Big Yellow Group (BYG) H1 2025 earnings summary

Executive summary

• Revenue increased 3% year-over-year to £103.0 million, with store revenue up 4% and like-for-like store revenue up 3% driven by rental growth.

• Adjusted profit before tax rose 3% to £54.9 million, while adjusted/EPRA EPS declined 3% due to share dilution.

• Statutory profit before tax surged 22% to £145.8 million, reflecting higher revaluation gains and profit on land disposal.

• Interim dividend maintained at 22.6 pence per share, payable January 2025.

• Opened a new 65,000 sq ft net zero freehold store in Slough and advanced a pipeline of 13 development sites, with planning consent secured for 10.

Financial highlights

• Store EBITDA decreased 1% to £70.9 million due to higher operating costs, with EBITDA margin down to 69.3% from 72.7%.

• Cash flow from operating activities fell 1% to £53.5 million.

• Net debt reduced to £359.5 million, with available committed liquidity of £214.6 million and Debt to EBITDA ratio of 2.9x.

• Adjusted net asset value per share rose 4% to 1,348.0 pence.

• Basic earnings per share increased 14% to 74.6 pence.

Outlook and guidance

• £43 million capex planned for H2 2024 to build out new stores and solar retrofitting.

• Pipeline of 13 stores (1 million sq ft), mostly in London, with nine under construction and three opening in the next financial year.

• Expectation to return to EPS growth in the second half, focusing on long-term revenue growth via occupancy and automation.

• Opportunity to generate over £50 million of NOI from filling pipeline and leasing existing space.

• Anticipate further land acquisition opportunities in core areas.