The ultimate goal of every business venture—be it a self storage one or otherwise—is to make money. Second to that, the business will probably be looking for something that would indicate the likelihood of making money in what they hope would be the near future—growth.
For one of the largest self storage providers in the UK, Big Yellow Self Storage, grow is exactly what they have bee doing.
As the industry on the whole awaits word on how the proposed VAT changes will affect business in the near future, Big Yellow announced Monday that their earnings for the last fiscal year are going to be right around what they were expected to be. In a release, the company stated:
“Growth in the quarter to date across our 53 wholly owned stores is 86,000 sq ft, compared to 41,000 sq ft for the same quarter last year.
“The occupancy of our 32 established store portfolio is currently 74.0%, and, excluding our newly opened store at New Cross, wholly-owned store occupancy is 64.0%, compared to 63.4% at 30 September 2011 and 59.3% at 31 March 2011.”
What makes the gains even better for the company is that for the first time since the economy in the UK really took a turn for the worse in 2007, the company was finishing the year with better numbers than it had in September of the previous year. This means that rather than lose money over the winter the company did well.
With the busy season for the self storage industry getting closer and closer the people at Big Yellow are getting prepared to do better than ever.
“We now look forward to our traditionally busiest trading period from a new all-time high of occupied space,” the company stated.
Representatives from Big Yellow will be meeting with people from Her Majesty’s Revenue and Customs concerning the proposal that would eliminate the exclusion that the industry had previously enjoyed from the value added tax. Whether the company intends on fighting the tax or endorsing it remains to be seen.
According to a representative of the company, Big Yellow could receive a hefty payment of around 14 million pounds for repayment of unrecovered VAT. Should this happen the finds would be more than enough to cover the costs of three new facilities on sites that they already own.
“Big Yellow Earnings to be in Line with Market Forecasts.” StockMarketWire; 26 March 2012.
“Big Yellow walking in winter wonderland.” Sharecast.com; 26 March 2012.