Investing.com – Stocks Big yellow group (LON:) rose after its third-quarter trading update, which reported modest revenue growth amid a challenging operating environment.
The self-storage operator reported total revenues of £51.4 million for the quarter ending 31 December 2024, representing a 2% increase year-on-year.
the total (EPA:) Revenues for the year to date were £154.4 million, representing a 3% increase on the same period last year.
Big Yellow Group recorded a 2% increase in total revenue to £51.4 million in the third quarter, driven by a 2% rise in relocations, including a 9% increase in business relocations.
This resulted in a slight improvement in overall closing occupancy to 77.7%. Despite the challenging operating environment, the company maintained pricing strength, with average net rent per square foot rising 2% year-on-year to £35.26.
In the context of inflationary pressures and rising costs, Big Yellow (OTC:) reported that like-for-like operating expenses rose 6% during the quarter, although this represents an improvement on the 10% increase recorded in the first half of the year. fiscal year.
Big Yellow Group expects operating cost inflation to be further reduced to 3%-4% annually.
“Events beyond our control, including policy making, do not make the job of running a business any easier; However, we are confident that these businesses will continue to prove resilient even if they are not completely immune to these challenges,” said Jim Gibson, CEO of Big Yellow Group.
Big Yellow Group maintains its net debt-to-EBITDA ratio at three times, within the target range. The company plans to invest £176 million over three years to expand its business through 13 new stores, supporting future growth.
Shares of the UK-based company rose 3% at 03:26 ET (08:26 GMT).
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