Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineLok’n Store continues to impress
Lok’n Store (LOK:AIM) 730p
Gain to date: 28.7%
Original entry price: Buy at 574p, 7 November 2019
Self-storage play Lok’n Store (LOK:AIM) is rewarding our faith with the latest trading update for the six months to 31 January 2020 revealing decent momentum in the business (10 Feb).
Like-for-like revenue was up 7%, with occupancy also increasing and the price let per square foot unchanged year-on-year.
The company is planning to fit out a property in Salford to open later in 2020.
CEO Andrew Jacobs neatly summed up why we like the stock: ‘Using our strong balance sheet and low gearing, we have the capacity and will continue to build more landmark stores in an undersupplied market, adding considerable momentum to sales and earnings growth in the coming years which will allow us to continue to increase the dividend.’
Broker FinnCap notes the shares continue to trade at a discount to peers Big Yellow (BYG) and Safestore (SAFE) despite its forecasts implying Lok’n Store’s earnings will grow twice as fast in the next two years. Half-year results will be announced in full on 27 April.
SHARES SAYS: We remain positive on the story.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
