Annual Report & Accounts 2008
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Big Yellow Group PLC Annual Report & Accounts 2008 20 Big Yellow Group PLC The best way for us to explain how we 2 The Deans, Bridge Road, Bagshot, Surrey GU19 5AT innovate and what we do for our customers, Tel: 01276 470190 Fax: 01276 470191 is to show you… e-mail: [email protected] 08 We are the innovative leaders in the UK self storage industry, Big providing individuals and businesses with an unrivalled PLC Group Yellow Annual Report & Accounts 2008 product – the best locations, the best quality facilities and Annual Report “the strongest Brand.” &Accounts Contents ifc Measuring Our Progress 02 Chairman’s Statement 06 Business Review 12 Financial Review 16 Portfolio Summary 17 Corporate Governance 22 Audit Committee Report 24 Corporate Social Responsibility Report 31 Directors’ Report 34 Remuneration Report 40 Officers and Professional Advisers 41 Biographies of Directors and Senior Management 42 Independent Auditors’ Report to the Members of Big Yellow Group PLC 43 Consolidated Income Statement 44 Consolidated Balance Sheet 45 Consolidated Statement of Recognised Income and Expense 46 Consolidated Cash Flow Statement Reconciliation of Net Cash Flow to Movement in Net Debt 47 Notes to the Financial Statements to be continued… 72 Independent Auditors’ Report to the Members of Big Yellow Group PLC 73 Company Balance Sheet bigyellow.co.uk 74 Company Cash Flow Statement Statement of Recognised Income and Expense 75 Notes to the Company Accounts 79 Five Year Summary bigyellow.co.uk Get some space in your life.™ ™ Big Yellow Group PLC Annual Report & Accounts 2008 20 Big Yellow Group PLC The best way for us to explain how we 2 The Deans, Bridge Road, Bagshot, Surrey GU19 5AT innovate and what we do for our customers, Tel: 01276 470190 Fax: 01276 470191 is to show you… e-mail: [email protected] 08 We are the innovative leaders in the UK self storage industry, Big providing individuals and businesses with an unrivalled PLC Group Yellow Annual Report & Accounts 2008 product – the best locations, the best quality facilities and Annual Report “the strongest Brand.” &Accounts Contents ifc Measuring Our Progress 02 Chairman’s Statement 06 Business Review 12 Financial Review 16 Portfolio Summary 17 Corporate Governance 22 Audit Committee Report 24 Corporate Social Responsibility Report 31 Directors’ Report 34 Remuneration Report 40 Officers and Professional Advisers 41 Biographies of Directors and Senior Management 42 Independent Auditors’ Report to the Members of Big Yellow Group PLC 43 Consolidated Income Statement 44 Consolidated Balance Sheet 45 Consolidated Statement of Recognised Income and Expense 46 Consolidated Cash Flow Statement Reconciliation of Net Cash Flow to Movement in Net Debt 47 Notes to the Financial Statements to be continued… 72 Independent Auditors’ Report to the Members of Big Yellow Group PLC 73 Company Balance Sheet bigyellow.co.uk 74 Company Cash Flow Statement Statement of Recognised Income and Expense 75 Notes to the Company Accounts 79 Five Year Summary bigyellow.co.uk Get some space in your life.™ ™ We have a new flagship store… in Fulham WE OPENED OUR FULHAM STORE IN MARCH 2008 AFTER OUR MOST CHALLENGING CONSTRUCTION PROJECT TO DATE. We retained an impressive Victorian façade, and introduced modern features such as a significant element of glazing, which allows passers-by to see into the building. The new store provides state-of-the-art self storage above Measuring Our Progress… ground, and also a double basement, where we have launched and what that means “The Wine Cellars”, a completely new development for the industry. There are currently 480 private climate controlled wine cellars offering easy access, flexibility and the highest standards of security. Highlights > Revenue increase of 11% in the year, with same store revenue growth of 5.5% > 76,000 sq ft fitted > EBITDA before non-recurring items and revaluation movements up 17% out to date to £29.6 million > Potential for 2,000 > 1,510 rooms storage rooms and > Adjusted profit before tax down 6% due to higher interest cost in the year including 480 1,200 wine cellars wine cellars providing approximately > Full year dividend increased by 6% to 9.5p 139,000 sq ft > Adjusted net assets per share up significantly to 520.2p > Occupied space of 1,817k sq ft at 31 March 2008 (December 2007: 1,800k sq ft; March 2007: 1,780k sq ft) The paper in this report is produced with 100% ECF (Elemental > 48 stores open at 31 March 2008 providing 3.0 million sq ft of self storage space Chlorine Free) ecological pulp which is fully recyclable, biodegradable, pH Neutral, heavy metal absence and acid-free. It is manufactured within a mill which complies with the > Six stores opened during the year, including Fulham, our flagship store. international environmental ISO 14001 standard. Kennington opened since the year end This has been printed using an alcohol free process and the printing inks are made from vegetable oil and are non- Ten freehold sites acquired during the year, four in London, plus sites in hazardous from renewable sources. Over 90% of solvents and > developers are recycled for further use and recycling initiatives Birmingham, Sheffield, Edinburgh, Camberley, Reading and Guildford. Freeholds are in place for all other waste associated with this production. The printers are FSC and ISO 14001 certified with strict of Cheltenham and Chelmsford stores acquired in the year procedures in place to safeguard the environment through all our processes. They have also registered and had audits done > Pipeline of 22 sites and one extension site to provide an additional 1.5m sq ft by the Carbon Trust to reduce their Carbon Footprint. at an estimated total cost of £242 million, 52% by capacity in London Designed and produced by MAGEE www.magee.co.uk > Nine planning consents obtained since 1 April 2007 Printed by CTD > Establishment of £150 million partnership with Pramerica to develop Big Yellow stores in the Midlands, North of England and Scotland We pursue constant innovation… Offering our customers new products and services OUR NEW FULHAM STORE FEATURES THE UK’S FIRST PURPOSE-BUILT WINE SELF STORAGE FACILITY. There are currently 480 private, climate-controlled cellars, and we offer easy access seven days a week. And as with all Big Yellow self storage, you get security, flexibility and great customer service. Welcome. The Wine Cellars. Consumer research reveals that 55% of Londoners would like to have a great wine collection at their homes if they had the space. This unique service demonstrates how our Brand can be leveraged to open up new markets. > Climate control > Access your wine > Stay for as little > Your own private whenever you want as 7 days wine cellar > State-of-the-art > Upsize or downsize security without penalty Our nationwide coverage… will provide over 4.5m sq ft of flexible space SELF STORAGE IS A FLEXIBLE, DO-IT-YOURSELF CONCEPT EDINBURGH THAT HAS CHANGED THE WAY PEOPLE THINK ABOUT STORING THEIR POSSESSIONS. Big Yellow’s philosophy is to provide personal and business users with exceptional customer service from a network of LEEDS MANCHESTER high profile, conveniently located stores. LIVERPOOL SHEFFIELD X2 NOTTINGHAM NORWICH BIRMINGHAM MILTON KEYNES COLCHESTER London LUTON CHELMSFORD CHELTENHAM SOUTHEND ENFIELD GLOUCESTER OXFORD HIGH WYCOMBE WATFORD EDMONTON CARDIFF SWINDON NORTH FINCHLEY READING EAST FINCHLEY ROMFORD BRISTOL CENTRAL SLOUGH London STAPLES CORNER BRISTOL ASHTON GATE CAMBERLEY HANGER LANE ILFORD GUILDFORD TUNBRIDGE WELLS ACTON NORTH KENSINGTON BARKING CENTRAL EALING BRIGHTON CHISWICK BOW BARKING EAST PORTSMOUTH HOUNSLOW POOLE FULHAM KENNINGTON TWICKENHAM WANDSWORTH BATTERSEA NEW CROSS RICHMOND SHEEN CLAPHAM NORTH KINGSTON BALHAM ELTHAM MERTON WEST NORWOOD NEW MALDEN TOLWORTH BROMLEY KEY BYFLEET CROYDON BECKENHAM Stores SUTTON ORPINGTON Stores under development Sutton Balham Merton Fulham Ealing Fulham Barking Central > London 39 stores and sites > Outside London 31 stores and sites We have outstanding people… providing the best service AT BIG YELLOW WE AIM TO PROVIDE A LIVELY, FUN AND ENJOYABLE WORK ENVIRONMENT, WITHOUT LOSING THE COMMITMENT TO CUSTOMER SERVICE AND STANDARDS OF PERFORMANCE. > Store for 7 days, > Flexible sized or for as long as rooms to suit our > Quality buildings required customers’ needs in quality locations > Only 7 days notice required We had 226 employees in the business at 31 March, and recruiting and retaining the right calibre people remains critical to the continued success of Big Yellow. We promote the individual development of staff through training and regular performance appraisals. Corporate social responsibility… at Big Yellow THE BOARD AIMS TO STRIKE THE BALANCE BETWEEN THE SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES OF ITS OPERATIONS AND ITS COMMERCIAL OBJECTIVES, WHILST INCREASING SHAREHOLDER VALUE. Companies in the FTSE4Good Index Series have met stringent social, ethical and environmental criteria, and are positioned to capitalise on the benefits of responsible business practice. Sutton Sutton Fulham Balham Fulham Sutton A ‘green-brown’ roof replaces some of the wildlife habitat taken for development at ground level, and reduces the amount of solar heat reflected back into the atmosphere by metal roofs, also known as the urban ‘heat island’ effect. The south side of the store provides a climbing frame for a ‘green wall’ which will soften the view and provide shade and additional habitat for wildlife. Balham A solar energy display panel shows customers and employees, within the loading bay, the amount of energy generated by solar panels on the roof, and also the reduction in carbon dioxide emissions to the atmosphere since the store opened. Fulham This ‘green-brown’ roof also reduces the rate of rainfall run-off, providing some comfort cooling for the upper floor and contributing to the reduction of flood risk at ground level. The roof also features a solar panel system which generates electricity and lowers Big Yellow’s carbon footprint.