Big Yellow storage targets ‘aggressive’ expansion with new London stores announced

Self storage company Big Yellow reported an increase in revenue today following investment in new capacity as the group targets “aggressive” expansion.

Revenue for the six months to the end of September was £62.2m, a boost of seven per cent, while adjusted profit before tax rose nine per cent to £33.3m.

However, statutory profit before tax fell 22 per cent to £61.4m due to a lower revaluation gain, the company revealed in its half-year results. 

The group, which has 97 storage sites across the country, acquired three new sites in Uxbridge, Queensbury and Hove, and opened a new store in Wapping in July as well as expanding its Wandsworth site.

Construction has begun on sites in Manchester and Camberwell, which are expected to open in summer next year and spring 2020 respectively.

Planning applications have been submitted for new developments in Kings Cross, Battersea and Bracknell and the group expects to “aggressively” pursue new opportunities.

Executive chairman Nicholas Vetch said: “We have continued to grow our like for like occupancy to 84.9 per cent (up 3.4 percentage points from 81.5 per cent at 31 March 2018) and remain focussed on our core objective of 90 per cent across the portfolio.

“As we have reduced vacant capacity, our pricing model is delivering improved rental growth and we are pleased to have achieved growth in average net rent of 3.7 per cent.

“It is self-evident that the current political and economic outlook is more uncertain than usual, but as a management team we cannot influence the outcomes.

“We remain focused on strengthening our market leading brand and operating platform; filling stores and then driving rental growth at higher occupancy levels; and developing new high quality stores, while maintaining a conservative capital structure.

“We believe this strategy positions the Group to provide a good degree of protection against adversity, and at the same time flexibility to invest in our business and exploit growth opportunities when they come along."