(LOK) Lok'n Store

Not surprised with recent shareholders letter. Laxey seems to be getting feed up with its holding and big discount to nav. Company has been playing it safe over the last couple of years and has held it in good state. This company will slowly grind upwards and onwards. One still to put away and any fall back should laxey off load will be a buying opportunity.
Hold and be ready to buy on any weakness.

Back in again, as i still see further upside, I expect some one will take this out if the shares continue to trade at such a discount to nav. Its just a matter of time.

http://www.investorschronicle.co.uk/2011/11/07/shares/news-and-analysis/lok-n-store-hits-divi-trail-y5ku0hiUtG47b59ttzEXyL/article.html
Lok'n Store hits divi trail
By Stephen Wilmot, 07 November 2011

The most eye-catching element of self-storage micro-cap Lok'nStore's annual results was the three-fold increase in the dividend. Long-time chief executive Andrew Jacobs also pledged a "progressive dividend" based on the balance of cash profits and capital requirements.
The group has a strong track record of top-line growth, with only one year of contraction during the recession of 2008-09 - Mr Jacobs says business is resilient "as long as the mainstream papers aren’t running financial stories on the front cover". This year turnover increased 4.1 per cent, as a 1.9 per cent increase in the rental rate helped offset falling occupancy. That translated into a 9.7 per cent uplift in cash profits, thanks to strong cost control. The group also bought in growth by acquiring a Leatherhead-based document-storage business called Saracen for £4m, though it only contributed a month’s earnings to these results.
The property portfolio was revalued down 1.8 per cent, which took its toll on the net asset value (NAV) figure. Lok’nStore remains well within its banking covenants - the company refinanced with Lloyds last month, stabilising its balance sheet until 2016. But banks are now charging more for their services, so the finance bill will be £250,000 higher this year.
LOK'NSTORE GROUP (LOK)
ORD PRICE: 98p MARKET VALUE: £25m
TOUCH: 97-98p 12-MONTH HIGH: 143p LOW: 93p
DIVIDEND YIELD: 3.1% TRADING ASSETS: nil
DISCOUNT TO NAV: 37%
INVEST PROPERTIES: £69.2m NET DEBT: 63%
Year to 31 Jul Net asset value (p) Pre-tax profit (£'000) Earnings per share (p) Dividend per share (p)
2007 86.4 10,815 43.3 0.67
2008 172 -741 -3.27 1.00
2009 148 -656 -2.39 1.00
2010 156 431 0.88 1.00
2011 154 938 3.57 3.00
% change -1 +118 +306 +200
Ex-div:16 Nov
Payment:16 Dec
IC View:

After a strong recovery in 2009-10, Lok’nStore’s share price has fallen this year, reflecting its exposure to the UK consumer. Yet it is entrepreneurially managed and operates in an under-supplied sector. With the shares trading 57 per cent below adjusted NAV, buy.

Lok'nStore agrees new £40 mln credit facility with Lloyds TSB
9:24 am by Giles Gwinnett
http://www.proactiveinvestors.co.uk/companies/news/34644/loknstore-agrees-new-40-mln-credit-facility-with-lloyds-tsb--34644.html

The new five year revolving facility replaces an existing one with Royal Bank of Scotland, which was due to expire in February next year, the company said today
AIM quoted self-storage firm Lok’nStore (LON:LOK) has agreed a new £40 million revolving credit facility with Lloyds TSB to develop the business in the medium term.

The new five year revolving facility replaces an existing one with Royal Bank of Scotland, which was due to expire in February next year, the company said today.

The firm's shares were up 3.65 per cent in morning trade on the news - changing hands at 99.5 pence.

Chief executive of the storage firm Andrew Jacobs said: This new banking facility with its attractive terms and structure underlines the financial strength of Lok'nStore with its modest gearing and strong and growing cash flow.

"We have established a business model that can thrive in the downturn and this new facility will enable the group to continue to execute its growth strategy.

"We look forward to working with the Lloyds Banking Group as Lok'nStore develops over the coming years."

Under the new facility, the company is not obliged to make any repayments prior to its expiration in 2016.

The margin on the new facility will be at LIBOR plus 2.35 per cent to 2.65 per cent.