Interim Results

Big Yellow Group PLC
6 November 2000

BIG YELLOW GROUP PLC

Interim report - six months ended 30 September 2000



Highlights


  * Annualised revenue £4.1 million (March 2000 - £2.0 million)

  * Turnover for the six months £1.74 million (September 1999 - £0.44
    million)

  * Loss for the period £0.85 million (September 1999 - loss £0.72 million)

  * Nineteen stores committed

  * 1.1 million sq. ft. of net self storage space when fully built out

  * 3,000 customers (March 2000 - 1,700)

'The strong performance of the stores is, we believe, a reflection of the
increasing awareness of the Big Yellow brand, built on the excellence of the
Group's customer service, store locations and most importantly, people.'



For further information please contact Nicholas Vetch, Chief Executive, or
James Gibson, Finance Director, at Big Yellow Group PLC on 01276 470190.





CHAIRMAN'S STATEMENT

Results

I am pleased to report that the Group has made good progress both in terms of
revenue growth and new store acquisitions since admission to the Alternative
Investment Market in May of this year.

Annualised revenue at the period end stood at £4.1 million, a 105% increase in
the six months from 31 March this year, and encouragingly all of which has
been driven through organic growth. Revenue for the six month period stood at
£1.74 million, a 294% increase on the six month period ending 30 September
1999. The Group has incurred a pre-tax loss of £0.85 million in the period
(six months ended 30 September 1999 - loss £0.72 million). Annualised central
overhead has been held at the pre-flotation level.

Total number of stores opened or in planning and development has now risen to
nineteen, which when fully developed out will provide 1.1 million sq. ft. of
self storage. We anticipate that the majority of these stores will be opened
during 2001.

The Group's customer base at the period end rose to 3,000 from 1,700 at March
2000.

Existing Stores

Without exception, all our stores have performed well in excess of
expectations and the first stores developed in 1999 are now maturing with our
Richmond store having achieved 90% occupancy in just sixteen months, and
Oxford in excess of 80% occupancy in its first twelve months. Our Croydon
store has leased up in excess of 3,000 sq. ft. a month since opening to
achieve an occupancy level now of close to 50,000 sq. ft., an excellent
performance in one of the most competitive towns in the country.

In a demonstration that very high occupancy levels can be achieved at the
right store Staples Corner is now consistently trading at close to 100%
occupancy. The demand for this store has, as recently announced, led us to
commence the process of relocating the store into much larger nearby premises
to provide 100,000 sq. ft. of self storage, a substantial increase on the old
store's capacity of 43,000 sq. ft. We expect the new store to be operational
by April 2001.

Following a fire, caused by vandals, at our Wandsworth store in July of this
year the store was closed. However we anticipate it will be reopened in the
spring 2001. We very much regret, not withstanding the fact that the majority
of our customers were insured, many of them will have lost personal
possessions of sentimental and not necessarily monetary value. Ex gratia and
totally discretionary payments totalling £35,000 have been made since the half
year to Wandsworth customers who have incurred hardship as a result of the
fire and that sum has been provided for in these interim results.

The Group is insured against loss of all property and profit and has agreed
with its insurers a loss of profit claim in respect of the fire at our
Wandsworth store in the sum of £350,000, of which £61,026 has been recognised
in the period. The equivalent grossed up annualised revenue of approximately £
450,000 has been excluded from the annualised revenue disclosed above.

New Stores

Since Listing in May of this year, the Group has acquired seven new properties
at Brighton, Luton, Hounslow, Colchester, Cardiff, Southend and Milton Keynes.
This brings us to eleven stores (including Wandsworth) in the planning and
development stage and, although the acquisition programme is ahead of
schedule, we are now slightly behind on the opening programme. Of the eleven,
six are new buildings and in some cases we have experienced delays in the
planning process. In addition, on three of the newly acquired stores at
Brighton, Hounslow and Cardiff, the properties were acquired with delayed
vacant possession.

The planning issues are now resolving themselves and we will shortly obtain
vacant possession at both Hounslow and Cardiff. The result will be an
extremely busy 2001.

We have always argued that location was of paramount importance in this
industry and we are becoming more convinced in that respect and therefore we
will continue to deploy a strategy of acquiring the very best sites, even at
the expense of some delay in the opening programme.

We believe that the resultant portfolio will be unmatchable in terms of
quality and location.

Merchandise and Insurance

Merchandise and insurance sales continue to grow as a proportion of storage
income, rising from 5.2% in the six months ending 31 March 2000 to 7.1% in
this half year. We believe this percentage, and the absolute level of sales
for merchandising in particular, will continue to grow aided by the launch of
our new website and on line merchandising facility at www.thebigyellow.co.uk.
This operation has been set up using existing resources at minimal cost and is
operating with little additional overheads. The majority of the marketing will
be piggybacked on the core self storage marketing, although we may experiment
with some stand alone marketing.

Outlook

The strong performance of the stores is, we believe, a reflection of the
increasing awareness of the Big Yellow brand, built on the excellence of the
Group's customer service, store locations and most importantly, people.

On current performance we are optimistic about the prospects for our stores in
terms of lease-up rates. For those stores which are at or nearing maturity we
have recently imposed an 8% price increase, with no impact on occupancy
levels.

The immediate task for the Group is to accelerate the opening programme albeit
that that task should be aided by a well established pipeline of new stores.

Finally, we set ourselves a target of acquiring 50 stores by 2003, and whilst
the market for well located road side property remains competitive, we are
reasonably confident that our goal is achievable.


David White

Chairman



CONSOLIDATED PROFIT AND LOSS ACCOUNT

Six months ended 30 September 2000
                                    Note    Six months Six months     Year
                                                 ended      ended    ended

                                                    30         30  31 March
                                              September  September
                                                   2000       1999     2000

                                             (Unaudited) (Unaudited) (Audited)

                                                    £          £        £

TURNOVER                                 2    1,740,044    441,456   1,342,963

Cost of sales                                (2,021,486)  (616,456) (1,908,861)

GROSS LOSS                                     (281,442)  (175,000)   (565,898)
                                                                     
Administrative expenses                      (1,138,307)  (399,444) (1,082,986)

Other operating income                           61,026          -           -

OPERATING LOSS                               (1,358,723)  (574,444) (1,648,884)

Interest receivable and similar                 698,732     32,257     304,813
income
Interest payable and similar charges     4     (185,390)  (179,837)   (778,633)

LOSS ON ORDINARY ACTIVITIES BEFORE
AND AFTER TAXATION FOR THE PERIOD/
YEAR                                     5     (845,381)  (722,024) (2,122,704)

Dividends payable                        6       36,750     (1,750)    (36,750)

Loss for the period/year                       (808,631)  (723,774) (2,159,454)


Loss per share                           7          (1p)       (2p)        (5p)

Diluted loss per share                   7          (1p)       (2p)        (5p)


There are no recognised gains or losses for the period other than as stated
above and therefore no separate statement of total recognised gains and losses
has been presented.

All items in the profit and loss account relate to continuing operations.

CONSOLIDATED BALANCE SHEET

30 September 2000
                                                     30           30 31 March
                                               September   September
                                                    2000        1999     2000

                                              (Unaudited) (Unaudited) (Audited)

                                                       £           £        £

FIXED ASSETS
Intangible assets                            1,771,978   1,868,973  1,820,474
Tangible assets                             29,634,524  10,251,152 17,294,810

                                            31,406,502  12,120,125 19,115,284

CURRENT ASSETS
Stocks                                          85,018      16,623     31,714
Debtors                                      1,257,608     641,069  1,096,409
Cash at bank and in hand                    22,887,419  11,758,122  4,528,840

                                            24,230,045  12,415,814   5,656,963
CREDITORS: amounts falling due              (2,898,548) (8,106,522) (9,784,510)

     within one year

NET CURRENT ASSETS/(LIABILITIES)            21,331,497   4,309,292  (4,127,547)

TOTAL ASSETS LESS CURRENT                   52,737,999  16,429,417  14,987,737
LIABILITIES

CREDITORS: amounts falling due                       -  (4,000,000) (4,000,000)
after more than one year

                                            52,737,999  12,429,417  10,987,737

CAPITAL AND RESERVES
Called up share capital                      9,648,559   5,242,856   5,242,856
Share premium account                       46,122,121   7,930,821   7,924,821
Profit and loss account                     (3,032,681)   (744,260) (2,179,940)

SHAREHOLDERS' FUNDS                         52,737,999  12,429,417  10,987,737


Equity shareholders' funds                  52,737,999  11,429,417   9,987,737
Non-equity shareholders' funds                       -   1,000,000   1,000,000

                                            52,737,999  12,429,417  10,987,737


Six months ended 30 September 2000
                                           Six months      Six months      Year
                                                ended           ended     ended

                                         30 September    30 September  31 March
                                                 2000            1999
                                                                           2000
                                         (Unaudited)     (Unaudited)
                                                                      (Audited)
                                                 £               £
                                                                              £

Loss for the financial period/            (845,381)       (722,024) (2,122,704)
year
Dividends                                   36,750          (1,750)    (36,750)

                                          (808,631)       (723,774) (2,159,454)

Issue of shares (net of issue           43,603,003       7,773,677   7,767,677
costs)                                                                 

Redemption of preference shares         (1,044,110)              -           -
                                                                              


Net addition to shareholders'           41,750,262       7,049,903   5,608,223
funds                                                                     


Opening shareholders' funds             10,987,737       5,379,514   5,379,514
                                                                          


Closing shareholders' funds             52,737,999      12,429,417  10,987,737


CONSOLIDATED CASH FLOW STATEMENT

Six months ended 30 September 2000
                                             Six months   Six months      Year
                                                  ended        ended     ended

                                           30 September 30 September  31 March
                                                   2000         1999
                                                                          2000
                                            (Unaudited)  (Unaudited)
                                                                     (Audited)
                                                      £            £
                                                                             £

Cash (outflow)/inflow from operating        (61,693)      360,692     (769,163)
activities

Returns on investments and servicing          3,571      (147,580)     (43,699)
of finance

Capital expenditure and financial        (13,294,392)  (5,841,106) (12,038,414)
investment

Acquisitions                                       -      (28,024)     (28,024)

Cash outflow before financing            (13,352,514)  (5,656,018) (12,879,300)

Financing
     Issue of ordinary share capital      43,603,003    6,773,677    6,767,677
(net of expenses)
     Issue of preference share                     -    1,000,000    1,000,000
capital
     (Decrease)/increase in debt          (6,116,000)   3,491,000    3,491,000
     (Repayment)/proceeds of              (4,731,800)   4,731,800    4,731,800
financing transaction
     Redemption of preference share       (1,044,110)           -            -
capital

                                          31,711,093   15,996,477   15,990,477

Increase in cash in the period/year       18,358,579   10,340,459    3,111,177


Six months ended 30 September 2000
                                                Six months  Six months     Year
                                                     ended       ended    ended

                                                        30          30 31 March
                                                 September   September
                                                      2000        1999     2000

                                              (Unaudited) (Unaudited) (Audited)

                                                      £           £        £

Increase in cash in the period/year          18,358,579 10,340,459   3,111,177

Cash outflow/(inflow) from decrease/         10,847,800 (8,222,800) (8,222,800)
(increase) in debt financing

Change in net funds/(debt) resulting         29,206,379  2,117,659  (5,111,623)
from cash flows

Movement in net funds/(debt) in the          29,206,379  2,117,659  (5,111,623)
period/year

Net debt at start of period/year            (6,318,960) (1,207,337) (1,207,337)

Net funds/(debt) at end of period/year      22,887,419     910,322  (6,318,960)


RECONCILIATION OF OPERATING LOSS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Six months ended 30 September 2000
                                            Six months     Six months      Year
                                                 ended          ended     ended

                                          30 September   30 September  31 March
                                                  2000           1999
                                                                           2000
                                           (Unaudited)    (Unaudited)
                                                                      (Audited)
                                                  £              £
                                                                              £

Operating loss                              (1,358,723)   (574,444) (1,648,884)

Depreciation                                   388,051     104,869     308,915

Amortisation of goodwill                        48,496      47,913      96,411

Increase in stock                             (53,304)     (14,490)    (29,581)

Decrease/(increase) in debtors                 127,805    (195,802)   (643,585)

Increase in creditors                          785,982     992,646   1,147,561

Net cash flow from operating                   (61,693)    360,692    (769,163)
activities


NOTES TO THE INTERIM REPORT

Six months ended 30 September 2000

1.     Accounting Policies

        Basis of preparation

        The interim information for the six months ended 30 September 2000 and
        30 September 1999 is unaudited and does not comprise statutory
        accounts. The comparative figures for the year ended 31 March 2000 are
        not statutory accounts but are extracted from the audited statutory
        accounts. The statutory accounts for the year ended 31 March 2000 have
        been filed with the Registrar of Companies. They received an
        unqualified audit report which did not contain a statement under
        Section 237(2) or 237(5) of the Companies Act 1985. This interim
        report should be read in conjunction with the statutory accounts for
        the year ended 31 March 2000. The interim figures have been prepared
        on the same basis and applying the same accounting policies as in
        prior years, except as stated in note 3.

2.     Segmental Information

        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. The group's net assets, turnover
        and loss before tax, all of which arises in the United Kingdom, are
        attributable to one activity, the provision of self storage space.

3.     Depreciation

        In the accounts for the year ended 31 March 2000 depreciation of £
        308,915 was charged to administrative expenses. In the current period
        depreciation of £363,741 relating to the Group's stores has been
        charged to cost of sales (six months ended 30 September 1999 - £
        98,538). In order to ensure consistency with this presentation,
        depreciation of £285,603 has been reclassified to cost of sales for
        the year ended 31 March 2000.

3.     Interest payable and similar charges
                                    Six months ended  Six months ended     Year

                                   30 September 2000 30 September 1999    ended

                                                   £                 £ 31 March

                                                                           2000

                                                                              £

                                              58,133                 -  307,808
        Loan stock

                                              31,098            73,262  147,613
        Bank overdraft and other
        borrowings

                                              96,159           106,575  323,212
        Option finance fee



                                             185,390           179,837  778,633

4.     Taxation

        No liability to corporation tax arises on the group's result for the
        year due to the availability of tax losses in the group.

5.     Dividends
                           Six months ended        Six months ended        Year

                          30 September 2000       30 September 1999       ended

                                          £                       £    31 March

                                                                           2000

                                                                              £

                                   (36,750)                   1,750      36,750
        7.5%
        preference
        shares


        An accrual was made as at 31 March 2000 for a dividend of £36,750
        payable on the preference shares in issue at that date. On 8 May 2000,
        the preference shares were redeemed by way of a share buy-back
        financed from the issue of new ordinary shares for consideration of £
        1,044,110. The dividend is no longer payable. It has therefore been
        credited to the profit and loss account for the period.

        Dividends have not been paid in respect of the ordinary shares of the
        Company in any of the periods reported upon and no dividend is
        proposed.

6.     Loss per ordinary share

        Loss per ordinary share has been calculated on the retained loss for
        the period of £808,361 (1999 : £723,774) and on the weighted average
        number of shares in issue during the period of 87,081,952 (1999 :
        41,041,045). There is no dilutive effect from the conversion of share
        options, loan stock and preference shares.