Big Yellow Group plots return to normal with 30 per cent revenue boost as pandemic conditions ease
Self-storage specialists Big Yellow Group (Big Yellow) have reported a 30 per cent revenue boost in its third quarter update, rising to £45.2m compared to £34.7m during the height of the pandemic this time last year.
Like-for-like store revenue for the third quarter is up 13 per cent from £33.8m to £38.3m, while total revenue for the year to date is 26 per cent higher, totalling £127m compared to £100.5m for the first nine months of its 2020 financial window.
The group’s earnings have been further boosted by snapping up Armadillo in July, buying the remaining 80 per cent of the company after previously holding a 20 per cent stake in the self-storage company.
Occupancy rates declined by four per cent, in a seasonally weaker third quarter, but remained 2.9 percentage points higher than last year’s figures with 85.5 per cent of its storage facilities in use.
Move-outs remain higher than 2019’s, however the quarter is more in line with a conventional winter slowdown after last year was so heavily affected by Covid-19 restrictions.
Customers moving out in the quarter used Big Yellow on average for eight months, reflective of shorter-term use around house moves, home improvements, students and other life events.
Big Yellow has opened a brand new 73,000 square foot store in Hayes, West London today. Currently it has four stores in its development pipeline at an advanced stage.
New openings are now expected in April 2022 (Hove), July 2022 (Harrow), August 2022 (Kingston North) and Summer 2023 (Kings Cross).
During the quarter, Big Yellow also obtained planning consent on our development sites at Slough and Newcastle.
Chief executive James Gibson said: “We are pleased to have delivered a continued strong performance in revenue growth for the quarter. The occupancy performance this quarter has been more in line with 2019 and is a return to our more normal seasonal trading patterns.”
Forecasting the future, he added: “We remain confident of the longer-term growth prospects of our business; the principal drivers being revenue growth from the existing portfolio and targeted expansion in our core area of London, its commuter towns and larger regional cities.”