Final Results
Big Yellow Group PLC
07 May 2003
Under embargo for 07.00 7 May 2003
Big Yellow Group PLC
Results for the Twelve Months and Fourth Quarter ended 31
March 2003
Big Yellow Group PLC ("Big Yellow" or "the Group"), the self
storage company, is pleased to announce results for the
twelve months and fourth quarter ended 31 March 2003.
HIGHLIGHTS
4th 3rd
quarter quarter Year Year
ended ended ended ended
31 March 03 31 Dec 02 31 March 03 31 March 02
Annualised revenue £19.1m £17.3m +10% £19.1m £11.7m +63%
Turnover £4.42m £4.07m +9% £15.6m £8.4m +86%
Loss from continuing
operations (see note 5) £1.3m £1.9m
Loss before tax £2.3m £2.3m
Loss per share 2.1p 1.7p
No of customers 13,800 12,400 +11% 13,800 8,100 +70%
Occupied space 875k sq ft 808k sq ft +8% 875ksq ft 550k sq ft +59%
- Earnings from continuing operations before exceptional items,
depreciation, amortisation and tax of £1.3 million (2002:
loss of £0.2 million)
- Maiden dividend proposed of 1.0 pence per ordinary
share
- 27 stores currently open with a further 5 stores
committed providing 1.9 million sq.ft. of storage space
when completed
- Like for like annualised sales for 19 stores open
throughout the year up 41%
- Merchandise, insurance and other sales increased to
13.5% of storage income (March 2002: 12.9%)
David White, Chairman, said: "We are very much on track
with our strategic aim of creating the premier self
storage business in the UK, as set out at the time of our
IPO in May 2000. Big Yellow has achieved sustainable and
growing operating cash flow and is approaching £20
million of annualised revenue and one million sq ft of
occupied storage space.
"We believe that the Group's business model in terms of
quality and location of stores, customer service and
brand focus, will continue to provide sustainable growth
in an expanding industry. Further, our recent experience
against a difficult economic backdrop, which we believe
is likely to persist for some time, gives us comfort
about the resilience of our business. The current year
has started well and during calendar 2003 we expect to
start making month on month pre-tax profits."
-ends-
For further information, please contact:
Big Yellow Group PLC 01276 470 190
Nicholas Vetch, Chief Executive
James Gibson, Chief Operating Officer
Weber Shandwick Square Mile 020 7067 0700
Louise Robson/ Sally Lewis
Under embargo for 07.00 7 May 2003
Big Yellow Group PLC
Results for the Twelve Months and Fourth Quarter ended 31
March 2003
CHAIRMAN'S STATEMENT
The Board of Big Yellow Group PLC ("Big Yellow" or "the
Group") is pleased to announce results for the twelve
months and for the fourth quarter ended 31 March 2003.
The Group has enjoyed continued strong growth over the
year following excellent trading in the first half. As
expected, trading in the second half, from October to the
end of February was patchier, due to the usual seasonal
slowdown exacerbated by a quieter housing market and slower
macro economic performance, particularly in London.
I am pleased to report however, that since the beginning
of March, trading performance has accelerated and we are
now into our busier trading period. Overall, management
has been much encouraged by the Group's resilience in the
winter months in the face of difficult external factors.
Financial Results
Turnover for the year was £15.6 million (2002: £8.4
million), an increase of 86%. Underlying revenues on an
annualised basis at the year end increased to £19.1
million (2002: £11.7 million), up 63% compared to the
previous year.
On a like for like basis annualised revenues for the 19
stores open throughout the year rose by 41%.
Merchandise, insurance and other sales increased to 13.5%
of storage income (March 2002: 12.9%).
The Group incurred a pre-tax loss for the year on
continuing operations (pre-exceptional items) in the UK
of £1.3 million (see note 5), down from £1.9 million in
the previous year. Loss before tax for the year was £2.3
million (2002: £2.3 million) including trading losses of
£484,000 in the French start up operation, which we
closed in the second half of the year. Exceptional items
of £270,000 and £191,000, totalling £461,000, were
charged in the year against the closure of the French
operation and costs incurred in moving from AIM to the
Official List, respectively.
The Group made an operating cash surplus in the year for
the first time. Earnings from continuing operations for
the year were £1.3 million (see note 5) after operating,
central overhead and interest costs, but before
exceptional items, depreciation and tax (2002: loss of
£0.2 million).
At the year end, the number of customers had risen to
13,800 from 8,100 at 31 March 2002, an increase of 70%.
Annualised revenue at 31 March 2003 rose by 10% to £19.1
million from £17.3 million at 31 December 2002 and
turnover for the fourth quarter rose by 9% to £4.42
million from £4.07 million last year.
Dividend
In the light of the Group's growing operating cash flow
surplus, the availability of distributable reserves
following the capital reduction last year and the
prospect of pre-tax profitability, the Board is
recommending a final dividend of 1.0 pence per ordinary
share for the year ended 31 March 2003. This will be paid
on 4 July 2003 to shareholders on the register on 6 June
2003.
It is the current intention of the Board to have a
progressive dividend policy, with a final dividend only.
Share Buy-Backs
Over the year, the Company has acquired and cancelled
16,382,050 shares representing 14% of the issued ordinary
share capital at an average purchase price of 71p per
share. In April the Company sought and obtained a further
authority from shareholders to purchase a further 14.99%
of the Company's remaining issued ordinary shares.
The Board will continue to acquire shares where it
believes that it is net asset per share enhancing and
will be earnings enhancing per share for the remaining
shareholders, and where resources cannot be more
effectively deployed in the growth of the business.
France
Following a review of our start up French operation, the
Board came to the view that the risks inherent in
expanding into France were too high, and would impede the
Group's short term ambition to become profitable.
Furthermore there are increasing opportunities in the UK.
Therefore, as announced in November 2002, activities in
France were terminated and exceptional costs incurred
amounted to £270,000. No further charge will be
necessary.
The Market
As the self storage market grows in the UK there have
been some developments in consumer attitudes.
Significantly, consumers are demanding better located and
higher quality self storage centres. Stores in prominent,
easily accessible locations which are well presented and
enjoy good customer service have won increasing market
share at the expense of older poorly situated stores.
These developments largely reflect the experiences in the
US over the last 15 years. We believe that these trends
are benefiting Big Yellow as our portfolio represents a
significant proportion of the supply of these modern new
breed self storage outlets.
Management
As previously reported, the Group's Chief Executive,
Nicholas Vetch, is to take a leave of absence in July
of this year returning early in 2004. James Gibson
will be promoted to Chief Executive on 1 July 2003 and
will be retaining his responsibilities as Finance
Director.
Upon his return Nicholas Vetch will become Executive
Chairman of the Group, and I will take up the position of
Deputy Chairman and Senior Non-Executive Director.
Over the last four and a half years, Big Yellow has built
up a strong and in-depth management both at Board and
senior management level and I am confident that the
Board's new shape and the Group's structure equips it
well for the challenges ahead.
Further, much of Big Yellow's success to date has rested
with the excellence of the people both at head office and
in the stores and I should like to thank them for their
hard work over the year.
Future Strategy
In November of 2001 we announced the Group would take a
significantly more cautious approach to its expansion,
partly as a defensive measure, as we were uncertain how
the Group would trade through difficult macro economic
circumstances and partly because we viewed the UK real
estate market as expensive.
The last six months have given us much encouragement and
we believe that the Group's formula has been and is being
proven to be robust. Furthermore, it is clear that the
property market has deteriorated and is likely to fall
further which should provide us with opportunities,
although high quality properties, particularly in London,
are scarce.
As a consequence we have commenced a more ambitious but
still measured approach to our expansion, which should
allow us to fulfil our long stated goal of achieving a
portfolio of 50 stores.
We believe the growth in operating cash flow will
increasingly allow us to finance part of our expansion
out of cash flow and to increase borrowings secured
against the Group's quality asset base. Further, the
Group recently agreed a £17 million additional facility
with The Royal Bank of Scotland.
Should we wish to expand at a rate faster than that
sustainable by our cash flow or a comfortable level of
gearing, we believe that further stores could be
developed in partnership with third parties, albeit no
such agreements exist at present.
Summary
We are very much on track with our strategic aim of
creating the premier self storage business in the UK, as
set out at the time of our IPO in May 2000. Big Yellow
has achieved sustainable and growing operating cash flow
and is approaching £20 million of annualised revenue and
one million sq. ft. of occupied storage space.
We believe that the Group's business model in terms of
quality and location of stores, customer service and
brand focus will continue to provide sustainable growth
in an expanding industry. Further, our recent experience
against a difficult economic backdrop, which we believe
is likely to persist for some time, gives us comfort
about the resilience of our business.
The current year has started well and during calendar
2003 we expect to start making month on month pre-tax
profits.
David White
Chairman
OPERATING AND FINANCIAL REVIEW
The Stores
27 stores are now open, providing a total capacity of 1.6
million sq. ft.. 17 of the 27 stores are now trading
profitably at the pre-tax level and 19 are operating cash
flow positive (after charging an allocation of head
office overhead).
Of the stores now open, 9 have reached maturity, a
further 9 we expect to mature in the next few months and
those that have opened more recently are all performing
well.
Once the remaining 5 stores in the pipeline have been
developed, we will have a total capacity of 1.9 million
sq. ft., of which 0.9 million was occupied at the year
end.
Customer move-ins per store averaged 86 per month over
the year 15% up on the 75 achieved last year.
Other sales, comprised largely of merchandise and
insurance commission income represented 13.5% of storage
income for the year (2002 12.9%).
Property and Construction
Two sites were acquired in the financial year, with a
further site in North Kensington, London being acquired
after the period end, in part reflecting our cautious
approach to the property market. There is now good
evidence that property prices are falling and in our view
will fall further which should provide us with
opportunities in the near to medium term and it is in the
context of this market that we have recently acquired the
site in North Kensington.
The Group now owns 21 of its stores freehold.
We now have planning permissions on 29 of the 32 stores
and the 3 remaining proposed stores are currently subject
to Planning Applications.
We continue to manage the construction and fit out of new
and existing stores in house, as it gives us the control
to achieve delivery on time, on budget and to the
required quality.
We remain confident of achieving our 50 store target set
out at flotation and will continue to acquire sites
opportunistically. However securing and developing high
profile sites or buildings of the required quality in the
South, particularly in London, continues to be
challenging.
Marketing
Marketing spend for the year was 6.7% of turnover,
slightly in excess of our target of 5%, which we believe
will be achievable in the next financial year.
We have recently started a television advertising
campaign in the London metropolitan transmission area
where 19 of our stores benefit. The principal aim of the
campaign is to increase awareness of Big Yellow as the
quality provider of self storage services in this growing
market. The initial feedback has been encouraging and we
will report further once we have had longer to evaluate
the response.
People
We aim to provide an attractive and enjoyable workplace
environment for employees with a focus on delivering the
highest standard of service to our customers. To achieve
this we recruit staff of the highest quality and
continuously invest in their training and development.
Our people, at all levels in this business, are largely
responsible for our success and we are pleased therefore,
that we have such an able, highly motivated and talented
team.
Systems
As with any retailer, the reliability and continuity of
our IT systems is critical to the business. Throughout
the year we have continued to develop the specialist
software applications we use in store operations,
customer management, security and finance.
Given the growth in projected data requirement of the
expanding store portfolio, we continue to invest in our
wide area network to improve the speed of data transfer
and hence efficiency at the stores and Head Office.
Results
The results for the year show continuing growth with
annualised revenue increasing to £19.1 million from £11.7
million, an increase of 63%. Turnover for the year was
£15.6 million, up 86% from £8.4 million in the previous
year.
The loss before tax for the year was £2.3 million (2002:
£2.3 million) of which £0.8 million relates to the French
start up operations which we closed in the second half of
the year.
The exceptional costs of £461,000 are made up of £270,000
in respect of the closure of the French operation and
£191,000 being the fees incurred in moving from AIM to
the Official List.
The basic loss per share for the year was 2.1p (2002:
loss per share 1.7p).
As the portfolio matures, cashflows continue to develop
and it is worth noting that the company made an operating
cash surplus for the first time during the year. Earnings
for the year were £0.8 million after operating, central
overhead and interest but before exceptional items,
depreciation and tax. This figure rises to £1.3 million
if one considers the continuing operations in the UK only
(see note 5).
The company had 140 employees at the year end with the
average number of employees during the year increasing to
116 (2002: 79). UK administration expenses, including the
cost of construction management, were £2.96 million
compared to £2.66 million last year. All administration
expenses, including construction management are charged
to profit and loss account.
The Group incurred a net interest expense in the year of
£1.6 million compared to net interest income of £0.47
million last year and this reflects the increase in net
borrowing.
The total depreciation charge and goodwill amortisation
for the year increased to £2.6 million from £1.7 million
in line with new store openings.
Financing
The initial expansion of the Big Yellow business was
funded through equity and we are now increasing the level
of borrowing in line with the growing cashflow. At the
end of the year, the Group had net borrowings of £40.3
million increased from £1.4 million last year following
£29.1 million of capital expenditure, and £11.7 million
in share buy backs.
The Group's facility with The Royal Bank of Scotland was
increased from £20.0 million to £37.0 million in the last
quarter secured on a portfolio of freehold and leasehold
assets. In total the Group now has committed bank
facilities of £53.6 million.
The Group now has improving operating cashflows and we
believe that the growth in this cashflow will
increasingly allow us to finance part of our expansion
from operations.
Treasury Management
Treasury risk remains closely monitored with policy
approved by the Board. The Group's policy in respect of
interest rate risk is to maintain a balance between
flexibility and hedging of risk. At today's date the
Group has total borrowings of £46.6 million, of which
£26.6 million has been fixed until 2007 at a weighted
average interest cost, including margin, of 6.5%. The
Board will continue to review policy in relation to
future interest rate exposure based on assessment of
prevailing market conditions. Cash deposits are only
placed with approved financial institutions in accordance
with Group policy.
Balance Sheet and Cashflow
The historical cost net assets have reduced from £74.0
million at 31 March 2002 to £59.0 million at 31 March
2003, as a result of share buy backs of £11.7 million, a
dividend of £1.0 million, and a loss after tax of £2.4
million.
The cash inflow from operating activities for the year
was £3.5 million compared to an outflow of £0.6 million
in 2002. During the year the company incurred capital
expenditure of £29.1 million.
Taxation
No liability to corporation tax arises on the Group's
results.
There is a deferred tax asset principally in respect of
trading losses in the balance sheet of £1.8 million
(2002: £1.9 million) with a tax charge to the profit and
loss account in the current year of £0.1 million (2002:
tax credit of £0.4 million). We anticipate that this
asset will continue to unwind in 2004 as the Group moves
into profitability.
-ends-
For further information, please contact:
Big Yellow Group PLC 01276 470 190
Nicholas Vetch, Chief Executive
James Gibson, Chief Operating Officer
Weber Shandwick Square Mile 020 7067 0700
Louise Robson/ Sally Lewis
Consolidated Profit and Loss Account
Year ended 31 March 2003
Note 2003 2003 2003 2002
Continuing Discontinue Total 2002 2002 Total
operations d French £'000 Continuing Discontinued £'000
£'000 operations operations French
£'000 £'000 operations
£'000
TURNOVER 2 15,579 - 15,579 8,408 - 8,408
Cost of sales (12,397) - (12,397) (8,289) - (8,289)
-------- -------- -------- -------- -------- --------
GROSS PROFIT 3,182 - 3,182 119 - 119
Administrative
expenses (2,956) (484) (3,440) (2,557) (440) (2,997)
Exceptional item 5 (191) - (191) - - -
-------- -------- -------- -------- -------- --------
Total
administrative
expenses (3,147) (484) (3,631) (2,557) (440) (2,997)
Other operating
income - - - 103 - 103
-------- -------- -------- -------- -------- --------
OPERATING
PROFIT/(LOSS) 4 35 (484) (449) (2,335) (440) (2,775)
Loss on termination
of French
operation 5 - (270) (270) - - -
Other interest
receivable and
similar income 619 8 627 511 - 511
Interest payable
and similar
charges 6 (2,171) (31) (2,202) (42) - (42)
-------- -------- -------- -------- -------- --------
LOSS ON ORDINARY
ACTIVITIES BEFORE (1,517) (777) (2,294) (1,866) (440) (2,306)
TAXATION
Taxation 18 (73) - (73) 388 - 388
-------- -------- -------- -------- -------- --------
LOSS FOR THE
FINANCIAL YEAR (1,590) (777) (2,367) (1,478) (440) (1,918)
======== ======== ======== ========
Dividends 9 (994) -
--------
--------
RETAINED LOSS 20 (3,361) (1,918)
======== ========
Basic and
diluted loss
per share 10 (2.1)p (1.7)p
======== ========
Consolidated Balance Sheet
As at 31 March 2003
Note 2003 2002
£'000 £'000
FIXED ASSETS
Intangible assets 11 1,529 1,626
Tangible assets 12 100,933 74,781
-------- --------
102,462 76,407
-------- --------
CURRENT ASSETS
Stocks 252 151
Debtors 14 5,986 4,715
Cash at bank and in hand 2,267 18,528
-------- --------
8,505 23,394
CREDITORS: amounts falling due
within one year 15 (9,667) (5,916)
-------- --------
NET CURRENT (LIABILITIES)/ASSETS (1,162) 17,478
-------- --------
TOTAL ASSETS LESS CURRENT
LIABILITIES 101,300 93,885
CREDITORS: amounts falling due
after more than one year 16 (42,349) (19,858)
-------- --------
NET ASSETS 58,951 74,027
======== ========
CAPITAL AND RESERVES
Called up share capital 19 9,940 11,578
Capital redemption reserve 20 1,638 -
Share premium account 20 1,923 66,923
Other distributable reserve 20 52,307 -
Profit and loss account 20 (6,857) (4,474)
-------- --------
EQUITY SHAREHOLDERS' FUNDS 58,951 74,027
======== ========
These financial statements were approved by the Board of
Directors on 7 May 2003.
Reconciliation Of Movements In Shareholders' Funds
Year ended 31 March 2003
Group Company Group Company
2003 2003 2002 2002
£'000 £'000 £'000 £'000
Group
(Loss)/profit for the financial year (2,367) (12) (1,918) 13
Foreign exchange differences Dividends (16) - (10) -
(994) (994) - -
------- ------- ------- -------
(3,377) (1,006) (1,928) 13
Issue of shares (net of issue costs) - - 22,731 22,731
Repurchase and cancellation of
ordinary shares (11,699) (11,699) - -
------- ------- ------- -------
Net (deduction)/addition to
shareholders' funds (15,076) (12,705) 20,803 22,744
Opening shareholders' funds 74,027 78,625 53,224 55,881
------- ------- ------- -------
Closing shareholders' funds 58,951 65,920 74,027 78,625
======= ======= ======= =======
Statement of Total Recognised Gains and Losses
Year ended 31 March 2003
2003 2002
£'000 £'000
Loss for the financial year (2,367) (1,918)
Foreign exchange differences (16) (10)
------- -------
Total recognised gains and losses for the year (2,383) (1,928)
======= =======
BIG YELLOW GROUP PLC
Consolidated Cash Flow Statement
Year ended 31 March 2003
Note 2003 2002
£'000 £'000 £'000 £'000
Cash inflow/(outflow) from
operating activities 23 3,510 (614)
Returns on investments and
servicing of finance 24(a) (1,385) 444
Capital expenditure and
financial investment 24(a) (29,349) (34,937)
Cash outflow before -------- --------
financing (27,224) (35,107)
Financing
Issue of ordinary share
capital (net of expenses) 24(a) - 22,729
Repurchase/cancellation of
ordinary shares 24(a) (11,699) -
Increase in debt 24(a) 22,662 19,938
-------- --------
10,963 42,667
-------- --------
(Decrease)/increase in cash
in the year 24(b) (16,261) 7,560
======== ========
Reconciliation of Net Cash Flow to Movement In Net Debt
Year ended 31 March 2003
Note 2003 2003 2002 2002
£'000 £'000 £'000 £'000
(Decrease)/increase in cash
in the year (16,261) 7,560
Cash inflow from increase
in debt financing 24(b) (22,662) (19,938)
-------- --------
Change in net debt
resulting from cash flows (38,923) (12,378)
-------- --------
Movement in net debt in
the year 24(b) (38,923) (12,378)
Net (debt)/funds at start
of year (1,410) 10,968
-------- --------
Net debt at end of year (40,333) (1,410)
======== ========
Company Balance Sheet
As at 31 March 2003
Note 2003 2002
£'000 £'000
FIXED ASSETS
Tangible assets 12 160 222
Investments 13 2,029 2,055
----- -----
2,189 2,277
----- -----
CURRENT ASSETS
Debtors 14 63,116 57,923
Cash at bank and in hand 2,044 18,842
----- -----
65,160 76,765
CREDITORS: amounts falling due
within one year 15 (1,429) (417)
----- -----
NET CURRENT ASSETS 63,731 76,348
----- -----
TOTAL ASSETS LESS CURRENT
ABILITIES 65,920 78,625
CAPITAL AND RESERVES
Called up share capital 19 9,940 11,578
Capital redemption reserve 20 1,638 -
Share premium account 20 1,923 66,923
Other distributable reserve 20 52,307 -
Profit and loss account 20 112 124
----- -----
EQUITY SHAREHOLDERS' FUNDS 65,920 78,625
====== ======
BIG YELLOW GROUP PLC
Notes to the Accounts
Year ended 31 March 2003
1. ACCOUNTING POLICIES
The financial information set out above does not
constitute the Company's statutory accounts for the
years ended 31 March 2003 or 2002, but is derived
from those accounts. Statutory accounts for 2002 have
been delivered to the Registrar of Companies and
those for 2003 will be delivered following the
Company's annual general meeting. The auditors have
reported on those accounts; their reports were
unqualified and did not contain statements under
s237(2) or (3) Companies Act 1985.
The financial statements are prepared in accordance
with applicable United Kingdom accounting standards.
The principal accounting policies adopted are
described below. They have all been applied
consistently throughout the year and the preceding
year.
Accounting convention
The financial statements are prepared under the
historical cost convention.
Basis of consolidation
The Group accounts consolidate the accounts of Big
Yellow Group PLC and all its subsidiaries at the year
end using acquisition accounting principles.
Goodwill
Purchased goodwill is capitalised in the year in
which it arises and amortised over 20 years. The
Directors regard 20 years as a reasonable maximum for
the estimated useful life of goodwill since it is
difficult to make projections exceeding this period.
Capitalised purchased goodwill in respect of
subsidiaries is included within intangible fixed
assets.
Tangible fixed assets
No depreciation is provided on land and assets in the
course of construction. Interest, overhead and pre-
opening launch costs are not capitalised.
Depreciation is provided on cost in equal annual
instalments over the estimated useful lives of the
assets. The useful economic lives of the assets are
as follows:
Freehold property 50 years
Mezzanine flooring and 25 years
staircases
Short leasehold Over period of the
improvements lease
Plant and machinery 10 years
Motor vehicles 4 years
Fixtures and fittings 5 years
Computer equipment 3 years
Mezzanine flooring and staircases are disclosed in
note 12 under freehold property or short leasehold
improvements as appropriate.
Investments
Investments held as fixed assets are stated at cost
less provision for any impairment.
Stocks
Stocks represent goods held for resale and are held
at the lower of cost and net realisable value.
Pension costs
Pension costs represent payments to defined
contribution schemes, the assets of which are held
separately from those of the Group.
Deferred taxation
Deferred tax is recognised in respect of all timing
differences that have originated but not reversed at
the balance sheet date where transactions or events
that result in an obligation to pay more tax in the
future or a right to pay less tax in the future have
occurred at the balance sheet date.
A net deferred tax asset is regarded as recoverable
and therefore recognised only when, on the basis of
all available evidence, it can be regarded as more
likely than not that there will be suitable taxable
profits from which the future reversal of the
underlying timing differences can be deducted.
Deferred tax is measured at the average tax rates
that are expected to apply in the periods in which
the timing differences are expected to reverse, based
on tax rates and laws that have been enacted or
substantively enacted by the balance sheet date.
Leases
Operating lease rentals are charged to income in
equal annual amounts over the lease term.
Foreign Exchange
Transactions denominated in foreign currencies are
translated at the exchange rate at the date of the
transaction. Foreign currency assets and liabilities
held at the year end are translated at year-end
exchange rates. The resulting exchange gain or loss
is dealt with through the profit and loss account.
Turnover
Turnover represents amounts derived from the
provision of services which fall within the Group's
ordinary activities after deduction of trade
discounts and value added tax. Insurance commissions
are recognised over the period to which they relate.
2. SEGMENTAL INFORMATION
The Group's net assets, turnover and loss before tax
are attributable to one activity, the provision of
self storage and related services. Other than a loss
before tax of £777,000 (2002: £440,000) and net
liabilities of £1,256,000 (2002: £423,000) all the
Group's net assets, turnover and loss before tax
arise in the United Kingdom. The loss before tax of
£777,000 (2002: £440,000) is in relation to the
Group's discontinued French operations.
3. INFORMATION REGARDING EMPLOYEES
2003 2002
Employees £'000 £'000
Wages and salaries
(including Directors) 3,434 2,544
Social security costs 325 257
Other pension costs 110 83
----- -----
3,869 2,884
===== =====
The average number of employees (including
Directors) employed by the Group during the year:
No. No.
Sales 88 52
Administration 28 27
----- -----
116 79
===== =====
4. OPERATING PROFIT/(LOSS)
2003 2002
£'000 £'000
Operating profit/(loss) is stated after
charging/(crediting):
Depreciation 2,546 1,605
Amortisation of goodwill 97 97
Auditors' remuneration
- Group audit fees 72 67
- non-audit services 47 18
Operating leases - other 2,235 1,593
Loss of income insurance claim - (103)
===== =====
Included in Group audit fees are £10,000 (2002:
£10,000) in respect of the Company.
The non-audit services provided during the year were
for general advice on accounting and control matters
and services in respect of the admission to the
Official List.
5. PROFIT/(LOSS) BEFORE DEPRECIATION, AMORTISATION, TAX
AND EXCEPTIONAL ITEMS
2003 2002
2003 Discontinue 2002 Discontinued
Continuing d French 2003 Continuing French 2002
Operations operations Total operations operations Total
£'000 £'000 £'000 £'000 £'000 £'000
Loss before tax (1,517) (777) (2,294) (1,866) (440) (2,306)
------- ------- ------- ------- ------- -------
Exceptional items (191) (270) (461) - - -
------- ------- ------- ------- ------- -------
Loss before tax
and exceptional
items (1,326) (507) (1,833) (1,866) (440) (2,306)
======= ======= ======= ======= ======= =======
Depreciation (2,546) - (2,546) (1,605) - (1,605)
Amortisation (97) - (97) (97) - (97)
======= ======= ======= ======= ======= =======
Total depreciation,
amortisation and
exceptional items (2,834) (270) (3,104) (1,702) - (1,702)
======= ======= ======= ======= ======= =======
Profit/(loss)
before
depreciation,
amortisation and
exceptional items 1,317 (507) 810 (164) (440) (604)
======= ======= ======= ======= ======= =======
The Company was admitted to the Official List and
cancelled its AIM listing on 7 June 2002.
Exceptional costs relating to this change of £191,000
have been incurred in the year, and are disclosed
under continuing operations.
In November 2002 the Group announced its intention to
terminate all activities in France. Exceptional costs
incurred on terminating the operation amounted to
£270,000 and are disclosed under discontinued French
operations.
6. INTEREST PAYABLE AND SIMILAR CHARGES
2003 2002
£'000 £'000
Bank loans 2,144 41
Bank overdraft and other borrowings 15 1
Foreign exchange and other charges 43 -
------- -------
2,202 42
======= =======
7. PROFIT OF PARENT COMPANY
As permitted by section 230 of the Companies Act
1985, the profit and loss account of the parent
Company is not presented as part of these accounts.
The consolidated loss for the financial year includes
a loss of £12,000 (2002: profit of £13,000), which is
dealt within the accounts of the parent Company.
8. TAXATION
No liability to corporation tax arises on the Group's
result for the year. A reconciliation of the current
tax charge is shown below.
2003 2002
£'000 £'000
Loss on ordinary activities before tax (2,294) (2,306)
Tax credit at 30% thereon 688 692
------ ------
Effects of:
Expenses not deductible for tax purposes (482) (492)
Depreciation in excess of capital allowances (265) (79)
Utilisation of tax losses 282 4
Movement in short term timing differences 10 129
Overseas tax losses (233) (102)
Trading losses carried forward - (152)
------ ------
- -
====== ======
The Group has unrelieved tax losses for which a
deferred tax asset has been recognised (see note 18).
9. DIVIDENDS
2003 2002
£'000 £'000
Final equity dividend proposed - 1 pence
per ordinary share (2002: nil) 994 -
====== ======
10.LOSS PER ORDINARY SHARE
Loss per ordinary share has been calculated on the
retained loss for the financial year of £2,367,000
(2002 : £1,918,000) and on the weighted average
number of shares in issue during the year of
111,940,282 (2002: 112,489,228). There is no
dilutive effect from the conversion of share options.
11.Intangible Fixed Assets
Group Goodwill
£'000
Cost
At 1 April 2002 and 31 March 2003 1,940
-------
Amortisation
At 1 April 2002 314
Charge for the year 97
-------
At 31 March 2003 411
Net book value
At 31 March 2003 1,529
=======
At 31 March 2002 1,626
=======
12.TANGIBLE FIXED ASSETS
Fixtures
Short Assets fittings,
Freehold leasehold Under Plant and Motor and office
Group Property improvements construction machinery vehicles equipment Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 April 2002 38,732 11,026 20,851 5,678 81 1,133 77,501
Additions 15,297 2,200 3,479 7,121 - 725 28,822
Reclassifications 13,450 674 (14,124) - - - -
Disposals - - (93) - (62) (4) (159)
------ ------ ------ ------ ----- ------ ------
At 31 March 2003 67,479 13,900 10,113 12,799 19 1,854 106,164
------ ------ ------ ------ ----- ------ ------
Accumulated
depreciation
At 1 April 2002 (732) (720) - (838) (26) (404) (2,720)
Charge for the year (766) (571) - (865) (16) (328) (2,546)
Disposals - - - - 35 - 35
------ ------ ------ ------ ----- ------ ------
At 31 March 2003 (1,498) (1,291) - (1,703) (7) (732) (5,231)
------ ------ ------ ------ ----- ------ ------
Net book value
At 31 March 2003 65,981 12,609 10,113 11,096 12 1,122 100,933
====== ====== ====== ====== ===== ===== ======
At 31 March 2002 38,000 10,306 20,851 4,840 55 729 74,781
====== ====== ====== ====== ===== ===== ======
A loss on disposal of fixed assets of £103,000 arose
during the year.
Fixtures,
Short fittings
leasehold Motor and office
Company property vehicles equipment Total
£'000 £'000 £'000 £'000
Cost
At 1 April 2002 6 61 321 388
Additions 1 - 44 45
Disposals - (47) - (47)
------ ------ ------ ------
At 31 March 2003 7 14 365 386
------ ------ ------ ------
Accumulated depreciation
At 1 April 2002 (1) (20) (145) (166)
Charge for the year (1) (12) (75) (88)
Disposals - 28 - 28
------ ------ ------ ------
At 31 March 2003 (2) (4) (220) (226)
------ ------ ------ ------
Net book value
At 31 March 2003 5 10 145 160
====== ====== ====== ======
At 31 March 2002 5 41 176 222
====== ====== ====== ======
13.INVESTMENTS HELD AS FIXED ASSETS
Investment in
subsidiary
Company undertakings
£'000
Cost
At 1 April 2002 2,055
Write off of investment in French (26)
subsidiary
-------
At 31 March 2003 2,029
=======
The investments relate to the 100% ownership of the
ordinary share capital of the Group's subsidiaries.
All of the Group's subsidiaries are registered at the
same address as the Company. Details of the Group's
principal subsidiaries are shown below:
Big Yellow Self Storage Company Limited is
incorporated in Great Britain and provides self
storage services to private individuals and
businesses.
Big Yellow Self Storage Company 1 Limited is
incorporated in Great Britain and provides self
storage services to private individuals and
businesses.
The Big Yellow Property Company Limited is
incorporated in Great Britain and its principal
activity is property management and ownership.
The Big Yellow Construction Company Limited is
incorporated in Great Britain and its principal
activity is property construction.
The Big Yellow Holding Company Limited is
incorporated in Great Britain and its principal
activity is acting as an intermediate holding
Company.
14.DEBTORS
Group Company Group Company
2003 2003 2002 2002
£'000 £'000 £'000 £'000
Trade debtors 267 - 353 -
Amounts owed by Group undertakings - 63,020 - 57,829
Other debtors 823 38 589 9
Deferred tax (see note 18) 1,792 - 1,865 -
Prepayments and accrued income 3,104 58 1,908 85
------ ------ ------ ------
5,986 63,116 4,715 57,923
====== ====== ====== ======
15.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group Company Group Company
2003 2003 2002 2002
£'000 £'000 £'000 £'000
Trade creditors 3,351 233 2,333 50
Taxation and social security 165 118 124 73
Other creditors 1,200 1 766 8
Proposed dividend 994 994 - -
Accruals and deferred income 3,957 83 2,693 286
------ ------ ------ ------
9,667 1,429 5,916 417
====== ====== ====== ======
16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group Company Group Company
2003 2003 2002 2002
£'000 £'000 £'000 £'000
Bank loans 42,600 - 19,938 -
Unamortised loan arrangement (251) - (80) -
costs
------ ------ ------ ------
42,349 - 19,858 -
====== ====== ====== ======
The bank loans are secured on certain of the Group's
properties. Details of the maturity of the loans and
the interest rates they bear are given in note 17.
17.FINANCIAL INSTRUMENTS
The Group's only financial instruments as at
31 March 2003 are bank loans of £42,600,000 (2002:
£19,938,000), cash of £2,267,000 (2002: £18,528,000)
and trade debtors and trade creditors, which arise
directly from its operations. Other than as noted
below short term debtors and creditors have been
omitted from all disclosures below.
The Group does not trade in financial instruments.
Maturity profile of financial assets and liabilities
2003 2002
Financial Financial Financial Financial
assets liabilities assets liabilities
£'000 £'000 £'000 £'000
Within one year or on demand 2,267 - 18,528 -
Between two and five years - (42,600) - (19,938)
------ ------ ------ ------
Gross financial liabilities 2,267 (42,600) 18,528 (19,938)
====== ====== ====== ======
The Group has £11,000,000 in undrawn borrowing
facilities at 31 March 2003 which expire after two
but before five years (2002: £nil).
Interest rate profile of financial assets and
liabilities
Floating Weighted Period for Weighted
Total rate Fixed rate average which the average
£'000 £'000 £'000 fixed rate is period
interest fixed until
rate maturity
At 31 March 2003
Gross financial
liabilities 42,600 16,000 26,600 6.5% 3.43 years 3.1 years
------ ------ ------ ------ ------ ------
At 31 March 2002
Gross financial
liabilities 19,938 19,938 - - - 2.0 years
------ ------ ------ ------ ------ ------
At 31 March 2003
Gross financial
assets 2,266 176 2,090 3.9% 0.1 years 0.1 years
------ ------ ------ ------ ------ ------
At 31 March 2002
Gross financial
assets 18,528 18,528 - - - -
------ ------ ------ ------ ------ ------
Currency profile of financial
assets and liabilities 2003 2002
£'000 £'000
Financial assets
Sterling 2,222 8,590
Euro 45 9,938
----- -----
2,267 18,528
===== =====
Financial liabilities
Sterling 42,600 10,000
Euro - 9,938
----- -----
42,600 19,938
===== =====
All monetary assets and liabilities, including short
term debtors and creditors are denominated in
sterling, other than the £45,000 Euro cash balance
shown above.
Fair values of financial assets and liabilities
2003 2002
Carrying Estimated Carrying Estimated
amount fair value amount fair value
£'000 £'000 £'000 £'000
Cash at bank, in hand, and
other liquid investments 2,266 2,266 18,528 18,528
====== ====== ====== ======
Bank borrowings 42,600 43,940 19,938 19,938
====== ====== ====== ======
The fair values have been calculated by discounting
expected cash flows at interest rates prevailing at
the year end.
18.PROVISIONS FOR LIABILITIES AND CHARGES
Deferred taxation Provided Provided Provided Provided
Group Company Group Company
2003 2003 2002 2002
£'000 £'000 £'000 £'000
The amounts provided in the
accounts are:
Capital allowances in advance of
depreciation (556) - (279) -
Short term timing differences (2) - (12) -
Less trading losses carried forward (1,234) - (1,574) -
------ ------ ------ ------
(1,792) - (1,865) -
====== ====== ====== ======
There is no unprovided deferred tax at 31 March 2003
and 31 March 2002.
The movement in deferred tax from the prior year
relates to the charge in the profit and loss account
of £73,000.
19. CALLED UP SHARE CAPITAL
2003 2002
£'000 £'000
Authorised:
20,000,000 (2002: 200,000,000) ordinary
shares of 10p each 20,000 20,000
Allotted, called up and fully paid:
99,400,616 (2002: 115,782,666) ordinary ====== ======
shares of 10p each 9,940 11,578
====== ======
Movements in issued share capital during the year
were as follows:
No. £'000
At 1 April 2002
Ordinary shares of 10p each 115,782,666 11,578
Repurchase of 16,382,050 10p shares for
cancellation (16,382,050) (1,638)
========== ==========
At 31 March 2003 99,400,616 9,940
========== ==========
20.STATEMENT OF MOVEMENT ON RESERVES
Share Capital Share Other Profit Total
capital redemption premium distributable and loss £'000
Group £'000 reserve account reserves account
£'000 £'000 £'000 £'000
Balance at 1 April
2002 11,578 - 66,923 - (4,474) 74,027
Loss for the
financial year - - - - (2,367) (2,367)
Dividends - - - - (994) (994)
Foreign exchange
translation
differences - - - - (16) (16)
Capital transfer - - (65,000) 65,000 - -
Appropriation - - - (994) 994 -
Purchase of own
shares (1,638) 1,638 - (11,699) - (11,699)
Balance at
31 March 2003 9,940 1,638 1,923 52,307 (6,857) 58,951
Company
Balance at 1 April
2002 11,578 - 66,923 - 124 78,625
Loss for the
financial year - - - - (12) (12)
Dividends - - - - (994) (994)
Capital transfer - - (65,000) 65,000 - -
Appropriation - - - (994) 994 -
Purchase of own
shares (1,638) 1,638 - (11,699) - (11,699)
------- ------- ------- ------- ------- -------
Balance at
31 March 2003 9,940 1,638 1,923 52,307 112 65,920
======= ======= ======= ======= ======= =======
On 4 September 2002, the company received permission
from the courts to allow £65,000,000 of the share
premium account to be transferred to a distributable
reserve. The court order became effective on 5
September 2002 and £65,000,000 was transferred from
the share premium account to a distributable reserve.
21. FINANCIAL COMMITMENTS
Group Company Group Company
Land and Land and Land and Land and
buildings buildings buildings buildings
The Group has operating lease 2003 2003 2002 2002
commitments payable within the next £'000 £'000 £'000 £'000
year, expiring as follows:
Within one year - - 26 26
Within two to five years 110 75 49 49
After five years 2,321 - 2,128 -
------- ------- ------- -------
2,431 75 2,203 75
======= ======= ======= =======
22. CAPITAL COMMITMENTS
Group Company Group Company
2003 2003 2002 2002
£'000 £'000 £'000 £'000
Amounts contracted but not provided
in respect of 4,711 - 11,718 -
the Group's properties
======= ======= ======= =======
23.RECONCILIATION OF OPERATING LOSS TO NET CASH
INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
2003 2002
£'000 £'000
Operating loss (449) (2,776)
Depreciation 2,546 1,605
Amortisation of goodwill 97 97
Foreign exchange loss (16) (10)
Increase in stock (102) (57)
Increase in debtors (1,345) (431)
Increase in creditors 2,676 958
Loss on disposal of fixed assets 103 -
------ ------
Net cash inflow/(outflow) from operating
activities 3,510 (614)
====== ======
24. (A)ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN
THE CASH FLOW STATEMENT
2003 2003 2002 2002
£'000 £'000 £'000 £'000
Returns on investments and
servicing of finance
Interest received 627 551
Interest paid (1,798) (27)
Loan arrangement fees (214) (80)
------- -------
(1,385) 444
======= ======
Capital expenditure and financial
investment
Purchase of tangible fixed assets (29,100) (34,937)
Costs of termination of French
operation (270) -
Sale of tangible fixed Assets 21 -
------- -------
(29,349) (34,937)
======= ======
Financing
Issue of ordinary share capital - 22,729
(net of expenses)
Repurchase of ordinary shares (11,699) -
------- -------
(11,699) 22,729
Debt due after more than one year:
Loans repaid - -
New loans acquired 22,662 19,938
------- -------
22,662 19,938
------- -------
Net cash inflow from financing 10,963 42,667
======= ======
(b) ANALYSIS OF NET DEBT
At At
31 March Cash 31 March
2002 flow 2003
£'000 £'000 £'000
Cash at bank and in hand 18,528 (16,261) 2,267
Debt due after one year (19,938) (22,662) (42,600)
------- ------- -------
Total net debt (1,410) (38,923) (40,333)
======= ======= =======
25. RELATED PARTY TRANSACTIONS
No related party transactions took place during the
years ended 31 March 2003 and 31 March 2002.
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