Highlights
· Growth in all our key store metrics
· Year-on-year fourth quarter store revenue increased by 11% to £17.7 million (same quarter last year: £16.0 million)
· Cash inflows from operating activities (after net finance costs) increased by 9% to £32.8 million
· 49% increase in the total dividend for the year to 16.4p
· Reduction of Group net debt by £4.4 million to £226.1 million
· Opening of our prominent store at Gypsy Corner, West London, on the A40 in April 2014
· Acquisition of ten store Armadillo Self Storage portfolio through a joint venture with an Australian consortium in April 2014
· Big Yellow's national brand leadership confirmed by 2014 YouGov survey
Nicholas Vetch, Executive Chairman of Big Yellow, commenting 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. This performance illustrates the resilience of the Big Yellow business model and the self storage market more generally.
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.
We consider that a large part of the anticipated net immigration and population growth in the UK will continue to concentrate in London and the South East.
We also note that new housing developments in London are at a multi-decade high and as completions increase this should translate into more housing transactions. Land in London and the South East continues to be increasingly scarce for non-residential development which should benefit Big Yellow as new supply of self storage facilities will remain constrained.
We are therefore confident about the demand and supply characteristics of our business."
