BIG Yellow Group provides self-storage and related services. It has 73 sites, either open or under development, against 66 at this time last year, mostly within the London conurbation.
Recent openings include one in East Finchley, one in Tun
bridgwells, a second store at Bristol Ashtongate and one at Gloucester; others are planned over the next year.
The company offers safety and security solutions to its customers by providing access control systems, individual room alarms, digital closed circuit television systems, intruder and fire alarm systems and the remote monitoring of its stores out of hours.
Big Yellow is due to report on Monday and the portends are encouraging. In January, the company confirmed that its revenues for the third quarter were up 12 per cent against last year's comparable period, with revenues amounting to £14.4 million. It now has 1.8m sq ft occupied at the quarter end, up 5 per cent on last year.
Self-storage, as a commercial prospect, was pioneered in the US and has only recently – that is, over the past five years or so – begun to develop into the UK. However, with central urban costs rising and the sometimes draconian compliance regulations on the need to retain paper records for a fixed period of time, the appeal of a relatively cheap, if fairly basic, out-of-town storage facility is self-apparent.
In addition, Big Yellow, like its peers, has a valuable property estate. While the dividend cover is thin and the yield, of around 2.4 per cent, not especially appealing, having been hammered through the association with the property sector, the shares are well worth a look.
• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.
The full article contains 323 words and appears in The Scotsman newspaper.
