RNS Number : 1480P

Big Yellow Group PLC

20 May 2024

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Big Yellow Group PLC

("Big Yellow", "the Group" or "the Company")

Results for the YEAR ended 31 MARCH 2024

HIGHLIGHTS

Financial metrics	Year ended 31 March 2024	Year ended 31 March 2023	Change
Revenue	£199.6m	£188.8m	6%
Store revenue⁽¹⁾	£197.1m	£186.7m	6%
Like-for-like store revenue^(1,2)	£193.5m	£185.6m	4%
Store EBITDA⁽¹⁾	£143.0m	£134.0m	7%
Adjusted profit before tax⁽¹⁾	£107.3m	£106.0m	1%
Adjusted earnings per share⁽¹⁾	55.9p	56.5p	(1%)
Dividend - final - total	22.6p 45.2p	22.9p 45.2p	(1%) -
Statutory metrics
Profit before tax	£241.0m	£75.3m	220%
Cash flow from operating activities (after net finance costs and pre-working capital movements)⁽³⁾	£110.1m	£109.2m	1%
Basic earnings per share	127.1p	40.1p	217%
Store metrics
Store Maximum Lettable Area ("MLA")⁽¹⁾	6,419,000	6,292,000	2%
Closing occupancy (sq ft)⁽¹⁾	5,029,000	5,088,000	(1%)
Closing occupancy⁽¹⁾	78.3%	80.9%	(2.6 ppts)
Closing occupancy - Big Yellow like-for-like stores (%)^(1,4)	80.9%	83.2%	(2.3 ppts)
Average net rent per sq ft	£33.64	£31.28	8%
Closing net rent per sq ft⁽¹⁾	£34.14	£32.48	5%

¹ See note 28 for glossary of terms

² Excluding Aberdeen (acquired June 2022), Harrow and Kingston North (both opened September 2022) and Kings Cross (opened June 2023)

³ See reconciliation in Financial Review

⁴ As per (2), additionally excluding the Armadillo stores

Highlights

•	Revenue growth of 6%, with like-for-like store revenue up by 4%, driven by increases in average achieved rents
•	Big Yellow store like-for-like occupancy decrease of 2.3 ppts to 80.9% (March 2023: 83.2%). Closing occupancy, reflecting the additional capacity from recently opened stores, is down 2.6 ppts
•	Average achieved net rent per sq ft increased by 7.5% year on year, closing net rent up 5.1% from March 2023
•	Overall store EBITDA margin increased to 72.5% (2023: 71.8%)
•	Cash flow from operating activities (after net finance costs and pre-working capital movements) increased by 1% to £110.1 million
•	Adjusted profit before tax up 1% to £107.3 million, adjusted earnings per share down 1% to 55.9p
•	45.2 pence per share full year dividend, in line with prior year
•	Statutory profit before tax of £241.0 million, up from £75.3 million in the prior year, due to a revaluation gain of £131.2 million in the current year
•	£300 million sustainability-linked revolving credit facility put in place during the year
•	£6 million invested in the year on solar retro-fit, 68 stores now have solar with a 47% increase in capacity in the year to 6.6 Megawatts

Investment in new capacity

•	£107 million (net of expenses) raised by way of a placing of 6.3% of the Company's issued share capital to fund the build out of the development pipeline
•	Kings Cross opening and one extension added 127,000 sq ft of space; we have committed to build a further seven stores (MLA of 448,000 sq ft) with all due to open by Summer 2026
•	Acquisition of freehold properties in Leicester and Leamington Spa (the latter post year-end), taking the pipeline to 12 development sites and two replacement stores of approximately 1.0 million sq ft (15% of current MLA), of which 11 are in London or within close proximity. 1.4 million sq ft of fully built vacant space is currently available for future growth
•	Planning consent granted for new store in Wapping (London) and Epsom (London); we now have eight of our 14 pipeline stores with planning

Nicholas Vetch CBE, Executive Chairman of Big Yellow, commented:

"The transition to higher interest rates has had the impact intended by policymakers of subduing activity and Big Yellow has not been immune, although it has again proved itself to be resilient with a healthy revenue increase and EBITDA growth of 7%. The driver of this performance has been an increase in net rents, partially offset by a decline in occupancy. As usual we caution that we have limited visibility beyond a few weeks, but the period since the year end has seen an encouraging pick-up in occupancy growth, closing the gap with the prior year like-for-like occupancy to 0.7 ppts, and we expect occupancy to continue to grow into our seasonally stronger summer trading period.

The increase in revenue and EBITDA did not translate into a commensurate growth in earnings as we absorbed a significant increase in interest expense, but we believe that this impact is now behind us and indeed may well turn from a head to a tailwind.

When we first conceived this business, now over 25 years ago, we were clear that we would piece together a store portfolio of unparalleled quality, largely focused on London and the South East. The performance of our recently opened Kings Cross store, which has achieved 40,000 sq ft of occupancy growth and was cashflow positive after 4 months, exemplifies the benefit of this strategy.

The successful placing last October has given us the balance sheet strength to commit to building out our pipeline. We now have an opportunity to generate in excess of £50 million of net operating income from a combination of delivering the income from our pipeline stores and leasing up the existing fully built 1.4 million sq ft of vacant space to previously achieved levels of occupancy, the majority of which would flow through to earnings.

We are entirely cognisant that delivering this growth will take time and is to some degree subject to external forces, but we believe that it is achievable and will be our predominant focus over the next few years."

ABOUT US

Big Yellow is the UK's brand leader in self storage. Big Yellow now operates from a platform of 109 stores, including 24 stores branded as Armadillo Self Storage. We have a pipeline of 1.0 million sq ft comprising 14 proposed Big Yellow self storage facilities. The current maximum lettable area of the existing platform (including Armadillo) is 6.4 million sq ft. When fully built out the portfolio will provide approximately 7.4 million sq ft of flexible storage space. 99% of our stores and sites by value are held freehold and long leasehold, with the remaining 1% short leasehold.

The Group has pioneered the development of the latest generation of self storage facilities, which utilise state of the art technology and are located in high profile, accessible, main road locations. Our focus on the location and visibility of our stores, with excellent customer service, a market-leading online platform, and significant and increasing investment in sustainability, has created in Big Yellow the most recognised brand name in the UK self storage industry.

CHAIRMAN'S STATEMENT

Big Yellow Group PLC ("Big Yellow", "the Group" or "the Company"), the UK's brand leader in self storage, is pleased to announce its results for the year ended 31 March 2024.

The transition to higher interest rates has had the impact intended by policymakers of subduing activity and Big Yellow has not been immune, although it has again proved itself to be resilient with a healthy revenue increase and EBITDA growth of 7%. The driver of this performance has been an increase in net rents, partially offset by a decline in occupancy. As usual we caution that we have limited visibility beyond a few weeks, but the period since the year end has seen an encouraging pick-up in occupancy growth, closing the gap with the prior year like-for-like occupancy to 0.7 ppts, and we expect occupancy to continue to grow into our seasonally stronger summer trading period.

Financial results

Revenue for the year was £199.6 million (2023: £188.8 million), an increase of 6%. Like-for-like store revenue growth (see note 28) was 4% driven by improvements in average net rent. Like-for-like store revenue excludes new store openings and acquired stores. Store EBITDA was £143.0 million, an increase of 7% from the prior year (2023: £134.0 million).

Store revenue for the fourth quarter was £48.9 million, an increase of 5.4% from £46.4 million for the same quarter last year, with one additional day's trading.

The Group's cash flow from operating activities (after net finance costs and pre-working capital movements) increased by £0.9 million (1%) to £110.1 million for the year (2023: £109.2 million). The adjusted profit before tax in the year was £107.3 million up 1% from £106.0 million in 2023. Adjusted earnings per share decreased by 1% to 55.9p (2023: 56.5p).

The Group's statutory profit before tax was £241.0 million, an increase from £75.3 million in the prior year. There was a revaluation surplus for the current year of £131.2 million, compared to a deficit of £29.9 million in the prior year. The surplus in the current year arises from an improvement in cap rates, reflecting recent transactions in the sector, and operating cash flow growth. The prior year deficit was due to a £57.5 million reduction in the value of our industrial property and land without self storage planning in the development pipeline, reflective of changed financing conditions and the wider market environment for land.

Development pipeline

The pursuit of building first rate stores in first rate locations, particularly in London, is a long and complex process. It has required a good deal of persistence and patience and of course has created a significant drag on earnings as we have held land for redevelopment sometimes for many years. We now have planning consents for eight stores and have started the construction process on seven of those. We have four large London sites in the later stages of planning (including two at appeal) and although the vagaries of the planning system mean we cannot be certain of positive outcomes, we expect clarity by the Autumn.

In May 2022, we suspended construction on all projects that were not already on site because conditions in the construction market were unfavourable. Those conditions have improved considerably with steelwork and cladding prices falling, and other material prices stabilising. In addition, we are seeing on recent tenders that main contractors and specialist sub-contractors are pricing new projects more competitively.

This is the most significant expansion of the Company's footprint for many years, which is largely tangible and deliverable, with the new pipeline stores, even by the high standards of our portfolio, improving the overall quality.

Although we are not out of risk both in terms of planning and construction on the existing pipeline we will increasingly turn our attention to acquiring new sites and to that end have purchased in May 2024 for £3 million a first-class property in Leamington Spa, that will also serve the university town of Warwick.

In June, the Group acquired a 0.8 acre property for development on Belgrave Gate, central Leicester for £1.85 million. We will be seeking planning permission for a 58,000 sq ft self storage centre on the site.

Capital structure

It is our view that elevated levels of debt over cycles destroys value and so it remains our long-term strategy to keep debt at modest levels. We believe it is therefore optimal that future capital expenditure on new sites and the £224 million of construction spend should be funded from cash flow, surplus property sales and equity.

In October 2023 we raised £107 million (net of expenses) by way of a placing of 6.3% of the Company's share capital. The net proceeds will be used to expand capacity in London, our strongest market, and monetise land that we already own. The placing has been marginally accretive to earnings in the short term, and we expect it to be significantly so over the medium to long term.

Net debt was £385.4 million at 31 March 2024 (2023: £486.6 million), and the Group has undrawn committed facilities of £181 million. Approximately 50% of our debt is fixed, with the balance floating, in line with our hedging policy, and our current average cost of drawn debt is 5.4%.

The Group's interest cover for the year (expressed as the ratio of cash generated from operations pre-working capital movements against interest paid) was 5.6 times (2023: 7.7 times). This is currently approximately 6 times, and the Group's net debt to EBITDA ratio is currently 3x.

The Group owns its assets largely freehold, representing some 99% by value of our portfolio which has shielded us from the significant rise in industrial and warehouse rents that has occurred over the last decade or more. We view rent liabilities as quasi-debt. Following the relocation of Farnham Road, Slough this summer and Staples Corner in due course (subject to planning) to new freehold stores we expect our total rent liability to fall to approximately £1 million per annum.

Dividends

The Group's dividend policy is to distribute a minimum of 80% of full year adjusted earnings per share. The final distribution of PID declared is 22.6 pence per share. This brings the total distribution declared for the year to 45.2 pence per share in line with the prior year.

Our people

Adrian Lee, who joined the business soon after its founding in early 1999, retired from Big Yellow at the end of March. We had limited knowledge of operational businesses at that time, and Adrian was key in establishing what over the years has become a market leading self storage platform in the UK. After 25 years, any statement is insufficient, but we are grateful for all his efforts and successes over the last quarter of a century, and we have no doubt he will remain in the Big Yellow orbit in the years to come.

We commenced a search to replace Adrian last year, and I am delighted to announce that John Hunter has recently joined the business as our new Chief Operating Officer. John started out in finance, and then moved into more commercial roles, most recently as COO at Homeserve plc. Prior to that he spent several years in operational roles at Dixons Carphone plc. We all look forward to working with John and feel sure that he will make a positive contribution to the continued success of Big Yellow.

Any successful business requires a fully engaged workforce, and our recent engagement survey, with an average score of 88% across the business was very pleasing, although improvement is a perpetual quest.

I would like to thank all of our people for their dedication and support in what for many has been a personally difficult year with the impact of rises in the cost of living and higher interest rates.

Outlook

The successful placing last October has given us the balance sheet strength to commit to building out our pipeline. We now have an opportunity to additionally generate in excess of £50 million of net operating income from a combination of delivering the income from our pipeline stores and leasing up the existing fully built 1.4 million sq ft of vacant space to previously achieved levels of occupancy, the majority of which would flow through to earnings.

Nicholas Vetch CBE

Executive Chairman
20 May 2024

CHIEF EXECUTIVE'S STATEMENT

Trading

We are pleased to have delivered another year of revenue and EBITDA growth against a weaker demand environment, demonstrating the resilience of our business model. Although activity levels were subdued in the first three quarters of the year, we have seen a recovery in the fourth quarter, which has continued into the current year.

Given this weaker demand environment, we continued to use rental growth, both to new and existing customers, to drive revenue, and over the year our average rate growth was 7.5% down from 9.8% in 2023. In addition, we have also reduced our increases to existing customers in the fourth quarter, reflective of a moderating inflationary environment.

Our principal objective in the current year, in an improving demand environment, is to drive occupancy and have it make a meaningful contribution to revenue growth which has not been the case over the last two years. Since the year end, we have seen continued growth in occupancy, and our total occupied space today is now broadly in line with last year, with current like-for-like occupancy now down 0.7 ppts compared to the same period last year.

The main driver in this current improvement in demand is from domestic customers, who currently represent 68% of revenue and 63% of occupied space. We believe this to be from a combination of improving consumer confidence in a lower inflationary environment with real wage growth and improving activity levels in the housing market since the new year; one barometer being mortgage approvals to the owner-occupied market, which have recovered; in essence more decisions are being made. Our business occupancy is largely flat since the half year, but again we are beginning to see more demand, with prospects largely flat, but move-ins up 2% since the start of January. Demand from national customers (4% of our total revenue) continues to be robust, with revenue growth year-on-year of 13%. Businesses currently occupy 37% of space, unchanged from last year.

Over the year, revenue growth from our London and South East stores (75% of our business) has outperformed the regions, however we saw an improved performance in the regions in the fourth quarter which has continued into the current year.

Investment in our operating platform and systems

Self storage operators are providers of secure storage, and in adopting automation it is important not to lose sight of keeping our customers and their possessions safe and secure. This requires an investment in technology and automation, physical security, and in our view most importantly having team members present in the centre during normal retail hours.

We will continue to invest in the security of our stores through providing individually alarmed rooms/24 hours CCTV, monitoring of our stores overnight and most importantly restricting which of our customers have access to our stores when there are no team members present. About 15% of our customers - typically businesses providing services and online traders - use and pay for out of hours access, the balance of our customers are happy to use the centres during normal trading hours, and all our feedback indicates that they appreciate having team members present at the store.

Our store operating model is analogous to the car rental market. New customers can select and reserve rooms and check-in online, including uploading ID, all prior to arriving at a store. In essence the onboarding process is online, however, our team members double check the customer ID, review insurance, and take payment in store. In addition to dealing with any issues and providing customer service, store team members are also required to carry out due diligence tasks, prepare vacated rooms for new customers, accept deliveries for our business customers, optimise contents cover and packing material sales, follow up on prospects and reservations, and importantly to identify and refuse custom to suspicious prospects.

AI is a technology that enables machines to learn from data and perform tasks that normally require human intelligence. AI can be classified into two types: rules-based and machine learning systems. The rules-based manipulation of data to, for example, manage our dynamic pricing, is something that we have done for several years in our business and will continue to invest in and improve. Other examples would include the manipulation of data to provide reporting and alerts to speed up and improve decision making, leading to efficiencies, and we use this across the business. An example in the stores is the automatic tracking of competitor pricing using an external data supplier providing alerts to both stores and operational management. We are also using the significant data from customer use of stores to provide alerts to us on unusual behaviours that require attention to our overnight monitoring centre and store teams, so improving security.

Generative AI is used throughout the business, particularly in relation to content and ideas creation, examples being in marketing or the development of procedures and training modules. What always must be remembered is that those using these models are still required to be the editor to achieve optimal results, but of no doubt there is the potential for significant and continuing efficiency gains. A more detailed summary of how AI is used within the business is included in the Operating Review.

We continue to invest in improving our web journey, with more automation of prospect handling through to reservation and check-in, with regular communication both by email and text. 93% of our prospects come through our digital channels (we still have customers whose first contact is at the store or over the phone). 66% of visits are from mobile devices, and the balance is portable and desktop computers. Interestingly, this has remained stable in recent years, and we have not seen the continued drive to smart phones as was expected, which is possibly a reflection of prospects searching using desktop computers or portables either while working from home or during the day while at work.

The cyber threat remains, and we continue to invest in our digital security, and review the effectiveness of all the tools we deploy.

People

Our progress this year once again reflects the steadfast commitment and hard work of our people.

Since January 2023, the level of staff turnover and vacancies in the business started to decline, with a reduction in leavers. Our current staff turnover and level of vacancies continues to be at relatively low levels, which is encouraging.

We have also carried out a review of our store staffing structure and have not been replacing certain positions, reducing our average headcount in stores, with an annualised saving including on-costs of £0.4 million - a benefit of the improved automation in the business. As mentioned above, the delivery of customer service and the security of our stores is paramount, and hence having team members in our stores for part of the day will always be required.

We carried out an employee engagement survey using external consultants last summer and were very pleased with the results. The engagement score across the business was a record 88%, with a significantly improved participation rate of 92% from the previous survey in 2021. This was an excellent result, reflective of a key priority for the business, which is its culture.

We continue to believe that the customer experience and the service delivered by our store teams is a critical and differentiating success factor, particularly with those customers who are regular users of our facilities. A retail measure is a net promoter score, and our average over the year for move-ins and move-outs was 80.5 (2023: 78.9), a very creditable result.

We continue to make improvements to our culture and practices in respect of diversity, and these are set out in our Gender and Inclusivity Report, which is available on our corporate website, and has been formally filed for 2023. We formalised a Diversity and Inclusivity Committee in 2020, with representation from colleagues from throughout the business, and I am also a standing member of the Committee, as I believe diversity has a positive impact on our culture and performance.

ESG

The Big Yellow Foundation, which was launched in 2018 is our principal vehicle for delivering social good, with the cause being the rehabilitation of vulnerable people into work. The Company matches all money raised from customers at move-in and move-out and from fundraising from our team members. In the year we have raised a record £298,000 for the Foundation, and we provided £256,000 of funding to our seven charity partners, with the total to date now over £1.0 million.

We have an initiative of providing 12 week work placements to candidates from some of our partner charities, and over the year 12 placements were carried out at several of our stores. This can be life changing for some in improving their confidence and work chances, and we have also found it to be particularly rewarding to our store teams.

We have also over the years provided space to local charities and community groups in each of our stores; at present we support on average two charities per store this way. The recent refinancing of our bank facility is aligned with this strategy and includes social targets for both the Foundation and the provision of space to local charities.

I mentioned the solar retro-fit programme last year, which is a £25 million investment, of which £13.6 million has been spent to date. Progress has been very good, and as of now we have completed the retro-fit of 35 stores. Our current installed solar capacity is 6.6 Megawatts, an increase of 47% over the year. We estimate that this is currently saving the business £0.6 million per year. This will continue to increase as we make further progress towards our objective of being self-sufficient in renewable energy.

We will be trialling a new battery at our Slough Farnham Road store, using the electricity that we generate at our stores more efficiently, with less being sold to the grid. If this is successful we will then look to adopt this in new stores, which will see further battery improvement and reduction in costs. We will also be looking at how we can retro-fit it into existing stores, all designed to improve the efficiency of our energy usage. Energy costs represent 5% of operating costs (c. £25,000 per store), and we aim to continue to reduce this.

The investment in solar improves the EPC rating in our stores. There is a requirement to have all stores with an EPC rating of A to C by 2025 and A to B by 2030. At present all bar one of our stores is A to C, and we have plans in place to install solar at that store to meet the 2025 requirement. For the 2030 requirement, the majority of stores already meet it, and there are plans for all stores to be A or B rated by 2028. Much of the improvement is being driven by the investment in solar and also through removing gas boilers.

Further detail, including progress on our Science Based Targets, is included in the ESG Report.

Summary

Our business model, market-leading brand and operating platform has delivered a resilient performance over recent years, and we remain confident that it will continue to deliver attractive and sustainable returns over the medium to long term. As we enter our historically stronger summer trading period, we are looking forward to another year of growth.

Jim Gibson

Chief Executive Officer

20 May 2024

OPERATING REVIEW

The store platform and demand

We now have a portfolio of 109 open and trading stores, with a current maximum lettable area of 6.4 million sq ft (2023: 108 stores, MLA of 6.3 million sq ft).

Self storage demand is spread across a diverse set of drivers, and is largely driven by need, with security, convenience, quality of product, service and location being key factors. Awareness remains relatively low compared to commoditised products, such as hotel rooms or airline seats, albeit it is increasing slowly year-on-year with increased supply, marketing expenditure and customer use. Over 70% of our domestic customers are in the top 3 ACORN categories: Affluent Achievers, Rising Prosperity, and Comfortable Communities. The largest element of demand into our business each year is customers who use us for relatively short periods driven by a need.

Of our move-ins during the year:

-	customers renting storage space whilst moving represented 41% of move-ins during the year (2023: 41%), with homeowners representing 26% and renters 15%. The proportion of renters increased during the year, offsetting some of the slowdown in the owner-occupied market;
-	12% of our customers who moved in took storage space as a spare room for decluttering (2023: 11%);
-	36% of our customers used the product because some event had occurred in their lives generating the need for storage; they may be moving abroad for a job, have inherited possessions, are getting together, or separating, are students who need storage during the holidays, or homeowners developing into their lofts or basements (2023: 37%);
-	the balance of 11% of our new customer demand during the year came from businesses (2023: 11%), who stay longer and represent around 20% of our customers in store at any one time, occupying 37% of the space at 31 March 2024.

Of our overall occupied space today, customers who are longer stay lifestyle users, decluttering into small rooms as an extension to their accommodation, occupy 10% to 15% of our space; approximately 50% of the space is customers using it for less than 12 months, for reasons which are largely event driven, which could be inheritance, moving in the owner occupied or rental sector, home improvements, travelling; the balance of 37% of our space is businesses.

Our business customer base is comprised of online retailers, B2B traders looking for flexible mini-warehousing for e-fulfilment, service providers, those looking to shorten supply chains, and businesses looking to rationalise their other fixed costs of accommodation. For these customers, who typically are looking for rooms which could be from 50 sq ft to 500 sq ft in facilities that meet their operational requirements, the only supply in big cities is from self storage providers. The average space occupied by business customers at the year-end is 177 sq ft (2023: 179 sq ft).

Domestic customers occupy on average 58 sq ft (2023: 59 sq ft) and pay on average 17% more in rent per sq ft (2023: 18%), however business customers do stay longer, take more space and represent around 32% of revenue (2023: 33%).

The pandemic accelerated many structural changes that were already occurring, such as the move to online retailing and an increase in working from home facilitated by technological advances. The deindustrialisation of big cities with the conversion of commercial space into residential and other uses, has led to a shortage of suitable flexible mini-warehouse space from which to operate small scale storage and e-fulfilment, particularly in London. These developments, along with businesses increasingly seeking flexible office and storage space rather than longer inflexible leases, have been driving our demand. We believe these are long-term structural trends, which will benefit our business going forward.

From research we have previously carried out, a typical small business using storage employs around three people and 60% of them are early-stage businesses and for 50% of them this is their only space.

In addition, we have a dedicated national customers team for businesses who wish to occupy space in multiple stores. These customers on average occupy approximately 1,000 sq ft, paying £30,000 per annum, and are billed and managed centrally. This area has performed strongly in the year with revenue up 13% compared to the prior year, making up 5% of occupied space.

Activity

Prospect numbers are more in-line with the pre-Covid period on a like-for-like basis, and activity levels within the business have consequently been a little bit slower than last year, with move-ins down 6%, and move-outs also down 6% over the year, reflecting less churn. Our conversion rates over the period have increased, which is indicative of more needs-driven demand. Since the year end we have seen an increase in move-in activity, with move-ins up 5% compared to the same period last year.

Occupancy across all 109 stores fell over the year by 59,000 sq ft (2023: fall of 58,000 sq ft, with an additional 39,000 sq ft of occupancy acquired with Aberdeen in June 2022). Business occupancy dropped by 2.6% or 50,000 sq ft on 1.9 million sq ft occupied at the beginning of the year. Our larger rooms, which are occupied in the main by businesses, remain highly occupied, particularly in London. Domestic occupied space was in line with the prior year.

As we have experienced over the years, there are businesses who outgrow us and move to their own accommodation, others cease operations, some are seasonal, and we continue to replace any vacated space with new move-ins from online traders, e-tailers and service providers. We are not seeing any noticeable further softening in demand from businesses, particularly in London.

The 76 established Big Yellow stores are 81.6% occupied compared to 84.2% at the same time last year. The nine developing Big Yellow stores added 73,000 sq ft of occupancy over the year to reach closing occupancy of 59.8%. The 24 Armadillo stores, representing 10% of the Group's revenue are 74.3% occupied, compared to 76.9% at this time last year (including an additional 20,000 sq ft of capacity added during the year at Stockton South). Overall store occupancy was 78.3% (2023: 80.9%).

	Occupancy 31 March 2024 %	Occupancy change in year 000 sq ft	Occupancy 31 March 2024 000 sq ft	Occupancy 31 March 2023 000 sq ft
76 established Big Yellow stores	81.6%	(124)	3,905	4,029
9 developing Big Yellow stores	59.8%	73	375	302
All 85 Big Yellow stores	79.1%	(51)	4,280	4,331
24 Armadillo stores	74.3%	(8)	749	757
All 109 stores	78.3%	(59)	5,029	5,088

All stores are trading profitably at the EBITDA level, with our most recent opening in Kings Cross reaching break even in September 2023, four months after opening.

Rental growth

We continue to manage pricing dynamically, taking account of room availability, customer demand and local competition, with our pricing model reducing promotions and increasing asking prices where individual units are in scarce supply.

We continue to price competitively to win new customers and have moderated our existing customer price increases over the year with the fall in inflation. It must be remembered that some 60% to 70% of our customers move-out within six months, and therefore do not receive any price increases.

The average achieved net rent per sq ft increased by 7.5% compared to the prior year, with closing net rent up 5.1% compared to 31 March 2023. The table below shows the change in net rent per sq ft for the portfolio by average occupancy over the year (on a non-weighted basis). The analysis excludes our most recent store openings.

Average occupancy in the year	Net rent per sq ft growth from April 2023 to March 2024	Net rent per sq ft growth from April 2022 to March 2023
70% to 85%	5.4%	8.3%
85% to 90%	5.5%	8.7%
Above 90%	6.9%	9.7%

The self storage market

In the recently published 2024 Self Storage Association UK Survey, only 43% of those surveyed had a reasonable or good awareness of self storage. Furthermore, only 12% of the 2,076 adults surveyed were currently using self storage or were thinking of using self storage in the next year, which was an improvement from 9% in the survey last year. Self storage is therefore not a commoditised product, such as hotels, taxis, cinemas etc, and it will take many years of use and growing awareness before it becomes so, particularly given the subdued growth in new supply.

Growth in new facilities across the industry has been largely in regional areas of the UK and particularly in smaller towns. Historically, new supply creation in our core markets in London and the South East, has been difficult, with high land values driven by competing uses such as residential and urban industrial. In London in the year to 31 December 2023, there were eight new store openings, including one Big Yellow store. We are aware of four planned store openings in London in calendar year 2024.

The Self Storage Association ("SSA") estimates that the UK industry is made up of approximately 1,700 self storage facilities and 1,000 purely container operations, providing 60 million sq ft of self storage space, equating to 0.9 sq ft per person in the UK. This compares to 12 sq ft per person in the US, 2.2 sq ft per person in Australia and 0.2 sq ft for mainland Europe, where the roll-out of self storage is a more recent phenomenon (sources: UK Self Storage Association Survey May 2024 and FEDESSA European Self Storage Annual Survey 2023).

Marketing and operations

Our marketing strategy focuses on building our market-leading brand awareness further and using it to maximise the cost-efficient generation of enquiries, customer move-ins and user satisfaction through our digital platforms. Our strong brand and continued digital investment and innovation has helped us create a market-leading website which delivers over 90% of our enquiries.

Our annual YouGov survey (published May 2024) again confirmed that the brand awareness of Big Yellow remained significantly ahead of other UK operators in the sector. The survey shows our unprompted brand awareness to be 4.1 times higher than our nearest competitor across the UK (2023: 4.4 times higher).

The Big Yellow website allows users to browse different room sizes, obtain a price, reserve online and check-in online prior to arriving at the stores which are automated in terms of access once a customer moves-in.

The online customer experience also allows customers to communicate with us in real-time via Live Chat, WhatsApp, or Facebook Messenger. The comprehensive online FAQs provide our users with another way to ask questions they may have about the service without needing to call us directly. This is critical because approximately 60% of our new prospects have not used self storage before.

The seamless digital experience continues with our online check-in platform. This allows customers to complete the majority of their move-in process remotely. They can upload their photo and identity documents, sign the full customer licence, set up authorised persons, complete their storage inventory and set up a paperless Direct Debit - all done remotely. This check-in online capability has significantly cut down the time our customers need to spend in our receptions when they move-in. The process is completed with our in-store digital signature pads.

We also offer the ability to purchase boxes and packing materials through our online BoxShop store. These items can be home delivered or made available for our Click and Collect service from stores, which represents 80% of BoxShop transactions.

Driving online traffic

Self storage is a consumer-facing business, and the development of a strong and sustainable brand is multi-layered and requires a consistency of product, customer service and interaction at all touch points, particularly online.

Search engines are the most important acquisition tool for us, accounting for the majority of traffic to our website. Our focus for a competitive advantage on search continues and search engine optimisation ("SEO") work has helped us to maintain high organic listings for popular generic and local self storage related search terms. This in turn drives the growth and cost efficiencies of acquiring new prospects.

Brand search terms are also a valuable driver of enquiries for Big Yellow and help improve the efficiencies of our cost per enquiry. 41% of all traffic generated from search engines to our website originated from "Big Yellow" brand searches in the year. This clearly indicates that brand is important in driving higher levels of prospects and customer referrals, leading to improved operational efficiencies. We have demonstrated this through significant improvements in the performance of existing storage centres following their acquisition, re-branding, and assimilation into our business.

Search engine marketing remains our largest source of paid for web traffic. Ongoing website optimisation and an engaging user experience through our digital platforms helps ensure we maximise the conversion of these web visits into enquiries and then customers. Digital display advertising enables us to regionally target audiences in the market for self storage, raising consideration of the service and the Big Yellow brand through engaging creatives.

Online customer reviews and social media

Supporting our values of putting the customer at the heart of our business, our online customer reviews generate real-time feedback from customers and provide positive word of mouth referral to our website visitors. Through our 'Big Impressions' customer feedback programme, we ask our new customers to rate our service. With the users' permission, we then publish these independent customer reviews on the Big Yellow website which currently total over 52,000 averaging 4.7 out of 5.

The Big Impressions programme also generates customer feedback on their move-in and move-out experience. These customer reviews and mystery shop results are transparently accessible across the business and helps reinforce our focus on outstanding customer service. Over the year, we have achieved an average net promoter score of 80.5 which is a very strong consumer-facing benchmark result.

We also gain real-time customer feedback from over 23,500 Google Reviews averaging 4.7 out of 5. These help to enhance our visibility within local search listings conveying trust in the Big Yellow brand. Additionally, we have over 4,200 reviews from the independent review site TrustPilot. These reviews average 4.8 out of 5-star rating, labelled as "Excellent" on the TrustPilot ratings scale. We monitor our customer reviews and respond where necessary for customer service reasons or to manage our online reputation and improve our service offering.

Social media continues to be complementary to our existing marketing channels. Big Yellow actively posts content across Twitter, Facebook and Instagram which help to raise awareness of our services and ESG activities. These social channels are also used by customers to connect with us and are monitored in real-time, enabling us to respond promptly to any enquiries. The Big Yellow LinkedIn platform is used to communicate company achievements, ESG initiatives and our company culture and the Big Yellow YouTube channel is used to allow web prospects to experience our stores online through our video guides to self storage.

We will continue to invest in improving the customer experience and user journey across all our digital marketing channels and also in-store operations to achieve higher levels of automation and hence efficiencies in the business.

Generative AI is now used throughout the business and has been adopted quickly since its launch. We have a variety of tools available including Canva, ChatGPT, Google Gemini and Microsoft 365 CoPilot. These are used to generate content and ideas across social media, SEO, responses to customer reviews, drafting emails, developing training modules, policies, procedures and creating visuals in our communications. We see these large language models continuing to improve and allowing us to increase our productivity and efficiency, particularly at our head office.

Rules-based data manipulation and automation is also something that we have used within Big Yellow for some time and continue to improve. Examples of this include our dynamic pricing system, prospect management, check-in online, digital automation of all customer communications, access control reporting and alerts based on the significant data we have at stores, exception reporting for our store audit processes. Other examples in marketing would be translation AI, optimisation of paid search and targeting of prospects. Although provided by third parties, machine learning AI is the core of all our cyber security and defence, across anti-malware, firewalls, email management, vulnerability testing and Security Information and Event Monitoring. A further example is that we have just invested in a SaaS recruitment platform, which manages the workflow for all recruitment and interaction with candidates through automation. Our CAFM platform in facilities which was implemented three years ago to manage all our interactions between the stores, the facilities team and the various contractors has made a significant difference to productivity and control in that area.

The above is by no means a complete summary of how AI is making a difference to our business, but hopefully provides an insight and it is something that we will continue to invest in.

Cyber security and IT infrastructure

Cyber security and IT infrastructure are vital for the Group's strategy and operations. The Group has a robust cyber security and IT infrastructure framework that covers risk, security, compliance, innovation, and efficiency. The Group has achieved significant results and progress in the past year, but also faces challenges and opportunities in the future. The Group is committed to investing and improving its cyber security and IT infrastructure capabilities, and to maintaining its competitive edge.

We regularly evaluate cyber risk and security status with the help of both internal experts and external consultants and conduct frequent tests on our systems and people, such as penetration tests and phishing simulations. The Group's systems underwent an external audit during the year and retained the IASME Gold certification which includes Cyber Essentials. The Group has cyber insurance in place should a breach occur.

Our Data Compliance Officer oversees our ongoing compliance with GDPR and PCI DSS. The role also includes Business Continuity and Crisis Communication management. Policies and procedures are under regular review and are benchmarked against industry best practice. There are mandatory courses for all staff to complete both for Information Security and Data Protection. Our Infrastructure and Development teams continue to drive innovation and efficiencies throughout the Group.

ESG

We have a long-term strategy to become Net Renewable Energy Positive and deliver Net Zero Scope 1 and 2 Emissions targets, which will be funded with significant investment from the Group over the next few years. The main delivery vehicle for this new strategy will be the installation of solar generation capacity onto our existing store estate.

By 2025, we expect to have completed a multi-million pound investment in renewable energy generation both on the roofs of our estate and also at other locations. We published in 2022 our Strategy document that sets out our Commitments, Actions and Timelines to become 100% Renewable Energy Positive and Net Zero Scope 1 and 2 Emissions by 2030.

The sustainability performance highlights for the year are:

-	we have invested £6 million in our solar programme over the year and now have 68 stores with solar and have expanded the programme to all stores. Our current peak capacity has increased over the past three years from 0.9 Megawatts to 6.6 Megawatts;
-	we have donated £796,000 in Community Investment. This consists of a combination of free and discounted space to worthy local charitable organisations and not-for-profits and we house different organisations, from foodbanks to small community groups to NHS partners and also BoxShop products donated;
-	£298,000 has been raised for the Foundation from customer donations and employee fundraising including the matched contributions from the Company. These funds allowed us to make grants of £256,000 to our partner charities in the year;
-	we have delivered 12 successful and all-round enriching work placements with Breaking Barriers, Street League and the Down's Syndrome Association;
-	increased our GRESB Green Star rating from 4 to 5, improved from a B to an A- award from CDP and maintained our ISS indices; and
-	we obtained our third EPRA sBPR Gold Award.

Development pipeline

An important aspect of our external growth is the development of new stores, particularly in London, where there are very few existing assets suitable to be acquired. Over the last year, we added 127,000 sq ft of capacity through opening a new store in Kings Cross (London) and extending our Armadillo store in Stockton South.

Current development pipeline - with planning

Site	Location	Status	Anticipated capacity
Slough Farnham Road	Prominent location on Farnham Road	Store opening in July 2024.	Replacement for existing leasehold store of a similar size
Staines, London	Prominent location on the Causeway	Construction to commence in June 2024 with a view to opening in Summer 2025. We also have consent on the site to develop 9 industrial units totalling 99,000 sq ft.	65,000 sq ft
Queensbury, London	Prominent location off Honeypot Lane	Construction to commence in July 2024 with a view to opening in Autumn 2025.	70,000 sq ft
Wembley, London	Prominent location on Towers Business Park	Construction to commence in late 2024 with a view to opening in late 2025.	70,000 sq ft
Slough Bath Road	Prominent location on Bath Road	Construction to commence in Autumn 2024 with a view to opening in early 2026.	90,000 sq ft
Epsom, London	Prominent location on East Street	Construction to commence in late 2024 with a view to opening in Spring 2026.	58,000 sq ft
Wapping, London	Prominent location on the Highway, adjacent to existing Big Yellow	Demolition of existing building in progress, construction expected to commence in Autumn 2024 with a view to opening in Summer 2026	Additional 95,000 sq ft
Newcastle	Scotswood Road	Planning consent granted, vacant possession awaited	60,000 sq ft

Current development pipeline - without planning

Kentish Town, London	Prominent location on Regis Road	Site acquired in April 2021. Planning appeal submitted and due to be heard in May 2024.	68,000 sq ft
West Kensington, London	Prominent location on Hammersmith Road	Site acquired in June 2021. Planning appeal submitted, and due to be heard in July 2024.	175,000 sq ft
Old Kent Road, London	Prominent location on Old Kent Road	Site acquired in June 2022. Planning application submitted in October 2023.	75,000 sq ft
Staples Corner, London	Prominent location on North Circular Road	Site acquired in December 2022. Planning application submitted in December 2023.	Replacement for existing leasehold store, additional 18,000 sq ft
Leicester	Prominent location on Belgrave Gate, Central Leicester	Site acquired in June 2023. Planning discussions underway with Leicester City Council.	58,000 sq ft
Leamington Spa	Prominent location on Queensway	Site acquired in May 2024.	55,000 sq ft
Total - all sites			957,000 sq ft

PORTFOLIO SUMMARY

	March 2024					March 2023
	Big Yellow Established⁽¹⁾	Big Yellow Developing	Total Big Yellow	Armadillo	Total	Big Yellow Established	Big Yellow Developing	Total Big Yellow	Armadillo	Total
Number of stores	76	9	85	24	109	76	8	84	24	108
At 31 March:
Total capacity (sq ft)	4,784,000	627,000	5,411,000	1,008,000	6,419,000	4,784,000	524,000	5,308,000	984,000	6,292,000
Occupied space (sq ft)	3,905,000	375,000	4,280,000	749,000	5,029,000	4,029,000	302,000	4,331,000	757,000	5,088,000
Percentage occupied	81.6%	59.8%	79.1%	74.3%	78.3%	84.2%	57.6%	81.6%	76.9%	80.9%
Net rent per sq ft	£36.38	£33.06	£36.09	£22.98	£34.14	£34.55	£30.70	£34.28	£22.20	£32.48
For the year:
REVPAF⁽²⁾	£34.16	£21.30	£32.70	£20.02	£30.71	£32.68	£22.20	£31.84	£20.27	£30.02
Average occupancy	84.0%	56.2%	80.9%	76.4%	80.2%	86.9%	54.1%	84.0%	82.1%	83.7%
Average annual net rent psf	£35.83	£32.46	£35.56	£22.75	£33.64	£33.28	£30.10	£33.10	£21.33	£31.28

	£000	£000	£000	£000	£000	£000	£000	£000	£000	£000
Self storage income	144,418	11,167	155,585	17,562	173,147	136,925	8,809	145,734	17,177	162,911
Other storage related income ⁽²⁾	18,332	1,571	19,903	2,651	22,554	18,523	1,401	19,924	2,691	22,615
Ancillary store rental income	1,108	284	1,392	19	1,411	1,028	165	1,193	20	1,213
Total store revenue	163,858	13,022	176,880	20,232	197,112	156,476	10,375	166,851	19,888	186,739
Direct store operating costs	(38,979)	(5,334)	(44,313)	(7,517)	(51,830)	(38,644)	(4,482)	(43,126)	(7,437)	(50,563)
Short and long leasehold rent⁽³⁾	(2,112)	-	(2,112)	(169)	(2,281)	(1,983)	-	(1,983)	(170)	(2,153)
Store EBITDA⁽²⁾	122,767	7,688	130,455	12,546	143,001	115,849	5,893	121,742	12,281	134,023
Store EBITDA margin	74.9%	59.0%	73.8%	62.0%	72.5%	74.0%	56.8%	73.0%	61.8%	71.8%

Deemed cost	£m	£m	£m	£m	£m
To 31 March 2024	739.0	188.0	927.0	145.3	1,072.3
Capex to complete	-	1.0	1.0	0.1	1.1
Total	739.0	189.0	928.0	145.4	1,073.4

(1) The Big Yellow established stores have been open for more than three years at 1 April 2023, and the developing stores have been open for fewer than three years at 1 April 2023.

(2) See glossary in note 28.

(3) Rent paid for six short leasehold properties and one long leasehold property

The table below reconciles Store EBITDA to gross profit in the statement of comprehensive income.

	Year ended 31 March 2024 £000			Year ended 31 March 2023 £000
	Store EBITDA	Reconciling items	Gross profit per statement of comprehensive income	Store EBITDA	Reconciling items	Gross profit per statement of comprehensive income
Store revenue/Revenue⁽⁴⁾	197,112	2,507	199,619	186,739	2,090	188,829
Cost of sales⁽⁵⁾	(51,830)	(4,164)	(55,994)	(50,563)	(3,744)	(54,307)
Rent⁽³⁾	(2,281)	2,281	-	(2,153)	2,153	-
	143,001	624	143,625	134,023	499	134,522

(4) See note 3 of the financial statements, reconciling items are management fees and non-storage income.

(5) See reconciliation in cost of sales section in Financial Review.

Reconciliation of APMs

The table below reconciles the reported figures above to the like-for-like metrics the Group reports:

Like-for-like revenue

	Year ended 31 March 2024 £000	Year ended 31 March 2023 £000
Store revenue ⁶	197,112	186,739
Less revenue from non like-for-like stores ⁶	(3,657)	(1,133)
Like-for-like revenue ⁶	193,455	185,606

Like-for-like Big Yellow store occupancy

	Year ended 31 March 2024	Year ended 31 March 2023
Store MLA (sq ft) ⁶	6,419,000	6,292,000
Less MLA from non like-for-like stores (sq ft) ⁶	(1,304,000)	(1,178,000)
Like-for-like MLA (sq ft) ⁶	5,115,000	5,114,000

Store occupancy (sq ft) ⁶	5,029,000	5,088,000
Less occupancy from non like-for-like (sq ft) ⁶	(890,000)	(835,000)
Like-for-like occupancy (sq ft) ⁶	4,139,000	4,253,000

Like-for-like occupancy (%) ⁶	80.9%	83.2%

(6) See glossary in note 28

FINANCIAL REVIEW

Revenue

Total revenue for the year was £199.6 million, an increase of £10.8 million (6%) from £188.8 million in the prior year. Like-for-like store revenue (see glossary in note 28) for the year was £193.5 million, an increase of 4% from the prior year (2023: £185.6 million).

Revenue growth for the year in our London stores was 7%, our south east commuter stores 5% and our regional stores 3%.

Included in store revenue is other storage related income, from the sale of packing materials, insurance/enhanced liability service ("ELS"), and storage related charges. This amounted to £22.6 million in the year (2023: £22.6 million).

The Group changed the way it sold its contents protection cover to its customers on 1 June 2022 to an Enhanced Liability Service, which is subject to VAT at 20% and not Insurance Premium Tax ("IPT") at 12%, the latter being included in revenue. We estimate the impact of this on the total revenue and like-for-like revenue for the year is 0.2%.

The other revenue earned by the Group is tenant income on sites where we have not started development.

Operating costs

Cost of sales principally comprise the direct store operating costs, including store staff salaries, utilities, business rates, insurance, a full allocation of the central marketing budget and repairs and maintenance.

The table below shows the breakdown of our store operating costs compared to the prior year:

Category	Year ended 31 March 2024 £000	Year ended 31 March 2023 £000	Change	% of store operating costs in 2024
Cost of sales	1,519	2,202	-31%	3%
Staff costs	14,721	14,415	2%	27%
General & admin	1,434	1,691	-15%	2%
Utilities	2,670	2,056	30%	5%
Property rates	18,153	15,498	17%	33%
Marketing	6,438	6,504	-1%	12%
Repairs & maintenance	5,336	4,685	14%	10%
Insurance	3,323	2,757	21%	6%
Computer costs	1,031	1,001	3%	2%
Total before one-off items	54,625	50,809	8%
One-off items	(2,795)	(246)
Total per portfolio summary	51,830	50,563	3%

Store operating costs have increased by £1.3 million (3%). The one-off items in the current year relate to the release of a provision for property rates from the 2017 rating list (£2.3 million), and a reassessment of the Group's bad debt provision (£0.5 million). Store operating costs before these one-off items have increased by £3.8 million (8%) compared to the prior year. New stores accounted for £1.5 million of operating expense increase in the year. Cost of sales has decreased by £0.7 million following the move to selling an ELS rather than insurance (see explanation in revenue above), and also due to a decline in packing material sales during the year.

The remaining increase of £3 million represents an increase of 6%. More specifically, we would comment as follows:

-	Staff costs have increased by £0.3 million (2%). The average salary review in the year was 5.6%, which has been partly offset by a reduction in staffing in stores as we continue to invest in automation, and lower bonuses in the year.
-	General and admin expenses are down by £0.3 million (15%), following a reassessment of the Group's bad debt provision in the year.
-	Marketing is 1% down on the prior year with continued efficiencies being achieved from our digital campaigns.
-	Utilities has increased by 30%, with a new fixed rate electricity contract starting on 1 October 2023, which was at a 74% higher rate than our expiring contract. This increased rate has been partly mitigated by our investment in solar.
-	Property rates have increased by £2.7 million (17%), following the Rating Revaluation published in November 2022, effective 1 April 2023.
-	Insurance has increased by £0.6 million (21%). Overall buildings and loss of income insurance premiums increased from 1 April 2023 by 16%, due to market conditions and higher insured values. In addition, we now insure our customers contents for catastrophe risk, with a Lloyds underwriter, and as a result are responsible for paying for claims up to £250,000 in any one loss. During the year £348,000 was paid in claims (2023: £128,000), with higher claims this year due to the very wet winter.
-	The repairs and maintenance expense has increased due to higher store numbers, and an increase in solar panel maintenance costs, with higher numbers of stores now with solar PVs.
-	The Group's bad debt expense for the year was 0.2% of revenue, in line with the prior year. The Group has not seen any deterioration in its aged debtors' profile over recent months.

The table below reconciles store operating costs per the portfolio summary to cost of sales in the statement of comprehensive income:

	Year ended 31 March 2024 £000	Year ended 31 March 2023 £000
Direct store operating costs per portfolio summary (excluding rent)	51,830	50,563
Rent included in cost of sales (total rent payable is included in portfolio summary)	1,784	1,551
Depreciation charged to cost of sales	569	496
Head office and other operational management costs charged to cost of sales	1,811	1,697
Cost of sales per statement of comprehensive income	55,994	54,307

Store EBITDA

Store EBITDA for the year was £143.0 million, an increase of £9.0 million (7%) from £134.0 million for the prior year (see Portfolio Summary). The overall EBITDA margin for during the year was 72.5%, up from 71.8% in 2023.

All stores are currently trading profitably at the Store EBITDA level. Our store in Kings Cross, which opened in June 2023, reached break even after four months of trading.

Administrative expenses

Administrative expenses in the statement of comprehensive income of £15.2 million were up £0.7 million (5%) compared to the prior year, including increased legal and professional fees and COO recruitment costs. The non-cash share-based payments charge represents £4.0 million of the overall £15.2 million expense (2023: £3.7 million of £14.5 million expense).

Other income

In February 2022 the Group experienced a fire at our Cheadle store, which resulted in a total loss to the store. We have insurance cover in place for both the fit-out and four years loss of income. The loss of income received during the financial year was £1.8 million, which is included in other income (2023: £1.4 million).

The Group also received £4.7 million in the year which was the insurance proceeds for the fit-out of the Cheadle store. This amount is shown in other income but has not been included in the Group's adjusted earnings for the year.

Interest expense on bank borrowings

The gross bank interest expense for the year was £25.6 million, an increase of £7.5 million from the prior year, due to higher average debt levels in the first half of the year, coupled with the Group's higher average cost of debt following the increase in interest rates. The average cost of borrowing during the year was 5.5% compared to 4.2% in the prior year. Capitalised interest on our construction programme was £3.3 million, up from £2.8 million in the prior year.

Total finance costs in the statement of comprehensive income increased to £22.9 million from £16.9 million in the prior year.

Profit before tax

The Group made a profit before tax in the year of £241.0 million, compared to a profit of £75.3 million in the prior year. After adjusting for the gain on the revaluation of investment properties and other matters shown in the table below, the Group made an adjusted profit before tax in the year of £107.3 million, up 1% from £106.0 million in 2023.

Profit before tax analysis	2024 £000	2023 £000
Profit before tax	241,035	75,309
(Gain)/loss on revaluation of investment properties	(131,159)	29,861
Movement in fair value on interest rate derivatives	2,146	133
Cheadle fit-out insurance proceeds	(4,723)	-
Refinancing costs	-	732
Adjusted profit before tax	107,299	106,035

The adjustments made to the Group's profit before tax follow guidance issued by EPRA, with additional Company specific adjustments made to give readers a clearer underlying picture of the Group's performance. EPRA profit before tax is disclosed in note 10.

The movement in the adjusted profit before tax from the prior year is illustrated in the table below:

	£m
Adjusted profit before tax - year ended 31 March 2023	106.0
Increase in gross profit	9.1
Increase in administrative expenses	(0.7)
Decrease in other income	(0.4)
Increase in net interest payable	(7.2)
Increase in capitalised interest	0.5
Adjusted profit before tax - year ended 31 March 2024	107.3

Basic earnings per share for the year was 127.1p (2023: 40.1p) and diluted earnings per share was 126.4p (2023: 39.8p). Diluted adjusted earnings per share based on adjusted profit after tax was down 1% to 55.9p (2023: 56.5p) (see note 12).

REIT status

The Group converted to a Real Estate Investment Trust ("REIT") in January 2007. Since then, the Group has benefited from a zero tax rate on the Group's qualifying self storage earnings. The Group only pays tax on the profits attributable to our residual business, comprising primarily of the sale of packing materials and insurance.

REIT status gives the Group exemption from UK corporation tax on profits and gains from its qualifying portfolio of UK stores. Revaluation gains on developments and our existing open stores are exempt from corporation tax on chargeable gains, provided certain criteria are met. The Armadillo stores joined our REIT group on acquisition of the remaining interest, allowing us to write back the deferred tax that had been provided on previous revaluation uplifts.

The Group has a rigorous internal system in place for monitoring compliance with criteria set out in the REIT regulations. On a monthly basis, a report on compliance with these criteria is issued to the Executive. To date, the Group has complied with all REIT regulations, including forward looking tests.

Taxation

There is a £2.3 million tax charge in the residual business for the year ended 31 March 2024 (2023: £2.3 million). The current year tax charge is partly offset in the income statement by an adjustment to the prior year tax estimate.

Dividends

The Board is recommending the payment of a final dividend of 22.6 pence per share in addition to the interim dividend of 22.6 pence, giving a total dividend for the year of 45.2 pence, in line with the prior year. The Group's policy is to distribute a minimum of 80% of our adjusted earnings per share in each reporting period.

REIT regulatory requirements determine the level of Property Income Distribution ("PID") payable by the Group. On the basis of the full year distributable reserves for PID purposes, a PID of 45.2p pence per share is payable (31 March 2023: 45.2 pence). The PID for the year to 31 March 2024 accounts for all of the declared dividend. The table below summarises the declared dividend for the year:

Dividend (pence per share)	31 March 2024	31 March 2023
Interim dividend	22.6p	22.3p

Final dividend	22.6p	22.9p

Total dividend	45.2p	45.2p

Subject to approval by shareholders at the Annual General Meeting to be held on 18 July 2024, the final dividend will be paid on 26 July 2024. The ex-div date is 4 July 2024 and the record date is 5 July 2024.

Cash flow growth

The Group is strongly cash generative and draws down from its longer term committed facilities as required to meet its obligations. The Group's cash flow from operating activities pre-working capital movements for the year was £110.1 million, an increase of 1% from £109.2 million in the prior year, with the growth in line with the increase in the Group's profitability in the year.

These operating cash flows are after the ongoing maintenance costs of the stores, which were on average approximately £49,000 per store (2023: £43,000).

The Group's net debt has decreased over the year to £385.4 million (March 2023: £486.6 million).

There are distortive working capital items in the current period, and therefore the summary cash flow below sets out the free cash flow pre-working capital movements

	Year ended 31 March 2024 £m	Year ended 31 March 2023 £m
Cash generated from operations pre-working capital movements	135.1	126.2
Net finance costs	(24.0)	(16.5)
Interest on obligations under lease liabilities	(0.6)	(0.7)
Loss of income insurance proceeds	1.6	2.0
Tax	(2.0)	(1.8)
Cash flow from operating activities pre-working capital movements	110.1	109.2
Working capital movements	(5.3)	2.8
Cash flow from operating activities	104.8	112.0
Capital expenditure	(30.9)	(106.4)
Disposal of non-current asset	5.4	-
Insurance proceeds on fit-out	4.7	-
Receipt from Capital Goods Scheme	-	0.2
Cash flow after investing activities	84.0	5.8
Ordinary dividends	(85.2)	(79.2)
Issue of share capital	108.0	1.0
Payment of lease liabilities	(1.8)	(1.3)
Receipt from termination of interest rate derivatives	-	0.4
Loan arrangement fees paid	(3.7)	(1.5)
(Decrease)/increase in borrowings	(100.2)	74.5
Net cash inflow/(outflow)	1.1	(0.3)
Opening cash and cash equivalents	8.3	8.6
Closing cash and cash equivalents	9.4	8.3
Closing debt	(394.8)	(494.9)
Closing net debt	(385.4)	(486.6)

The Group's interest cover for the period (expressed as the ratio of cash generated from operations pre-working capital movements against interest paid) was 5.6 times (2023: 7.7 times). This is calculated per below:

	31 March 2024 £000	31 March 2023 £000
Cash generated from operations pre working capital movements (see note 26)	135,086	126,195
Interest paid per cash flow statement	(24,069)	(16,486)
Interest cover	5.6x	7.7x

In the year capital expenditure outflows were £30.9 million, down from £106.4 million in the prior year. This capital expenditure was principally on the construction of new stores, and the continued roll-out of our solar retro-fit programme. We expect the amount of capital expenditure to increase next year, as we build out our seven sites with planning consent and vacant possession. The disposal of non-current asset of £5.4 million relates to the proceeds from a land swap at Kings Cross.

The cash flow after investing activities was a net inflow of £84.0 million in the year, compared to a net inflow of £5.8 million in 2023.

Balance sheet

Property

The Group's open stores and stores under development owned at 31 March 2024, which are classified as investment properties, have all been valued individually by JLL.

The external valuation has resulted in an investment property asset value of £2.865 billion, comprising £2.686 billion (94%) for the freehold (including nine long leaseholds) open stores, £32.2 million (1%) for the short leasehold open stores and £146.5 million (5%) for the freehold investment properties under construction.

Investment property

The open store portfolio has increased in value by £145.4 million (5.3%). This increase in value arises from an improvement in cap rates, reflecting recent transactions in the sector, and operating cash flow growth.

The weighted average exit capitalisation rate used in the valuations was 5.4% in the current year, compared to 5.6% in the prior year.

Analysis of property portfolio	Value at 31 March 2024 £m	Revaluation movement in the year £m
Investment property	2,718.5	145.4
Investment property under construction	146.5	(14.2)
Investment property total	2,865.0	131.2

The table below provides a further breakdown of the open store valuations:

	Established		Developing	Armadillo
	Freehold	Leasehold	Freehold	Largely Freehold	Total
Number of stores	71	5	9	24	109
MLA capacity (sq ft)	4,473,000	311,000	627,000	1,008,000	6,419,000
Valuation at 31 March 2024 (£m)	£2,082.6m	£27.4m	£343.1m	£173.8m	£2,626.9m
Value per sq ft	£466	£88	£547	£172	£409
Occupancy at 31 March 2024	81.7%	80.2%	59.8%	74.3%	78.3%
Stabilised occupancy assumed	88.6%	87.3%	86.1%	86.4%	87.8%
Net initial year one NOI yield	5.3%	18.2%	3.2%	6.2%	5.2%

The total store valuation in this table differs to the balance sheet due to the non-self storage investment property that the Group owns, such as the Harrow Industrial Scheme. The net initial year one NOI yield is 5.2% (2023: 5.3%). Note 15 contains more detail on the assumptions underpinning the valuations.

Investment property under construction

The Group spent £15.1 million on investment property under construction in the year, the majority of which was construction expenditure, principally on Kings Cross and Slough Farnham Road. This spend also includes the site purchase of Leicester. Kings Cross transferred to investment property during the year as the store opened, and the Harrow Industrial Scheme has also been transferred to investment property during the year, following the completion of its construction.

The revaluation deficit of £14.2 million on the investment property under construction is largely as a result of a reduction in the value of our land without self storage planning - this deficit all occurred in the first half of the year, with values stable in the second half of the year.

The projected net operating income of the increase in our total capacity of 957,000 sq ft when stabilised is £30.4 million representing an approximate 13.5% return on the incremental capital deployed. On a proforma basis at stabilisation, the projected net operating income for the 12 new stores and two replacement stores is £35.9 million, a return of approximately 8.7% on the total development cost of £412 million, including land already acquired.

Purchaser's cost adjustment

As in prior years, we have instructed an alternative valuation on our assets using a purchaser's cost assumption of 2.75% (see note 15 for further details) to be used in the calculation of our adjusted diluted net asset value. This Red Book valuation on the basis of the special assumption of 2.75% purchaser's costs, results in a higher property valuation at 31 March 2024 of £2.976 billion (£111.1 million higher than the value recorded in the financial statements). This translates to 56.2 pence per share. This revised valuation translates into an adjusted net asset value per share of 1,296.4 pence (2023: 1,237.3 pence) after the dilutive effect of outstanding share options.

Receivables

The Group's bad debt expense in the year represented 0.2% of revenue compared to 0.2% in the prior year, with 80% of our customer base paying by direct debit.

Net asset value

The adjusted net asset value is 1,296.4 pence per share (see note 13), compared to 1,218.5 pence per share at 31 March 2023 (after adjusting for the impact of the placing in October 2023). The table below reconciles the movement:

Movement in adjusted net asset value	£m	Adjusted NAV pence per share
31 March 2023	2,287.2	1,237.3
Adjusted for placing	107.0	(18.8)
31 March 2023 (adjusted)	2,394.2	1,218.5
Adjusted profit after tax	106.1	54.0
Equity dividends paid	(86.0)	(43.8)
Revaluation movements	131.2	66.8
Movement in purchaser's cost adjustment	6.5	3.3
Other movements (e.g. share schemes, insurance fit-out receipt)	9.9	(2.4)
31 March 2024	2,561.9	1,296.4

Borrowings

Our financing policy is to fund our current needs through a mix of debt, equity, and cash flow to allow us to build out, and add to, our development pipeline and achieve our strategic growth objectives, which we believe improve returns for shareholders. We aim to ensure that there are sufficient medium-term facilities in place to finance our committed development programme, secured against the freehold portfolio, with debt serviced by our strong operational cash flows. We maintain a keen watch on medium and long-term rates and the Group's policy in respect of interest rates is to maintain a balance between flexibility and hedging of interest rate risk.

The table below summarises the Group's debt facilities at 31 March 2024, with a current average cost of debt of 5.4% (March 2023: 4.7%).

Debt	Expiry	Facility	Drawn	Cost
Aviva Loan	September 2028	£155.8m	£155.8m	3.3%
M&G loan (£35 million fixed at 4.5%, £85 million floating)	September 2029	£120m	£120m	6.9%
Revolving bank facility (Lloyds, HSBC, Barclays and Bank of Ireland, floating)	December 2026 (option to extend for two further years)	£300m	£119m	6.4%
Total	Average term 4.2 years	£575.8m	£394.8m	5.4%

In addition to the facilities above, the Group has a $225 million credit approved shelf facility with Pricoa Private Capital ("Pricoa"), to be drawn in fixed sterling notes. The Group can draw the debt in minimum tranches of £10 million over the next two and half years with terms of between 7 and 15 years at short notice, typically 10 days.

During the year the Group put in place a new £300 million Sustainability-linked facility for an initial term of three years, with the option to extend the facility by two additional one-year terms through to December 2028, subject to lender approval. The loan is provided by Lloyds Bank plc, HSBC UK Bank plc, Bank of Ireland, and Barclays Bank plc, with Barclays joining the existing three bank syndicate. The margin of 1.25% was unchanged from the existing facility.

The Group has incorporated Sustainability-linked KPIs into the loan, which include annual pre-agreed targets and are based on:

- reductions in Scope 1 and 2 emissions;

- increase in solar generation capacity;

- total annual grants to Big Yellow Foundation charity partners; and

- the value of storage space provided free of charge to local charities in our stores.

Performance against the KPIs will be measured annually, and a margin decrease or increase will be applied to the headline margin on the basis of this performance.

The Group was comfortably in compliance with its banking covenants at 31 March 2024. Further details of the Group's covenants are provided in note 19 of the accounts.

The Group's key financial ratios are shown in the table below:

Metric	31 March 2024	31 March 2023
Net Debt / Gross Property Assets	13%	18%
Net Debt / Adjusted Net Assets	15%	21%
Net Debt / Market Capitalisation	18%	23%
Net debt to Group EBITDA ratio	3.0x	4.1x
Cash generated from operations pre-working capital movements against interest paid	5.6x	7.7x

At 31 March 2024, the fair value on the Group's interest rate derivatives was a liability of £1.8 million. The Group does not hedge account its interest rate derivatives. The fair value movements are eliminated from adjusted profit before tax, adjusted earnings per share, and adjusted net assets per share.

Cash deposits are only placed with approved financial institutions in accordance with the Group's Treasury policy.

Share capital

The share capital of the Company totalled £19.6 million at 31 March 2024 (2023: £18.4 million), consisting of 196,195,287 ordinary shares of 10p each (2023: 184,265,973 shares). 11.6 million shares were issued in October 2023 for a placing, raising £107 million (net of expenses). 0.3 million shares were issued for the exercise of options during the year at an average exercise price of £10.77 (2023: 0.3 million shares at an average price of £13.13).

The Group holds 1.1 million shares within an Employee Benefit Trust ("EBT"). These shares are shown as a debit in reserves and are not included in calculating net asset value per share.

	2024 No.	2023 No.
Opening shares	184,265,973	183,967,378
Shares issued in placing	11,640,212	-
Shares issued for the exercise of options	289,102	298,595
Closing shares in issue	196,195,287	184,265,973
Shares held in EBT	(1,098,686)	(1,122,907)
Closing shares for NAV purposes	195,096,601	183,143,066

111.2 million shares were traded in the market during the year ended 31 March 2024 (2023: 116.3 million). The average mid-market price of shares traded during the year was £10.84 with a high of £12.39 and a low of £9.10.

Principal risks and uncertainties

The Directors have carried out a robust assessment of the emerging and principal risks facing the Group, including those that would threaten its business model, future performance, solvency, or liquidity. The Group maintains a low appetite to risk, in line with our strategic objectives of providing a low volatility, high distribution business.

The section below details the emerging and principal risks and uncertainties that are considered to have the most material impact on the Group's strategy and objectives. These key risks are monitored on an ongoing basis by the Executive Directors and considered fully by the Board in its annual risk review.

Risk and impact

Mitigation

Change during the year and outlook

Self storage market risk

There is a risk to the business that the self storage market does not grow in line with our projections, and that economic growth in the UK is below expectations, which could result in falling demand and a loss of income.

Self storage is a relatively immature market in the UK compared to other self storage markets such as the United States and Australia, and we believe has further opportunity for growth. Awareness of self storage and how it can be used by domestic and business customers is relatively low throughout the UK, although higher in London; awareness increased during the pandemic.

The rate of growth of branded self storage on main roads in good locations has historically been limited by the difficulty of acquiring sites at affordable prices and obtaining planning consent. New store openings in London and other large urban conurbations within the sector have slowed significantly over the past few years.

Our performance during the past four years has been strong with revenue growing by 54% from £129.3 million in the year ended 31 March 2020 to £199.6 million for this year. We believe that this performance is due to a combination of factors including:

-	a high quality and growing portfolio of freehold properties delivering higher operating margins;
-	a focus on London and the South East and other large urban conurbations, where the drivers in the self storage market are at their strongest and the barriers to competition are at their highest;
-	continuing innovation and automation;
-	an inclusive and non-hierarchical culture with a highly engaged team;
-	a focus on delivering the highest levels of customer service;
-	delivering on our strong ESG commitments;
-	the UK's leading self storage brand, with high and growing public awareness and online strength; and
-	strong cash flow generation from a secure capital structure.

We have a large current storage customer base occupying approximately 73,000 rooms spread across the portfolio of stores and hundreds of thousands more who have used our stores over the years. In any month, customers move in and out at the margin resulting in changes in occupancy. This is a seasonal business and typically we see growth over the spring and the summer months, with the seasonally weaker period being the winter months.

The past two financial years have seen a challenging geopolitical and macroeconomic backdrop, with the Russian invasion of Ukraine in February 2022, the US regional banking crisis and the collapse of Credit Suisse, the conflict in the Middle East, and the impact of rising inflation and interest rates. The latter has impacted the cost of living in the UK, and the level of housing transactions has fallen as the cost of mortgages has increased. The UK economy briefly entered a recession in the second half of 2023.

The Group's move-in activity levels were impacted by this backdrop during the year and were down 6% compared to the prior year. However, since the year end, activity levels have improved and move-ins are up 5% compared to the same period last year.

Inflation has moderated over recent months, and most commentators consider that interest rates have peaked and will start to fall towards the end of the year, subject to inflation remaining on its current trajectory.

Property risk

There is a risk that we will be unable to acquire new development sites which meet management's criteria. This would impact on our ability to grow the overall store platform.

Changing climate and resulting likely changes to planning restrictions will narrow choice of available sites further.

The Group is also subject to the risk of failing to obtain planning consents on its development sites, and the risk of a rising cost of development.

Planning approval is increasingly dependent on Social or Environmental enhanced features (e.g. social enterprise at Battersea, BREEAM standards, local planners demands for green spaces) - adding cost and complexity.

Our management has significant experience in the property industry generated over many years and in particular acquiring property on main roads in high profile locations and obtaining planning consents. We do take planning risk where necessary, although the availability of land, and competition for it makes acquiring new sites challenging.

Our in-house development team and our professional advisers have significant experience in obtaining planning consents for self storage centres.

We manage the construction of our properties very tightly. The building of each site is handled through a design and build contract, with the fit-out project managed in-house using an established professional team of external advisers and sub-contractors who have worked with us for many years to our Big Yellow specification.

We carried out an external benchmarking of our construction costs and tendering programme during the prior year, which reinforced our current approach, but also gave some areas where further efficiencies and cost savings can be achieved, which we have been implementing this year.

The Group has acquired thirteen sites over the past five years, taking its total pipeline to 14 sites which, when opened, would expand the Group's current MLA by 15%.

The planning process remains difficult and to achieve a planning consent can take anything from eighteen months to three years. Local planning policy is favouring residential development over other uses, and we don't expect this to change given the shortage of housing in the UK.

We currently have planning consent on eight of the 14 development sites.

Valuation risk

The valuation of the Group's investment properties may fall due to external pressures or the impact of performance.

Lack of transactional evidence in the self storage sector leads to more subjective valuations.

The portfolio is diverse with approximately 73,000 rooms currently occupied in our stores for a wide variety of reasons.

The valuations are carried out by independent, qualified external valuers who have significant experience in the UK self storage industry.

The revaluation surplus on the Group's open store investment properties was £145.4 million in the year (an uplift of 5%), due to an improvement in cap rates following recent transactions in the sector and growth in underlying cash flows used in the valuations.

There have been a number of larger portfolio transactions across Europe over the past four years, notably including the proposed acquisition of Lok 'n Store by Shurgard, and there is a weight of institutional money looking to invest in self storage.

There is significant headroom on our loan to value banking covenants.

Treasury risk

The Group may face increased costs from adverse interest rate movements.

Our financing policy is to fund our current needs through a mix of debt, equity, and cash flow to allow us to selectively build out the remaining development pipeline and achieve our strategic growth objectives, which we believe improve returns for shareholders. We have made it clear that we believe optimal leverage for a business such as ours should be a debt to EBITDA ratio in the range of 3 to 4 times and this informs our management of treasury risk.

We aim to ensure that there are sufficient medium-term facilities in place to finance our committed development programme, secured against the freehold portfolio, with debt serviced by our strong operational cash flows.

We have a fixed rate loan in place from Aviva Commercial Finance Limited, with 4 and half years remaining. The Group has a £120 million loan from M&G Investments, which is repayable in 2029. For our revolving credit facility, we borrow at floating rates of interest.

The Group has a $225 million credit approved shelf facility with Pricoa Private Capital ("Pricoa"), to be drawn in fixed sterling notes. The Group can draw the debt in minimum tranches of £10 million over the next two and a half years with terms of between 7 and 15 years at short notice, typically 10 days.

Our policy is to maintain a flexible borrowing structure, with a long-term average of approximately 50% of our total borrowings fixed, with the balance floating. At 31 March 2024 48% of the Group's total drawn borrowings were fixed or subject to interest rate derivatives. The Group reviews its current and forecast projections of cash flow, borrowing and interest cover as part of its monthly management accounts. In addition, an analysis of the impact of significant transactions is carried out regularly, as well as a sensitivity analysis assuming movements in interest rates and store occupancy on gearing and interest cover. This sensitivity testing underpins the viability statement below.

The Group regularly monitors its counterparty risk. The Group monitors compliance with its banking covenants closely. During the year it complied with all its covenants and is forecast to do so for the foreseeable future.

The Bank of England base rate has been increased further during the year, with it currently at 5.25%, up from 4.25% at the start of our financial year, and 0.75% the year before.

52% of the Group's drawn debt is floating, and hence the Group will benefit from any reductions in the base rate.

Debt providers currently remain supportive to companies with a strong capital structure, as evidenced by the Group refinancing the RCF during the year at an unchanged margin.

The Group's interest cover ratio for the year ended 31 March 2024 was 5.6 times, comfortably ahead of our banking covenants, as disclosed in note 19.

We keep our hedging arrangements under review and if the long term cost of borrowing for durations of ten to twelve year falls, we will consider taking out more longer term debt, which would increase the weighting of the fixed element.

Tax and regulatory risk

The Group is exposed to changes in the tax regime affecting the cost of corporation tax, property rates, VAT, Stamp Duty and Stamp Duty Land Tax ("SDLT"), for example the imposition of VAT on self storage from 1 October 2012.

The Group is exposed to potential tax penalties or loss of its REIT status by failing to comply with the REIT legislation.

We regularly monitor proposed and actual changes in legislation with the help of our professional advisers, through direct liaison with HMRC, and through trade bodies to understand and, if possible, mitigate or benefit from their impact.

HMRC have designated the Group as having a low-risk tax status, and we hold regular meetings with them. We carry out detailed planning ahead of any future regulatory and tax changes using our expert advisers.

The Group has internal monitoring procedures in place to ensure that the appropriate REIT rules and legislation are complied with. To date all REIT regulations have been complied with, including projected tests.

The Group's property rates bill for the year ended 31 March 2024 has increased by 17% from the prior year, with the 2023 rating list reflecting the rise in industrial rents over the past few years.

The corporation tax rate increased with effect from April 2023, and there is a risk that tax rates will rise further in the medium-term to fund the increased government deficits that have arisen from the policy response to the pandemic.

Human resources risk

Our people are key to our success and as such we are exposed to a risk of high staff turnover, and a risk of the loss of key personnel.

We have developed a professional, lively, and enjoyable working environment and believe our success stems from attracting and retaining the right people. We encourage all our staff to build on their skills through appropriate training and regular performance reviews. We believe in an accessible and open culture and everyone at all levels is encouraged to review, and challenge accepted norms, to contribute to the performance of the Group.

The Group carried out an engagement survey of its employees during the prior year, which showed very pleasing results of the level of engagement of our teams.

We have listened to the feedback from our employees raised during our engagement survey and made a number of changes to the Group's operations, included reviewing and relaunching our Bright Ideas Suggestion Scheme, reviewing our salary bands for Store employees, and personal safety training having been provided for all team members within our stores. We also introduced a new Employee Assistance Programme, re-trained our Wellbeing Experts and set up a specific Wellbeing sub-site on our Intranet.

Brand and reputation risk

The Group is exposed to the risk of a single serious incident materially affecting our customers, people, financial performance and hence our brand and reputation, including the risk of a data breach.

We have always aimed to run this business in a professional way, which has involved strict adherence with all regulations that affect our business, such as health and safety legislation, building regulations in relation to the construction of our buildings, anti-slavery, anti-bribery, and data regulations.

We also invest in cyber security (discussed below), and make an ongoing investment in staff training, facilities management, and the maintenance of our stores.

We work closely with our key suppliers to ensure a consistency of service from them.

To ensure consistency of service and to understand the needs of our customers, we send surveys to every customer who moves in and moves out of the business. The results of the surveys and mystery shops are reviewed to continuously improve and deliver consistent performance throughout the business.

We maintain regular communication with our key stakeholders, customers, employees, shareholders, and debt providers.

The Group has a crisis response plan which was developed in conjunction with external consultants to ensure the Group is well placed to effectively deal with a major incident.

We experienced a fire caused by arson at our Armadillo Cheadle store a couple of years ago. Our crisis response team worked effectively in managing the incident.

Security risk

The Group is exposed to the risk of the damage or loss of a store due to vandalism, fire, or natural incidents such as flooding. This may also cause reputational damage.

The safety and security of our customers, their belongings, stores, and our staff remains a key priority. To achieve this, we invest in state-of-the-art access control systems, individual room alarms, digital CCTV systems, intruder and fire alarm systems and the remote monitoring of all our stores outside of our trading hours. We are the only major operator in the UK self storage industry that has every room in every Big Yellow store individually alarmed.

We have implemented customer security procedures in line with advice from the Police and continue to work with the regulatory authorities on issues of security, reviewing our operational procedures regularly. The importance of security and the need for vigilance is communicated to all store staff and reinforced through training and routine operational procedures.

We have continued to run courses for all our staff to enhance the awareness and effectiveness of our procedures in relation to security.

We have further invested in security improvements in our stores during the year. We have also invested in additional automated reports and alerts which notify our overnight monitoring station and the operating team of suspicious customer activity.

We regularly review and implement improvements to our security processes and procedures.

Cyber risk

High profile cyber-attacks and data breaches are a regular staple in today's news. The results of any breach may result in reputational damage, fines, or customer compensation, causing a loss of market share and income.

The Group receives specialist advice and consultancy in respect of cyber security, and we have dedicated in-house monitoring and regular review of our security systems. We also limit the retention of customer data to the minimum requirement.

Policies and procedures are under regular review and benchmarked against industry best practice by our consultants. These policies also include defend, detect and response policies.

We don't consider the risk to have increased more for the Group than any other business; however, we consider that the threats in the entire digital landscape do continue to increase and evolve. As such we have continued to invest in cyber security upgrading or replacing components as required.

Climate change related risk

The Group is exposed to climate-change related transition and physical risks. Physical risks may affect the Group's stores and may result in higher maintenance and repair costs. Failing to transition to a low carbon economy may cause an increase in taxation, decrease in access to loan facilities and reputational damage.

The good working order of our stores is of critical importance to our business model.

We visually inspect each of our stores at least once per annum and planned and unplanned work is discussed immediately.

Maintenance requirements are discussed at budget reviews; proposals are made to raise climate change related issues to the Board, who may request more holistic adaptation work to be carried out.

The key mitigation strategy to address transitional risks is the delivery of our Net Renewable Energy Positive Strategy and the Net Zero Scope 1 and Scope 2 Emissions Strategy. Our investment to decarbonise our business over the next eight years is expected to mitigate fully against taxation (carbon tax) risk and reputational risks (both investors and customers).

Our Sustainability Committee, chaired by a Non-Executive Director, has delivered an ambitious strategic plan to 2032.

We appreciate that both physical and transition risks are expected to materialise to lesser or greater extents over the coming years and costs may go up gradually, hidden within what may be perceived as 'natural variations'. Our focus and strong governance will allow us to continue to mitigate the effects.

Internal audit

The Group employs a Head of Store Compliance responsible for reviewing store operational and financial controls. He reports to the Chief Financial Officer, and also meets with the Audit Committee at least once a year. This role is supported by three other team members, enabling additional work and support to be carried out across the Group's store portfolio. The Store Compliance team visits each operational store twice per year to carry out a detailed store audit. These audits are unannounced, and the Store Compliance team carry out detailed tests on financial management, administrative standards, and operational standards within the stores. Part of the store staff's bonus is based on the scores they achieve in these audits. The results of each audit are reviewed by the Chief Financial Officer, the Financial Controller, and the Regional Operations Managers. This is the equivalent of an internal audit function for the Group's store operations.

For the key business cycles conducted at the Group's head office, external consultants are used to review the Group's controls on a rotational basis. The consultants produce a report with recommendations which is discussed with management and reviewed by the Audit Committee. The cycles covered by this activity include construction expenditure, treasury, taxation, and facilities management.

During the year, the Group implemented new software to enable us to better capture risks and controls and implement a formal testing cycle ahead of the new Corporate Governance Code. With the assistance of external consultants, we performed a detailed walk through of key processes. We have developed a detailed Risk and Controls Matrix in these areas and documented the workflows. These are being embedded in the software, and with reference to best practice will highlight any risks we can further develop controls around, or any controls that could be improved.

With the combination of the store internal audit process and the external assessment of the key business cycles, the Audit Committee considers that this provides a robust internal audit assessment for the Group.

GOING CONCERN

A review of the Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are shown in the balance sheet, cash flow statement and accompanying notes to the financial statements. Further information concerning the Group's objectives, policies, and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk can be found in this Report and in the notes to the financial statements.

At 31 March 2024 the Group had available liquidity of approximately £190 million, from a combination of cash and undrawn bank debt facilities. The Group additionally has a $225 million credit approved shelf facility with Pricoa Private Capital to be drawn in fixed sterling notes. The Group can draw the debt in minimum tranches of £10 million over the next two and half years with terms of between 7 and 15 years at short notice, typically 10 days. The Group is cash generative and for the year ended 31 March 2024, had operational cash flow of £110.1 million, with capital commitments at the balance sheet date of £3.9 million.

The Directors have prepared cash flow forecasts for a period of 18 months from the date of approval of these financial statements, taking into account the Group's operating plan and budget for the year ending 31 March 2025 and projections contained in the longer-term business plan which cover the 18 month going concern assessment period. After reviewing these projected cash flows together with the Group's and Company's cash balances, borrowing facilities and covenant requirements, and potential property valuation movements over that period, the Directors believe that, taking account of severe but plausible downsides, the Group and Company will have sufficient funds to meet their liabilities as they fall due for that period.

In making their assessment, the Directors have carefully considered the outlook for the Group's trading performance and cash flows as a result of the current economic environment, taking into account the trading performance of the Group over the recent dislocations in the global economy from Covid-19, the Russian invasion of Ukraine and the cost of living crisis. The Directors have also considered the performance of the business during the Global Financial Crisis. The Directors modelled several different scenarios, including material reductions in the Group's occupancy rates and property valuations, and assessed the impact of these scenarios against the Group's liquidity and the Group's banking covenants. The scenarios considered did not lead to breaching any of the banking covenants, and the Group retained sufficient liquidity to meet its financial obligations as they fall due.

Consequently, the Directors continue to adopt the going concern basis in preparing the Group and Company financial statements.

VIABILITY STATEMENT

The Directors have assessed the Group's viability over a four-year period to March 2028. This period is selected based on the Group's long-term strategic plan to give greater certainty over the forecasting assumptions used. As in the assessment of going concern, the Directors have modelled a number of different scenarios on the Group's future prospects.

In making their assessment, the Directors took account of the Group's current financial position, including committed capital expenditure. The Directors carried out a robust assessment of the emerging and principal risks and uncertainties facing the business, their potential financial impact on the Group's cash flows, REIT compliance and financial covenants and the likely effectiveness of the mitigating options detailed. The Directors have assumed that funding for the business in the form of equity, bank and insurance company debt will be available in all reasonably plausible market conditions. Whilst the eventual impact of the current economic environment on the Group is uncertain, and may not be known for some time, the Group has a highly cash generative business, good liquidity and has proved resilient in its trading in recent years.

Based on this assessment the Directors have a reasonable expectation that the Company and the Group will be able to continue operating and meeting all their liabilities as they fall due to March 2028.

STRATEGY AND INVESTMENT CASE

Our Strategy

Brand, platform, and customer service

Our strategy from the outset has been to develop Big Yellow into the market-leading self storage brand, delivering excellent customer service, investing in sustainability and our market-leading operating platform and digital channels, with a great culture and highly motivated employees. We concentrate on developing our stores in main road locations with high visibility, where our distinctive branding generates high awareness of Big Yellow.

Creating shareholder value

We continue to believe that the medium-term opportunity to create shareholder value consists of driving revenue and cash flow from our existing portfolio through continued investment in sustainability, our people, culture, and digital operating and marketing platforms. In addition, we aim to deliver external growth as new stores open through continued investment in our development pipeline, and selectively acquiring existing storage centres from smaller operators. As a REIT our key financial objective is to produce sustainable returns for shareholders through a relatively low leverage, low volatility, high distribution business. In addition, any successful business must have an effective sustainability strategy, particularly around climate change, and this continues to be a key strategic focus for our business.

We focus on the following key areas:

-	leveraging our market-leading brand position to generate new prospects, principally from our digital, mobile and desktop platforms;
-	focusing on training, selling skills, and customer satisfaction to maximise prospect conversion and referrals;
-	growing occupancy and net rent to drive revenue optimally at each store;
-	maintaining a focus on cost control, so revenue growth is transmitted through to earnings growth;
-	increasing the footprint of the Big Yellow platform principally through new site development and where possible existing prime freehold stores that meet our quality criteria;
-	selectively acquiring existing self storage assets into the Armadillo platform;
-	through our environmental initiatives, aim to create a more sustainable business which will increase shareholder and customer value in both the medium and long-term;
-	through our social initiatives, we support local charities with free storage space and help vulnerable get back into the workplace through the Big Yellow Foundation;
-	maintaining Big Yellow's culture as an accessible, apolitical, inclusive, non-hierarchical, socially responsible, and enjoyable place to work; and
-	maintaining a conservative capital structure in the business with Group debt to EBITDA in the range of three to four times.

Real estate

The other main plank of our strategy has been to build a portfolio of large purpose-built freehold self storage centres, focussed on London, the South East and other large urban conurbations. We believe that by owning a predominantly freehold estate we are insulating ourselves against: economic downturns as we operate at higher margins; adverse rent reviews; and in the long-term possible redevelopment of key stores by the landlord. It also provides us financing flexibility as rent is a form of gearing.

Approximately 60% of our current annualised store revenue derives from within the M25; for London and the South East, the proportion of current annualised store revenue is 75%. With our store development pipeline largely in London and the South East, we would expect these proportions to increase over the medium term.

New supply and competition is a key risk to our business model, hence our weighting to London and its commuter towns, where barriers to entry in terms of competition for land and difficulty around obtaining planning are highest. We continue to see limited new supply growth in our key areas of operation. Looking back over the last five years, we estimate capacity growth in London of approximately 2-3% per annum. In 2023, there have been eight store openings in London (including our Kings Cross store), and we anticipate four new stores in London in 2024.

Our stores are on average 59,000 sq ft, compared to an industry average of approximately 30,000 sq ft (source: UK Self Storage Association 2024 Annual Survey). The upside from filling our larger than average sized stores is, in our view, only possible in large metropolitan markets. As our operating costs are relatively fixed, larger stores in bigger urban conurbations, particularly London, drive higher revenues and higher operating margins.

Capital structure

Following the Global Financial Crisis and the ensuing economic recession, we have materially reduced the financial risk within the business and diversified our sources of debt, whilst at the same time, increasing our store platform by deploying significant capital investment. We measure leverage by looking at our interest cover and that has increased from 1.9 times in 2008 to 5.6 times for the year ended 31 March 2024, and our objective is to not let this fall below 5 times, compared to the consolidated EBITDA covenant of 1.5 times. We also look at our debt to EBITDA ratio, which is currently 3 times, and we seek to maintain this in the range of three to four times. We manage this business on the basis that an external economic shock could potentially happen at any time. This is reinforced by the performance of the business during the pandemic, where we delivered a strong trading performance whilst at the same time continuing to invest and expand.

Self storage demand drivers

Economic activity and change are key drivers of self storage demand and are greatest in the larger urban conurbations, and in particular London and the South East. The structural changes consisting of the conversion of ex-industrial brownfield land to other uses, in particular residential; the reduction in home ownership and increased proportion of those choosing to rent; increasing density of living with new properties being built with optimised living space and very little provision for storage; will continue and are resulting in increased demand for our product. These changes have resulted in a significant shortage of available warehousing space, particularly in London, which has been accentuated by the current crisis. Self storage provides a convenient flexible solution to businesses such as online retailers, importers and exporters, service providers, the public sector, and marketing companies looking for mini-warehousing space.

In addition to domestic customers taking space to declutter their homes, our largest customer base is those using us short-term around an event, such as moving home, refurbishment, inheritance, household formation, separation, relocation, and students.

Resilience

The location of our stores, brand, security, and most importantly customer service, together with the diversity of use in our 73,000 occupied rooms, serve better than any lease contract in providing income security.

The business proved to be relatively resilient, but not immune during the Global Financial Crisis and recession of 2007 to 2009, with London and the South East proving to be less volatile. Since 2020, the Group has grown its revenue by 54%.

80% of our customers pay by direct debit, and our cash collection has remained robust over recent years.

Total shareholder return

In the twenty four years since flotation in May 2000, Big Yellow has delivered a Total Shareholder Return ("TSR"), including dividends reinvested, of 13.6% per annum, in aggregate 1,770.4% at the closing price of 1,064p on 31 March 2024. This compares to 4.8% per annum for the FTSE Real Estate Index and 5.4% per annum for the FTSE All Share index over the same period. We feel this illustrates the power of compounding of consistent incremental returns over the longer term.

Our investment case

Attractive market dynamics	•	UK self storage penetration in key urban conurbations remains relatively low
	•	Limited new supply coming onto the market
	•	Resilient through the last economic downturn and performed well during the pandemic
	•	Awareness still remains relatively low, with only 40% to 50% having reasonable or good knowledge of self storage
Our competitive advantage	•	UK self storage industry's most recognised brand with 93% of enquiries now online
	•	Prominent stores on arterial or main roads, with extensive frontage and high visibility
	•	Continuous innovation and investment into our mobile and desktop digital channels
	•	Strong customer satisfaction and NPS scores reflecting excellent customer service
	•	6.4 million sq ft UK footprint, with development pipeline of 1.0 million sq ft
	•	Primarily freehold estate concentrated in London and South East and other larger urban conurbations
	•	Larger average store capacity - economies of scale, higher operating margins
	•	Secure financing structure with strong balance sheet
	•	Continued significant investment in sustainability and our culture
Evergreen income streams	•	73,000 occupied rooms, with customers from a diverse base - individuals, SMEs, and national customers
	•	38% of customers in stores greater than two-year length of stay, a further 16% for one to two years
	•	Average length of stay for existing customers of 31 months, for the 54% of customers that have stayed for more than one year, the average length of stay is 53 months
	•	Low bad debt expense (0.2% of revenue in the year)
Strong growth opportunities	•	Opportunities to drive further occupancy growth
	•	Yield management as occupancy increases
	•	Densification of living and scarcity of flexible business warehouse space drives demand
	•	Growth in National Customers and business customer base
	•	Increasing the platform with a conservative capital structure
Conversion into quality returns	•	Freehold assets for high operating margins and operational advantage
	•	Low technology and obsolescence product, maintenance capex fully expensed
	•	Annual compound adjusted eps growth of 13% since 2004/5
	•	Annual compound cash flow growth of 13% since 2004/5
	•	Dividend pay-out ratio of a minimum of 80% of adjusted eps

Consolidated Statement of Comprehensive Income

Year ended 31 March 2024

	Note	2024 £000	2023 £000

Revenue	3	199,619	188,829
Cost of sales		(55,994)	(54,307)

Gross profit		143,625	134,522

Administrative expenses		(15,219)	(14,519)

Operating profit before fair value changes on property assets		128,406	120,003
Gain/(loss) on the revaluation of investment properties	14a,15	131,159	(29,861)

Operating profit		259,565	90,142
Other income	3	6,517	2,185
Investment income - interest receivable	7	45	9
Finance costs - interest payable	8	(22,946)	(16,894)
- fair value movement on derivatives	8	(2,146)	(133)

Profit before taxation		241,035	75,309
Taxation	9	(1,202)	(1,977)

Profit for the year (attributable to equity shareholders)	5	239,833	73,332

Total comprehensive income for the year (attributable to equity shareholders)		239,833	73,332

Basic earnings per share	12	127.1p	40.1p

Diluted earnings per share	12	126.4p	39.8p

Adjusted earnings per share are shown in Note 12.

All items in the statement of comprehensive income relate to continuing operations.

Consolidated Balance Sheet

31 March 2024

	Note	2024 £000	2023 £000
Non-current assets
Investment property	14a	2,718,525	2,449,640
Investment property under construction	14a	146,485	260,720
Right-of-use assets	14a	17,152	18,148
Plant, equipment, and owner-occupied property	14b	3,870	4,003
Intangible assets	14c	1,433	1,433
Investment	14d	588	588

		2,888,053	2,734,532
Current assets
Derivative financial instruments	18c	-	316
Inventories		486	496
Trade and other receivables	16	10,116	8,314
Cash and cash equivalents		9,356	8,329

		19,958	17,455

Total assets		2,908,011	2,751,987

Current liabilities
Trade and other payables	17	(49,396)	(57,275)
Borrowings	19	(3,317)	(3,159)
Obligations under lease liabilities	21	(2,253)	(2,020)

		(54,966)	(62,454)
Non-current liabilities
Borrowings	19	(386,371)	(489,411)
Obligations under lease liabilities	21	(16,474)	(17,676)
Derivative financial instruments	18c	(1,830)	-

		(404,675)	(507,087)

Total liabilities		(459,641)	(569,541)

Net assets		2,448,370	2,182,446

Equity
Share capital	22	19,620	18,427
Share premium account		397,686	290,857
Reserves		2,031,064	1,873,162

Equity shareholders' funds		2,448,370	2,182,446

The financial statements were approved by the Board of Directors and authorised for issue on 20 May 2024. They were signed on its behalf by

Jim Gibson, Director John Trotman, Director

Company Registration No. 03625199

Consolidated Statement of Changes in Equity

Year ended 31 March 2024

	Share capital £000	Share premium account £000	Other non-distributable reserve £000	Capital redemption reserve £000	Retained earnings £000	Own shares £000	Total £000

At 1 April 2023	18,427	290,857	74,950	1,795	1,797,436	(1,019)	2,182,446
Total comprehensive income for the year	-	-	-	-	239,833	-	239,833
Issue of share capital	1,193	106,829	-	-	-	-	108,022
Dividend	-	-	-	-	(86,013)	-	(86,013)
Use of own shares to satisfy share options	-	-	-	-	(22)	22	-
Credit to equity for equity-settled share-based payments	-	-	-	-	4,082	-	4,082

At 31 March 2024	19,620	397,686	74,950	1,795	1,955,316	(997)	2,448,370

The other non-distributable reserve arose in the year ended 31 March 2015 following the placing of 14.35 million ordinary shares.

The issue of share capital is net of expenses.

Year ended 31 March 2023

	Share capital £000	Share premium account £000	Other non-distributable reserve £000	Capital redemption reserve £000	Retained earnings £000	Own shares £000	Total £000

At 1 April 2022	18,397	289,923	74,950	1,795	1,800,329	(1,019)	2,184,375
Total comprehensive income for the year	-	-	-	-	73,332	-	73,332
Issue of share capital	30	934	-	-	-	-	964
Dividend	-	-	-	-	(79,960)	-	(79,960)
Credit to equity for equity-settled share-based payments	-	-	-	-	3,735	-	3,735

At 31 March 2023	18,427	290,857	74,950	1,795	1,797,436	(1,019)	2,182,446

Consolidated Cash Flow Statement

Year ended 31 March 2024

	Note	2024 £000	2023 £000
Cash generated from operations	26	129,826	128,973
Bank interest paid		(24,069)	(16,486)
Interest on obligations under lease liabilities		(575)	(706)
Interest received		45	8
Loss of income insurance proceeds		1,561	2,032
Tax paid		(1,996)	(1,844)

Cash flows from operating activities		104,792	111,977

Investing activities
Purchase of non-current assets		(30,910)	(106,413)
Disposal of non-current asset		5,400	-
Insurance proceeds on fit-out		4,722	-
Receipts from Capital Goods Scheme		-	182

Cash flows from investing activities		(20,788)	(106,231)

Financing activities
Issue of share capital		108,022	964
Payment of lease liabilities		(1,829)	(1,267)
Equity dividends paid		(85,259)	(79,140)
Receipt from termination of interest rate derivatives		-	436
Loan arrangement fees paid		(3,752)	(1,507)
(Decrease)/increase in borrowings	26B	(100,159)	74,492

Cash flows used in financing activities		(82,977)	(6,022)

Net increase/(decrease) in cash and cash equivalents		1,027	(276)

Opening cash and cash equivalents		8,329	8,605

Closing cash and cash equivalents		9,356	8,329

Notes to the financial statements

Year ended 31 March 2024

1. GENERAL INFORMATION

Big Yellow Group PLC is a Company incorporated in the United Kingdom under the Companies Act 2006, with registration number 03625199, and limited by shares. The address of the registered office is 2 The Deans, Bridge Road, Bagshot, Surrey, GU19 5AT. The nature of the Group's operations and its principal activities are set out in note 4 and in the Strategic Report.

2. BASIS OF PREPARATION

The financial information set out above does not constitute the Group and Company's statutory accounts for the years ended 31 March 2024 or 2023 but is derived from those accounts. Statutory accounts for 2023 have been delivered to the registrar of companies, and those for 2024 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The Group's financial statements have been prepared in accordance with UK-adopted international accounting standards ("IFRS Standards") and in relation to the parent company financial statements have been properly prepared in accordance with UK Generally Accepted Accounting Practice (including FRS 101). The financial statements have been prepared in accordance with the requirements of the Companies Act 2006. The Group has applied all relevant accounting standards which have been endorsed by the International Accounting Standards Board and have been applied consistently year on year.

The Group uses a number of APMs to monitor the performance of the business. Adjusted profit before tax and adjusted earnings per share are the Group's primary profit measures and reflect underlying profit by excluding capital and non-recurring items such as revaluation movements, gains or losses on the disposal of properties and the fair value movement of interest derivatives in accordance with EPRA guidelines. In addition, the Group adjusts for items such as the write off of acquisition costs, and fair value movements on the stepped acquisition of associates. These adjusted measures should not be considered in isolation from, or as substitutes for, or superior to the financial measures prepared in accordance with IFRS.

3. REVENUE

Analysis of the Group's operating revenue can be found below and in the Portfolio Summary.

	2024 £000	2023 £000

Open stores
Self storage income	173,147	162,911
Insurance income	-	3,047
Enhanced liability service income	17,649	14,272
Packing materials income	2,854	3,286
Other income from storage customers	2,051	2,010
Ancillary store rental income	1,411	1,213
	197,112	186,739
Other revenue
Non-storage income	2,507	2,090

Total revenue	199,619	188,829

Please see the commentary in the Financial Review on insurance income and enhanced liability service income.

Non-storage income derives principally from rental income earned from tenants of properties awaiting development.

The Group has also earned other income of £6.5 million in the year (2023: £2.2 million). £1.8 million relates to insurance proceeds for loss of income following the destruction of the Group's Cheadle store by fire in 2022 (2023: £1.4 million). The balance of £4.7 million in the current year is the insurance proceeds for the fit-out of the Cheadle store.

The prior year amount also included £0.6 million relating to insurance proceeds for loss of income following a fire at the Group's Fulham store wine storage area in 2021 and £0.2 million following the extinguishment of the right-of-use asset and liability following the acquisition of the freehold of our Oxford store.

4. SEGMENTAL INFORMATION

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Executive to allocate resources to the segments and to assess their performance. Given the nature of the Group's business, there is one segment, which is the provision of self storage and related services.

Revenue represents amounts derived from the provision of self storage and related services which fall within the Group's ordinary activities after deduction of trade discounts and value added tax. The Group's non-current assets, revenue and profit before tax are attributable to one activity, the provision of self storage and related services. These all arise in the United Kingdom in the current year and prior year.

5. PROFIT FOR THE YEAR

a) Profit for the year has been arrived at after charging/(crediting):

	Note	2024 £000	2023 £000

Depreciation of plant, equipment, and owner-occupied property	14b	864	888
Depreciation of interest in leasehold properties		1,707	1,542
(Gain)/loss on the revaluation of investment property		(131,159)	29,861
Cost of inventories recognised as an expense		1,411	1,643
Employee costs	6	25,250	24,709

b) Analysis of auditor's remuneration:

	2024 £000	2023 £000

Fees payable to the Company's auditor for the audit of the Company's annual accounts	539	487
Fess payable to the Company's auditor for the subsidiaries' annual accounts	54	50

Total audit fees	593	537

Audit related assurance services - interim review	64	60

Total non-audit fees	64	60

Total audit and non-audit fees paid to KPMG LLP	657	597

6. EMPLOYEE COSTS

The average monthly number of full-time equivalent employees (including Executive Directors) was:

	2024 Number	2023 Number

Sales	402	403
Administration	62	62

	464	465

At 31 March 2024 the total number of Group employees was 503 (2023: 515).

	2024 £000	2023 £000
Their aggregate remuneration comprised:
Wages and salaries	18,647	17,475
Social security costs	1,692	2,759
Other pension costs	829	740
Share-based payments	4,082	3,735

	25,250	24,709

7. INVESTMENT INCOME

	2024 £000	2023 £000

Bank interest receivable	45	8
Unwinding of discount on Capital Goods Scheme receivable	-	1
Total investment income	45	9

8. FINANCE COSTS

	2024 £000	2023 £000

Interest on bank borrowings	25,624	18,156
Capitalised interest	(3,254)	(2,761)
Interest on obligations under lease liabilities	575	706
Other interest payable	1	61
Loan refinancing costs	-	732

Total interest payable	22,946	16,894

Fair value movement on derivatives	2,146	133
Total finance costs	25,092	17,027

9. TAXATION

As a REIT, the Group does not pay UK corporation tax on the profits and gains from its qualifying rental business in the UK provided that it meets certain conditions. Non-qualifying profits and gains of the Group are subject to corporation tax as normal. The Group monitors its compliance with the REIT conditions. There have been no breaches of the conditions to date.

The main rate of corporation tax has increased to 25% from 1 April 2023.

UK current tax	2024 £000	2023 £000
- Current year	2,270	2,296
- Prior year	(1,068)	(319)
	1,202	1,977

A reconciliation of the tax charge is shown below:

	2024 £000	2023 £000
Profit before tax	241,035	75,309
Tax charge at 25% (2023 - 19%) thereon	60,259	14,309
Effects of:
Revaluation of investment properties	(32,790)	5,674
Other permanent differences	111	626
Utilisation of brought forward losses	(284)	(76)
Profits from the tax-exempt business	(25,026)	(18,237)
Current year tax charge	2,270	2,296
Prior year adjustment	(1,068)	(319)
Total tax charge	1,202	1,977

The prior year adjustment arose due to prudent assumptions made during the assessment of the corporation tax provision for the prior year accounts. On completion of the tax computations for the year, the actual charge for the year ended 31 March 2023 was £1.1 million lower than had been provided in the accounts (2023: £0.3 million lower).

At 31 March 2024 the Group has unutilised tax losses from the non-REIT taxable business of £33.1 million (2023: £33.8 million) available for offset against certain types of future taxable profits. All losses can be carried forward indefinitely.

10. ADJUSTED PROFIT

	2024 £000	2023 £000

Profit before tax	241,035	75,309
(Gain)/loss on revaluation of investment properties	(131,159)	29,861
Change in fair value of interest rate derivatives	2,146	133
EPRA adjusted profit before tax	112,022	105,303
Cheadle fit-out insurance proceeds	(4,723)	-
Refinancing fees	-	732
Adjusted profit before tax	107,299	106,035
Tax	(1,202)	(1,977)
Adjusted profit after tax	106,097	104,058

Adjusted profit before tax which excludes gains and losses on the revaluation of investment properties, changes in fair value of interest rate derivatives, refinancing fees, fit-out insurance proceeds receipts, and net gains and losses on disposal of investment property has been disclosed to give readers a clear picture of the underlying performance of the business.

11. DIVIDENDS

	2024 £000	2023 £000
Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 31 March 2023 of 22.9p (2022: 21.4p) per share.	41,939	39,136
Interim dividend for the year ended 31 March 2024 of 22.6p (2023: 22.3p) per share.	44,074	40,824
	86,013	79,960
Proposed final dividend for the year ended 31 March 2024 of 22.6p (2023: 22.9p) per share.	44,104	41,939

Subject to approval by shareholders at the Annual General Meeting to be held on 18 July 2024, the final dividend will be paid on 26 July 2024. The ex-div date is 4 July 2024 and the record date is 5 July 2024.

The Property Income Distribution ("PID") payable for the year is 45.2 pence per share (2023: 45.2 pence per share).

12. EARNINGS PER SHARE

	Year ended 31 March 2024			Year ended 31 March 2023
	Earnings £m	Shares million	Pence per share	Earnings £m	Shares million	Pence per share
Basic	239.8	188.7	127.1	73.3	183.0	40.1
Dilutive share options	-	1.1	(0.7)	-	1.1	(0.3)
Diluted	239.8	189.8	126.4	73.3	184.1	39.8
Adjustments:
(Gain)/loss on revaluation of investment properties	(131.2)	-	(69.1)	30.0	-	16.2
Change in fair value of interest rate derivatives	2.2	-	1.1	0.1	-	0.1
EPRA earnings	110.8	189.8	58.4	103.4	184.1	56.1

Cheadle fit-out insurance proceeds	(4.7)	-	(2.5)	-	-	-
Refinancing fees	-	-	-	0.7	-	0.4
Adjusted - diluted	106.1	189.8	55.9	104.1	184.1	56.5

Adjusted - basic	106.1	188.7	56.2	104.1	183.0	56.9

The calculation of basic earnings is based on profit after tax for the year. The weighted average number of shares used to calculate diluted earnings per share has been adjusted for the conversion of share options.

13. NET ASSETS PER SHARE

EPRA's Best Practices Recommendations guidelines for Net Asset Value (NAV) metrics are EPRA Net Tangible Assets (NTA), EPRA Net Reinstatement Value (NRV) and EPRA Net Disposal Value (NDV).

EPRA NTA is considered to be most consistent with the nature of Big Yellow's business which provides sustainable long-term progressive returns. EPRA NTA is shown in the table below. This measure is further adjusted by the adjustment the Group makes for purchaser's costs, which is the Group's Adjusted Net Asset Value (or Adjusted NAV).

Net assets per share are equity shareholders' funds divided by the number of shares at the year end. The shares currently held in the Group's Employee Benefit Trust are excluded from both net assets and the number of shares. Adjusted net assets per share include the effect of those shares issuable under employee share option schemes and the effect of alternative valuation methodology assumptions (see note 15).

	Year ended 31 March 2024			Year ended 31 March 2023
	Equity attributable to ordinary shareholders £000	Shares	Pence per share	Equity attributable to ordinary shareholders £000	Shares	Pence per share
Basic NAV	2,448,370	195,096,601	1,255.0	2,182,446	183,143,066	1,191.7
Share and save as you earn schemes	2,019	2,515,556	(15.0)	1,909	1,705,121	(10.0)
Diluted NAV	2,450,389	197,612,157	1,240.0	2,184,355	184,848,187	1,181.7
Fair value of derivatives	1,830	-	0.9	(316)	-	(0.2)
Intangible assets	(1,433)	-	(0.7)	(1,433)	-	(0.7)
EPRA NTA	2,450,786	197,612,157	1,240.2	2,182,606	184,848,187	1,180.8
Valuation methodology assumption (see note 15) (£000)	111,095	-	56.2	104,605	-	56.5
Adjusted NAV	2,561,881	197,612,157	1,296.4	2,287,211	184,848,187	1,237.3

14. NON-CURRENT ASSETS

a) Investment property, investment property under construction and right-of-use assets

	Investment property £000	Investment property under construction £000	Right-of-use assets £000	Total £000

At 31 March 2022	2,342,199	285,400	19,174	2,646,773
Additions	40,559	72,063	2,034	114,656
Transfer on opening	39,288	(39,288)	-	-
Acquisition of Oxford freehold	-	-	(1,597)	(1,597)
Revaluation (see note 15)	27,594	(57,455)	-	(29,861)
Depreciation	-	-	(1,463)	(1,463)

At 31 March 2023	2,449,640	260,720	18,148	2,728,508
Additions	13,705	15,126	604	29,435
Transfer on opening	115,166	(115,166)	-	-
Reclassification from plant, equipment and owner-occupied property	-	60	-	60
Disposal	(5,400)	-	-	(5,400)
Revaluation (see note 15)	145,414	(14,255)	-	131,159
Depreciation	-	-	(1,600)	(1,600)

At 31 March 2024	2,718,525	146,485	17,152	2,882,162

The right-of-use assets represent the present value of minimum lease payments for leasehold properties that meet the definition of IAS 40 and are accounted for as investment properties - see note 21 for further details of the obligations under lease liabilities. The fair value of the leasehold properties (including long leaseholds), on which the Group pays rent, of £78.4 million (2023: £74.6 million) is included within the investment property total.

The credit to right-of-use assets in the prior year of £1.6 million is due to the acquisition of the freehold of our Oxford store, and hence the extinguishment of the lease liability and associated right-of-use asset.

The transfer on opening during the year is the Kings Cross store and the Harrow Industrial Estate moving from investment property under construction to investment property at valuation on completion of the developments.

The disposal in the year is the proceeds from a land swap transaction at our Kings Cross store realising the Group £5.4 million.

The income from self storage accommodation earned by the Group from its investment property is disclosed in note 3. Direct operating expenses, which are all applied to generating rental income, arising on the investment property in the year are disclosed in the Portfolio Summary. Included within additions is £3.3 million of capitalised interest (2023: £2.8 million), calculated at the Group's average borrowing cost for the year of 5.5%. 97 of the Group's investment properties are pledged as security for loans, with a total external value of £2.35 billion.

b) Plant, equipment, and owner-occupied property

	Freehold property £000	Leasehold improve-ments £000	Plant and machinery £000	Motor vehicles £000	Fixtures, fittings & office equipment £000	Right of use assets £000	Total £000
Cost
At 31 March 2022	2,290	59	447	32	1,640	872	5,340
Retirement of fully depreciated assets	-	-	(83)	-	(687)	-	(770)
Additions	116	-	283	-	738	3	1,140

At 31 March 2023	2,406	59	647	32	1,691	875	5,710
Reclassification to investment property under construction	(60)	-	-	-	-	-	(60)
Retirement of fully depreciated assets	-	-	(133)	-	(686)	-	(819)
Additions	23	-	255	-	516	131	925

At 31 March 2024	2,369	59	769	32	1,521	1,006	5,756

Depreciation
At 31 March 2022	(636)	(16)	(135)	(32)	(347)	(317)	(1,483)
Retirement of fully depreciated assets	-	-	83	-	687	-	770
Charge for the year	(46)	(4)	(158)	-	(680)	(106)	(994)

At 31 March 2023	(682)	(20)	(210)	(32)	(340)	(423)	(1,707)
Retirement of fully depreciated assets	-	-	133	-	686	-	819
Charge for the year	(50)	(4)	(181)	-	(629)	(134)	(998)

At 31 March 2024	(732)	(24)	(258)	(32)	(283)	(557)	(1,886)

Net book value
At 31 March 2024	1,637	35	511	-	1,238	449	3,870

At 31 March 2023	1,724	39	437	-	1,351	452	4,003

c) Intangible assets

The intangible asset relates to the Big Yellow brand, which was acquired through the acquisition of Big Yellow Self Storage Company Limited in 1999. The carrying value remains unchanged from the prior year as there is considered to be no impairment in the value of the asset. The asset has an indefinite life and is tested annually for impairment or more frequently if there are indicators of impairment.

d) Investment

The Group has a £0.6 million investment in Doncaster Security Operations Centre Limited, a company which provides out-of-hours monitoring and alarm receiving services, including for the Group's stores. The investment is carried at cost and tested annually for impairment.

15. VALUATION OF INVESTMENT PROPERTY

	Deemed cost £000	Revaluation on deemed cost £000	Valuation £000
Freehold (including long leasehold)
At 31 March 2023	977,874	1,440,741	2,418,615
Transfer from investment property under construction	92,200	22,966	115,166
Disposals	(5,400)	-	(5,400)
Movement in year	13,631	144,338	157,969
At 31 March 2024	1,078,305	1,608,045	2,686,350

Leasehold
At 31 March 2023	20,824	10,201	31,025
Movement in year	74	1,076	1,150
At 31 March 2024	20,898	11,277	32,175

Total investment property
At 31 March 2023	998,698	1,450,942	2,449,640
Transfer from investment property under construction	92,200	22,966	115,166
Disposals	(5,400)	-	(5,400)
Movement in year	13,705	145,414	159,119
At 31 March 2024	1,099,203	1,619,322	2,718,525

Investment property under construction
At 31 March 2023	255,775	4,945	260,720
Transfer to investment property	(92,200)	(22,966)	(115,166)
Movement in year	15,186	(14,255)	931
At 31 March 2024	178,761	(32,276)	146,485

Valuation of all investment property
At 31 March 2023	1,254,473	1,455,887	2,710,360
Disposals	(5,400)	-	(5,400)
Movement in year	28,891	131,159	160,050
At 31 March 2024	1,277,964	1,587,046	2,865,010

The Group has classified the fair value investment property and the investment property under construction within Level 3 of the fair value hierarchy. There has been no transfer to or from Level 3 in the year.

The Group's freehold and leasehold investment properties have been valued at 31 March 2024 by external valuers, Jones Lang Lasalle ("JLL"). The Valuation has been prepared in accordance with the version of the RICS Valuation - Global Standards (incorporating the International Valuation Standards) and the UK national supplement ("the Red Book") current as at the valuation date. The valuation of each of the investment properties and the investment properties under construction has been prepared on the basis of either Fair Value or Fair Value as a fully equipped operational entity, having regard to trading potential, as appropriate.

The valuation has been provided for financial reporting purposes and as such, is a Regulated Purpose Valuation as defined in the Red Book. In compliance with the disclosure requirements of the Red Book, JLL have confirmed that:

•	this is JLL's third annual valuation for these purposes on behalf of the Group;
•	JLL do not provide other significant professional or agency services to the Group;
•	in relation to the preceding financial year of JLL, the proportion of the total fees payable by the Group to the total fee income of the firm is less than 5%; and
•	the fee payable to JLL is a fixed amount per asset and is not contingent on the appraised value.

The self storage properties have been valued on the basis of Fair Value as fully equipped operational entities, having regard to trading potential. Due to the specialised nature and use of the buildings the approach is to adopt a profits method of valuation in an explicit Discounted Cash Flow calculation and then consider the results in the context of recent comparable evidence of transactions in the sector.

The profits method requires an estimate of the future cash flow that can be generated from the use of the building as a self storage facility, assuming a reasonably efficient operator. Judgements are made as to the trading potential and likely long term sustainable occupancy. Stable occupancy depends upon the nature of demand, size of property and nearby competition, and allows for a reasonable vacancy rate to enable the operator to sell units to new customers. The cash flow runs for an explicit period of 10 years, after which it is capitalised at an all risks yield which reflects the implicit future growth of the business, or a hypothetical sale. This is a valuer's shortcut: maintaining the cash flow into perpetuity would provide the same result. The comparison with recent transactions requires the evidence to be considered in terms of the multiple on net operating profit (or EBITDA/EBITDAR), value per square foot, yield profile etc and then adjusted to reflect differences in location, building factors, tenure, trading maturity and trading risk.

This mirrors the typical approach of purchasers in the self storage market. However, in view of the relatively limited availability of comparable market evidence this requires a degree of valuer judgment. In particular, most of the transactions have comprised share sales due to the nature of the asset class and the terms of those transactions have mostly been kept confidential between the parties.

Portfolio Premium

JLL's valuation report confirms that the properties have been valued individually but that if the portfolio was to be sold as a single lot or in selected groups of properties, the total value could differ. JLL state that in current market conditions they are of the view that there could be a portfolio premium.

Assumptions

A	Net operating income is based on projected revenue received less projected operating costs, which include a management fee to take account of central/head office costs. The initial net operating income is calculated by estimating the net operating income in the first 12 months following the valuation date.
B	The net operating income in future years is calculated assuming either straight-line absorption from day one actual occupancy or variable absorption over years one to five of the cash flow period, to an estimated stabilised/mature occupancy level. In the valuation the assumed stabilised occupancy level for the 109 trading stores (both freeholds and leaseholds) open at 31 March 2024 averages 88% (31 March 2023: 88%). The projected revenues and costs have been adjusted for estimated cost inflation and revenue growth.
C	The future rental growth incorporated into the valuation averages 2.5% per annum (2023: 2.6% per annum)
D	The capitalisation rates applied to existing and future net cash flow have been estimated by reference to underlying yields for asset types such as industrial, distribution and retail warehousing, yields for other trading property types such as student housing and hotels, bank base rates, ten-year money rates, inflation and the available evidence of transactions in the sector. The valuation included in the accounts assumes rental growth in future periods. The net initial yield for the 109 stores is 5.2% (31 March 2023: 5.3%). The weighted average exit capitalisation rate adopted (for both freeholds and leaseholds) is 5.4% (31 March 2023: 5.6%).
E	The future net cash flow projections (including revenue growth and cost inflation) have been discounted at a rate that reflects the risk associated with each asset. The weighted average annual discount rate adopted (for both freeholds and leaseholds) is 7.1% (31 March 2023: 7.1%).
F	Purchaser's costs of 6.8% have been adopted reflecting current progressive Stamp Duty Land Tax rates.

Short leasehold

The same methodology has been used as for freeholds, but the exit capitalisation rate is adjusted to reflect the unexpired lease term at exit. The average unexpired term of the Group's six short leasehold properties is 10.4 years (31 March 2023: 11.4 years unexpired).

Sensitivities

Self storage valuations are complex, derived from data which is not widely publicly available and involve a degree of judgement. For these reasons we have classified the valuations of our property portfolio as Level 3 as defined by IFRS 13. Inputs to the valuations, some of which are 'unobservable' as defined by IFRS 13, include capitalisation yields, stable occupancy rates, and rental growth rates. The existence of an increase of more than one unobservable input would augment the impact on valuation. The impact on the valuation would be mitigated by the inter-relationship between unobservable inputs moving in opposite directions. For example, an increase in stable occupancy may be offset by an increase in yield, resulting in no net impact on the valuation. A sensitivity analysis showing the impact on the investment property valuation of changes in yields and stable occupancy is shown below:

	Impact of a change in capitalisation rates		Impact of a change in stabilised occupancy assumption
	25 bps decrease	25 bps increase	1% increase	1% decrease
2024	4.8%	(4.4%)	0.9%	(1.0%)
2023	4.7%	(4.3%)	1.1%	(1.2%)

A sensitivity analysis has not been provided for a change in the rental growth rate adopted as there is a relationship between this measure and the discount rate adopted. So, in theory, an increase in the rental growth rate would give rise to a corresponding increase in the discount rate and the resulting value impact would be limited.

Investment properties under construction

JLL have valued the stores in development adopting the same methodology as set out above but on the basis of the cash flow projection expected for the store at opening and after allowing for the outstanding costs to take each scheme from its current state to completion and full fit-out. JLL have allowed for holding costs and construction contingency, as appropriate. Five of the schemes valued do not yet have planning consent and JLL have reflected the planning risk in their valuation. The cost to complete for the investment property under construction amounts to £214.4 million (2023: £217 million).

Valuation assumption for purchaser's costs

The Group's investment property assets have been valued for the purposes of the financial statements after deducting notional weighted average purchaser's cost of 6.8% on the net value, as if they were sold directly as property assets. The valuation is an asset valuation which is entirely linked to the operating performance of the business. The assets would have to be sold with the benefit of operational contracts, employment contracts and customer contracts, which would be very difficult to achieve except in a corporate structure. This approach follows the logic of the valuation methodology in that the valuation is based on a capitalisation of the net operating income after allowing a deduction for operational cost and an allowance for central administration costs. Sale in a corporate structure would result in a reduction in the assumed Stamp Duty Land Tax but an increase in other transaction costs reflecting additional due diligence resulting in a reduced notional purchaser's cost of 2.75% of gross value. All the significant sized transactions that have been concluded in the UK in recent years were completed in a corporate structure. The Group therefore instructed JLL to carry out an additional valuation on the above basis, and this results in a higher property valuation at 31 March 2024 of £2,976.1 million (£111.1 million higher than the value recorded in the financial statements) translating to 56.2 pence per share. We have included this revised valuation in the adjusted diluted net asset calculation (see note 13).

16. TRADE AND OTHER RECEIVABLES

	31 March 2024 £000	31 March 2023 £000
Current
Trade receivables	6,250	5,181
Other receivables	312	209
Prepayments and accrued income	3,554	2,924

	10,116	8,314

Trade receivables are net of a bad debt provision of £579,000 (2023: £1,070,000). The Directors consider that the carrying amount of trade and other receivables approximates their fair value.

Trade receivables

The Group does not typically offer credit terms to its customers, requiring them to pay in advance of their storage period and hence the Group is not exposed to significant credit risk. A late charge of 10% is applied to a customer's account if they are more than 10 days overdue in their payment. The Group provides for receivables on a specific basis. There is a right of lien over the customers' goods, so if they have not paid within a certain time frame, we have the right to sell the items they store to recoup the debt owed. Trade receivables that are overdue are provided for based on estimated irrecoverable amounts determined by reference to past default experience.

For individual storage customers, the Group does not perform credit checks, however this is mitigated by the fact that these customers are required to pay in advance, and also to pay a deposit ranging from one week to four weeks' storage income. Before accepting a new business customer who wishes to use a number of the Group's stores, the Group uses an external credit rating to assess the potential customer's credit quality and defines credit limits by customer. There are no customers who represent more than 5% of the total balance of trade receivables.

Included in the Group's trade receivables balance are debtors with a carrying amount of £782,000 (2023: £779,000) which are past due at the reporting date for which the Group has not provided as there has not been a significant change in credit quality and the amounts are still considered recoverable. The average age of these receivables is 18 days past due (2023: 16 days past due).

The creation and release of credit loss allowances have been included in cost of sales in the income statement.

The Group measures the loss allowance for the trade receivables at an amount equal to lifetime expected credit loss. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor. The Group has reviewed its assessment of the ECL provision for debtors over 45 days in the year from 100% provision to 53% provision, reflecting the actual loss experience.

The Group writes off a trade receivable when there is information indicating that the debtors are in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings.

The following table details the risk profile of trade receivables based on the Group's provision matrix:

Year ended 31 March 2024	Not past due	<31 days	31-45 days	>45 days	Total
Expected credit loss rate (%)	0.3%	7.5%	25.4%	52.8%	8.5%
Gross carrying amount (£000)	4,963	892	63	911	6,829
Lifetime ECL (£000)	(15)	(67)	(16)	(481)	(579)

Net trade receivables at 31 March 2024	4,948	825	47	430	6,250

Year ended 31 March 2023	Not past due	<31 days	31-45 days	>45 days	Total
Expected credit loss rate (%)	0.2%	16.2%	19.9%	100%	17.1%
Gross carrying amount (£000)	4,413	850	84	904	6,251
Lifetime ECL (£000)	(11)	(138)	(17)	(904)	(1,070)

Net trade receivables at 31 March 2023	4,402	712	67	-	5,181

The above balances are short term and therefore the difference between the book value and the fair value is not significant. Consequently, these have not been discounted.

Movement in the credit loss allowance

	2024 £000	2023 £000
Balance at the beginning of the year	1,070	563
Amounts (released)/provided in year	(192)	826
Amounts written off as uncollectible	(299)	(319)

Balance at the end of the year	579	1,070

The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, the Directors believe that there is no further credit provision required in excess of the credit loss allowance.

17. TRADE AND OTHER PAYABLES

	31 March 2024 £000	31 March 2023 £000
Current
Trade payables	2,437	4,208
Other payables	18,166	18,199
Accruals and deferred income	28,793	34,868

	49,396	57,275

The Group has financial risk management policies in place to ensure that all payables are paid within the credit terms. The Directors consider the carrying amount of trade and other payables and accruals and deferred income approximates fair value. The main items within other payables are VAT, customer deposits and withholding tax on the PID.

The Group invoices its customers in advance, and hence any deferred income balance primarily relates to amounts paid by customers for rental periods beyond the balance sheet date. The Groups' deferred income balance at 31 March 2024 was £17.7 million, an increase of 2% from 31 March 2023 (£17.3 million).

18. FINANCIAL INSTRUMENTS

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 19, cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.

With the exception of derivative instruments which are classified as a financial liability at fair value through the statement of comprehensive income, financial liabilities are categorised under amortised cost. The Group has the following classes of financial assets:

· Trade and other receivables - trade receivables are initially recognised at transaction price. Other receivables are initially recognised at fair value. Subsequently these assets are measured at amortised cost using the effective interest method, less provision for expected credit losses.

· Cash and cash equivalents - cash and cash equivalents represent only liquid assets with maturity of 90 days or less. Bank overdrafts that cannot be offset against other cash balances are shown with borrowings in current liabilities on the balance sheet. Cash and cash equivalents are also classified as amortised cost. They are subsequently measured at amortised cost. Cash and cash equivalents include cash in hand, deposits at call with banks, and other short term highly liquid investments with original maturities of three months or less.

Exposure to credit and interest rate risks arise in the normal course of the Group's business. Derivative financial instruments are used to manage exposure to fluctuations in interest rates but are not employed for speculative purposes.

A. Balance sheet management

The Group's Board reviews the capital structure on an ongoing basis. As part of this review, the Board considers the cost of capital and the risks associated with each class of capital. The Group seeks to have a conservative gearing ratio (the proportion of net debt to equity). The Board considers at each review the appropriateness of the current ratio in light of the above. The Board is currently satisfied with the Group's gearing ratio.

The gearing ratio at the year-end is as follows:

	2024 £000	2023 £000
Debt	(394,768)	(494,927)
Cash and cash equivalents	9,356	8,329
Net debt	(385,412)	(486,598)
Balance sheet equity	2,448,370	2,182,446
Net debt to equity ratio	15.7%	22.3%

B. Debt management

The Group currently borrows through a senior term loan, secured on 62 self storage assets, a loan with Aviva Commercial Finance Limited secured on a portfolio of 20 self storage assets, a £120 million loan from M&G Investments Limited secured on a portfolio of 15 self storage assets. The Group also has a $225 million shelf facility available from Pricoa Private Capital (see note 19). Borrowings are arranged to ensure an appropriate maturity profile and to maintain short-term liquidity. Funding is arranged through banks and financial institutions with whom the Group has a strong working relationship.

C. Interest rate risk management

The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite; ensuring optimal hedging strategies are applied, by either positioning the balance sheet or protecting interest expense through different interest rate cycles.

At 31 March 2024 the Group had one interest rate derivative in place - £35 million fixed at 4.5% (excluding the margin on the underlying debt instrument) until September 2029.

Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing interest rates on the fair value of issued fixed rate debt held and the cash flow exposures on the issued variable rate debt held. The fair value of interest rate swaps at the reporting date is determined by discounting the future cash flows using the curves at the reporting date and the credit risk inherent in the contract and is disclosed below. The average interest rate is based on the outstanding balances at the end of the financial year.

The £35 million interest rate swap settles on a three-monthly basis. The floating rate on the interest rate swap is three month SONIA. The Group settles the difference between the fixed and floating interest rate on a net basis.

The Group does not hedge account for its interest rate swaps and states them at fair value, with changes in fair value included in the statement of comprehensive income. A reconciliation of the movement in derivatives is provided in the table below:

	2024 £000	2023 £000
At 1 April	316	885
Receipt from cancellation of interest rate derivatives	-	(436)
Fair value movement in the year	(2,146)	(133)
At 31 March	(1,830)	316

The interest rate derivative liability is shown within non-current liabilities at the year end, as the interest rate derivative expires in 2029. The tables below reconcile the opening and closing balances of the Group's finance related liabilities for the current and prior year:

	Financial liabilities measured at amortised cost		Financial liabilities measured at fair value
	Loans £000	Obligations under lease liabilities £000	Interest rate derivatives £000	Total £000
At 1 April 2023	(494,927)	(19,696)	316	(514,307)
Cash movement in the year	100,159	1,829	-	101,988
Lease variations	-	(860)	-	(860)
Fair value movement	-	-	(2,146)	(2,146)
At 31 March 2024	(394,768)	(18,727)	(1,830)	(415,325)

The difference between the loans balance above and the balance sheet is loan arrangement fees of £5,080,000.

	Financial liabilities measured at amortised cost		Financial liabilities measured at fair value
	Loans £000	Obligations under lease liabilities £000	Interest rate derivatives £000	Total £000
At 1 April 2022	(420,435)	(20,676)	885	(440,226)
Acquisition of Oxford freehold	-	1,671	-	1,671
Cash movement in the year	(74,492)	1,267	(436)	(73,661)
Lease variations	-	(1,958)	-	(1,958)
Fair value movement	-	-	(133)	(133)
At 31 March 2023	(494,927)	(19,696)	316	(514,307)

The difference between the loans balance above and the balance sheet is loan arrangement fees of £2,357,000

D. Interest rate sensitivity analysis

In managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on the Group's earnings, without jeopardising its flexibility. Over the longer term, permanent changes in interest rates may have an impact on consolidated earnings. At 31 March 2024, it is estimated that an increase of 0.25 percentage points in interest rates would have reduced the Group's adjusted profit before tax and net equity by £510,000 (2023: reduced adjusted profit before tax by £753,000) and a decrease of 0.25 percentage points in interest rates would have increased the Group's adjusted profit before tax and net equity by £510,000 (2023: increased adjusted profit before tax by £753,000). The sensitivity has been calculated by applying the interest rate change to the variable rate borrowings, net of interest rate swaps, at the year end.

The Group's sensitivity to interest rates has reduced during the year, following the reduction in the amount of floating rate debt. The Board monitors closely the exposure to the floating rate element of our debt.

E. Cash management and liquidity

Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate liquidity risk management framework for the management of the Group's short, medium, and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Included in note 19 is a description of additional undrawn facilities that the Group has at its disposal to further reduce liquidity risk.

Short term money market deposits are used to manage liquidity whilst maximising the rate of return on cash resources, giving due consideration to risk.

F. Foreign currency management

The Group does not have any foreign currency exposure.

G. Credit risk

The credit risk management policies of the Group with respect to trade receivables are discussed in note 16. The Group has no significant concentration of credit risk, with exposure spread over 73,000 occupied rooms in our stores.

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

H. Financial maturity analysis

In respect of interest-bearing financial liabilities, the following table provides a maturity analysis for individual elements.

2024 Maturity

	Total £000	Less than one year £000	One to two years £000	Two to five years £000	More than five years £000
Debt
Aviva loan	155,768	3,317	3,483	148,968	-
M&G loan payable at variable rate	85,000	-	-	-	85,000
M&G loan fixed by interest rate derivatives	35,000	-	-	-	35,000
Bank loan payable at variable rate	119,000	-	-	119,000	-
Total	394,768	3,317	3,483	267,968	120,000

2023 Maturity

	Total £000	Less than one year £000	One to two years £000	Two to five years £000	More than five years £000
Debt
Aviva loan	158,927	3,159	3,317	7,451	145,000
M&G loan payable at variable rate	85,000	-	-	-	85,000
M&G loan fixed by interest rate derivatives	35,000	-	-	-	35,000
Bank loan payable at variable rate	216,000	-	216,000	-	-
Total	494,927	3,159	219,317	7,451	265,000

I. Fair values of financial instruments

The fair values of the Group's cash and short-term deposits and those of other financial assets equate to their book values. Details of the Group's receivables at amortised cost are set out in note 16. The amounts are presented net of provisions for doubtful receivables, and allowances for impairment are made where appropriate. Trade and other payables, including bank borrowings, are carried at amortised cost. Obligations under lease liabilities are included at the present value of their minimum lease payments. Derivatives are carried at fair value.

For those financial instruments held at valuation, the Group has categorised them into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique in accordance with IFRS 7. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety. The fair value of the Group's outstanding interest rate derivatives, as detailed in note 18C, have been estimated by calculating the present value of future cash flows, using appropriate market discount rates, representing Level 2 fair value measurements as defined by IFRS 7. There are no financial instruments which have been categorised as Level 1 or Level 3. The fair value of the Group's debt equates to its book value.

J. Maturity analysis of financial liabilities

The contractual maturities based on market conditions and expected yield curves prevailing at the year-end date are as follows:

2024	Trade and other payables £000	Interest rate swaps £000	Borrowings and interest £000	Obligations under lease liabilities £000	Total £000
From five to twenty years	-	(98)	124,225	20,784	144,911
From two to five years	-	(1,089)	309,503	3,247	311,661
From one to two years	-	(195)	30,000	2,279	32,084

Due after more than one year	-	(1,382)	463,728	26,310	488,656
Due within one year	20,603	106	24,520	2,279	47,508

Total	20,603	(1,276)	488,248	28,589	536,164

2023	Trade and other payables £000	Interest rate swaps £000	Borrowings and interest £000	Obligations under lease liabilities £000	Total £000
From five to twenty years	-	-	278,104	21,766	299,870
From two to five years	-	-	40,726	4,101	44,827
From one to two years	-	-	237,652	2,048	239,700

Due after more than one year	-	-	556,482	27,915	584,397
Due within one year	22,407	(289)	26,566	2,048	50,732

Total	22,407	(289)	583,048	29,963	635,129

K. Reconciliation of maturity analyses

The maturity analysis in note 18J shows non-discounted cash flows for all financial liabilities including interest payments. The table below reconciles the borrowings column in note 19 with the borrowings and interest column in the maturity analysis presented in note 18J.

2024	Borrowings £000	Interest £000	Unamortised borrowing costs £000	Borrowings and interest £000
From five to twenty years	120,000	3,673	552	124,225
From two to five years	267,968	37,007	4,528	309,503
From one to two years	3,483	26,517	-	30,000

Due after more than one year	391,451	67,197	5,080	463,728
Due within one year	3,317	21,203	-	24,520

	394,768	88,400	5,080	488,248

2023	Borrowings £000	Interest £000	Unamortised borrowing costs £000	Borrowings and interest £000
From five to twenty years	265,000	11,316	1,788	278,104
From two to five years	7,451	33,275	-	40,726
From one to two years	219,317	17,766	569	237,652

Due after more than one year	491,768	62,357	2,357	556,482
Due within one year	3,159	23,407	-	26,566

Total	494,927	85,764	2,357	583,048

19. BORROWINGS

Secured borrowings at amortised cost	31 March 2024 £000	31 March 2023 £000
Current liabilities
Aviva loan	3,317	3,159
	3,317	3,159
Non-current liabilities
Bank borrowings	119,000	216,000
Aviva loan	152,451	155,768
M&G loan	120,000	120,000
Unamortised loan arrangement costs	(5,080)	(2,357)

Total non-current borrowings	386,371	489,411

Total borrowings	389,688	492,570

The weighted average interest rate paid on the borrowings during the year was 5.5% (2023: 4.2%).

The Group has £181 million in undrawn committed bank borrowing facilities at 31 March 2024, which expire after between two and three years (2023: £24 million expiring after between one and two years).

The Group has a £155.8 million fixed rate loan with Aviva Commercial Finance Limited, expiring in September 2028. The loan is secured over a portfolio of 20 freehold self storage centres. The annual fixed interest rate on the loan is 3.3%. The loan has an amortising element of £10.8 million which runs to April 2027.

The Group has a secured £300 million Sustainability-linked three year revolving bank facility with Lloyds, HSBC, Barclays and Bank of Ireland expiring in December 2026, with a margin of 1.25%. The Group has the option to extend the facility by two additional one-year terms through to December 2028, subject to lender approval

The Group has a £120 million loan with M&G Investments Limited, with a bullet repayment in September 2029. The loan is secured over a portfolio of 15 freehold self storage centres.

In addition to the facilities above the Group has a $225 million credit approved shelf facility with Pricoa Private Capital ("Pricoa"), to be drawn in fixed sterling notes. The Group can draw the debt in minimum tranches of £10 million over the next year and a half with terms of between 7 and 15 years at short notice.

The movement in the Group's loans are shown net in the cash flow statement as the bank loan is a revolving facility and is repaid and redrawn each month. The movement has been shown net in the cash flow statement. The other Group loans are not revolving, and any movements in those loans are disclosed in a footnote to note 26B.

The Group was in compliance with its banking covenants at 31 March 2024 and throughout the year. The principal covenants are summarised in the table below:

Covenant	Covenant level	At 31 March 2024
Consolidated EBITDA to net finance costs	Minimum 1.5x	5.4x
Consolidated net tangible assets	Minimum £500m	£2,448.4m
Bank loan interest cover	Minimum 1.75x	6.6x
Net debt to EBITDA ratio	Maximum 8x	3.0x
Aviva loan interest service cover ratio	Minimum 1.5x	6.4x
Aviva loan debt service cover ratio	Minimum 1.2x	4.0x
M&G interest cover	Minimum 1.5x	2.9x

The Consolidated EBITDA covenant is calculated by dividing the consolidated EBITDA generated by the Group's stores by the Group's consolidated net finance costs.

The bank loan interest cover, the Aviva loan interest service cover ratio and the M&G interest cover covenants are calculated by dividing the EBITDA generated by each loan's security pool by the interest payable for each loan for each defined time period. The Aviva loan debt service cover ratio is calculated by taking the EBITDA generated by the Aviva security pool and dividing by the Aviva loan interest payable and facility amortisation. The Aviva and M&G loans consolidated net tangible assets covenant is a minimum of £250 million.

Interest rate profile of financial liabilities

	Total £000	Floating rate £000	Fixed rate £000	Weighted average interest rate	Period for which the rate is fixed	Weighted average period until maturity
At 31 March 2024
Gross financial liabilities	394,768	204,000	190,768	5.4%	4.6 years	4.2 years

At 31 March 2023
Gross financial liabilities	494,927	301,000	193,927	4.7%	4.8 years	3.9 years

All monetary liabilities, including short-term receivables and payables are denominated in sterling. The weighted average interest rate includes the effect of the Group's interest rate derivatives. The Directors have concluded that the carrying value of borrowings approximates to its fair value.

Narrative disclosures on the Group's policy for financial instruments are included within the Strategic Report and in note 18.

20. DEFERRED TAX

Deferred tax assets in respect of share based payments £0.1 million (2023: £0.1 million), corporation tax losses £6.2 million (2023: £6.3 million), capital allowances in excess of depreciation £0.1 million (2023: £0.2 million) and capital losses £2.1 million (2023: £2.1 million) in respect of the non-REIT taxable business have not been recognised as it is not considered probable that sufficient taxable profits will arise in the relevant taxable entity. The unused tax losses can be carried forward indefinitely.

21. OBLIGATIONS UNDER LEASE LIABILITIES

	Minimum lease payments		Present value of minimum lease payments
	2024 £000	2023 £000	2024 £000	2023 £000
Amounts payable under lease liabilities:
Within one year	2,279	2,048	2,253	2,020
Between one and five years inclusive	5,526	6,149	5,112	5,652
Greater than five years	20,784	21,766	11,362	12,024

	28,589	29,963	18,727	19,696

Less: future finance charges	(9,862)	(10,267)

Present value of lease liabilities	18,727	19,696

All obligations under lease liabilities are denominated in sterling. Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The carrying amount of the Group's lease obligations approximates their fair value.

22. SHARE CAPITAL

	Called up, allotted, and fully paid
	2024 £000	2023 £000

Ordinary shares of 10 pence each	19,620	18,427

Movement in issued share capital
Number of shares at 31 March 2022		183,967,378
Exercise of share options - Share option schemes		298,595
Number of shares at 31 March 2023		184,265,973
Issues of shares - placing		11,640,212
Exercise of share options - Share option schemes		289,102
Number of shares at 31 March 2024		196,195,287

The share capital of the Company consists only of fully paid ordinary shares with a nominal (par) value of £0.10 per share. There are no restrictions on the ability of shareholders to receive dividends, nor on the repayment of capital. All ordinary shares are equally eligible to receive dividends and the repayment of capital in accordance with the Company's Articles of Association and represent one vote at shareholders' meetings of the Company.

At 31 March 2024 options in issue to Directors and employees were as follows:

Date option Granted	Option price per ordinary share	Type of option	Date first exercisable	Date on which the exercise period expires	Number of ordinary shares 2024	Number of ordinary shares 2023
21 July 2015	nil p	LTIP	21 July 2018	21 July 2025	989	989
22 July 2016	nil p	LTIP	22 July 2019	21 July 2026	1,415	1,944
2 August 2017	nil p	LTIP	2 August 2020	2 August 2027	9,217	5,809
24 July 2018	nil p	LTIP	24 July 2021	24 July 2028	53,697	54,441
19 July 2019	nil p	LTIP	19 July 2022	19 July 2029	148,587	170,545
2 March 2020	947.0p	SAYE	1 April 2023	1 October 2023	-	43,016
5 August 2020	nil p	LTIP	5 August 2023	5 August 2030	189,504	372,757
1 March 2021	903.2p	SAYE	1 April 2024	1 October 2024	77,395	81,216
22 July 2021	nil p	LTIP	22 July 2024	22 July 2031	285,440	300,444
21 July 2022	nil p	LTIP	21 July 2025	21 July 2032	425,523	443,218
8 August 2022	1060.3p	SAYE	1 September 2025	1 March 2026	57,665	72,429
20 July 2023	nil p	LTIP	20 July 2026	19 July 2033	590,931	-
1 August 2023	891.5p	SAYE	1 September 2026	1 March 2027	79,382	-
					1,919,745	1,546,808

Own shares

The own shares reserve represents the cost of shares in Big Yellow Group PLC purchased in the market and held by the Big Yellow Group PLC Employee Benefit Trust, along with shares issued directly to the Employee Benefit Trust. 1,098,686 shares are held in the Employee Benefit Trust (2023: 1,122,907), and no shares are held in treasury.

23. SHARE-BASED PAYMENTS

The Company has three equity share-based payment arrangements, namely an LTIP scheme (with approved and unapproved components), an Employee Share Save Scheme ("SAYE") and a Deferred Bonus Plan. The Group recognised a total expense in the year related to equity-settled share-based payment transactions of £4,082,000 (2023: £3,735,000).

Equity-settled share option plans

Since 2004 the Group has operated an Employee Share Save Scheme ("SAYE") which allows any employee who has more than six months service to purchase shares at a 20% discount to the average quoted market price of the Group shares at the date of grant. The associated savings contracts are three years at which point the employee can exercise their option to purchase the shares or take the amount saved, including interest, in cash. The scheme is administered by Globalshares.

On an annual basis since 2004 the Group awarded nil-paid options to senior management under the Group's Long Term Incentive Plan ("LTIP"). The awards are conditional on the achievement of challenging performance targets as described in the Remuneration Report. The weighted average share price at the date of exercise for options exercised in the year was £10.77 (2023: £13.13).

LTIP scheme	2024 No. of options	2023 No. of options
Outstanding at beginning of year	1,350,147	1,179,562
Granted during the year	678,088	504,431
Lapsed during the year	(72,932)	(83,846)
Exercised during the year	(250,000)	(250,000)

Outstanding at the end of the year	1,705,303	1,350,147

Exercisable at the end of the year	403,409	107,656

The weighted average fair value of options granted during the year was £3,230,000 (2023: £2,795,000).

Participants pay the nominal value of the shares when exercising options under the LTIP scheme.

Options outstanding at 31 March 2024 had a weighted average contractual life of 7.8 years (2023: 7.9 years).

Employee Share Save Scheme ("SAYE")	2024 No. of options	2024 Weighted average exercise price (£)	2023 No of options	2023 Weighted average exercise price (£)
Outstanding at beginning of year	196,661	9.71	183,506	8.75
Granted during the year	82,656	8.91	72,715	10.60
Forfeited during the year	(25,773)	9.99	(10,965)	9.29
Exercised during the year	(39,102)	9.47	(48,595)	7.50
Outstanding at the end of the year	214,442	9.41	196,661	9.71

Exercisable at the end of the year	-	-

Options outstanding at 31 March 2024 had a weighted average contractual life of 1.7 years (2023: 1.7 years).

The inputs into the Black-Scholes model for the options granted during the year are as follows:

	LTIP	SAYE
Expected volatility	n/a	27%
Expected life	3 years	3 years
Risk-free rate	0.04%	0.04%
Expected dividends	2.6%	2.9%

Expected volatility was determined by calculating the historical volatility of the Group's share price over the year prior to grant.

Deferred bonus plan

The Executive Directors receive awards under the Deferred Bonus Plan. This is accounted for as an equity instrument. The plan was set up in July 2018. The vesting criteria and scheme mechanics are set out in the Directors' Remuneration Report.

24. CAPITAL COMMITMENTS

At 31 March 2024 the Group had £3.9 million of amounts contracted but not provided in respect of the Group's properties (2023: £6.1 million of capital commitments).

25. EVENTS AFTER THE BALANCE SHEET DATE

In April 2024, the Group exchanged contracts to acquire a development site in Leamington Spa for £3 million, with completion having taken place on 13 May 2024.

26. CASH FLOW NOTES

a) Reconciliation of profit after tax to cash generated from operations

	Note	2024 £000	2023 £000
Profit after tax		239,833	73,332
Taxation		1,202	1,977
Other income	3	(6,517)	(2,185)
Investment income		(45)	(9)
Finance costs		25,092	17,027
Operating profit		259,565	90,142

(Gain)/loss on the revaluation of investment properties	14a, 15	(131,159)	29,861
Depreciation of plant, equipment, and owner-occupied property	14b	864	888
Depreciation of right-of-use assets	14a,14b	1,734	1,569
Employee share options	6	4,082	3,735
Cash generated from operations pre working capital movements		135,086	126,195

Decrease/(increase) in inventories		10	(13)
Increase in receivables		(1,650)	(740)
(Decrease)/increase in payables		(3,620)	3,531
Cash generated from operations		129,826	128,973

b) Reconciliation of net cash flow movement to net debt

	Note	2024 £000	2023 £000

Net increase/(decrease) in cash and cash equivalents in the year		1,027	(276)
Cash flow from decrease/(increase) in debt financing¹		100,159	(74,492)
Change in net debt resulting from cash flows		101,186	(74,768)

Movement in net debt in the year		101,186	(74,768)
Net debt at the start of the year		(486,598)	(411,830)
Net debt at the end of the year	18A	(385,412)	(486,598)

¹ Made up of a net decrease of £97.0 million in the RCF facility and repayments of the Aviva facility of £3.2 million (2023: Made up of a net increase of £117.0 million in the RCF facility, repayment of the Armadillo loans of £39.5 million and repayments of the Aviva facility of £3.0 million).

27. RELATED PARTY TRANSACTIONS

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

AnyJunk Limited

Jim Gibson is a Non-Executive Director and shareholder in AnyJunk Limited. During the year AnyJunk Limited provided waste disposal services to the Group on normal commercial terms, amounting to £17,000 (2023: £16,000).

London Children's Ballet

The Group signed a Section 106 agreement with Wandsworth Council relating to the development of our Battersea store, which required the Group to provide cultural space to Wandsworth Borough Council. In 2021, the Group granted a twenty year lease over this space to London Children's Ballet at a peppercorn rent, who in turn have agreed to enter into a Social Agreement with Wandsworth Borough Council coterminous with the lease. Jim Gibson is the Chairman of Trustees of the London Children's Ballet. London Children's Ballet rent storage space from the Group on normal commercial terms, amounting to £4,000 during the year (2023: £3,000). The Group sponsored a London Children's Ballet development programme during the year, amounting to £8,000 (2023: £8,000).

Doncaster Security Operations Centre Limited ("DSOC")

The Group has invested £588,000 in DSOC. DSOC provided alarm and CCTV monitoring services to the Group under normal commercial terms during the year, amounting to £319,000 (2023: £301,000).

Treepoints Limited

Jim Gibson is a Non-Executive Director and an investor in City Stasher Limited, which in turn has a minority investment in Treepoints Limited. Treepoints Limited provided offsetting tree planting services in respect of our online packing material sales, under normal commercial terms during the period, amounting to £2,000 (2023: £8,000).

Ukrainian Sponsorship Pathway UK

Nicholas Vetch and Heather Savory are trustees of the charity Ukrainian Sponsorship Pathway UK ("USPUK") to help Ukrainians displaced by the war to travel to the UK as part of the "Homes for Ukraine" scheme. The charity has set up offices in Warsaw and Krakow and is one of the few that has been recognised for this purpose by the UK Government. We are proud to be financial supporters of this charity and the Board approved a donation which was made in the year of £50,000 (2023: £50,000).

No other related party transactions took place during the years ended 31 March 2024 and 31 March 2023.

28. GLOSSARY

Absorption	The rate of growth in occupancy assumed within the external property valuations from the current occupancy level to the assumed stable occupancy level.
Adjusted earnings	The IFRS profit after taxation attributable to shareholders of the Company excluding investment property revaluations, one-off items of income and costs, gains/losses on investment property disposals and changes in the fair value of financial instruments.
Adjusted earnings growth	The increase in adjusted eps year-on-year.
Adjusted NAV	EPRA NTA adjusted for an investment property valuation carried out at purchasers' costs of 2.75%, see note 13.
Adjusted earnings per share	Adjusted earnings divided by the average number of shares in issue during the financial year, see note 12.
Adjusted Profit Before Tax	The Company's pre-tax EPRA earnings measure with additional Company adjustments, see note 10.
APMs	Additional performance measures that help financial statement users to better understand the Group's performance and position
Average net achieved rent per sq ft	Storage revenue divided by average occupied space over the financial year.
Average occupancy	The average space occupied by customers divided by the MLA expressed as a %.
Average rental growth	The growth in average net achieved rent per sq ft year-on-year.
BREEAM	An environmental rating assessed under the Building Research Establishment's Environmental Assessment Method.
Cap rates	The exit capitalisation rates used in the external investment property valuation.
Carbon intensity	Carbon emissions divided by the Group's average occupied space.
Closing net rent per sq ft	Annual storage revenue generated from in-place customers divided by occupied space at the balance sheet date.
Closing occupancy %	The space occupied by customers divided by the MLA at the balance sheet date expressed as a %.
Closing occupancy sq ft	The space occupied by customers at the balance sheet date in sq ft.
Committed facilities	Available undrawn debt facilities plus cash and cash equivalents.
Consolidated EBITDA	Consolidated EBITDA calculated in accordance with the terms of the Group's Revolving Credit Facility Agreement.
Debt	Long-term and short-term borrowings, as detailed in note 19, excluding lease liabilities and debt issue costs.
Earnings per share (eps)	Profit for the financial year attributable to equity shareholders divided by the average number of shares in issue during the financial year.
EBITDA	Earnings before interest, tax, depreciation, and amortisation.
EPRA	The European Public Real Estate Association, a real estate industry body. This organisation has issued Best Practice Recommendations with the intention of improving the transparency, comparability, and relevance of the published results of listed real estate companies in Europe.
EPRA earnings	The IFRS profit after taxation attributable to shareholders of the Company excluding investment property revaluations, gains/losses on investment property disposals and changes in the fair value of financial instruments.
EPRA earnings per share	EPRA earnings divided by the average number of shares in issue during the financial year, see note 12.
EPRA NTA per share	EPRA NTA divided by the diluted number of shares at the year end.
EPRA net tangible asset value (EPRA NTA)	IFRS net assets excluding the mark-to-market on interest rate derivatives, deferred taxation on property valuations where it arises, and intangible assets. It is adjusted for the dilutive impact of share options.
Equity	All capital and reserves of the Group attributable to equity holders of the Company.
Gross property assets	The sum of investment property and investment property under construction.
Gross value added	The measure of the value of goods and services produced in an area, industry, or sector of an economy.
Interest cover	The ratio of operating cash flow divided by interest paid (before working capital movements, exceptional finance costs, capitalised interest, and changes in fair value of interest rate derivatives). This metric is provided to give readers a clear view of the Group's financial position.
Like-for-like occupancy	Excludes the closing occupancy of new stores acquired, opened, or closed in the current financial year in both the current financial year and comparative figures. In 2024 this excludes Aberdeen, Harrow, Kingston North, and Kings Cross, and additionally the Armadillo stores for the Big Yellow like-for-like occupancy.
Like-for-like store revenue	Excludes the impact of new stores acquired, opened or stores closed in the current or preceding financial year in both the current year and comparative figures. In 2024 this excludes Aberdeen, Harrow, Kingston North, and Kings Cross.

LTV (loan to value)	Net debt expressed as a percentage of the external valuation of the Group's investment properties.
Maximum lettable area (MLA)	The total square foot (sq ft) available to rent to customers.
Move-ins	The number of customers taking a storage room in the defined period.
Move-outs	The number of customers vacating a storage room in the defined period.
NAV	Net asset value.
Net debt	Gross borrowings less cash and cash equivalents.
Net initial yield	The forthcoming year's net operating income expressed as a percentage of capital value, after adding notional purchaser's costs pre administrative expenses.
Net operating income	Store EBITDA after an allocation of central overhead.
Net operating income on stabilisation	The projected net operating income delivered by a store when it reaches a stable level of occupancy.
Net promoter score (NPS)	The Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company's products or services to others. The Company measures NPS based on surveys sent to all its move-ins and move-outs.
Net Renewable Energy Positive	Big Yellow's strategy is that by 2030 the Group will generate as much renewable energy as it is able to across its store portfolio and meet any remaining Scope 1 and Scope 2 emissions via the retirement of REGOs from offsite energy generation.
Net rent per sq ft	Storage revenue generated from in place customers divided by occupancy.
Net Zero Strategy	The Group's published strategy to have Net Zero Scope 1, 2 and 3 Emissions.
Non like-for-like stores	Stores excluded from like-for-like metrics, as they were acquired, opened or closed in the current or preceding financial year. In 2024 this excludes Aberdeen, Harrow, Kingston North, and Kings Cross, and additionally the Armadillo stores for the Big Yellow like-for-like occupancy.
Occupancy	The space occupied by customers divided by the MLA expressed as a %.
Occupied space	The space occupied by customers in sq ft.
Other storage related income	Packing materials, insurance, and other storage related fees.
Pipeline	The Group's development sites.
Property Income Distribution (PID)	A dividend, generally subject to withholding tax, that a UK REIT is required to pay from its tax-exempt property rental business, and which is taxable for UK-resident shareholders at their marginal tax rate.
REGO	Renewable Energy Guarantees of Origin
REIT	Real Estate Investment Trust. A tax regime which in the UK exempts participants from corporation tax both on UK rental income and gains arising on UK investment property sales, subject to certain conditions.
REVPAF	Total store revenue divided by the average maximum lettable area in the period.
Store EBITDA	Store earnings before interest, tax, depreciation, and amortisation, see reconciliation in the portfolio summary.
Store revenue	Revenue earned from the Group's open self storage centres.
TCFD	Task Force on Climate Related Financial Disclosure.
Total shareholder return (TSR)	The growth in value of a shareholding over a specified period, assuming dividends are reinvested to purchase additional units of shares.

Ten Year Summary

	2024 £m	2023 £m	2022 £m	2021 £m	2020 £m	2019 £m	2018 £m	2017 £m	2016 £m	2015 £m
Results
Revenue	199.6	188.8	171.3	135.2	129.3	125.4	116.7	109.1	101.4	84.3

Operating profit before gains and losses on property assets	128.4	120.0	106.6	81.5	80.0	76.7	70.9	65.3	59.9	48.4

Cash flow from operating activities	104.8	112.0	107.1	76.7	73.6	72.2	63.0	55.9	55.5	42.4

Profit before taxation	241.0	75.3	698.9	265.8	93.4	126.9	134.1	99.8	112.2	105.2

Adjusted profit before taxation	107.3	106.0	96.8	74.6	71.0	67.5	61.4	54.6	49.0	39.4

Net assets	2,448.4	2,182.4	2,184.4	1,453.9	1,163.9	1,123.9	981.1	890.4	829.4	750.9

Diluted adjusted earnings per share	55.9p	56.5p	52.5p	42.4p	42.1p	41.4p	38.5p	34.5p	31.1p	27.1p
Declared total dividend per share	45.2p	45.2p	42.0p	34.0p	33.8p	33.2p	30.8p	27.6p	24.9p	21.7p

Key statistics
Number of stores open**	109	108	105	78	75	74	74	73	71	69
Store MLA (000 sq ft)	6,419	6,292	6,098	4,930	4,688	4,622	4,631	4,551	4,464	4,344
Sq ft occupied (000)**	5,029	5,088	5,107	4,201	3,781	3,810	3,730	3,551	3,363	3,178
Occupancy (decrease)/ increase in year (000 sq ft)*	(59)	(19)	906	420	(29)	80	179	188	185	346
Closing net rent per sq ft**	£34.14	£32.48	£29.92	£28.71	£28.15	£27.28	£26.74	£26.03	£25.90	£25.23
Number of occupied rooms**	73,000	73,000	73,000	62,000	56,500	56,000	55,000	52,500	50,000	47,250
Average number of employees during the year**	464	465	427	370	361	347	335	329	318	300

* - the occupancy growth in 2015, 2017, 2022 and 2023 includes the acquisition of existing stores

** - from 2022 this includes the Armadillo stores, which the Group acquired the remaining 80% of which it did not previously own on 1 July 2021

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Big Yellow (LSE:BYG)
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BYG Big Yellow Group Plc

("Big Yellow", "the Group" or "the Company")

Results for the YEAR ended 31 MARCH 2024

HIGHLIGHTS

Consolidated Statement of Changes in Equity

At 31 March 2024 the Group has unutilised tax losses from the non-REIT taxable business of £33.1 million (2023: £33.8 million) available for offset against certain types of future taxable profits. All losses can be carried forward indefinitely.

Subject to approval by shareholders at the Annual General Meeting to be held on 18 July 2024, the final dividend will be paid on 26 July 2024. The ex-div date is 4 July 2024 and the record date is 5 July 2024.

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