UK self-storage group Lok’nStore slumped to a loss in the year it was taken private in a deal worth around £378m, it has been revealed.
The Surrey-headquartered company was snapped up by Belgium’s Shurgard in April 2024. Lok’nStore had been listed on the London Stock Exchange’s AIM since 2000.
New accounts filed with Companies House show that the business fell to a pre-tax loss of £7.3m for the 12 months to 31 July, 2024. It had previously posted a pre-tax profit of £6.7m.
Despite entering the red, Lok’nStore’s revenue increased in the year from £27.1m to £28m.
The company said it offset a rise in staff costs due to opening new sites by awarding lower performance bonuses to its store employees.
Lok’nStore added that its overhead costs increased by almost 20 per cent because of a “combination of factors” such as audit fees and bank charges.
It also added that its capital expenditure in the year rose from £17.3m to £22.1m.
Lok’nStore confident for the future
A statement signed off by the board said: “Lok’nStore Group operates within the UK self-storage industry which is a sector with strong growth prospects and this market presents an excellent opportunity for further growth of Lok’nStore’s business.
“Recently opened landmark stores and our ambitious new store pipeline demonstrate the group’s ability to use those strengths to exploit the opportunities available through the economic cycle.
“Our high margins, strong balance sheet and flexible business model enables Lok’nStore to confidently look through the current external market turbulence.”
In a statement released in April 2024, Lok’nStore and Shurgard said the takeover deal would enable the buyer to increase its footprint in the South East and Manchester, which it called “the two most attractive target markets outside of London”.
At the time, Lok’nStore had 32 properties with five under development in the South East, and five properties with three under development in Manchester.