Big Yellow Group PLC on Monday reported a significantly higher profit on the back of revaluation of investment properties, as it looked at land price development with optimism.

The Surrey, England-based self-storage facilities operator said pretax profit in the six months to September 30 surged to £119.6 million from £6.8 million a year prior.

Meanwhile, adjusted pretax profit fell 2.0% to £53.5 million from £54.6 million. The company explained that it adjusted for the revaluation movement of investment properties and other matters.

Big Yellow in the half-year incurred a gain on the revaluation of investment properties of £67.2 million, compared to a loss of £47.7 million a year prior.

Revenue rose 6.2% to £99.6 million from £93.8 million.

Big Yellow declared an interim dividend of 22.6 pence per share, up 1.3% from 22.3p a year prior.

Looking ahead, the company said: ‘The economic outlook remains uncertain, with high, albeit moderating, inflation and an associated impact on the cost of living. This, along with geo-political uncertainty, may create economic headwinds in the quarter to December 2023 and into 2024, which may have an impact on the demand for self storage.’

Executive Chair Nicholas Vetch said: ‘The balance sheet will be further strengthened by the sale of approximately £90 million of surplus non-storage assets, which we expect to complete over the next 18 months. There is evidence that land prices have been, and are, dropping materially and this will provide an opportunity to replenish the pipeline.’

Big Yellow shares rose 0.9% to 1,065.00 pence each on Monday afternoon in London.

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