Big Yellow Group PLC, the UKs leading self-storage company, reported its half-year results for the six months ended September 30, 2025. Here’s a summary of the key points
### **Financial Performance**
**Revenue Growth**Revenue increased by 2% to £105.1 million compared to £103.0 million in the same period last year. Like-for-like store revenue also grew by 2%, driven by rental growth.
**Store EBITDA**Increased by 5% to £74.3 million, with like-for-like store operating costs down 2%.
**Adjusted Profit Before Tax**Rose by 9% to £59.6 million, with EPRA earnings per share up 7% to 30.0 pence.
**Statutory Profit Before Tax**Declined by 49% to £74.8 million due to a lower revaluation gain compared to the prior period.
**Cash Flow**Cash flow from operating activities increased by 6% to £56.9 million.
**Dividend**Interim dividend increased by 5% to 23.8 pence per share.
### **Operational Highlights**
**Occupancy**Like-for-like occupancy decreased by 2.3 percentage points to 78.2%, though there has been a modest improvement since the period end.
**Rental Growth**Average achieved net rent per sq ft increased by 4%, with closing net rent up by 4% from September 2024.
**Store Expansion**Opened new stores in Staines (70,000 sq ft) and Queensbury (72,000 sq ft), both in London. Acquired a site in Coventry and exchanged contracts for a site in Bethnal Green, London.
**Pipeline**The development pipeline now includes 13 sites totaling approximately 1.0 million sq ft, with 9 sites having planning permission.
### **Strategic Focus**
**Occupancy Growth**The company is focusing on improving occupancy, which has shown modest improvement in recent weeks.
**Cost Control**Continued focus on controlling operating costs, with a 2% reduction in like-for-like store operating costs.
**Sustainability**Investment in solar and energy efficiency initiatives has contributed to lower utilities costs.
### **Outlook**
**Confidence in Strategy**The company remains confident in its business model and high-quality freehold portfolio in prime locations.
**Economic Activity**Anticipates that any sustainable pick-up in economic activity in the UK will start in London and the South East, where the company has a strong presence.
**Earnings Growth**Full-year earnings growth may be impacted by a one-off £4 million insurance receipt in the prior year, but new store openings are expected to contribute to future earnings growth.
### **Chairman’s Statement**
Nicholas Vetch CBE, Executive Chairman, highlighted the company’s resilience in the face of external challenges, achieving positive metrics in four out of five key earnings components. The focus on occupancy growth remains a priority, with recent improvements noted.
### **Development Pipeline**
**Progress**Nine out of 13 pipeline stores have secured planning permission, with openings scheduled over the next two to three years.
**Net Operating Income**The projected net operating income from the pipeline is £36 million, representing a 17.1% return on incremental capital.
### **Capital Structure**
**Net Debt**Increased to £439.5 million due to significant investment in capital expenditure, partially funded by operating cash flow.
**Liquidity**Available committed liquidity of £131.2 million, with the company comfortably meeting banking covenants.
### **Conclusion**
Big Yellow Group PLC delivered a solid performance in the first half of 2025, with growth in revenue, EBITDA, and adjusted profit before tax. The company continues to expand its portfolio and remains focused on improving occupancy and controlling costs, while maintaining confidence in its strategic direction despite macroeconomic challenges.
| Metric | Six months ended 30 September 2025 | Six months ended 30 September 2024 | Change |
|---|---|---|---|
| Revenue | £105.1 million | £103.0 million | 2% |
| Store revenue | £104.5 million | £102.2 million | 2% |
| Like-for-like store revenue | £104.5 million | £102.2 million | td>2%|
| Store EBITDA | £74.3 million | £70.9 million | 5% |
| Adjusted profit before tax | £59.6 million | £54.9 million | 9% |
| EPRA earnings per share | 30.0 pence | 28.0 pence | 7% |
| Interim dividend per share | 23.8 pence | 22.6 pence | 5% |
| Profit before tax | £74.8 million | £145.8 million | (49%) |
| Cash flow from operating activities (after net finance costs and pre-working capital movements) | £56.9 million | £53.5 million | 6% |
| Net debt | £439.5 million | £359.5 million | 22% |
| Net debt to EBITDA ratio | 3.3x | 2.9x | 14% |
| Average cost of debt | 4.8% | 5.1% | (6%) |