Self-storage company Big Yellow Group has reported continuing losses despite nearly doubling its turnover.
The company ascribed the loss to an expensive expansion policy, which has almost doubled its occupied space from 401,000 sq ft (37,253 sq m) to 753,000 sq ft (69,954 sq m).
While turnover for the six months to September 2002 rose by 97%, from £3.6m to £7.1m, the company made a loss of £650,000, as against a £1m loss on the same period last year.
Big Yellow said that its planned expansion from 32 stores to 50 – a target announced when the group floated in 2000 – would now proceed more slowly than had been planned.
The group said that it will resume a more aggressive acquisitions policy when weaker occupier demand has softened property prices.
Of the group’s 32 stores, 23 are trading.
Chairman David White said: “Strengthening cash flow from our open stores will allow us to raise further debt and we remain confident that the share buyback will not inhibit us meeting our 50 store target, albeit at a slower pace than originally envisaged.”
Big Yellow has also unveiled the following changes to its senior management structure, with immediate effect:
- James Gibson has been made chief operating officer, in addition to his role as finance director
- Adrian Lee will become UK managing director, in addition to his existing duties as operations director.
Michael Cole will continue in his role as group financial controller.
EGi News 05/11/02
