Self-storage specialist Big Yellow Group has reported relatively robust trading during the covid-19 pandemic.
The group said it saw heightened levels of activity both in and out of the business in the last two weeks in March. It recorded a net overall loss of 23,000 sq ft in occupancy in the two-week period.
It said customer move-ins and move-outs in the business have reduced significantly in April and it had not, as yet, seen any notable impact on debtors and cash collection.
The group’s year-on-year revenue growth for April to date is 2.6%.
From 1 April to 15 April 2020, the group said it had seen a loss of occupancy of 32,000 sq ft but that had been partially offset by rate growth of 0.8%.
Meanwhile, the group said it had seen a modest increase in costs principally attributable to staff travel (where it is paying for 57 employees to travel privately), sanitising and protective equipment. This has however been more than offset by a reduction of spend on “pay per click” and other marketing costs. It said it anticipates a reduction in overall operating costs whilst the lockdown persists.
In addition, it said interest costs have materially reduced due to a significant amount of its debt being variable.
Debt facilities
On 31 March 2020 the group completed a seven year debt facility with Aviva of £35m, at an all-in cost of 1.96%, secured over a pool of 15 stores. This cost reduces to 1.91% following the installation of 50 kWh capacity solar panels at three of the stores, as an environmental incentive.
The group currently has headroom of cash and undrawn bank facilities of £76m.
The average cost of debt on drawn facilities is now 2.6% and the marginal cost of revolving credit facilities bank debt remains at 1.35%. The group’s current proforma interest cover is around 9 times against banking covenants of 1.5 times.
The company has a spread of debt maturity dates with its earliest maturity on a £70m M&G loan in June 2023. The group’s debt has an average maturity of 4.9 years.
BYG : Big Yellow Group reports robust trading during covid-19 lockdown