Lok’nStore boosted as trading continues despite COVID-19

AIM-listed self storage business Lok’nStore Group (LON:LOK) saw its share price increase by 9.53% to 586p (as of 15:15 BST) after posting a 5.3% rise in revenues for the six months ended 31st January. Management said that since the end of this period, all stores have remained open with social distancing measures in place and trading has remained resilient. Year-on-year revenues for March were up by 8.5%.

CEO Andrew Jacobs commented: “Despite the current deeply unsettled circumstances Lok’nStore has a resilient business model and a flexible and conservative debt structure. Our results for the first half of the financial year are robust. We have created a strong platform with revenue, cash flow and asset values all moving ahead and we are raising the interim dividend by 9.0% to 4 pence per share. We continued to bolster our new store pipeline to 16 sites which will significantly increase operating space over the coming years.

“With a strong balance sheet and low gearing helped by capital recycling, we will adjust to the current turbulence caused by the pandemic and when the economy stabilises we will continue to build more landmark stores in an under-supplied market leading to an exciting period of growth. This positions the Group well for the future”.

“Our long term objective is to open more landmark stores while remaining conservatively geared delivering sustainable growth and consistently increasing dividends“.