Lok'nStore returns to profit as homeowners need space
Self-storage firm Lok'nStore posted a return to annual profit and said business had been resilient amid a volatile property market and economy.
Boxing tough: Two-thirds of the company's business is generated from households
The group said it had seen occupancy - the amount of storage space rented out - increase by 4% in the year to July 31, and prices increase by 4.9%.
The firm, headquartered in Farnborough, Hampshire, said the dense UK population was putting pressure on homeowners to use their property space more efficiently and was generating demand across the self-storage industry.
Lok'nStore, the fourth largest self-storage firm in the UK, posted pre-tax profits for the year of £430,254 compared to a loss of £656,051 the previous year.
Around two-thirds of the company's business is generated from households.
Simon Thomas, chairman of Lok'nStore, which has 21 stores across the UK, pointed out that the UK population density was 246 persons per sq km, compared with 32 persons per sq km in the US.
He said this created 'far more pressure to use property resources efficiently in the UK, which is a notable driver of demand for self-storage'.
Mr Thomas said Lok'nStore, which employs 102 staff, had seen steady business since the end of the financial year and was well positioned to grow revenues.
But he added: 'When we see sustained economic growth we plan to build out our new stores and look for new opportunities.'
Recently, fellow self-storage firm Safestore reported an increase in occupancy and revenues as well. The firm said a rise in the number of homeowners selling up before they buy a new property had driven a record jump in lettings.
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