RNS Number:6880R
Big Yellow Group PLC
05 November 2003
5 November 2003
Big Yellow Group PLC
Results for the Six Months and Second Quarter ended 30 September 2003
_______________________________________
Second First
quarter quarter 6 Months 6 Months
ended ended ended ended
30 September 30 June 30 September 30 September
Annualised
Revenue #24.8m #22.0m +13% #24.8m #16.4m +51%
Turnover #6.0m #5.0m +20% #11.0m #7.1m +55%
EBDAT* #1.5m #0.5m #2.0m #0.3m
Profit/
(Loss)
before tax #0.49m (#0.35m) #0.14m (#0.98m)
Earnings/
(loss)
per share 0.06p (0.57p)
Number of
customers 18,600 16,600 +12% 18,600 11,500 +62%
Occupied
space 1,129,000 sq ft 1,005,000sq ft +12% 1,129,000 sq ft 753,000 sq ft +50%
_______________________________________
* Earnings before depreciation, amortisation, exceptional items and tax. See
note 6
* Group pleased to report a maiden pre-tax profit of #0.14 million for the
half year and #0.49 million for the second quarter
* 35 stores committed, of which 28 are trading, providing 2.1 million sq
ft when completed
* Acquired four freehold stores in North Kensington, Byfleet, Tolworth and
Beckenham in the period to date
* 0.25 million sq ft leased up in the period; total occupied space now
1.13 million sq ft.
* Number of customers up 62 % to 18,600 (2002: 11,500)
* Like for like annualised sales for 26 stores open throughout the period
up 29% as at September compared to March
* Like for like annualised sales for 13 stores open for more than two
years throughout the period up 12% as at September compared to March
* Merchandise, insurance and other sales represented 15.3 % of storage
income (2002: 14.7%)
-Ends-
For further Information, please contact:
Big Yellow Group PLC 01276 470 190
James Gibson, Chief Executive
Weber Shandwick Square Mile 020 7067 0700
Louise Robson/Sally Lewis
Interim Report 2003
Trading Summary
Years since
opening as at
1 April 2003 Greater than 2 years Between 1 and 2 years Less than 1 year Total
------------ ------------- ------------- -------
Number of stores 13 8 6 27
============ ============= ============= =======
As at 30 September 2003
Total capacity (sq ft)* 744,000 484,000 467,000 1,695,000
Occupied space (sq ft) 635,000 325,000 169,000 1,129,000
Percentage occupied 85% 67% 36% 67%
Freehold Leasehold Freehold Leasehold Freehold Leasehold Total
Number of stores 7 6 5 3 5 1 27
#'000 #'000 #'000 #'000 #'000 #'000 #'000
Annualised
revenue 7,018 7,093 4,190 2,608 3,598 322 24,829
For the period:
Self storage
sales* 2,838 3,061 1,549 920 1,047 69 9,484
Other income** 407 389 252 154 226 19 1,447
Bulk storage
sales - - - - 26 - 26
----- ----- ----- ----- ----- ---- -----
Total turnover 3,245 3,450 1,801 1,074 1,299 88 10,957
Direct store
operating
costs
(excluding
depreciation) (1,198) (1,865) (825) (918) (949) (204) (5,959)
----- ----- ----- ----- ----- ---- -----
Store EBITDA*** 2,047 1,585 976 156 350 (116) 4,998
Store
depreciation (413) (362) (304) (216) (376) (28) (1,699)
----- ----- ----- ----- ----- ---- -----
Store EBIT**** 1,634 1,223 672 (60) (26) (144) 3,299
Administrative
expenses (1,691)
-----
Operating profit 1,608
Net interest (1,465)
-----
Profit before tax 143
=====
* Includes shortlet offices with total capacity of 37,000 sq ft
** Merchandise, insurance and other storage related fees
*** Earnings before interest, tax, depreciation and amortisation
**** Earnings before interest and tax
5 November 2003
Big Yellow Group PLC
Results for the Six Months and Second Quarter ended 30 September
2003
Chairman's Statement
The Board of Big Yellow Group PLC is pleased to announce results
for the six months and for the second quarter ended 30 September
2003. Following a robust trading performance over the summer
months we are delighted to report the Group's maiden pre-tax
profit for the half year.
Financial Review
The Group made a pre-tax profit of #0.14 million in the half
year (2002: #0.98 million loss) aided by a significant rise in
pre-tax profitability of #0.49 million in the last quarter. The
earnings per share for the period was 0.06p (2002: 0.57p loss
per share).
Turnover for the period was #11.0 million (2002: #7.1 million),
a 55% increase on the comparable period last year. Merchandise,
insurance and other sales represented 15.3% (2002: 14.7%) of
total storage income during the period.
As at 30 September 2003, underlying revenues calculated on an
annualised basis rose to #24.8 million, up 51% (2002: #16.4
million).
In the second quarter to 30 September 2003, annualised revenue
rose by 13 % or #2.8 million from the #22.0 million reported at
30 June 2003 and turnover for the same period rose by 20 % to
#6.0 million (Q1 2003: #5.0 million).
On a like for like basis, annualised revenue from the 26 stores
open throughout the period was 29% higher as at 30 September
2003 when compared to 31 March 2003. Within this, the 13 stores
open for more than two years as at 1 April 2003 achieved
annualised revenue growth of 12% over the six month period.
The Group's cashflows continue to build as reflected by the
increase in EBDAT (see note 6) for the six month period to #2.0
million from #0.3 million for the same period in 2002. In
addition, EBDAT for the last quarter was #1.5 million.
Total administrative expenses were #1.69 million for the period;
down from #1.82 million for the equivalent period last year. The
reduction arises principally from the core overhead savings
following the closure of the French operation last year, offset
primarily by increased staffing costs in relation to national
insurance, pensions, improved bonus payments and annual
increases.
Dividend
As reported in May the Group intends to have a progressive
dividend policy reflecting growth in operating cashflow
surpluses with payment of a final dividend only. No interim
dividend is therefore proposed.
Store Trading Performance
We are pleased to report that 28 stores are now trading, Byfleet
having opened after the period end, providing a total capacity
of 1.7 million sq ft. 24 of the stores are now trading
profitably at the pre-tax level and 26 have positive operating
cash flow.
In the six months to 30 September 2003 occupancy increased by
0.25 million sq ft to 1.13 million sq ft out of a total capacity
of 1.7 million sq ft for all stores open at the period end.
Furthermore, the 13 stores open for more than two years at the
beginning of the period were on average 85% occupied at 30
September 2003.
Our customer base continues to grow and at 30 September we had
18,600 customers, compared with 13,800 at 31 March 2003
(September 2002: 11,500 customers).
We have included a table summarising the trading performance of
all our stores over the six month period, analysed between
stores open more than two years; between one and two years; and
less than a year, at the beginning of the period. Our intention
is to continue to show the trading results as the maturity
profile of the portfolio improves over time. The 13 stores open
for more than two years made trading profits before interest,
tax, depreciation and amortisation ("EBITDA") of #3.6 million in
the six month period on turnover of #6.7 million, a margin of
54%, comprising an average EBITDA margin for freeholds of 63%
and leaseholds 46%.
We remain focused on maintaining our competitive edge and on
improving efficiencies at our stores. To assist this, we are
currently rolling out a self storage "off the shelf" centralised
operating system. The process will be complete before the
financial year end and will enable us to improve efficiencies
and controls in all our stores and head office.
Share Buy Backs
In April 2003 we obtained authority from shareholders to
purchase 14.99% of the issued ordinary share capital of the
Company. On 23 October, the Group purchased 150,000 shares at
83p. The Group will only deploy cash for the purchase of shares
where it will not compromise its ability to expand the
portfolio, whilst remaining relatively conservatively financed,
and where it considers that a purchase will be earnings and net
asset per share enhancing.
Strategy
In May we announced we were taking a more ambitious but measured
approach to expansion as a consequence of resilient store
performance over the winter period. Although acquiring roadside
property for development into self storage remains difficult in
our target areas of London and the South, nevertheless we have
acquired four freehold stores since the beginning of the period
in North Kensington, Byfleet, Tolworth and Beckenham. This
takes the total number of stores open, or under development to
35 which, when fully developed, will provide 2.1 million sq ft.
In line with our improving cashflows the Group has secured
additional bank facilities of #24 million taking total bank
facilities to #78 million. Net debt at the end of September was
#55million giving cash and undrawn facilities to fund expansion
of #23 million. #43 million of our bank debt is fixed at
maturities expiring in 2007 and 2008 at an average cost of 6.4%
including margin with the balance at lower variable rates.
Improving cashflow surpluses will increasingly allow us to part
finance our expansion internally. Access to debt finance is
significantly aided by both this growth in operating cashflows
and the freehold ownership of 25 of our stores and sites
respectively, representing 71% of the portfolio.
Outlook
Big Yellow's visibility as a recognisable consumer brand has, we
believe, increased significantly in the last year driven by the
increasing size of our store network and sustained marketing,
particularly in the London area with our first ever TV campaign.
We believe this has led to increased awareness and growth in the
self storage market as a whole and that the quality of our
stores and commitment of our highly motivated people has
resulted in Big Yellow capturing a larger share of this new pool
of customers.
The achievement of our maiden pre-tax profit is a considerable
milestone in the Group's evolution, all achieved through organic
growth. We now look forward to building on our brand and
industry leadership, increasing our store portfolio and most
importantly delivering sustainable profit growth in the future.
David White
Chairman
5 November 2003
-Ends-
For further Information, please contact:
Big Yellow Group PLC 01276 470 190
James Gibson, Chief Executive
Weber Shandwick Square Mile 020 7067 0700
Louise Robson/Sally Lewis
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months ended 30 September 2003
Six months
ended
30
September 2003 Six months ended 30 September 2002
(unaudited) (unaudited) Year ended 31 March 2003 (Audited)
Note Discontinued Discontinued
Continuing French Continuing French
operations operations Total operations operations Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000
TURNOVER 2 10,957 7,098 - 7,098 15,579 - 15,579
Cost of sales (7,658) (5,513) - (5,513) (12,397) - (12,397)
------ ------ ------ ------ ------ ------ ------
GROSS PROFIT 3,299 1,585 - 1,585 3,182 - 3,182
Administrative
expenses (1,691) (1,475) (347) (1,822) (2,956) (484) (3,440)
Exceptional item 3 - (191) - (191) (191) - (191)
------ ------ ------ ------ ------ ------ ------
Total
administrative
expenses (1,691) (1,666) (347) (2,013) (3,147) (484) (3,631)
------ ------ ------ ------ ------ ------ ------
OPERATING
PROFIT/(LOSS) 1,608 (81) (347) (428) 35 (484) (449)
Loss on
termination of
French operation - - - - - (270) (270)
Interest receivable
and similar income 75 428 3 431 619 8 627
Interest payable
and similar
charges 4 (1,540) (958) (21) (979) (2,171) (31) (2,202)
------ ------ ------ ------ ------ ------ ------
PROFIT/(LOSS)
ON ORDINARY
ACTIVITIES BEFORE
TAXATION 143 (611) (365) (976) (1,517) (777) (2,294)
Taxation 5 (83) 323 - 323 (73) - (73)
------ ------ ------ ------ ------ ------ ------
PROFIT/(Loss) on
ordinary activities
after taxation 60 (288) (365) (653) (1,590) (777) (2,367)
Dividends 7 - - (994)
------ ------ ------ ------ ------ ------ ------
RETAINED PROFIT/
(loss) for the
period/year 9 60 (653) (3,361)
====== ====== =====
Basic earnings/
(loss) per
share 8 0.06p (0.57p) (2.1p)
====== ====== =====
Diluted earnings/
(loss) per
share 8 0.06p (0.57p) (2.1p)
====== ====== =====
All items in the current period profit and loss account relate to continuing
operations.
CONSOLIDATED BALANCE SHEET
30 September 2003
Note 30 September 30 September 31 March
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
FIXED ASSETS
Intangible assets 1,481 1,578 1,529
Tangible assets 114,458 89,429 100,933
------- ------- -------
115,939 91,007 102,462
------- ------- -------
CURRENT ASSETS
Stocks 245 164 252
Debtors 5,979 5,717 5,986
Cash at bank and in hand 8,217 17,667 2,267
------- ------- -------
14,441 23,548 8,505
CREDITORS: amounts
falling due within one year (7,862) (7,581) (9,667)
------- ------- -------
NET CURRENT ASSETS/(LIABILITIES) 6,579 15,967 (1,162)
------- ------- -------
TOTAL ASSETS LESS CURRENT
LIABILITIES 122,518 106,974 101,300
CREDITORS: amounts falling
due after more than one year (63,507) (36,717) (42,349)
------- ------- -------
TOTAL NET ASSETS 59,011 70,257 58,951
======= ======= =======
CAPITAL AND RESERVES
Called up share capital 9 9,940 11,170 9,940
Capital redemption reserve 9 1,638 408 1,638
Share premium account 9 1,923 1,923 1,923
Other distributable reserves 9 52,307 61,874 52,307
Profit and loss account 9 (6,797) (5,118) (6,857)
------- ------- -------
EQUITY SHAREHOLDERS' FUNDS 59,011 70,257 58,951
======= ======= =======
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Six months ended 30 September 2003
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Profit/(loss) for the financial
period/year 60 (653) (2,367)
Foreign exchange translation
differences - 9 (16)
Dividends - - (994)
------- ------- -------
60 (644) (3,377)
Purchase of own shares - (3,126) (11,699)
------- ------- -------
Net addition/(reduction) to
shareholders' funds 60 (3,770) (15,076)
Opening shareholders' funds 58,951 74,027 74,027
------- ------- -------
Closing shareholders' funds 59,011 70,257 58,951
======= ======= =======
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Six months ended 30 September 2003
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Profit/(loss) for the period/year 60 (653) (2,367)
Foreign exchange translation
differences - 9 (16)
------- ------- -------
Total recognised gains and losses 60 (644) (2,383)
======= ======= =======
CONSOLIDATED CASH FLOW STATEMENT
Six months ended 30 September 2003
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Cash inflow from
operating activities B 2,528 679 3,510
Returns on investments
and servicing of finance (1,408) (245) (1,385)
Capital expenditure and
financial investment (15,334) (15,027) (29,349)
Equity dividends paid (994) - -
------ ------ ------
Cash outflow before
financing (15,208) (14,593) (27,224)
Financing
Increase in debt A 21,158 16,858 22,662
Purchase of own shares - (3,126) (11,699)
------ ------ ------
21,158 13,732 10,963
------ ------ ------
Increase /(decrease) in
cash in the period/year A 5,950 (861) (16,261)
====== ====== ======
A. Reconciliation of net cash flow to movement in net funds
Six months ended 30 September 2003
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Increase/(decrease) in cash
in the period/year 5,950 (861) (16,261)
Cash inflow from increase
in debt financing (21,158) (16,858) (22,662)
------ ------ ------
Change in net (debt)/funds
resulting from cash flows (15,208) (17,719) (38,923)
------ ------ ------
Movement in net debt in the
period/year (15,208) (17,719) (38,923)
Net debt at start of period/year (40,333) (1,410) (1,410)
------ ------ ------
Net debt at end of period/year (55,541) (19,129) (40,333)
====== ====== ======
B. Reconciliation of operating profit/(loss) to net cash inflow from operating
activities
Six months ended 30 September 2003
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Operating profit/(loss) 1,608 (428) (449)
Depreciation 1,774 1,026 2,546
Loss on disposal of fixed assets - - 103
Amortisation of goodwill 48 48 97
Foreign exchange loss - - (16)
Decrease/(increase) in stock 7 (13) (102)
Increase in debtors (78) (682) (1,345)
(Decrease)/increase in creditors (831) 728 2,676
------ ------ ------
Net cash inflow from operating
activities 2,528 679 3,510
====== ====== ======
NOTES TO THE INTERIM REVIEW
Six months ended 30 September 2003
1. ACCOUNTING POLICIES
Basis of preparation
The interim information for the six months ended 30 September 2003 and 30
September 2002 is unaudited and does not comprise statutory accounts. The
comparative figures for the year ended 31 March 2003 are not statutory accounts
but are extracted from the audited statutory accounts. The statutory accounts
for the year ended 31 March 2003 have been filed with the Registrar of
Companies. They received an unqualified audit report which did not contain a
statement under Section 237(2) or 237(3) of the Companies Act 1985. This interim
report should be read in conjunction with the statutory accounts for the year
ended 31 March 2003. The interim figures have been prepared on the same basis
and applying the same accounting policies as in prior years.
2. SEGMENTAL INFORMATION
Turnover represents amounts derived from the provision of services which fall
within the Group's ordinary activities after deduction of trade discounts and
value added tax. The Group's net assets, turnover and profit/(loss) before tax
are attributable to one activity, the provision of self storage and related
services. These all arise in the United Kingdom, with the exception of #nil (31
March 2003: #1,256,000) in respect of net liabilities in France. Losses which
arose on the operations in France are disclosed on the face of the profit and
loss account.
3. EXCEPTIONAL ITEM
The Group was admitted to the Official List and cancelled its AIM listing on 7
June 2002. Exceptional costs relating to this change of #191,446 were incurred
in the 6 month period to 30 September 2002.
4. INTEREST PAYABLE AND SIMILAR CHARGES
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Bank borrowings, 1,540 979 2,159
Foreign exchange and other charges - - 43
------- ------ ------
1,540 979 2,202
======= ====== ======
5. TAXATION
The current period tax charge for the Group relates entirely to a movement in
deferred tax. No corporation tax will be payable as a result of tax losses
within the Group, which at 31 March 2003 were #4.2 million. The deferred tax
charge in the year results in a tax rate in excess of the standard rate of 30%,
primarily because the Group depreciates its buildings for which no corporation
tax relief is due, and this permanent disallowable is significant in relation to
current period reported pre-tax profit.
6. PROFIT/(LOSS) BEFORE DEPRECIATION, AMORTISATION, TAX AND EXCEPTIONAL ITEMS
Six months
ended 30
September
2003 Six months ended 30 September 2002
(Unaudited) (Unaudited) Year ended 31 March 2003 (Audited)
Discontinued Discontinued
Continuing French Continuing French
operations operations Total operations operations Total
#'000 #'000 #'000 #'000 #'000 #'000 #'000
Profit/(loss)
before tax 143 (611) (365) (976) (1,517) (777) (2,294)
------ ------ ------ ------ ------ ------ ------
Exceptional items - (191) - (191) (191) (270) (461)
------ ------ ------ ------ ------ ------ ------
Profit/(loss) before
tax and exceptional
items 143 (420) (365) (785) (1,326) (507) (1,833)
====== ====== ====== ====== ====== ====== ======
Depreciation (1,774) (1,026) - (1,026) (2,546) - (2,546)
Amortisation (48) (48) - (48) (97) - (97)
====== ====== ====== ====== ====== ====== ======
Total depreciation,
amortisation and
exceptional items (1,822) (1,265) - (1,265) (2,834) (270) (3,104)
====== ====== ====== ====== ====== ====== ======
Profit/(loss) before
depreciation,
amortisation and
exceptional items
("EBDAT") 1,965 654 (365) 289 1,317 (507) 810
====== ====== ====== ====== ====== ====== ======
7. DIVIDENDS
No interim dividend has been proposed (31 March 2003: Final dividend of 1.0
pence per ordinary share, 30 September 2002: nil).
8. EARNINGS/(LOSS) PER ORDINARY SHARE
Basic earnings/(loss) per ordinary share has been calculated on the retained
profit for the period of #60,000 (6 months ended 30 September 2002: loss of
#653,000; year ended 31 March 2003: loss of #2,367,000) and on the weighted
average number of shares in issue during the period of 99,400,616 (6 months
ended 30 September 2002: 115,419,623; year ended 31 March 2003: 111,940,282).
Diluted earnings/(loss) per share has been calculated after allowing for the
exercise of share options which have met the required exercise conditions. The
weighted average number of shares in issue during the period is 101,013,842. (6
months ended 30 September 2002: 115,419,623; year ended 31 March 2003:
111,940,282).
9. MOVEMENT ON RESERVES
Capital Share Other Profit and
Share redemption premium distributable loss
capital reserve account reserves account Total
#'000 #'000 #'000 #'000 #'000 #'000
Balance
at 1
April
2003 9,940 1,638 1,923 52,307 (6,857) 58,951
Profit
for the
financial
period - - - - 60 60
------ ------ ------ ------ ------ ------
Balance
at 30
September
2003 9,940 1,638 1,923 52,307 (6,797) 59,011
====== ====== ====== ====== ====== ======
INDEPENDENT REVIEW REPORT TO BIG YELLOW GROUP PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 September 2003 which comprises the profit and loss
account, the balance sheet, the reconciliation of movements in shareholders'
funds, the statement of total recognised gains and losses, the cash flow
statement, and the related notes 1 to 9. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
also responsible for ensuring that the accounting policies and presentation
applied to the interim figures are consistent with those applied in preparing
the preceding annual accounts except where any changes, and the reasons for
them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board. A review consists principally of making
enquiries of Group management and applying analytical procedures to the
financial information and underlying financial data and based thereon, assessing
whether the accounting policies and presentation have been consistently applied
unless otherwise disclosed. A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with United
Kingdom auditing standards and therefore provides a lower level of assurance
than an audit. Accordingly, we do not express an audit opinion on the financial
information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2003.
Deloitte & Touche LLP
Chartered Accountants
London
5 November 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
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