London and the South East, gives scope for some trading volatility in the short term. That said, the business is performing well and we have high confidence in our core markets as we believe that a number of factors will be helpful to our continued growth."Big Yellow said it expects immigration and population growth in the UK will continue to concentrate in London and the South East. That and the lack of non-residential development, should benefit the firm."We are therefore confident about the demand and supply characteristics of our business," it said. A full year dividend of 16.4p per share has been recommended, up 49% from last year.CJ