Big Yellow Group PLC Coronavirus update (6324H)
26 March 2020 - 6:00PM
UK Regulatory
TIDMBYG
RNS Number : 6324H
Big Yellow Group PLC
26 March 2020
26 March 2020
Big Yellow Group PLC
("Big Yellow", "the Group" or "the Company")
Coronavirus update
At Big Yellow, the health and safety of our customers and staff
is our principal priority. We have therefore limited the number of
staff in a store at any one time to a maximum of two. We have also
restricted access to receptions to our customers to one or two at a
time so as to ensure social distancing guidelines. Most of our
staff come to our stores by car, bike or walking, however there is
a group that do use public transport, and we have taken all of them
off public transport for the foreseeable future both for their
safety and to help reduce pressure on the system.
Our staff have intensified the daily cleaning levels of our
store areas, especially in the most commonly touched areas. It
should be noted that our stores are not crowded places and have low
intensity use.
We are in regular communication with our employees, updating
them on Public Health England and the Government's latest
advice.
We have also put in place contingency plans around reduced
staffing levels to cope with increased absences as a result of self
isolation or illness.
All Big Yellow stores are automated allowing access to our
stores when they are unmanned for existing customers. The stores
are also monitored externally out of opening hours to provide
additional customer service and maintain security; this facility is
continuing. Similarly, we have the ability for our customers to
reserve a room, check-in online, and complete the move-in
documentation without being in the store. This is assisting in
minimising contact between customers and our staff.
Storage, mini-logistics and transport are an important part of
the distribution network and as such have not been identified for
closure at this stage by the Government. Events are unfolding at a
rapid pace but our objective is to keep the stores open in so far
as we can so that our business customers in particular can continue
to operate. This is particularly important as most of them are
small entities using our services as mini logistics for e-tailing
and the like. Some are distributing medical and other essential
supplies, and indeed we include the NHS and other government
departments amongst our customers.
Recent trading
Over the past week we have seen an increase in demand from
domestic and student customers urgently needing storage, as a
result of the lockdown measures introduced. Although we have seen
new business customers move in, that has been outweighed by some
businesses directly affected by the closures choosing to move out.
In addition, we have agreed a rent holiday or a deferral on a case
by case basis for some customers, principally businesses. Our
current like-for-like occupancy across the portfolio is 81.6%
across 56,000 customers. Self-evidently given the levels of
distress in the economy it would not be appropriate to make
judgements about future trading until we have better
visibility.
Capital structure
The Group currently has cash and available undrawn committed
facilities of GBP38 million. The average cost of debt on drawn
facilities is 2.5% and the marginal cost of additional debt is
1.35%. GBP211.5 million of the Group's total drawn debt of GBP359
million is unhedged, which has benefited from the recent reductions
in base rate.
The net effect is that proforma interest cover based on the
current quarter is in excess of 9 times. The Group banking
covenants are set at 1.5 times.
The Board has over the last few years worked to ensure a spread
of debt maturity dates and to procure debt from a range of
providers. The Group's earliest maturity is on its GBP70 million
M&G loan in June 2023 and the debt has an average maturity of
4.7 years.
Whilst the UK is in lockdown, we are winding down construction
on our three sites, Camberwell, Bracknell and Battersea, with a
view to them being shut down safely in the next couple of weeks.
The cost to complete of these three stores as of today is
approximately GBP13 million, of which only GBP3 million will be
payable in respect of works completed prior to the temporary close
down. All further capital expenditure is entirely
discretionary.
As shareholders would expect, the Board is considering a number
of initiatives to conserve cash in the short term, including as
stated a halt on discretionary capital expenditure. We will see how
our trading patterns develop and a decision about the final
dividend will be made in due course.
Enquiries:
Nicholas Vetch, Executive Chairman 01276 477811
James Gibson, Chief Executive Officer 01276 477811
John Trotman, Chief Financial Officer 01276 477811
Teneo 0203 603 5221
Ben Foster
Matt Denham
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END
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