Annual Report and Accounts 2025 Big Yellow Group PLC # Building for the future… ![img-0.jpeg](img-0.jpeg) Get some space in your life.™ --- ![img-1.jpeg](img-1.jpeg) # Contents 2 2025 Highlights 4 Building for the Future 6 Supporting Business Growth 8 Service and Security 10 Innovating Now 12 Our Nationwide Network 14 Chairman's Statement # 18 Strategic Report 18 Chief Executive's Statement 20 Our Strategy 22 Our Investment Case 24 Our Key Performance Indicators 26 Operating Review 31 Portfolio Summary 33 Our Big Yellow Stores 38 Financial Review 44 Principal Risks and Uncertainties 57 Section 172 Statement 58 Environmental, Social and Governance Report 75 SGS Assurance Statement on the ESG Report # 78 Governance Report 78 Executive Chairman's Introduction 79 How We Are Structured 80 Directors, Officers and Advisers 83 Corporate Governance Report 90 Nominations Committee Report 94 Sustainability Committee Report 96 Remuneration Committee Report 120 Audit Committee Report 124 Directors' Report 129 Statement of Directors' Responsibilities in Respect of the Annual Report and the Financial Statements # 130 Financial Statements 130 Independent Auditor's Report to the Members of Big Yellow Group PLC 138 Consolidated Statement of Comprehensive Income 139 Consolidated Balance Sheet 140 Consolidated Statement of Changes in Equity 141 Consolidated Cash Flow Statement 142 Notes to the Financial Statements 179 Company Balance Sheet 180 Company Statement of Changes in Equity 181 Notes to the Financial Statements 185 Glossary 187 Ten Year Summary The Report was approved by the Board of Directors on 19 May 2025 and signed on its behalf by: Jim Gibson Chief Executive Officer John Trotman Chief Financial Officer --- Annual Report and Accounts 2025 Big Yellow Group PLC ![img-2.jpeg](img-2.jpeg) We are the **UK's brand leader in self storage**, driven by our portfolio of modern, purpose-built stores in high profile locations across the UK. We are committed to growing a sustainable and responsible business through innovation in our stores and with a continual investment in our people to deliver exceptional customer service. --- Annual Report and Accounts 2025 Big Yellow Group PLC # 2025 Highlights Big Yellow has once again proved itself to be resilient with an 8% increase in adjusted profit before tax. ![img-3.jpeg](img-3.jpeg) ## Highlights - 2025 - 2024 ## Financial metrics | Revenue^{(4)} | Adjusted profit before tax^{(1.7)} | Profit before tax^{(4)} | | --- | --- | --- | | **£204.5m +2%** | **£115.6m +8%** | **£203.9m (15%)** | | £199.6m | £107.3m | £241.0m | | Store revenue^{(1)} | Adjusted earnings per share^{(1.8)} | Cash flow from operating activities (after net finance costs and pre-working capital movements)^{(3)} | | **£203.1m +3%** | **57.8p +3%** | **£111.9m +2%** | | £197.1m | 55.9p | £110.1m | | Like-for-like store revenue^{(1.2,6)} | Dividend final | Basic earnings per share^{(4)} | | **£200.7m +2%** | **23.8p +5%** | **103.2p (19%)** | | £196.2m | 22.6p | 127.1p | | Store EBITDA^{(1)} | Dividend total^{(4.5)} | | | **£143.2m 0%** | **46.4p +3%** | | | £143.0m | 45.2p | | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Highlights - Store revenue growth of 3.0%, with like-for-like store revenue up by 2.3%, driven by increases in average achieved rents - Like-for-like occupancy increase of 0.1 ppt to 79.1% (March 2024: 79.0%). Closing occupancy up 0.4 ppts - Average achieved net rent per sq ft increased by 3% year on year, closing net rent up 3% from March 2024 - Like-for-like store operating cost increase fell from 10% in the first half to 4% in the second half, averaging 7% for the year - Overall store EBITDA was up £0.2 million compared to the prior year, with the growth in revenue largely offset by the increase in store operating costs - Cash flow from operating activities (after net finance costs and pre-working capital movements) increased by 2% to £111.9 million - Adjusted profit before tax up 8% to £115.6 million, adjusted earnings per share up 3% to 57.8p reflecting the dilutive impact of the equity raise in October 2023 - A 3% increase in full year dividend to 46.4 pence per share in line with adjusted eps growth - Statutory profit before tax of £203.9 million, down from £241.0 million in the prior year, due to a lower revaluation surplus in the year - £4 million invested in the year on solar retro-fit, 78 stores now have solar with a 29% increase in capacity in the year to 8.5 Megawatts. All directly owned stores will have EPCs of A+, A or B by the end of 2026 - Opened a new 65,000 sq ft freehold store in July 2024 in Farnham Road, Slough, and closed the existing leasehold store, saving £0.4 million annual rent. The new store achieved 81% occupancy at 31 March 2025, and is trading at the same revenue as the previous store - Acquired freehold sites in Leamington Spa and Coventry (the latter post year end), taking the pipeline to 13 development sites and one replacement store of approximately 1.0 million sq ft (16% of current MLA), of which 10 are in, or within close proximity to, London. 1.4 million sq ft of fully built vacant space is currently available for future growth - Planning consent granted for key London proposed stores at West Kensington, Kentish Town (both at appeal) and Staples Corner; we now have 10 of our 14 pipeline stores with planning - Disposal of land adjacent to our Battersea store for £30.9 million, combined with post dividend cash flow, this largely offset capital expenditure of £58.3 million; closing net debt £388.7 million (2024: £385.4 million). # Store metrics Store maximum lettable area ("MLA")(1) 6,421,000 0% 6,419,000 Closing occupancy (sq ft)(1) 5,056,000 +1% 5,029,000 Closing occupancy(1) 78.7% +0.4 ppts 78.3% Closing occupancy like-for-like stores (%)(1,2,6) 79.1% +0.1 ppt 79.0% Average net rent per sq ft(1) £34.71 +3% £33.64 Closing net rent per sq ft(1) £35.17 +3% £34.14 (1) See note 33 for glossary of terms (2) Excluding Kings Cross (opened June 2023) (3) See reconciliation in Financial Review on page 41 (4) Statutory metric (5) The dividend paid in the year is all Property Income Distribution ("PID") (6) See reconciliation in Portfolio Summary on page 32 (7) See reconciliation in note 10 (8) See reconciliation in note 12 --- Annual Report and Accounts 2025 Big Yellow Group PLC # Building for the Future ## Our next generation of stores The expansion of new stores is crucial for Big Yellow's future growth, especially in London where site acquisition and development opportunities are scarce. We are currently on site at nine projects, all of which are within the M25, or within close proximity. Once fully operational over the next three years, these developments along with the other five sites in our pipeline, will add an additional 1,033,000 sq ft of revenue-generating storage capacity. ## A new central London store in Wapping Our new Wapping store is immediately adjacent to the existing Big Yellow Wapping store. It will have significant roadside visibility, located on The Highway, just half a mile east of the Tower of London. Tobacco Dock and London Dock, which are both currently undergoing redevelopment to residential apartments, are close by. The new store consists of 130,000 net sq ft of storage over seven floors as well as flexi offices. We are targeting a BREEAM accreditation of Excellent. The site itself is in an area of historical interest, close to a main Roman and Medieval thoroughfare. An archaeological dig was undertaken in cooperation with Historic England, prior to any construction starting. Although no physical historical foundations have been found, many artefacts have been recovered and sent away for dissemination. ![img-4.jpeg](img-4.jpeg) Artist's impression of our new Wapping store. --- Annual Report and Accounts 2025 Big Yellow Group PLC 5 ![img-5.jpeg](img-5.jpeg) ![img-6.jpeg](img-6.jpeg) Artist's impression of our new Staples Corner store. ## Our eye-catching new store at Staples Corner We are delighted to be building a new freehold store on the site of a former car showroom. This will replace our current leasehold Staples Corner location, where we have been trading for 25 years. This prominent new site is located close to the Brent Cross Shopping Centre and next to the junction of the A5 and North Circular. We have designed an iconic, landmark building for this highly visible site. We are excited about the eye-catching design of this new store, which will comprise 135,000 sq ft of storage space across five floors plus flexi offices. Planning was approved in July 2024 and demolition and site clearance have already been completed, with a view to the store opening in the summer of 2026. ## Our development sites with planning consent | Location | Status | | --- | --- | | | Construction commenced with store opening in July 2025. We are also developing 9 industrial units on the site totalling 99,000 sq ft. | | | Construction commenced with store opening in October 2025. | | | Construction commenced in late 2024 with store opening in March 2026. | | | Construction commenced with store opening in spring 2026. | | | Construction commenced with store opening in summer 2026. | | | Construction commenced with planned store opening in summer 2026. | | | Demolition commenced, with a planned store opening in autumn 2026. | | | Construction commenced with store opening in late 2026. | | | Demolition of existing building to commence this year, with a store opening anticipated in summer 2028. | | | Planning consent granted, vacant possession awaited. | --- Annual Report and Accounts 2025 Big Yellow Group PLC ![img-7.jpeg](img-7.jpeg) # Supporting Business Growth ## Our unique service Big Yellow provides a helping hand and acts as an incubator to many small businesses across the UK. Whether they are just starting out or if they are well established and outgrowing their current location, we provide a risk-free solution to help people set up or expand their businesses. Without Big Yellow and our supportive business services, many start-ups would struggle to get off the ground due to the few alternatives in finding flexible space outside of traditional warehousing. The growing number of small businesses, many of which are selling online, have emerged across the UK, driven by today's secure and reliable payment systems and the growth of easy-to-use online marketplaces. Our stores are the perfect place to run a business from. Business owners can work directly from their storage rooms, managing their stock, plugging in a laptop and printer to fulfil orders and dealing with returns and exchanges. Many businesses also use their units for the photography of stock for websites and live streaming to help market themselves on social media. Big Yellow is unmatched in terms of space and flexibility. With no long leases and no business rates to pay, small business owners can upscale or downscale and benefit from having deliveries accepted by store teams when they are not around. Our onsite teams are also vital to support our business customers with forklifting and arranging courier services too. This is a crucial service which many of our competitors cannot offer this growing audience. ## Flexibility and low risk No long term leases, store from one week, no business rates to pay. ## Unrivalled security Individually alarmed rooms, PIN access, 24 hour CCTV, staff on site seven days a week, perimeter fencing. ## Business support services Accepting deliveries, forklifting and arranging courier services. ## Flexible access hours Out of hours access for our business customers. ## Free, large car parks and loading bays Easy access for delivery lorries. ## Dedicated office space At 30 locations. ## National Customer Service For customers with multi-location requirements. --- Annual Report and Accounts 2025 Big Yellow Group PLC 7 ![img-8.jpeg](img-8.jpeg) ![img-9.jpeg](img-9.jpeg) ## Business storage success with Big Yellow Ben Russell's thriving business, Rusbenja Pops, sells around 2,500 Funko Pop vinyl collectibles monthly through various online platforms. The company now employs three people and operates almost entirely from Big Yellow. Rusbenja Pops currently occupies 650 square feet across two units, which serve as both mini warehouse and office space. Ben has transformed his storage into a complete business hub by installing phone lines and Wi-Fi, enabling his team to handle everything from inventory management to order fulfilment and live streaming to showcase his products. The entrepreneur particularly values Big Yellow's security features, which include PIN entry and individually alarmed rooms, giving him peace of mind about his inventory. Ben appreciates that his Big Yellow storage space is reasonably priced without hidden costs. "You don't have to worry about things like electricity bills or business rates that come with leasing a building or retail space," he notes. The flexibility of Big Yellow has proven crucial for his growing business. "It is the convenience and flexibility of Big Yellow which have been awesome", he says, "I rented some retail space before coming to Big Yellow and any changes meant getting signatures witnessed on lease agreements by lawyers – it was more expensive and way more of a headache. Being at Big Yellow is way more convenient, cheaper and easier in every way. It has been a godsend to us as a small business." Ben strongly recommends Big Yellow storage space to other entrepreneurs: "To anyone interested in turning a side hustle or hobby into a business, I would recommend taking space so that work doesn't encroach on the rest of your life." > "I rented some retail space before coming to Big Yellow and any changes meant getting signatures witnessed on lease agreements by lawyers – it was more expensive and more of a headache. Big Yellow is way more convenient, cheaper and easier in every way." Ben Russell, Owner, Rusbenja Pops > "Working with Big Yellow means that we have predictable monthly overheads for storage and office space. The business wouldn't have been able to grow in the same way without Big Yellow." Joe Haycocks, MD, RSH Audio --- Annual Report and Accounts 2025 Big Yellow Group PLC ![img-10.jpeg](img-10.jpeg) # Service and Security Unrivalled customer service Our friendly and helpful store teams deliver the very best standards in customer service. This, coupled with our market leading security, are some of the key reasons why people choose Big Yellow. ## Unrivalled customer service Recruiting the right people, a continuous investment in training and the engaged culture of the business are critical to our continued success of delivering unrivalled customer service. We are proud of our people who put the customer at the heart of the business. Our staff are onsite seven days a week and work hard to understand the needs of our customers. We have over 27,700 Google Reviews averaging 4.7 and our customer surveys in the year have given us an outstanding NPS score of 82.8. This genuine feedback is testament to the consistency of our customer service. ## Security matters As the market leading self storage operator in the UK, we take the security of our customers and their possessions seriously. Our security protocols are regularly reviewed and we continue to invest in the security of our stores. Presently, this is through individually alarmed rooms, PIN code access and digital CCTV monitored 24/7. Secure, phone app access is also now being trialled at some of our locations. We also restrict which customers have access to our sites when no one is present. We carry out identity checks on every new customer through our onboarding process. Our store teams are vigilant and we are not afraid to turn away potential customers if things look suspicious. > “We love Big Yellow because we can open more space or close space down to suit our stocking profile at different times of the year. The units are totally secure and the staff offer a fantastic service, not only to us, but also to our visiting customers, couriers and trading partners.” > > Dan Humphries, Owner, Drumazon --- Annual Report and Accounts 2025 Big Yellow Group PLC ![img-11.jpeg](img-11.jpeg) ![img-12.jpeg](img-12.jpeg) ![img-13.jpeg](img-13.jpeg) ## Exemplary customer feedback G ★★★★ Customer at Big Yellow, Milton Keynes The units of storage are very neat and the staff are extremely knowledgeable, friendly and helpful. From reservations to booking in and storing. Everything was seamless without any hassle. The team were very helpful with their impressive customer service skills. I totally would recommend Big Yellow Self Storage 100%. G ★★★★ Customer at Big Yellow, Brighton Exceptional service from start to finish! The team at Big Yellow Self Storage has been incredibly efficient, professional and attentive to all my needs. The facility is clean, secure and well-maintained, making it easy to access my belongings whenever needed. Highly recommend Big Yellow Self Storage for their outstanding customer service and reliable storage solutions! 82.8 NPS Net Promoter Score Trustpilot ★★★★ 4.7 out of 5 Trustpilot: 4754 Reviews. Rated "Excellent" ![img-14.jpeg](img-14.jpeg) --- Annual Report and Accounts 2025 Big Yellow Group PLC ![img-15.jpeg](img-15.jpeg) # Innovating Now Future-proofing our stores In July 2024, we opened our first newly built net zero facility in Slough, Farnham Road. This features our largest solar PV installation on a Big Yellow store to date which has helped it achieve a rare EPC rating of -9 A+. ## Slough: leading the way in sustainability and innovation ### Largest rooftop solar Big Yellow Slough, Farnham Road features a 200 kWp solar system, our largest rooftop solar installation to date at any Big Yellow store. 78 of our stores now have solar generation as part of our sustainability strategy. ### Latest battery technology The electricity generated from our solar panels charges our onsite battery, which can store enough energy to power the store for ten hours when the sun isn't shining. In addition, the extensive rooftop installation reduces the need to purchase electricity from the grid. ### Built-in sustainability Like most Big Yellow stores, we have low energy LED lighting throughout the store, EV charging points for customers and our store teams, water-saving low flow taps and our packing materials are made of recycled cardboard. We have also reduced single-use plastics where possible. Biodiversity initiatives such as bat and bird boxes have been installed plus a heart defibrillator to help save lives. Our receptions feature digital signature pads to make our stores as paper-free as possible. ### Smart access technology At Slough, we are also testing an innovative phone-based access system. Customers can use our dedicated mobile app to gain access to the main gates, storage areas and lifts without having to enter their PIN codes. This contactless solution not only streamlines the customer experience but also provides an additional layer of security. --- Annual Report and Accounts 2025 Big Yellow Group PLC ![img-16.jpeg](img-16.jpeg) A battery storing rooftop solar energy at our Slough store. ![img-17.jpeg](img-17.jpeg) ![img-18.jpeg](img-18.jpeg) ![img-19.jpeg](img-19.jpeg) ![img-20.jpeg](img-20.jpeg) --- Annual Report and Accounts 2025 Big Yellow Group PLC # Our Nationwide Network We now have a portfolio of 109 modern and purpose-built stores, with a further 14 in our development pipeline. ## A London focus We carefully select highly visible locations for our stores, enhancing our industry-leading brand recognition across the UK. London remains the cornerstone of our growth plan, with eight of the nine current construction projects concentrated in the capital. These new stores are scheduled to open in the next three years, strengthening our metropolitan presence. ![img-21.jpeg](img-21.jpeg) Harrow, September 2022 ![img-22.jpeg](img-22.jpeg) Battersea, November 2020 ![img-23.jpeg](img-23.jpeg) Wembley, March 2026 ![img-24.jpeg](img-24.jpeg) Kings Cross, June 2023 --- Annual Report and Accounts 2025 Big Yellow Group PLC ![img-25.jpeg](img-25.jpeg) Akerdeen Dundee Edinburgh Newcastle Gateshead Stockton Central Stockton South Morecambe Leeds Manchester Stockport Warrington Chester Macclesfield Stoke-on-Trent Derby Birmingham Leamington Spa Coventry Daventry Chilton Chester Birmingham Coventry Leamington Spa Daventry Milton Dorby Dorchester Birmingham Coventry Leamington Spa Daventry Milton Dorby Birmingham Coventry Leamington Spa Daventry Milton Dorby Kings Cross Kings Cross North Kensington Kensington Kensington North Kensington Fulham Fulham Fulham Fulham Fulham Fulham Fulham Fulham Fulham Fulham Fulham Fulr Fulr Fulr Fulr Fulr Fulr Fulr Fulr Fulr Fulr Fulr Fulr Fulr Fulr Fulr --- Annual Report and Accounts 2025 Big Yellow Group PLC # 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 2025. ## Financial results We have delivered a resilient operating performance in the year to March, with occupancy stabilised and further growth in net rents. This resulted in a 3% increase in store revenue, and a return to adjusted eps growth for the year. We are pleased to have delivered a significant reduction in like-for-like store operating expense inflation from 10% in the first half of the year to 4% in the second half. Additionally, given our flexible hedging strategy, the Group has benefited from a 9% fall in annual interest expense from the previous year. Revenue for the year was £204.5 million [2024: £199.6 million], an increase of 2%, with store revenue up 3%. Like-for-like store revenue (which excludes new store openings) was up 2% driven by improvements in average net rent. Store EBITDA was £143.2 million, an increase of £0.2 million from the prior year [2024: £143.0 million]. The adjusted profit before tax in the year was £115.6 million up 8% from £107.3 million in 2024. Adjusted earnings per share increased by 3% to 57.8p (2024: 55.9p), with the additional shares in issue following the October 2023 placing impacting the first half of the year. The Group's cash flow from operating activities (after net finance costs and pre-working capital movements) increased by £1.8 million (2%) to £111.9 million for the year (2024: £110.1 million). The Group's statutory profit before tax was £203.9 million, a decrease from £241.0 million in the prior year. There was a revaluation surplus for the current year of £79.7 million, compared to a surplus of £131.2 million in the prior year. ## Development pipeline During the year we opened a new 65,000 sq ft freehold store in Slough and closed the existing leasehold store, saving £0.4 million annual rent. The new store achieved 81% occupancy at 31 March 2025, and is trading at the same revenue as the previous store. Slough Farnham Road is our first net zero store, with a solar PV installation of 200 kWp (our largest to date), with battery storage for the energy we generate, resulting in an EPC rating of A+. We have acquired two development sites since the last year end. In May 2024, in Leamington Spa for £3 million, that will also serve the university town of Warwick, and in April 2025 in Coventry for £2.5 million. We have been successful in achieving three key planning consents in London during the year; at West Kensington, Kentish Town and at Staples Corner. The store in West Kensington will be only the second purpose-built self storage facility in the London Borough of Hammersmith & Fulham, alongside our Fulham store, with Kentish Town being the first purpose-built store in the London Borough of Camden. These, along with the other sites in the pipeline, are very high-quality locations, and will help consolidate our market-leading platform. We now have planning consent on 10 of our 14 development sites. We are currently constructing nine new stores all in London or its conurbation towns at an approximate cost of £161 million which can comfortably be funded from cash flow, surplus asset sales and our existing debt facilities. The projected net operating income of the increase in our total capacity of 1.0 million sq ft when stabilised, at today's prices, is £32.5 million representing an approximate 15% return on the incremental capital deployed. If we include the replacement store at Staples Corner, due to open in summer 2026, the proforma net operating income increases to £36.6 million, a return of approximately 8.7% on the total development cost of approximately £422 million, including land already acquired. The total cost to complete is £232 million. ## Capital structure It remains our view that elevated levels of debt over cycles destroys value and hence our strategy is to maintain debt at modest levels. 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 6.1 times (2024: 5.6 times), with the Group's net debt to EBITDA ratio now 3.1x (2024: 3.0x). Net debt was £388.7 million at 31 March 2025 (2024: £385.4 million), and the Group has undrawn committed facilities of £175 million. Approximately 47% of our debt is fixed, with the balance floating, in line with our hedging policy, and our current average cost of drawn debt is 5.0%, with any further cuts in interest rates benefitting next year. The Group owns its assets largely freehold, representing some 99% by value of our portfolio (including long leasehold stores) 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 closure of Farnham Road, Slough last summer and Staples Corner in due course to a new freehold store, we expect our total rent liability to fall to approximately £1.1 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 23.8 pence per share. This brings the total distribution declared for the year to 46.4 pence per share, an increase of 3% from the prior year (2024: 45.2p). --- Annual Report and Accounts 2025 Big Yellow Group PLC 15 ![img-26.jpeg](img-26.jpeg) ## Our people As we announced last year, John Hunter joined the business as COO in April 2024 and has made a very successful start to leading day-to-day operations and I am pleased to confirm that John will be formally joining the Board with effect from the Group's AGM this July. We believe that any successful business requires the creation of a fully engaged employee culture, and this remains a key focus within Big Yellow. Our resilient performance is a testament to our highly committed and motivated employees who operate throughout the business, whether in the stores or in head office. Delivering outstanding customer service is a key success factor in our historic and future growth. Our customer net promoter scores ("NPS") were an average of 82.8 (2024: 80.5) over the year and demonstrated a further improvement on already high standards. NPS scores at those levels are exceptionally unusual and reflect the strong culture within this business. On behalf of the Board, I would like to thank all our people for their dedication and support, which has been instrumental in driving our performance and sustained growth. ## Outlook We are pleased to have reported another set of results that are testament to the underlying resilience of our business. We delivered another year of revenue growth and achieved a return to growth in adjusted earnings per share, even when considering the dilutive effects of the placing in October 2023. The elevated levels of macroeconomic uncertainty since the beginning of April have impacted confidence and led to some softening of demand and some loss of occupancy, however, rate growth materially outperformed the same period last year resulting in revenue growth of 3% since the year end. We expect our underlying store operating cost inflation to fall further from the 4% seen in the second half of the year, notwithstanding the impact of the recent rise in Employer's National Insurance. The Group maintains a low absolute level of debt, which allows flexibility in our hedging strategy, with £210 million of floating rate debt, hence we are, and expect to continue, benefiting from short-term interest rate reductions. Our decision a decade or so ago to develop the next phase of new stores, with a focus on London, continues to bear fruit. Ten stores have opened in the last five years, with three due to open this year and five the year after. We are in the process of clearing the pre-start planning conditions on our site in Kensington Olympia, following which we will commence demolition of the existing building and construction of its replacement. This will be the most important project the Group has embarked on, close to one of the wealthiest and most densely populated areas of Central London. We expect this next phase of store openings (eight of which are in London) to make a material contribution to both revenue and earnings in the reasonably near future. Our strategy remains much as it was 25 years ago; build the best quality freehold stores in the best locations, with the highest barriers to entry, focusing on operational excellence, with low debt to deliver compounding growth in earnings and cash flow. ![img-27.jpeg](img-27.jpeg) Nicholas Vetch CBE Executive Chairman 19 May 2025 --- Annual Report and Accounts 2025 Big Yellow Group PLC # Chief Executive's Statement We are pleased to have delivered another year of revenue growth and achieved a return to growth in adjusted earnings per share, even when considering the dilutive effects of the placing in October 2023. ## Trading We are pleased to have delivered another year of revenue growth and achieved a return to growth in adjusted earnings per share, even when considering the dilutive effects of the placing in October 2023. The first half of the year saw subdued activity levels as we navigated uncertainty created by the general election and the resulting change in government. However, we saw stronger trading in the second half, which resulted in a recovery in like-for-like occupancy (up 0.1 ppt by March 2025). We delivered rental growth, both to new and existing customers, albeit moderated compared to the prior year. This resulted in closing net rent growth of 3% in the year, which, based on a stable occupancy position, translated into 3% growth in store revenue. After a period of inflationary pressure on our cost base in recent years, we have seen underlying increases in our operating costs moderate through the year, down to a 4% increase in the second half. If we look back over the past three years, the business has navigated through the Russian invasion of Ukraine and resultant energy crisis, high inflation and the impact on the cost of living, higher interest rates and periods of political instability. Through this three-year period, after absorbing increasing interest rates and operating costs we delivered growth in revenue and adjusted profit of 19% and adjusted earnings per share growth of 10%, the latter impacted by the dilutive effect of the issue of new shares. This demonstrates the resilience of our business and validates our continued investment in further growth in our store portfolio. We continue to see demand spread across a diverse set of drivers. However, the largest driver of demand remains from domestic customers renting storage space whilst moving home (41% of move-ins during the year). We saw some increase in activity in our last quarter as house buyers sought to complete their purchase prior to the changes to the Stamp Duty thresholds from 1 April. We also saw an increase in move-ins from business customers (up 2% year on year), many of whom are online retailers or B2B traders looking for flexible mini-warehousing for e-fulfilment. Demand from national customers (5% of our occupied space) continues to be robust, with revenue growth of 11% year-on-year. Businesses occupy 36% of our occupied space overall. ## Investment in our operating platform and systems Providing our customers with a safe and secure space for their possessions is our core purpose. Accordingly, we continue to invest in the technology and physical security of our stores, whilst recognising the important role our store teams play in providing a reassuring presence during normal opening hours. This is a dual approach to achieving an accessible and secure environment for our customers. In addition to physical security features, such as perimeter fencing, keypad-controlled gates and lighting enabled by motion detectors, we provide individually alarmed rooms, 24-hour CCTV and overnight monitoring of our stores. We are increasingly using data and AI to help detect unusual behavioural patterns that alert either our store teams or our overnight monitoring service to suspicious activity. We continue to restrict access outside of normal trading hours to approximately 15% of our customers, the majority of whom are business customers. Most of our customers are happy to access the store during normal opening hours when our store teams are present. Our store teams play an important role as the final check on who we accept into our buildings as customers and importantly allow access to out of store opening hours. We believe this is critical to maintaining the security of our stores, as it cannot be replicated online. We are trialling a mobile-based access system in three of our stores, as an alternative to the traditional PIN code access system. This enables customers to unlock gates and entry points to the store via their Bluetooth enabled smartphone device. This has the potential to provide a seamless and contactless experience and reduces the risk of PIN codes being forgotten or misappropriated. Should this trial prove to be successful, we will then roll this out to the wider store estate. We continue to develop our website to drive the conversion of customers seeking self storage (over 90% of customers come through our digital channels), whilst enabling new customers to complete more and more of their onboarding journey online. As in most retail and consumer service businesses, there is a continuing trend of customers engaging digitally with self storage operators. We continually work to identify friction points in our online journeys, tackle these and thereby drive-up digital conversion and engagement levels. This ensures our store teams are focussed on dealing with any customer service issues and help drive revenue from ancillary services in the store. For example, accepting deliveries for business customers, packing material sales and optimising contents cover are all revenue generating activities that rely on our store teams to complete. --- Annual Report and Accounts 2025 Big Yellow Group PLC 17 ![img-28.jpeg](img-28.jpeg) We continue to automate operational tasks performed by our store teams. We have developed our performance dashboard reporting to allow our store managers to identify issues more easily and speed up decision making. We have made improvements to our customer refund processes and sped up the onboarding journey in store for new customers. We have launched a new customer service platform, which aggregates customer feedback, whether from our internal surveys or from external sources (for example, Google and Trustpilot reviews). This allows us to easily see trends in customer feedback and address any service delivery issues even more promptly. Our use of an external data supplier to automatically track competitor pricing has allowed us to become more efficient and reactive to pricing adjustments. All of this has allowed us to operate more efficiently, whilst focussing our store teams on value-adding activities. We continue to review and invest in our cyber security platform. We maintain our digital security standards by training our teams, implementing best-of-breed products and technologies, enhancing our policies and procedures, and fostering strategic partnerships. Our proactive approach helps us to stay ahead of potential threats and vulnerabilities as we look to maintain the confidentiality, integrity, and availability of our digital assets. > “Our business model, combined with continued investment in our market-leading brand, store portfolio and operating platform, has once again delivered a resilient performance over the last 12 months.” --- Annual Report and Accounts 2025 Big Yellow Group PLC # Chief Executive's Statement continued ## People As ever, our continued progress as a business reflects the steadfast commitment of our people who have worked extremely hard this year, whether in head office or in our stores. Over the past 12 months, the level of staff turnover and vacancies in the business continues to be at relatively low levels. This is encouraging and reflects the strong culture of the business, the loyalty this engenders and our ability to attract and retain the talent we need to grow going forward. The customer service and experience delivered by our store teams is a differentiating success factor, particularly with those customers who are regular users of our facilities. Our customer feedback comments frequently refer to the excellent service delivered by specific team members. We track our customer satisfaction levels through our net promoter score, and our average over the year for move-ins and move-outs was 82.8 [2024: 80.5], which demonstrates an improvement on already very high levels of customer service. We continue to review our store staffing structure and have not been replacing certain positions when we see staff attrition. The continual improvement in our digital journeys, along with automation and improvement of in-store processes, has allowed us to safely achieve annualised savings of £0.3 million in the year. This will help mitigate the additional £0.5 million cost from the increase in Employer's National Insurance from April 2025 and we will continue to seek further reductions in store staff headcount levels where these can be safely achieved. However, as mentioned above, our store teams play an important role in delivering great customer service, income from ancillary services and maintaining the security of our stores. Whilst we continue to identify opportunities to reduce headcount, our store team members will always be required during our normal opening hours. We continue to make improvements to our culture and practices in respect of diversity, and these are set out in our latest Inclusivity and Diversity Report, which is available on our corporate website. Our Diversity and Inclusivity Committee continues to meet regularly, and I am a standing member of the Committee. I believe diversity has a positive impact on our performance and we want to ensure we have an inclusive culture that attracts, retains and provides equal opportunity to all our team members to drive forward our business. ![img-29.jpeg](img-29.jpeg) ![img-30.jpeg](img-30.jpeg) ![img-31.jpeg](img-31.jpeg) --- Annual Report and Accounts 2025 Big Yellow Group PLC 19 # ESG The Big Yellow Foundation helps support the rehabilitation of vulnerable people into work. Our store teams raise funds by asking our customers if they wish to donate to the Foundation at move-in and move-out. We also generate donations from fundraising activities carried out by our employees across the business. The Company matches all money raised in this way. Through the generosity of our customers and the efforts of our employees, we raised a record £444,000 in the year for the Foundation and provided £345,000 of funding to our seven charity partners. The total funding since the inception of the Foundation in 2018 now stands at £1.4 million. We continue to provide free space to small local charities and community organisations across our store estate. At present we support an average of two charities per store this way. Our volunteering programme allows our staff to give back to the community, with every member of staff given one day a year to volunteer with one of our seven charity partners or a charity of their choice. We also continue to provide 12-week work placements in our stores to candidates from some of our Foundation partner charities. These placements help improve confidence and work chances for the candidates. Our store teams also enjoy working alongside the candidates and find it rewarding to do so. Our solar retrofit programme continues to go from strength to strength, with our latest installation phase delivering to a further 12 stores and 1,621kWp capacity this year. This takes the total number of retrofitted stores to 48 at a cost of £16.8 million to date. Our total solar capacity across the estate is now 8.5 Megawatts, up from 0.7 Megawatts five years ago. As part of our solar strategy, we have installed a battery at our new Slough Farnham Road store. It gives the store increased resilience against energy cost inflation by storing and reusing energy generated by the solar array on the store's roof. In the nine months since opening, 67% of the energy generated onsite has been used by the Slough store (compared to 24% across the estate), with an estimated payback on the investment in just over nine years. We intend to further test the performance and payback of this new initiative by installing combined solar and battery at new stores opening this year and retrofitting batteries at a further three stores in our current estate. Additionally, we have started trialling lighting and heating efficiency solutions across nine different stores to investigate further opportunities to reduce our energy consumption and drive our emissions down. Once we have evaluated the results from these trials, we will look to roll out the successful solutions across more stores in the estate. We are therefore making significant progress on our journey to self-generation of our energy needs. We continue to maintain an updated assessment of the performance of our estate by recertifying our EPCs, even when certificates are in date. We have updated 35 certificates to reflect the impact of our solar installations and energy efficiency projects. We are now projected to have all stores (bar one short leasehold) at A+, A or B by the end of 2026, well ahead of the 2028 requirement. Further detail, including progress on our Science Based Targets, is included in the ESG Report. # Summary Our business model, combined with continued investment in our market-leading brand, store portfolio and operating platform, has once again delivered a resilient performance over the last 12 months. We remain confident that this business can continue to deliver compounding returns over the medium to long term. Jim Gibson Chief Executive Officer 19 May 2025 > "We remain confident that this business can continue to deliver compounding returns over the medium to long term." --- Annual Report and Accounts 2025 Big Yellow Group PLC # Our Strategy 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. # Real estate A key 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. 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 2025 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 6.1 times for the year ended 31 March 2025, 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 3.1 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 will increase demand for our product. These changes have resulted in a significant shortage of available warehousing space, particularly in London. 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC 21 # 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 58%. 81% of our customers pay by direct debit, and our cash collection has remained robust over recent years. # We focus on the following key areas: ## Digital execution Leveraging our market-leading brand position to generate new prospects, principally from our digital, mobile and desktop platforms; ## Customer experience Focusing on training, selling skills, and customer satisfaction to maximise prospect conversion and referrals; ## Driving revenue Growing occupancy and net rent to drive revenue optimally at each store; ## Cost control Maintaining a focus on cost control, so revenue growth is transmitted through to earnings growth; ## Increasing footprint 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; ## Sustainability 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; ## Social initiatives Through our social initiatives, we support local charities with free storage space and help vulnerable people get back into the workplace through the Big Yellow Foundation; ## Culture Maintaining Big Yellow's culture as an accessible, apolitical, inclusive, non-hierarchical, socially responsible, and enjoyable place to work; ## Conservative capital structure Maintaining a conservative capital structure in the business with Group debt to EBITDA in the range of three to four times. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Our Investment Case In the twenty five years since flotation in May 2000, Big Yellow has delivered a Total Shareholder Return ("TSR"), including dividends reinvested, of 12.1% per annum, in aggregate 1,610.7% at the closing price of £9.32 on 31 March 2025. This compares to 4.1% 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 values ### Helpfulness Big Yellow exists to help people out and relieve pressure in their lives. We constantly strive to make our customers' lives easier. ### Empathy We always listen and put ourselves in the position of the individual we are serving, understanding how exactly we can lighten their load. ### Flexibility We are always flexible and adapt our service to best suit the needs and the desires of our customers. ### Innovativeness We strive to innovate to help drive our business forward and we never accept the status quo. ### Integrity We approach everything we do with a commitment to doing right. This goes beyond our customers to include our people, local communities and the environment. ## How we deliver value ### Attractive market dynamics - Resilient through the Global Financial Crisis, the pandemic and the recent energy crisis - Flexible contracts allow rental growth in an inflationary environment as demonstrated in the last three years - Structural undersupply in larger cities over the medium to long term - 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 over 90% of enquiries online - Prominent mainly purpose-built stores on arterial or main roads, with 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 In twenty five years Big Yellow has delivered a TSR of 12.1% per annum. --- Annual Report and Accounts 2025 Big Yellow Group PLC 23 # 12% Annual compound adjusted eps growth since 2004/5 ![img-32.jpeg](img-32.jpeg) ## 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 17% for one to two years - Average length of stay for existing customers of 32 months, for the 55% of customers that have stayed for more than one year, the average length of stay is 54 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 - Development pipeline of 1.0 million sq·ft (16% of current MLA) to drive further growth - Conservative capital structure allowing further growth from internal resources ## Conversion into quality returns ### High margins Freehold assets for high operating margins and operational advantage ### Sustainable Low technology and obsolescence product, maintenance capex fully expensed ### Adjusted eps **12%** Annual compound adjusted eps growth of 12% since 2004/5 ### Cash flow **13%** Annual compound cash flow growth of 13% since 2004/5 ### Dividend pay-out **80%** Dividend pay-out ratio of a minimum of 80% of adjusted eps This compares to 4.1% per annum for the FTSE Real Estate Index. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Our Key Performance Indicators The Group's KPIs are shown in the charts below. The key performance indicators of our stores are occupancy and net rent per sq ft, which together drive the revenue of the business. These are key measures which are focused on by the Board and are reported on a weekly basis. ![img-33.jpeg](img-33.jpeg) Closing occupancy (000 sq ft) 5,056,000 sq ft +20% over 5 years ![img-34.jpeg](img-34.jpeg) Closing net rent per sq ft £35.17 +23% over 5 years ![img-35.jpeg](img-35.jpeg) Revenue £204.5m +51% over 5 years ![img-36.jpeg](img-36.jpeg) Adjusted profit before tax £115.6m +55% over 5 years ![img-37.jpeg](img-37.jpeg) (£m) --- Annual Report and Accounts 2025 Big Yellow Group PLC 25 Strategic Report Governance Report Financial Statements Over the course of the past five years, revenue has increased significantly; with particularly strong growth in 2022. The current year has seen modest growth in occupancy, average rate and revenue. Closing net rent per sq ft has increased by 23% over the past five years, with growth of 3% in the year to 31 March 2025. We expect revenue growth to be driven by a combination of occupancy increases and growth in net achieved rent per sq ft. Adjusted profit before tax and adjusted earnings per share ("eps"), as defined in note 33, which drive the distributions to shareholders (as our dividend policy is to pay a minimum of 80% of adjusted earnings as dividends) are also KPIs. The Group focuses on adjusted profit and earnings measures as they give a clearer picture of the Group's trading performance without distortion from external factors such as property valuations and the fair value of derivatives. We have delivered compound adjusted eps and dividend growth of 7% over the past five years. Compound adjusted eps growth since 2004/5 is 12%. Our non-financial KPIs are the net promoter scores we receive from our customers and the carbon intensity of the Group's business. The Group's net promoter score received from its customers during the year was 82.8 (2024: 80.5). We believe this overall score compares very favourably with other consumer-facing businesses. The Group has reduced its carbon intensity (our carbon emissions divided by our average occupied space) by 32% over the past five years. This has been achieved through investment in renewable technology, roof mounted solar photo-voltaic systems, and LED lighting across the Group's portfolio. ![img-38.jpeg](img-38.jpeg) Adjusted earnings per share 57.8 pence +36% over 5 years ![img-39.jpeg](img-39.jpeg) ( pence) Dividend per share 46.4 pence +36% over 5 years ![img-40.jpeg](img-40.jpeg) Net promoter score 82.8 Average of 80.8 over 5 years ![img-41.jpeg](img-41.jpeg) 4.3 (32%) over 5 years --- Annual Report and Accounts 2025 Big Yellow Group PLC # Operating Review We now have a portfolio of 109 open and trading stores, with a current maximum lettable area of 6.4 million sq ft, in line with last year. ## The store platform and demand 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. The majority of our domestic customers are represented in ACORN profiled groups such as Flourishing Capital, Up and Coming Urbanites, Exclusive Addresses, Prosperous Professionals, Metropolitan Surroundings, Upmarket Families, Urban Aspiring Flat Dwellers and Privately Renting Professionals in Flats. 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 (2024: 41%), with homeowners representing 25% and renters 16%; - 12% of our customers who moved in took storage space as a spare room for decluttering (2024: 12%); - 35% 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 (2024: 36%); - the balance of 12% of our new customer demand during the year came from businesses (2024: 11%), who stay longer and represent around 20% of our customers in store at any one time, occupying 36% of the space at 31 March 2025. 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 36% 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 175 sq ft (2024: 177 sq ft). Domestic customers occupy on average 59 sq ft (2024: 58 sq ft) and pay on average 17% more in rent per sq ft than business customers (2024: 17%), however business customers do stay longer, take more space and represent around 32% of revenue (2024: 32%). 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, we believe are long-term structural trends, which will benefit our business going forward. ![img-42.jpeg](img-42.jpeg) --- Annual Report and Accounts 2025 Big Yellow Group PLC 27 ![img-43.jpeg](img-43.jpeg) 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 900 sq ft, paying £29,000 per annum, and are billed and managed centrally. This area has performed strongly in the year with revenue up 11% compared to the prior year, making up 5% of occupied space. ## Activity Prospect numbers were down 3% on the prior year, however, our conversion levels improved with move-ins down only 1% and move-outs also down 1% on last year. Occupancy across all 109 stores increased over the year by 27,000 sq ft (2024: fall of 59,000 sq ft). Domestic occupied space increased by 90,000 sq ft over the year. Business occupancy dropped 3% or 63,000 sq ft on 1.84 million sq ft occupied at the beginning of the 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 77 Big Yellow same stores (see Portfolio Summary) are 80.9% occupied compared to 81.7% at the same time last year. The eight lease-up Big Yellow stores added 48,000 sq ft of occupancy over the year to reach closing occupancy of 64.7%. The 24 Armadillo stores, representing 10% of the Group's revenue are 76.2% occupied, compared to 74.3% at this time last year. Overall store occupancy was 78.7% (2024: 78.3%). | | Occupancy 31 March 2025 % | Occupancy change in year 000 sq ft | Occupancy 31 March 2025 000 sq ft | Occupancy 31 March 2024 000 sq ft | | --- | --- | --- | --- | --- | | 77 established Big Yellow stores | 80.9% | (39) | 3,932 | 3,971 | | 8 lease-up Big Yellow stores | 64.7% | 48 | 357 | 309 | | 24 Armadillo stores | 76.2% | 18 | 767 | 749 | | All 109 stores | 78.7% | 27 | 5,056 | 5,029 | All stores are trading profitably at the EBITDA level. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Operating Review continued ## 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 increase rents to in-place customers on a range dependent on what they are paying relative to the current asking price, and on average these were at levels slightly ahead of wage inflation. It must be remembered that some 60% of our customers move-out within six months and therefore do not receive any price increases. New customers over the year paid on average 2% more than move-ins for last year, and 4% less than customers moving out over the year. If we can improve our relative occupancy performance, we would expect to see this reverse and be an additional driver to revenue growth. The average achieved net rent per sq ft increased by 3% compared to the prior year, with closing net rent up 3% compared to 31 March 2024. 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 2024 to March 2025 | Net rent per sq ft growth from April 2023 to March 2024 | | --- | --- | --- | | 75% to 85% | 3.3% | 5.4% | | 85% to 90% | 5.9% | 5.5% | | Above 90% | 7.8% | 6.9% | ## Marketing and operations Our marketing strategy focuses on enhancing our market-leading brand awareness further and leveraging it to maximise the cost-efficient generation of enquiries, customer move-ins and user satisfaction across our digital platforms. Our strong brand, combined with continued digital investment and innovation, has enabled us to create a market-leading website which delivers over 90% of our enquiries. Our latest YouGov survey (published in May 2024) confirmed 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 over four times higher than our nearest competitor across the UK. The Big Yellow website enables 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. We understand our web users often struggle to determine what size of storage they require. Our online size estimator features intuitive animations and information to guide people toward making the right choice. The online experience also allows customers to communicate with us in real-time via Live Chat, WhatsApp, or Facebook Messenger. Comprehensive online FAQs provide our users with another way to address questions they may have about the service without needing to call us directly. This is all essential because approximately 60% of our new prospects have not used self storage before. ![img-44.jpeg](img-44.jpeg) The seamless digital experience continues with our online check-in platform. This enables 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 establish a paperless Direct Debit – all accomplished remotely. This online check-in capability has significantly reduced the time our customers need to spend in our receptions when they move in. We also provide the ability to purchase boxes and packing materials through our online BoxShop store. These items can be home delivered or made available through our Click and Collect service from stores, which represents 77% of BoxShop transactions. Packing material sales and other ancillary sales (excluding ELS) generated revenue of £5.1 million in the year (2024: £4.9 million). ## Driving online traffic Self storage is a consumer-facing business and the development of a strong and sustainable brand is multi-layered. It requires consistency in product, customer service and interaction at all touch points, particularly online. Search engines are our most important acquisition tool, accounting for the majority of traffic to our website. Our focus on gaining a competitive advantage in search continues and our search engine optimisation ("SEO") efforts have helped us maintain high organic listings for popular generic and local self storage-related search terms. This, in turn, drives growth and cost efficiencies in acquiring new prospects. Brand search terms are also a valuable driver of enquiries for Big Yellow and help improve the efficiency of our cost per enquiry. In the past year, 47% of all search engine paid clicks to our website originated from "Big Yellow" brand searches. This clearly indicates that the 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 web traffic. Ongoing website optimisation and an engaging user experience through our digital platforms help ensure we maximise the conversion of these web visits into enquiries and then customers. --- Annual Report and Accounts 2025 Big Yellow Group PLC 29 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. This year, we have also started growing our strategic online partnerships with brands that have similar audiences to ours. This will help further drive efficiencies in our cost per customer. ## 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 referrals 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 56,000 averaging 4.8 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 help reinforce our focus on outstanding customer service. Over the year, we have achieved an average net promoter score of 82.8, which is a very strong consumer-facing benchmark result. We also gain real-time customer feedback from over 27,700 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 4,750 reviews from the independent review site Trustpilot. > Over the year, we have achieved an average net promoter score of 82.8, which is a very strong consumer-facing benchmark result." ![img-45.jpeg](img-45.jpeg) These reviews average a 4.7 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 complement our existing marketing channels. Big Yellow actively posts content across LinkedIn, Instagram and Facebook 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 specifically used to communicate company achievements, ESG initiatives and our company culture. The Big Yellow YouTube channel allows 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 in-store operations to achieve higher levels of automation and, consequently, efficiencies in the business. ## AI We continue to look for new opportunities to utilise AI and other emerging technology to drive efficiency and improve our business. We are currently leveraging a variety of AI tools to enhance our content creation process using tools such as Microsoft CoPilot, ChatGPT, and Canva to generate innovative ideas and content. These tools assist us in creating training modules, drafting policies and procedures, and developing engaging presentations and visuals. The integration of these AI tools has significantly streamlined our workflow and boosted our productivity. We've also been leveraging rules-based data manipulation and automation techniques across various aspects of our operations, such as our dynamic pricing system, prospect management, online check-in, and the digital automation of all customer communications. Our access control reporting and alerts, based on significant data from our stores, have been instrumental in enhancing our store audit processes. Exception reporting is another area where we've seen great improvements. Other examples in marketing would be translation AI, optimisation of paid search and targeting of prospects. Although services are provided by third parties, machine learning AI forms the backbone of our cyber security and defence mechanisms. It plays a crucial role in anti-malware efforts, firewalls, email management, vulnerability testing, and Security Information and Event Monitoring. The above is by no means a complete summary of how AI is making a difference to our business, but should provide an insight and it is something that we will continue to invest in. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Operating Review continued ## Cyber security and IT infrastructure Cyber security and IT infrastructure are vital for the Group's strategy and operations. We have a robust framework covering risk, security, compliance, innovation, and efficiency. Over the past year, we've achieved significant results and progress, although as ever, we are proactive in seeking new opportunities and overcoming new challenges. We maintain our commitment to investing in and improving our capabilities, ensuring we maintain our competitive edge. We regularly evaluate our cyber risk and security status with the help from both internal experts and external consultants. Mandatory Information Security and Data Protection training along with frequent tests, such as penetration testing and phishing simulations, help us ensure our systems and people are secure. This year, our systems underwent a comprehensive external audit and achieved IASME Cyber Assurance Levels 1 & 2, incorporating Cyber Essentials. Additionally, we have cyber insurance in place should a breach occur. Our Data Compliance Officer oversees ongoing compliance with GDPR and PCI DSS, along with Business Continuity and Crisis Communication management. Our policies and procedures are regularly reviewed and benchmarked against industry best practice. Our Infrastructure and Development teams drive innovation and efficiencies throughout the Group. ## 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. ### Current development pipeline – with planning | Site | Location | Status | Anticipated capacity | | --- | --- | --- | --- | | Staines, London | Prominent location on the Causeway | Construction commenced with store opening in July 2025. We are also developing 9 industrial units on the site totalling 99,000 sq ft. | 70,000 sq ft | | Queensbury, London | Prominent location off Honeypot Lane | Construction commenced with store opening in October 2025. | 72,000 sq ft | | Wembley, London | Prominent location on Towers Business Park | Construction commenced with store opening in March 2026. | 73,000 sq ft | | Slough Bath Road | Prominent location on Bath Road | Construction commenced with store opening in spring 2026. | 95,000 sq ft | | Epsom, London | Prominent location on East Street | Construction commenced with store opening in summer 2026. | 59,000 sq ft | | Staples Corner, London | Prominent location on North Circular Road | Construction commenced with planned store opening in summer 2026. | Replacement for existing leasehold store, additional 18,000 sq ft | | Kentish Town, London | Prominent location on Regis Road | Demolition commenced, with a planned store opening in autumn 2026. | 70,000 sq ft | | Wapping, London | Prominent location on the Highway, adjacent to existing Big Yellow | Construction commenced with store opening in late 2026. | Additional 95,000 sq ft | | West Kensington, London | Prominent location on Hammersmith Road | Demolition of existing building to commence this year, with a store opening anticipated in summer 2028. | 175,000 sq ft | | Newcastle | Prominent location on Scotswood Road | Planning consent granted, vacant possession awaited. | 60,000 sq ft | ### Current development pipeline – without planning | Site | Location | Status | Anticipated capacity | | --- | --- | --- | --- | | Old Kent Road, London | Prominent location on Old Kent Road | Site acquired in June 2022. Planning application submitted in October 2023, decision anticipated summer 2025. | 75,000 sq ft | | Leicester | Prominent location on Belgrave Gate, Central Leicester | Site acquired in June 2023. Planning application submitted in November 2024. | 58,000 sq ft | | Leamington Spa | Prominent location on Queensway | Site acquired in May 2024. Planning application submitted in December 2024. | 55,000 sq ft | | Coventry | Prominent location on Sir Henry Parkes Road | Site acquired in April 2025. | 58,000 sq ft | | Total – all sites | | | 1,033,000 sq ft | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Portfolio Summary | | March 2025 | | | | March 2024 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Big Yellow same stores(1) | Big Yellow lease-up | Armadillo | Total | Big Yellow same stores | Big Yellow lease-up | Armadillo | Total | | Number of stores | 77 | 8 | 24 | 109 | 77 | 8 | 24 | 109 | | At 31 March: | | | | | | | | | | Total capacity [sq ft] | 4,863,000 | 552,000 | 1,006,000 | 6,421,000 | 4,859,000 | 552,000 | 1,008,000 | 6,419,000 | | Occupied space [sq ft] | 3,932,000 | 357,000 | 767,000 | 5,056,000 | 3,971,000 | 309,000 | 749,000 | 5,029,000 | | Percentage occupied | 80.9% | 64.7% | 76.2% | 78.7% | 81.7% | 56.0% | 74.3% | 78.3% | | Net rent per sq ft | £37.56 | £33.28 | £23.74 | £35.17 | £36.43 | £31.74 | £22.98 | £34.14 | | For the year: | | | | | | | | | | REVPAF(2) | £34.80 | £23.34 | £21.01 | £31.63 | £34.28 | £18.41 | £20.02 | £30.71 | | Average occupancy | 82.3% | 62.1% | 77.3% | 79.8% | 84.1% | 51.8% | 76.4% | 80.2% | | Average annual net rent psf | £37.08 | £32.82 | £23.42 | £34.71 | £35.87 | £31.10 | £22.75 | £33.64 | | | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | | Self storage income | 148,335 | 11,262 | 18,226 | 177,823 | 146,945 | 8,640 | 17,562 | 173,147 | | Other storage related income(2) | 19,195 | 1,607 | 2,861 | 23,663 | 18,682 | 1,221 | 2,651 | 22,554 | | Ancillary store rental income | 1,576 | 17 | 45 | 1,638 | 1,375 | 17 | 19 | 1,411 | | Total store revenue | 169,106 | 12,886 | 21,132 | 203,124 | 167,002 | 9,878 | 20,232 | 197,112 | | Direct store operating costs | (43,606) | (5,690) | (8,269) | (57,565) | (39,722) | (4,591) | (7,517) | (51,830) | | Short and long leasehold rent(3) | (2,145) | (26) | (206) | (2,377) | (2,102) | (10) | (169) | (2,281) | | Store EBITDA(2) | 123,355 | 7,170 | 12,657 | 143,182 | 125,178 | 5,277 | 12,546 | 143,001 | | Store EBITDA margin | 72.9% | 55.6% | 59.9% | 70.5% | 75.0% | 53.4% | 62.0% | 72.5% | | Deemed cost | £m | £m | £m | £m | | | | | | To 31 March 2025 | 749.0 | 188.0 | 145.3 | 1,082.3 | | | | | | Capex to complete | - | 0.3 | - | 0.3 | | | | | | Total | 749.0 | 188.3 | 145.3 | 1,082.6 | | | | | (1) We have changed the presentation of the portfolio summary this year, to show same stores and lease-up stores, rather than established and developing stores, and represented the comparative information accordingly. This new approach is consistent with other listed self storage businesses. The Big Yellow same stores are those that have reached 85% occupancy during a previous financial year. Should a store move categories in a year, we re-present the comparative information so the store is in the same category in both years. We opened a new freehold store at Slough Farnham Road during the year. After transferring its customers to the new Farnham Road store, we closed our leasehold Slough Whitby Road store during the year. The occupancy, net rent and capacity at the balance sheet date shows Slough Farnham Road within the same stores, as it was effectively a continuation of trade in a new location. The revenue and operating costs for the year for both stores are shown within same stores. (2) See glossary in note 33. (3) Rent paid for six short leasehold properties and five long leasehold properties. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Portfolio Summary continued The table below reconciles Store EBITDA to gross profit in the statement of comprehensive income. | | Year ended 31 March 2025 £000 | | | Year ended 31 March 2024 £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) | 203,124 | 1,371 | 204,495 | 197,112 | 2,507 | 199,619 | | Cost of sales(5) | (57,565) | (4,561) | (62,126) | (51,830) | (4,164) | (55,994) | | Rent(3) | (2,377) | 2,377 | - | (2,281) | 2,281 | - | | Store EBITDA | 143,182 | (813) | 142,369 | 143,001 | 624 | 143,625 | (4) See note 3 of the financial statements, reconciling item is non-storage income. (5) See reconciliation in cost of sales section in Financial Review on page 39. # 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 2025 £000 | Year ended 31 March 2024 £000 | | --- | --- | --- | | Store revenue(6) | 203,124 | 197,112 | | Less revenue from non like-for-like stores(6) | (2,465) | (905) | | Like-for-like revenue(6) | 200,659 | 196,207 | | Like-for-like store occupancy | Year ended 31 March 2025 | Year ended 31 March 2024 | | --- | --- | --- | | Store MLA (sq ft)(6) | 6,421,000 | 6,419,000 | | Less MLA from non like-for-like stores (sq ft)(6) | (101,000) | (101,000) | | Like-for-like MLA (sq ft)(6) | 6,320,000 | 6,318,000 | | Store occupancy (sq ft)(6) | 5,056,000 | 5,029,000 | | Less occupancy from non like-for-like (sq ft)(6) | (59,000) | (36,000) | | Like-for-like occupancy (sq ft)(6) | 4,997,000 | 4,993,000 | | Like-for-like occupancy (%)(6) | 79.1% | 79.0% | (4) See glossary in note 33. --- Annual Report and Accounts 2024 Big Yellow Group PLC ![img-46.jpeg](img-46.jpeg) Guildford Central, March 2018 MLA – 55,000 sq ft ![img-47.jpeg](img-47.jpeg) Twickenham 2, April 2016 MLA – 22,000 sq ft ![img-48.jpeg](img-48.jpeg) Nine Elms, April 2016 MLA – 65,000 sq ft ![img-49.jpeg](img-49.jpeg) Cambridge, January 2016 MLA – 60,000 sq ft ![img-50.jpeg](img-50.jpeg) Enfield, April 2015 MLA – 60,000 sq ft ![img-51.jpeg](img-51.jpeg) Chester, February 2015 MLA – 69,000 sq ft ![img-52.jpeg](img-52.jpeg) Oxford 2, July 2014 MLA – 35,000 sq ft ![img-53.jpeg](img-53.jpeg) Gypsy Corner, April 2014 MLA – 70,000 sq ft ![img-54.jpeg](img-54.jpeg) Chiswick, April 2012 MLA – 73,000 sq ft ![img-55.jpeg](img-55.jpeg) New Cross, February 2012 MLA – 61,000 sq ft ![img-56.jpeg](img-56.jpeg) Stockport, September 2011 MLA – 65,000 sq ft ![img-57.jpeg](img-57.jpeg) Eltham, April 2011 MLA – 70,000 sq ft ![img-58.jpeg](img-58.jpeg) Camberley, January 2011 MLA – 67,000 sq ft ![img-59.jpeg](img-59.jpeg) High Wycombe, June 2010 MLA – 60,000 sq ft ![img-60.jpeg](img-60.jpeg) Reading, December 2009 MLA – 62,000 sq ft ![img-61.jpeg](img-61.jpeg) Sheffield Bramall Lane, September 2009 MLA – 60,000 sq ft ![img-62.jpeg](img-62.jpeg) Poole, August 2009 MLA – 55,000 sq ft ![img-63.jpeg](img-63.jpeg) Nottingham, August 2009 MLA – 67,000 sq ft ![img-64.jpeg](img-64.jpeg) Edinburgh, July 2009 MLA – 63,000 sq ft ![img-65.jpeg](img-65.jpeg) Twickenham, May 2009 MLA – 73,000 sq ft ![img-66.jpeg](img-66.jpeg) Liverpool, March 2009 MLA – 60,000 sq ft ![img-67.jpeg](img-67.jpeg) Bromley, March 2009 MLA – 71,000 sq ft ![img-68.jpeg](img-68.jpeg) Birmingham, February 2009 MLA – 60,000 sq ft ![img-69.jpeg](img-69.jpeg) Sheen, December 2008 MLA – 64,000 sq ft --- Annual Report and Accounts 2024 Big Yellow Group PLC ![img-70.jpeg](img-70.jpeg) Sheffield Hillsborough, October 2008 MLA – 60,000 sq ft ![img-71.jpeg](img-71.jpeg) Kennington, May 2008 MLA – 66,000 sq ft ![img-72.jpeg](img-72.jpeg) Merton, March 2008 MLA – 70,000 sq ft ![img-73.jpeg](img-73.jpeg) Fulham, March 2008 MLA – 138,000 sq ft ![img-74.jpeg](img-74.jpeg) Balham, March 2008 MLA – 61,000 sq ft ![img-75.jpeg](img-75.jpeg) Barking, November 2007 MLA – 64,000 sq ft ![img-76.jpeg](img-76.jpeg) Ealing Southall, November 2007 MLA – 57,000 sq ft ![img-77.jpeg](img-77.jpeg) Sutton, July 2007 MLA – 70,000 sq ft ![img-78.jpeg](img-78.jpeg) Gloucester, December 2006 MLA – 50,000 sq ft ![img-79.jpeg](img-79.jpeg) Edmonton, October 2006 MLA – 75,000 sq ft ![img-80.jpeg](img-80.jpeg) Kingston, August 2006 MLA – 62,000 sq ft ![img-81.jpeg](img-81.jpeg) Bristol Ashton Gate, July 2006 MLA – 61,000 sq ft ![img-82.jpeg](img-82.jpeg) Finchley East, May 2006 MLA – 54,000 sq ft ![img-83.jpeg](img-83.jpeg) Tunbridge Wells, April 2006 MLA – 57,000 sq ft ![img-84.jpeg](img-84.jpeg) Bristol Central, March 2006 MLA – 64,000 sq ft ![img-85.jpeg](img-85.jpeg) North Kensington, December 2005 MLA – 50,000 sq ft ![img-86.jpeg](img-86.jpeg) Leeds, July 2005 MLA – 76,000 sq ft ![img-87.jpeg](img-87.jpeg) Beckenham, May 2005 MLA – 71,000 sq ft ![img-88.jpeg](img-88.jpeg) Tolworth, November 2004 MLA – 56,000 sq ft ![img-89.jpeg](img-89.jpeg) Watford, August 2004 MLA – 64,000 sq ft ![img-90.jpeg](img-90.jpeg) Swindon, April 2004 MLA – 53,000 sq ft ![img-91.jpeg](img-91.jpeg) Orpington, December 2003 MLA – 64,000 sq ft ![img-92.jpeg](img-92.jpeg) Bylleet, November 2003 MLA – 48,000 sq ft ![img-93.jpeg](img-93.jpeg) Chelmsford, April 2003 MLA – 54,000 sq ft --- Annual Report and Accounts 2024 Big Yellow Group PLC # Our Big Yellow Stores An unrivalled portfolio of stores across London, the South East and other large metropolitan cities. ![img-94.jpeg](img-94.jpeg) Slough Farnham Road, July 2024 MLA - 65,000 sq ft ![img-95.jpeg](img-95.jpeg) Kings Cross, June 2023 MLA - 105,000 sq ft ![img-96.jpeg](img-96.jpeg) Harrow, September 2022 MLA - 82,000 sq ft ![img-97.jpeg](img-97.jpeg) Kingston North, September 2022 MLA - 56,000 sq ft ![img-98.jpeg](img-98.jpeg) Aberdeen, June 2022 MLA - 54,000 sq ft ![img-99.jpeg](img-99.jpeg) Hove, March 2022 MLA - 58,000 sq ft ![img-100.jpeg](img-100.jpeg) Hayes, January 2022 MLA - 73,000 sq ft ![img-101.jpeg](img-101.jpeg) Uxbridge, June 2021 MLA - 54,000 sq ft ![img-102.jpeg](img-102.jpeg) Battersea, November 2020 MLA - 70,000 sq ft ![img-103.jpeg](img-103.jpeg) Bracknell, September 2020 MLA - 59,000 sq ft ![img-104.jpeg](img-104.jpeg) Camberwell, July 2020 MLA - 75,000 sq ft ![img-105.jpeg](img-105.jpeg) Manchester, May 2019 MLA - 60,000 sq ft ![img-106.jpeg](img-106.jpeg) Wapping, July 2018 MLA - 26,000 sq ft --- Annual Report and Accounts 2024 Big Yellow Group FLC ![img-107.jpeg](img-107.jpeg) Finchley North, March 2003 MLA - 62,000 sq ft ![img-108.jpeg](img-108.jpeg) West Norwood, January 2003 MLA - 57,000 sq ft ![img-109.jpeg](img-109.jpeg) Colchester, December 2002 MLA - 54,000 sq ft ![img-110.jpeg](img-110.jpeg) Bow, November 2002 MLA - 132,000 sq ft ![img-111.jpeg](img-111.jpeg) Brighton, October 2002 MLA - 59,000 sq ft ![img-112.jpeg](img-112.jpeg) Guildford Slyfield, June 2002 MLA - 55,000 sq ft ![img-113.jpeg](img-113.jpeg) New Malden, May 2002 MLA - 81,000 sq ft ![img-114.jpeg](img-114.jpeg) Hounslow, December 2001 MLA - 54,000 sq ft ![img-115.jpeg](img-115.jpeg) Illord, November 2001 MLA - 58,000 sq ft ![img-116.jpeg](img-116.jpeg) Cardiff, October 2001 MLA - 74,000 sq ft ![img-117.jpeg](img-117.jpeg) Portsmouth, October 2001 MLA - 61,000 sq ft ![img-118.jpeg](img-118.jpeg) Norwich, September 2001 MLA - 47,000 sq ft ![img-119.jpeg](img-119.jpeg) Dagenham, July 2001 MLA - 51,000 sq ft ![img-120.jpeg](img-120.jpeg) Wandsworth, April 2001 MLA - 72,000 sq ft ![img-121.jpeg](img-121.jpeg) Luton, March 2001 MLA - 41,000 sq ft ![img-122.jpeg](img-122.jpeg) Southend, March 2001 MLA - 57,000 sq ft ![img-123.jpeg](img-123.jpeg) Staples Corner, March 2001 MLA - 112,000 sq ft ![img-124.jpeg](img-124.jpeg) Romford, November 2000 MLA - 70,000 sq ft ![img-125.jpeg](img-125.jpeg) Milton Keynes, September 2000 MLA - 60,000 sq ft ![img-126.jpeg](img-126.jpeg) Cheltenham, April 2000 MLA - 50,000 sq ft ![img-127.jpeg](img-127.jpeg) Hanger Lane, October 1999 MLA - 66,000 sq ft ![img-128.jpeg](img-128.jpeg) Oxford, August 1999 MLA - 33,000 sq ft ![img-129.jpeg](img-129.jpeg) Croydon, July 1999 MLA - 79,000 sq ft ![img-130.jpeg](img-130.jpeg) Richmond, May 1999 MLA - 35,000 sq ft --- Annual Report and Accounts 2025 Big Yellow Group PLC 37 # Our Armadillo Stores Armadillo is Big Yellow's regional brand in smaller towns and cities with 24 largely freehold stores. ![img-131.jpeg](img-131.jpeg) Canterbury MLA - 35,000 sq ft ![img-132.jpeg](img-132.jpeg) Daventry MLA - 35,000 sq ft ![img-133.jpeg](img-133.jpeg) Derby MLA - 43,000 sq ft ![img-134.jpeg](img-134.jpeg) Dundee MLA - 39,000 sq ft ![img-135.jpeg](img-135.jpeg) Exeter MLA - 34,000 sq ft ![img-136.jpeg](img-136.jpeg) Gateshead MLA - 46,000 sq ft ![img-137.jpeg](img-137.jpeg) Grimsby MLA - 40,000 sq ft ![img-138.jpeg](img-138.jpeg) Hull MLA - 32,000 sq ft ![img-139.jpeg](img-139.jpeg) Liverpool Aintree MLA - 49,000 sq ft ![img-140.jpeg](img-140.jpeg) Liverpool Bootle MLA - 36,000 sq ft ![img-141.jpeg](img-141.jpeg) Liverpool South MLA - 50,000 sq ft ![img-142.jpeg](img-142.jpeg) Macclesfield MLA - 63,000 sq ft ![img-143.jpeg](img-143.jpeg) Morecambe MLA - 50,000 sq ft ![img-144.jpeg](img-144.jpeg) Newcastle MLA - 56,000 sq ft ![img-145.jpeg](img-145.jpeg) Peterborough MLA - 49,000 sq ft ![img-146.jpeg](img-146.jpeg) Plymouth MLA - 25,000 sq ft ![img-147.jpeg](img-147.jpeg) Sheffield Parkway MLA - 48,000 sq ft ![img-148.jpeg](img-148.jpeg) Sheffield West Bar MLA - 29,000 sq ft ![img-149.jpeg](img-149.jpeg) Stockton Central MLA - 43,000 sq ft ![img-150.jpeg](img-150.jpeg) Stockton South MLA - 41,000 sq ft ![img-151.jpeg](img-151.jpeg) Stoke MLA - 39,000 sq ft ![img-152.jpeg](img-152.jpeg) Torquay MLA - 33,000 sq ft ![img-153.jpeg](img-153.jpeg) Warrington MLA - 57,000 sq ft ![img-154.jpeg](img-154.jpeg) West Molesey MLA - 35,000 sq ft --- Annual Report and Accounts 2025 Big Yellow Group PLC # Financial Review ## Revenue Total revenue for the year was £204.5 million, an increase of £4.9 million (2%) from £199.6 million in the prior year. The increase in revenue for the year was impacted by lower rental income on our development sites as we obtained vacant possession; store revenue growth for the year was 3%. Like-for-like store revenue (see glossary in note 33) for the year was £200.7 million, an increase of 2% from the prior year (2024: £196.2 million). In the prior year, we reported that revenue growth was highest in London stores, with our south east commuter and regional stores delivering a lower run-rate of revenue growth. In the current year, we have seen this reverse, with our commuter and regional stores delivering higher revenue growth than our London stores. 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 £23.7 million in the year (2024: £22.6 million), an increase of 5%. This is ahead of the overall store revenue increase after a focus on improving the average level of ELS cover we sell to customers and improving the amount we charge for add-on services. 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. We saw moderating operating cost increases in the second half of the financial year. The like-for-like increase in store operating costs in the first half of the year was 10%; for the second half this figure was 4%, with an overall increase of 7% for the year. We are pleased to have significantly reduced our operating cost inflation in the second half and are targeting to achieve further improvement in the year ahead. The table below shows the breakdown of our store operating costs compared to the prior year: | Category | Year ended 31 March 2025 £000 | Year ended 31 March 2024 £000 | Change | % of store operating costs in 2025 | | --- | --- | --- | --- | --- | | Cost of sales | 1,422 | 1,519 | (6%) | 2% | | Staff costs | 15,199 | 14,719 | 3% | 26% | | General & admin | 1,646 | 1,534 | 7% | 3% | | Utilities | 2,783 | 2,670 | 4% | 5% | | Property rates | 20,856 | 18,153 | 15% | 35% | | Marketing | 6,778 | 6,438 | 5% | 11% | | Repairs & maintenance | 5,841 | 5,336 | 9% | 10% | | Insurance | 3,394 | 3,323 | 2% | 6% | | Computer costs | 1,193 | 1,031 | 16% | 2% | | Total before one-off items | 59,112 | 54,723 | 8% | | | One-off items | (1,547) | (2,893) | (46%) | | | Total per portfolio summary | 57,565 | 51,830 | 11% | | Store operating costs have increased by £5.7 million (11%). The one-off items in the current year relate to rates rebates received in the year, with the prior year one-off items due to release of a provision for property rates from the 2017 rating list and a reassessment of the Group's bad debt provision. Store operating costs before these one-off items have increased by £4.4 million (8%) compared to the prior year. The additional operating expense from new stores accounted for £0.5 million in the year. The remaining increase is £3.9 million (7%), with commentary below: - Cost of sales has reduced with slightly lower packing material sales in the year, and some savings on purchase costs. - Staff costs have increased by £0.5 million (3%) with the salary review of on average 4.8% (including a higher increase to those at the lower end of the pay scale reflecting the rise in the national living wage). This increase has been partly offset by savings on headcount, as we drive efficiencies into the stores through automation. - Our utilities expenditure continues to benefit from our investment in solar. --- Annual Report and Accounts 2025 Big Yellow Group PLC 39 - Property rates have increased by £2.7 million (15%). The causes of this increase are the impact of new stores; the unwinding of taper relief from the introduction of the 2023 listing, and inflation applied to the multiplier which was set at 6.7%, based on the CPI print to September 2023. The rates payable for the next financial year will be based off the CPI to September 2024, which was 1.7%. - Our marketing expense for the year was up 5%, mainly due to an increase in the PPC budget over the summer months to drive additional prospects in a softer demand environment. The total marketing spend represents 3.3% of revenue for the year. - The repairs and maintenance expense has increased due to an additional investment in security in our stores, and an increase in solar panel maintenance costs, with higher numbers of stores now with solar PVs. - Computer costs have increased by £0.2 million (16%), which reflects additional investment in systems to drive automation across the business. - 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 2025 £000 | Year ended 31 March 2024 £000 | | --- | --- | --- | | Direct store operating costs per portfolio summary (excluding rent) | 57,565 | 51,830 | | Rent included in cost of sales (total rent payable is included in portfolio summary) | 1,593 | 1,784 | | Depreciation charged to cost of sales | 530 | 569 | | Costs associated with closure of Slough leasehold store | 694 | – | | Head office and other operational management costs charged to cost of sales | 1,744 | 1,811 | | Cost of sales per statement of comprehensive income | 62,126 | 55,994 | The Group incurred various costs associated with the closure of its Slough leasehold store in the year, including the cost of transferring customers to our new freehold Slough Farnham Road store, and the strip-out of the building before returning it to the landlord. These costs totalled £0.7 million and have been excluded from the Group's adjusted profit for the year, as they are a one-off item. ## Store EBITDA Store EBITDA for the year was £143.2 million, an increase of £0.2 million from £143.0 million for the prior year (see Portfolio Summary). The overall EBITDA margin for during the year was 70.5%, down from 72.5% in 2024, due to the increase in store operating costs discussed above. All stores are currently trading profitably at the Store EBITDA level. ## Administrative expenses Administrative expenses in the statement of comprehensive income of £15.8 million were up £0.5 million (4%) compared to the prior year, slightly ahead of average inflation. ## Other income In February 2022 the Group experienced a fire at our Cheadle store, which resulted in a total loss to the store. We had insurance cover in place for both the fit-out and four years loss of income. The Group settled the claim with the insurers in the year and the resulting loss of income insurance proceeds received during the financial year was £4.0 million, which is included in other income (2024: £1.8 million). There will be no further amounts received in respect of this claim in the year ending 31 March 2026. In the prior year the Group received £4.7 million, being the insurance proceeds for the fit-out of the Cheadle store. This amount was shown as other income in 2024 but not included in the Group's adjusted earnings for that year, as it relates to capital expenditure. ## Interest expense on bank borrowings The gross bank interest expense for the year was £23.3 million, a decrease of £2.4 million from the prior year, due to lower average debt levels, following the placing in October 2023, partly offset by a slightly higher average cost of debt following the increase in interest rates in the prior year. The average cost of borrowing during the year was 5.7% compared to 5.5% in the prior year. Our average cost of debt has now started to fall following the reduction in interest rates from August 2024. Capitalised interest has risen significantly as we build out the stores in our development pipeline, and was £7.9 million, up from £3.3 million in the prior year. Total finance costs in the statement of comprehensive income reduced to £15.9 million from £22.9 million in the prior year, due to the reduction in interest payable and the increase in capitalised interest. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Financial Review continued ## Profit before tax The Group made a profit before tax in the year of £203.9 million, compared to a profit of £241.0 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 £115.6 million, up 8% from £107.3 million in 2024. | Profit before tax analysis | 2025 £000 | 2024 £000 | | --- | --- | --- | | Profit before tax | 203,854 | 241,035 | | Gain on revaluation of investment properties | (79,667) | (131,159) | | Movement in fair value on interest rate derivatives | (547) | 2,146 | | Gain on disposal of non-current asset | (8,754) | – | | Costs associated with closure of Slough leasehold store | 694 | – | | Cheadle fit-out insurance proceeds | – | (4,723) | | Adjusted profit before tax | 115,580 | 107,299 | 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 2024 | 107.3 | | Decrease in gross profit | (0.6) | | Increase in administrative expenses | (0.5) | | Increase in other income | 2.3 | | Decrease in net interest payable | 2.5 | | Increase in capitalised interest | 4.6 | | Adjusted profit before tax – year ended 31 March 2025 | 115.6 | Basic earnings per share for the year was 103.2p (2024: 127.1p) and diluted earnings per share was 102.8p (2024: 126.4p). Diluted adjusted earnings per share based on adjusted profit after tax was up 3% to 57.8p (2024: 55.9p) (see note 12). ## REIT status The Group is a Real Estate Investment Trust ("REIT") and therefore benefits from a zero tax rate on its 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 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 £2.5 million tax charge in the residual business for the year ended 31 March 2025 (2024: £2.3 million). The current year tax charge is partly offset in the income statement by an adjustment to the prior year tax estimate of £0.5 million (2024: prior year adjustment of £1.1 million). ## Dividends The Board is recommending the payment of a final dividend of 23.8 pence per share in addition to the interim dividend of 22.6 pence, giving a total dividend for the year of 46.4 pence, an increase of 3% from 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. Based on the full year distributable reserves for PID purposes, a PID of 46.4p pence per share is payable (31 March 2024: 45.2 pence). The PID for the year to 31 March 2025 accounts for all of the declared dividend. The table below summarises the declared dividend for the year: | Dividend (pence per share) | 31 March 2025 | 31 March 2024 | | --- | --- | --- | | Interim dividend | 22.6p | 22.6p | | Final dividend | 23.8p | 22.6p | | Total dividend | 46.4p | 45.2p | Subject to approval by shareholders at the Annual General Meeting to be held on 17 July 2025, the final dividend will be paid on 25 July 2025. The ex-div date is 3 July 2025 and the record date is 4 July 2025. ## 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 £111.9 million, an increase of 2% from £110.1 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 £53,500 per store (2024: £49,000). The Group's net debt has increased slightly over the year to £388.7 million (March 2024: £385.4 million). There are distortive working capital items in the prior year, and therefore the summary cash flow on the next page sets out the free cash flow pre-working capital movements. --- Annual Report and Accounts 2025 Big Yellow Group PLC 41 | | Year ended 31 March 2025 £m | Year ended 31 March 2024 £m | | --- | --- | --- | | Cash generated from operations pre-working capital movements | 132.0 | 135.1 | | Net finance costs | (21.5) | (24.0) | | Interest on obligations under lease liabilities | (0.6) | (0.6) | | Loss of income insurance proceeds | 4.0 | 1.6 | | Tax | (2.0) | (2.0) | | Cash flow from operating activities pre-working capital movements | 111.9 | 110.1 | | Working capital movements | 2.6 | (5.3) | | Cash flow from operating activities | 114.5 | 104.8 | | Capital expenditure | (58.3) | (30.9) | | Disposal of non-current asset | 30.6 | 5.4 | | Insurance proceeds on fit-out | – | 4.7 | | Cash flow after investing activities | 86.8 | 84.0 | | Ordinary dividends | (88.5) | (85.3) | | Issue of share capital | 0.8 | 108.0 | | Payment of lease liabilities | (1.8) | (1.8) | | Loan arrangement fees paid | (0.6) | (3.7) | | Increase/(decrease) in borrowings | 2.7 | (100.2) | | Net cash (outflow)/inflow | (0.6) | 1.0 | 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 6.1 times (2024: 5.6 times). This is calculated per below: | | 31 March 2025 £000 | 31 March 2024 £000 | | --- | --- | --- | | Cash generated from operations pre working capital movements (see note 26) | 131,999 | 135,086 | | Interest paid per cash flow statement | (21,657) | (24,069) | | Interest cover | 6.1x | 5.6x | In the year capital expenditure outflows were £58.3 million, up from £30.9 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 continue the build out of our pipeline. The disposal of non-current asset of £30.6 million relates to the proceeds from the sale of land adjacent to our Battersea store. The cash flow after investing activities was a net inflow of £86.8 million, an increase of 3% from £84.0 million in the prior year. ## Balance sheet ## Property The Group's open stores and stores under development owned at 31 March 2025, 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 £2,992.7 million, comprising £2,784.6 million (93%) for the freehold (including nine long leaseholds) open stores, £22.9 million (1%) for the short leasehold open stores and £185.2 million (6%) for the freehold investment properties under construction. ## Investment property The open store portfolio has increased in value by £78.8 million (3%). This increase in value arises from improvements in the cap rates on certain stores, and growth in the projected cash flows. The weighted average exit capitalisation rate used in the valuations was 5.2% in the current year, compared to 5.4% in the prior year. | Analysis of property portfolio | Value at 31 March 2025 £m | Revaluation movement in the year £m | | --- | --- | --- | | Investment property | 2,807.5 | 78.8 | | Investment property under construction | 185.2 | 0.9 | | Investment property total | 2,992.7 | 79.7 | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Financial Review continued The table below provides a further breakdown of the open store valuations: | | Mature | | Lease-up | Armadillo | | | --- | --- | --- | --- | --- | --- | | | Freehold | Leasehold | Freehold | Largely Freehold | Total | | Number of stores | 73 | 4 | 8 | 24 | 109 | | MLA capacity (sq ft) | 4,619,000 | 244,000 | 552,000 | 1,006,000 | 6,421,000 | | Valuation at 31 March 2025 (£m) | £2,269.3m | £18.8m | £270.9m | £177.3m | £2,736.3m | | Value per sq ft | £491 | £77 | £491 | £176 | £426 | | Net initial year one NOI yield | 5.0% | 17.2% | 3.5% | 5.9% | 5.0% | 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 5.0% (2024: 5.2%). Note 15 contains more detail on the assumptions underpinning the valuations. # Investment property under construction The Group spent £55.3 million on investment property under construction in the year, the majority of which was construction expenditure, with the only site acquisition in the year being Leamington Spa. Slough Farnham Road transferred to investment property during the year as the store opened. There was a revaluation surplus of £0.9 million on the investment property under construction in the year. The projected net operating income of the increase in our total capacity of 1.0 million sq ft when stabilised is £32.5 million representing an approximate 15.3% return on the incremental capital deployed. On a proforma basis at stabilisation, the projected net operating income for the 13 new stores and one replacement store is £36.6 million, a return of approximately 8.7% on the total development cost of £422 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 based on the special assumption of 2.75% purchaser's costs, results in a higher property valuation at 31 March 2025 of £3.11 billion (£116 million higher than the value recorded in the financial statements). This translates to 58.7 pence per share. This revised valuation translates into an adjusted net asset value per share of 1,355.6 pence (2024: 1,296.4 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 81% of our customer base paying by direct debit (2024: 80%). # Net asset value The adjusted net asset value is 1,355.6 pence per share (see note 13), an increase of 5% compared to 1,296.4 pence per share at 31 March 2024. The table below reconciles the movement: | Movement in adjusted net asset value | £m | Adjusted NAV pence per share | | --- | --- | --- | | 31 March 2024 | 2,561.9 | 1,296.4 | | Adjusted profit after tax | 113.6 | 57.5 | | Equity dividends paid | (88.4) | (44.7) | | Revaluation movements | 79.7 | 40.3 | | Movement in purchaser's cost adjustment | 5.0 | 2.5 | | Other movements (e.g. share schemes, gain on disposal) | 10.3 | 3.6 | | 31 March 2025 | 2,682.1 | 1,355.6 | --- Annual Report and Accounts 2025 Big Yellow Group PLC 43 # 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 2025, with a current average cost of debt of 5.0% (March 2024: 5.4%). | Debt | Expiry | Facility | Drawn | Cost | | --- | --- | --- | --- | --- | | Aviva Loan | September 2028 | £152.5m | £152.5m | 3.4% | | M&G loan (£35 million fixed at 4.5%, £85 million floating) | September 2029 | £120m | £120m | 6.4% | | Revolving bank facility (Lloyds, HSBC, and Barclays, floating) | December 2027 (option to extend for further year) | £300m | £125m | 5.7% | | Total | Average term 3.5 years | £572.5m | £397.5m | 5.0% | 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 with terms of between 7 and 15 years at short notice, typically 10 days. The Group's £300 million RCF 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 is measured annually, with a margin decrease or increase applied to the headline margin. We are pleased to report that the Group met all the KPIs in the first year of the loan and is therefore benefitting from a 5bps margin reduction on the RCF. The Group was comfortably in compliance with its banking covenants at 31 March 2025. 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 2025 | 31 March 2024 | | --- | --- | --- | | Net Debt / Gross Property Assets | 13% | 13% | | Net Debt / Adjusted Net Assets | 14% | 15% | | Net Debt / Market Capitalisation | 21% | 18% | | Net debt to Group EBITDA ratio | 3.1x | 3.0x | | Cash generated from operations pre-working capital movements against interest paid | 6.1x | 5.6x | At 31 March 2025, the fair value on the Group's interest rate derivatives was a liability of £1.3 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 £19.7 million at 31 March 2025 (2024: £19.6 million), consisting of 196,714,696 ordinary shares of 10p each (2024: 196,195,287 shares). 0.5 million shares were issued for the exercise of options during the year at an average exercise price of £12.60 (2024: 0.3 million shares at an average price of £10.77). The Group holds 0.9 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. | Metric | 2025 No. | 2024 No. | | --- | --- | --- | | Opening shares | 196,195,287 | 184,265,973 | | Shares issued in placing | - | 11,640,212 | | Shares issued for the exercise of options | 519,409 | 289,102 | | Closing shares in issue | 196,714,696 | 196,195,287 | | Shares held in EBT | (881,360) | (1,098,686) | | Closing shares for NAV purposes | 195,833,336 | 195,096,601 | 96.9 million shares were traded in the market during the year ended 31 March 2025 (2024: 111.2 million). The average mid-market price of shares traded during the year was £11.09 with a high of £13.36 and a low of £8.71. --- Annual Report and Accounts 2025 Big Yellow Group PLC # 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. 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. Our performance during the past five years has been resilient with revenue growing by 58% from £129.3 million in the year ended 31 March 2020 to £204.5 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 three financial years have seen a challenging geopolitical and macroeconomic backdrop, with the Russian invasion of Ukraine in February 2022, the US regional banking crisis, the collapse of Credit Suisse, the conflict in the Middle East, the impact of rising inflation and interest rates, and more recently the imposition of tariffs by the United States. Rising inflation and interest rates impacted the cost of living in the UK, and the level of housing transactions fell as the cost of mortgages increased. The Group's activity levels have been impacted by this backdrop during the year and move-ins were down 1% compared to the prior year. The quarter to September was impacted by consumer hesitancy in the lead-up to the new government's Budget. Inflation has moderated over the past twelve months and interest rates and mortgage costs have started to fall, however the impact of the proposed US tariffs has yet to fully play through. We have seen some competitor openings in the year in our areas of operation, although the overall level of penetration of self storage in the UK remains significantly below that of the US and Australia. | --- Annual Report and Accounts 2025 Big Yellow Group PLC 45 | Risk and impact | Mitigation | Change during the year and outlook | | --- | --- | --- | | **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, working with 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 2023, which reinforced our current approach, but also gave some areas where further efficiencies and cost savings can be achieved, which we have been implementing since then. | The Group has acquired 14 sites over the past six years, taking its total pipeline to 14 sites which, when opened, would expand the Group's current MLA by 16%. 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 have planning consent on 10 of the 14 development sites and are currently on site at nine of these. | | **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 £78.8 million in the year (an uplift of 3%), 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 several larger portfolio transactions across Europe over the past four years, notably including the acquisition of Lok 'n Store by Shurgard, which completed in August 2024 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. | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Principal Risks and Uncertainties continued | Risk and impact | Mitigation | Change during the year and outlook | | --- | --- | --- | | **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 three and a 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 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 2025 47% 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 started to reduce during the year, with it currently at 4.25%, down from 5.25% at the start of our financial year. 53% of the Group's drawn debt is floating, and hence the Group has benefitted from these and any future reductions in the base rate. Debt providers currently remain supportive to companies with a strong capital structure. The Group's interest cover ratio for the year ended 31 March 2025 was 6.1 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 years 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"). 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 has 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 has seen a significant increase in its property rates bill over recent years, with the 2023 rating list reflecting the rise in industrial rents over the past few years, alongside higher levels of CPI inflating our cost. The rating list for 2026 will be published in the next few months, and the Group may experience a further increase in cost from this. The corporation tax rate increased in 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. The Group has also experienced an increase in cost from the recent rises in National Insurance and the National Living Wage. We have sought to mitigate the impact of these through reductions in store headcount as we continue our investment in automation. | --- Annual Report and Accounts 2025 Big Yellow Group PLC 47 | Risk and impact | Mitigation | Change during the year and outlook | | --- | --- | --- | | **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 several 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. We are carrying out a full engagement survey in May 2025, and will report on the results of that in next year's annual report. | | **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 experienced a fire caused by arson at our Armadillo Cheadle store in 2022. Our crisis response team worked effectively in managing the incident. 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. | | **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. | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Principal Risks and Uncertainties continued | Risk and impact | Mitigation | Change during the year and outlook | | --- | --- | --- | | **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 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 at least once every nine months 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 Chief Operating Officer, the Financial Controller, and the Head of Store Operations. 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 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, the external assessment of the key business cycles, and the new software to manage and report on risks, 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 2025 the Group had available liquidity of approximately £184 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 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 2025, had cash flow from operating activities (after net finance costs and pre-working capital movements) of £111.9 million, with capital commitments at the balance sheet date of £77.5 million. The Group has net current liabilities at the balance sheet date and draws on its Revolving Credit Facility (current headroom of £175 million) as required, as it is inefficient for the Group to hold significant amounts of cash. --- Annual Report and Accounts 2025 Big Yellow Group PLC 49 The Directors have prepared cash flow forecasts for a period of 18 months from the date of approval of these financial statements, considering the Group's operating plan and budget for the year ending 31 March 2026 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, considering the trading performance of the Group over the recent dislocations in the global economy from Covid-19, the Russian invasion of Ukraine and the impact of rising inflation. 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 2029. 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 several 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 debt and debt provided by insurance companies 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 2029. ## Climate-Related Risks and Opportunities ### TCFD compliance statement Big Yellow recognises the importance of addressing climate-related risks and opportunities in our business operations and decision-making processes. As such, we are committed to transparently disclosing our approach 'to managing climate-related risks and opportunities' in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD"). Our disclosures are consistent with ten of the eleven TCFD recommendations set out in the report entitled 'Recommendations of the Task Force on Climate-related Financial Disclosures' published in 2017 and updated in 2021 by the TCFD. The area we are continuing to work on is in respect of our Scope 3 emissions disclosures. Our disclosures encompass all four pillars outlined by the TCFD framework in line with the UK's Financial Conduct Authority Listing Rules. These are detailed below: | Pillar | Disclosure | Location | | --- | --- | --- | | Governance | Describe the Board's oversight of climate-related risks and opportunities | Governance page 50 | | | Describe management's role in assessing and managing climate-related risks and opportunities | Governance page 50 | | Strategy | Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long-term | Strategy page 50 | | | Describe the impact of climate-related risks and opportunities have had on the organisation's businesses, strategy and financial planning | Strategy page 51 | | | Describe the resilience of the strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario | Strategy page 52 | | Risk Management | Describe the organisation's processes for identifying and assessing climate-related risks | Risk Management page 55 | | | Describe the organisation's process for managing climate-related risks | Risk Management page 55 | | | Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation's overall risk management | Risk Management page 55 | | Metrics & Targets | Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process | Metrics & Targets page 55 | | | Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks | Metrics & Targets page 55 | | | Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets | Metrics & Targets page 55 | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Principal Risks and Uncertainties continued ## Governance ### Board oversight Our Chief Executive has overall responsibility for climate-related risks and opportunities. Ongoing oversight of climate-related issues is carried out by our Sustainability Committee, chaired by our Non-Executive Director for Sustainability, and attended by our Head of Sustainability and the Executive Leadership Team. The Sustainability Committee meets twice yearly. The Board is updated on relevant aspects of our sustainability strategy at each meeting. In addition, climate-related risk has been defined as a 'principal risk' and managed as part of our standard business risk process. ### Management's role The Quarterly Environmental Committee has been tasked by the CEO with assessing climate change risk exposure and to feed that back into the Business Risk Process, the Sustainability Committee, where it intersects with the Sustainability Strategy, and to the CEO. It will then be available to the CEO, CFO and the Board for discussion. Outputs of the work will be used to submit to external benchmarks and enhance ESG reporting. The progress of the work on the TCFD is guided and monitored by the Head of Sustainability who manages the Quarterly Environmental Committee. As part of the existing business risk process, the Company assesses, amongst other things, the impact the [temporary] loss of a store has on the business. That loss could occur through any number of reasons; the Environmental Committee will provide input into the business risk process with climate-related specific risks and opportunities. For more detail on our governance structure and management's role in assessing and managing climate-related risks and opportunities, please see the link below. This is kept as an independent document as this is of interest to some of our stakeholders separately from our annual report and accounts. https://corporate.bigyellow.co.uk/download_file/view/996/236 ## Strategy In order to address this pillar, we have identified the material climate related risks and opportunities, the impact they have on our business and our response to them. We have considered both a high carbon (RCP 8.5) and low carbon (RCP 2.6) scenario over three different time frames. Finally, we have described how we have incorporated climate change resilience holistically into our organisation. ## Identifying climate-related risks and opportunities over our short, medium and long term time horizons. Big Yellow has assessed the 10 main risk themes defined by the TCFD framework in our 'Managing Climate Risk and Opportunities' document *Managing Climate Related Risks and Opportunities 2022.pdf* [https://corporate.bigyellow.co.uk/application/files/9616/5235/3338/Managing Climate Related Risks and Opportunities 2022.pdf]. The 10 topics are: Current regulation; Emerging Regulation; Technology; Legal; Market; Reputation; Acute physical; Chronic physical; Upstream and Downstream. Using CDP terminology, seven of the TCFD climate-related risk themes are assessed as 'relevant, always included' (in bold); two are assessed as 'relevant, sometimes included'; and one is assessed as 'not relevant, included'. Climate-related risks are broken down into Physical and Transitional risks and are prioritised based on the potential severity of their impact on the business. The below table illustrates carbon scenario, time periods and the importance of the risks identified by the CSR department and Environmental Committee. We have assessed the physical risks through the use of a physical climate risk assessment platform. The platform uses climate model outputs to assess the exposure level against a variety of climate hazards. We have used the platform to determine the potential financial impact of the same climate hazards, and the resultant impact informs the below table for physical risks. Within the platform we have used the SSP1 (RCP 2.6) scenario for the resultant impact materiality for our risk themes in the table below, this scenario relates to $+2^{\circ}\mathrm{C}$ of warming and assumes that emissions rise in the short term and then stabilise as the world focuses on sustainable development and emitted carbon reduces. ## Defining timeframes Our climate risk modelling is based on standard scientific time horizons: 2021–2040 (short-term), 2041–2060 (medium-term), and 2081–2100 (long-term), consistent with global scenario analysis frameworks. These have been mapped to our internal business planning cycles (2025–2030, 2031–2040, and 2041+) to support meaningful integration of climate-related risks and opportunities into investment decision-making and strategic planning. While our business planning does not currently extend to the 2081–2100 period, we have used long-term climate modelling to inform resilience thinking and high-level risk exposure over the life cycle of long-lived assets. | TCFD/Climate Tool Timeframe | Definition | Mapped Business Planning Period | | --- | --- | --- | | Short-term (2021–2040) | Emerging transition risks | 2025–2030 & 2031–2040 | | Medium-term (2041–2060) | Escalating transition/ physical risks | 2041–2050 (earliest long-term plan) | | Long-term (2081–2100) | Major physical risk exposure | Beyond business planning horizon | --- Annual Report and Accounts 2025 Big Yellow Group PLC 51 # Defining impact in financial terms To assess and prioritise climate-related risks and opportunities, we have developed a financial impact rating framework with defined monetary thresholds. These thresholds have been calibrated to reflect the scale and nature of our operations, providing a consistent basis for evaluating materiality across a range of scenarios. We classify financial impacts as low (up to £250,000), medium (£251,000 to £1 million), and high (£1 million to £5 million), based on potential direct and indirect effects on revenue, costs, or asset value. These thresholds align with our internal financial planning, risk appetite, and historic variance levels, ensuring that identified risks and opportunities are meaningful to our business context and support informed decision-making. # Defining overall impact boundaries To assess the significance of climate-related risks and opportunities, we apply a combined view of potential financial and business impacts over short-, medium-, and long-term time horizons. Impacts are classified into four categories: negligible, low, medium, and high, based on the scale of disruption or opportunity they represent to our operations, financial performance, and strategic objectives. This framework allows us to prioritise risks and opportunities by considering both the likelihood and magnitude of impact across different timeframes, ensuring our climate resilience planning is proportionate and forward-looking. **Negligible** – impact is minimal or not expected to result in any meaningful environmental, social, or financial consequences. **Low** – impact is limited in scope or scale, with only minor implications for the business or affected stakeholders. It may be monitored but does not require strategic intervention. **Medium** – impact is notable and may influence operational, reputational, or regulatory outcomes. It warrants active management and integration into risk and opportunity assessments. **High** – impact is significant, likely to influence decision-making, financial performance, or stakeholder expectations. It requires ongoing management and is material to strategy and reporting. | Risk Type | Description | Risk Theme | Scenario | Potential Materiality(1) | | For visibility | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | Short-Term | Medium-Term | Long-Term | Strategic Response | | Physical Risks | | | | | | | | | Heat Stress | Increase in energy costs due to increased cooling needs. | Chronic physical | RCP 2.6 | ● | ● | ● | Installation of solar systems and energy efficiency measures across the estate reduce dependency on the grid. | | Temperature Variability | Increase in maintenance costs following higher extreme usage. | Chronic physical | RCP 2.6 | ● | (1) | ● | Refurbing our stores to ensure air conditioning units are properly sized for our reception areas. | | Precipitation hydrological variability | Risk of more frequent roof leaks from faulty gutters. | Chronic physical | RCP 2.6 | ● | ● | ● | Annual gutter maintenance reduces risk of leaks. | | Cold Wave | Increased energy needs in heating reception areas and office spaces. | Acute physical | RCP 2.6 | ● | | | Installation of solar systems, battery systems and energy efficiency measures across the estate reduce dependency on the grid. | | Flooding(2) | Increase surface flooding damaging subterranean floors. | Acute physical | RCP 4.5 | | ● | ● | Flood attenuation tanks for new built stores. | Importance: ☐ Negligible ☑ Low ☐ Medium ☐ High (1) Short-term is determined to be from 2021 to 2040, Medium-term from 2041 to 2060 and Long-term 2081 to 2100. (2) Flood risk uses scenario RCP 4.5 as the models for scenarios RCP 2.6 is not available. RCP 4.5 represents a +2.5°C business as usual scenario where the sustainable development and progress continues but not to the extreme. This scenario also uses different timeframes to the RCP 2.6 with short term up to 2030, medium term 2031 to 2050 and long term 2051 to 2080. (3) The UK experiences a climate oscillation in the Medium-term (2041 to 2060) which significantly reduces the impact of the temperature variability risk. Climate oscillations such as the Atlantic Multidecadal Oscillation ("AMD") have a long-term cycle of 20-40 years and can amplify or mask long-term global warming trends. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Principal Risks and Uncertainties continued ## Climate-related risks: Physical Risks Using this platform both flooding and increased heat stress will likely have some financial impact on Big Yellow. It may also have a reputational impact if stored goods are affected and an indirect financial cost through rising insurance premiums. ## Heat stress The platform determines heat stress through increases in the yearly average of daily maximum air surface temperature. Across both scenarios a +2°C (RCP 2.6) and +4°C (RCP 8.5) scenarios, all of our stores may experience heat stress in all three-time horizons. The financial impact for longer periods of hot weather could come from a range of impacts, such as increase in use of ventilation/cooling, heat damage to goods being stored, detrimental impact on immediate neighbourhoods through urban island heat effects and community pressure to address heat issues. ## Temperature variability We have used the system to determine which of our sites are exposed to temperature variability and the possible resultant financial impact. Across both a +2°C (RCP 2.6) and +4°C (RCP 8.5) scenario, the majority of Big Yellow stores have a medium exposure to varying temperatures. The financial impact of varying temperatures would mainly come from increased maintenance of cooling/heating units. This is projected to have a low financial impact on the business. The UK experiences a climate oscillation in the Medium-term (2041 to 2060) which significantly reduces the impact of the temperature variability risk. Climate oscillations such as the Atlantic Multidecadal Oscillation ("AMD") have a long-term cycle of 20-40 years and can amplify or mask long-term global warming trends. ## Cold wave/trost The platform determines the impact of cold waves/frost through the variation in yearly number of days when minimum air surface temperature (2m temperature) is below 0°C following the IPCC AR6 WGI formula. In a +2-degree scenario 55 stores are predicted to experience 1-2 months of temperatures below 0°C in the short term, dropping to 29 stores in the long term as temperatures increase. The main financial impact would come from the increased energy needs in heating reception areas and office spaces. This financial impact is expected to be low as our energy demands decrease over time. ## Flooding Flood risk damage is modelled within the platform under a +2-3°C (RCP 4.5) scenario to test the resilience of the strategy. We have enhanced our approach to flood risk assessment by adopting a more comprehensive platform that considers a wider range of factors beyond traditional flood zone classifications. As a result, the number of our stores identified as being at risk of flooding has been updated to reflect this improved methodology. The scenario applied to model flood risk uses different time frames; as a result up to 2030 we have only two stores which are at a high risk of damage due to flooding, in the longer term this increases to nine stores which may experience high levels of damage due to flooding. This risk is mitigated as five of the nine stores contain measures to minimise impacts, such as flood defences and attenuation tanks. We anticipate that we will be monitoring the adequacies of these measures going forward. The financial impact of flooding could come from a range of impacts, such as damage to goods stored on the ground and basement floors, the cost of unblocking drains, clearing up large scale flooding, and for stores near coastal areas corrosion-related damage to the building due to saltwater intrusion. ## Precipitation variability To determine the impact of precipitation variability the platform uses variation in the precipitation mean to determine the risk. In a +2°C scenario four Big Yellow stores are rated as extreme exposure to changing precipitation and 52 stores highly exposed to this risk, however the financial impact is low, leaving the resultant impact as minor. The financial impact from this is in the more frequent maintenance of the building infrastructure that is exposed to a large amount of rain falling over shorter time frames, such as roofs, gutters, and signage. --- Annual Report and Accounts 2025 Big Yellow Group PLC 53 | Risk Type | Description | Risk Theme | Scenario | Potential Materiality | | Strategic Response | | --- | --- | --- | --- | --- | --- | --- | | | | | | Short-Term | Medium-Term | | | Transitional Risks | | | | | | | | Stranded Assets | Assets no longer complaint with future regulations. | Market | | | ● | We will continue to monitor emerging regulations to ensure our stores remain compliant. | | Reputational Risk | Affecting stakeholder trust and market position. | Reputation | | | ● | We will continue to update and deliver on our strategy. | | Increase in carbon/emission taxation & fines | Exposure to taxation increases. | Current regulation | | | ● | We will continue to reduce our Scope 1 & 2 emissions. | | Building Standards | Increase in standards, especially for buildings. | Emerging regulation | | ● | ● | We will continue to monitor emerging regulations to ensure our stores remain compliant. | | Scope 3 reporting | A significantly higher financial reporting burden including Scope 3. | Emerging regulation | | ● | | We have invested in a new platform to manage Scope 3 reporting. | Importance: ☐ Negligible ● Low ● Medium ● High ## Climate related risks: Transition Risks There are a number of consequences of changing climate that the Sustainability Committee deems likely to occur: - a focus on electrification and decarbonisation; - an increase in carbon / emission taxation and fines (unlikely that there will be significant incentives); - an increase in standards, especially for buildings; - a significantly higher financial reporting burden including Scope 3; and - the introduction of a price of carbon. The Environmental Committee has proposed, and the Sustainability Committee agrees, that decarbonising our business is important to allow us to: A. avoid the risk of "stranded assets"; B. maximise the opportunity to invest at the right time, optimising costs; C. minimise carbon / emission taxation; and D. provide EV charging pods for our staff and customers in all new stores. ## Stranded assets The risk of 'stranded assets' is a focus for investors and so becomes a material concern to us. This has been part of our risk process considered throughout the year by the Environmental committee as well as the Board and the risk management review. We have a clear plan to improve the efficiency of our buildings working on the continual upgrade of all EPCs across the estate. 94% of the estate is currently at a B or above, and we will have all directly owned stores at a B or above by 2028. We also undertake CRREM analysis to identify potential stranded assets which we target for efficiency measures and refurbishment. ## Reputational risk We believe that not tackling these physical and transitional risks head on has a real potential of damaging our reputation. In the process of undergoing a double materiality assessment last year we have had this reinforced with climate related topics featuring in four of the nine material topics. ## Increase in carbon/emission taxation An increase in carbon/emission taxation and fines is likely to occur over the longer term. We are continuously horizon scanning for changes in regulation. ## Financial reporting burden There has been a substantial change in the reporting regulations in the EU over the past 12 months. We have made the decision to align ourselves with these reporting requirements. Although they are not mandatory for Big Yellow, we have made the decision to align with the CSRD so that our reporting is comparable to our European REIT peers. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Principal Risks and Uncertainties continued ## Climate related opportunities Opportunities, arising from risks explored above, are also identified where possible and integrated within the Company's strategic and financial planning. Our internal processes and scenario analysis also identify possible climate-related opportunities – these are listed in the table below. Short-term is determined to be from 2021 to 2040, Medium-term from 2041 to 2060 and Long-term 2081 to 2100. | Climate-related Opportunity | Company Response | Potential Materiality | | For visibility | | --- | --- | --- | --- | --- | | | | Short-Term | Medium-Term | Long-Term | | Growth in demand for renewable energy | Investment into retrofitting existing stores with PV systems. | ● | ● | ● | | | Aim for all new stores to be fitted with minimum 100kWp PV system. | ● | ● | ● | | | Purchasing 100% renewable energy. | ● | ● | | | Growth in solar and battery markets driven by decarbonisation | Investing in battery energy storage systems. | ● | ● | ● | | | Investing into retrofitting existing stores with batteries. | ● | ● | ● | | Transition away from fossil fuelled heating and Natural Gas | Investing into retrofitting existing gas boilers with Heat pumps. | ● | ● | ● | | Resource Efficiency | Deploying energy efficiency measures throughout our stores. | ● | ● | ● | | Growth of EV transport market | Deploying electric vehicle chargers for all new stores. | ● | ● | ● | Importance: ☐ Negligible ☐ Low ☐ Medium ☐ High ## Growth in demand for renewable energy Big Yellow are investing heavily into the retrofit of renewable energy across our estate with solar being installed on all roofs that can feasibly hold the weight of panels. All new stores will have at least 100kWp of solar installed with the roof space being maximised with solar where possible. ### Growth in solar and battery markets driven by decarbonisation The successful completion of our battery pilot has allowed us to learn from the issues that arose. We have a project plan that will allow us to couple batteries with solar generation across the estate, reducing our resilience on the national grid further, whilst at the same time continuing to decarbonise our activities. ### Transition away from fossil fuelled heating and Natural Gas Our Sustainability strategy sets out how we intend to deliver a decarbonised business. The work to move away from gas boilers has seen a further six boilers removed this year. The remaining two stores will have their heating swapped to electric over the next two financial years. ### Resource Efficiency To continue our progress towards our SBT of 70% reduction of our FY2019/20 Scope 1 & 2 emissions by 2032, we are deploying a range of lighting and heating controls to improve the energy efficiency and operation of our stores. ### Growth of EV transport market We believe this is becoming an even stronger consumer preference, and we only use renewable energy at our stores and provide EV charging pods for our staff and customers. ## Impact of climate-related risks and opportunities have on the organisation's businesses, strategy and financial planning Both physical and transition risks are expected to materialise to a lesser or greater extent over the coming years and costs may go up gradually, hidden within what may be perceived as 'natural variations'. The initial view was to establish a 'trigger' metric that will prompt the Group to review current measures taken and therefore allow for strategic decision-making if thresholds are exceeded. On discussing how this may work on an operational level, we felt that our current processes in place are sufficient to maintain a close watch on increasing costs driven by climate change. We deem our current understanding of the inherent physical risks to our assets and the unique features of each of our stores to be more than enough to manage future changes. ## Physical risk planning process – identifying emerging issues through visual inspection and half yearly budget reviews The Executive Directors visually inspect each of our stores at least once per annum; they are usually accompanied by the Head of Estates and Facilities, and planned and unplanned work is discussed immediately. The budgeting process then allows the CFO as well as Head of Estates and Facilities to prioritise both planned and unplanned maintenance. The budget review by the Financial Controller looks at planned costs compared to historic years and where costs are changing year on year. This is the point at which trends may be identified and proposals are made to raise climate change related issues to the Board, who may charge the Environmental Committee to identify such a solution. --- Annual Report and Accounts 2025 Big Yellow Group PLC 55 # Transitional risk planning process – identifying issues via our internal and external Sustainability community The Head of Sustainability or the Environmental Committee or the Non-Executive Director for Sustainability may identify aspects that could pose a risk to the Group and they may raise these either at the Environmental Committee or at the Sustainability Committee. Specific risks, such as those connected to Planning for our future store opening programme, may be integrated into the standard Business Risk process. Where we identify that a larger scale change needs to be considered, such as replacing gas heating with electric or battery retrofits, this will be assessed either by the Environmental Committee or if significant extra budget is required, at the Board level Sustainability Committee. # Risk Management ## Identification, assessment and management of climate-related risks Big Yellow has a rigorous system of risk management and internal control which includes the identification and assessment of climate-related risks. As detailed earlier in this document we have mapped out our ten risk themes and categorised them as transitional or physical. Understanding and quantifying the impact these could have on our business, strategy and financial planning has been considered. For more detail on our governance structure and management's role in assessing and managing climate-related risks and opportunities, please see the link below. This is kept as an independent document as this is of interest to some of our stakeholders separately from our annual report and accounts. https://corporate.bigyellow.co.uk/download_file/view/996/236 # Metrics and Targets ## Disclosure of metrics to assess climate related risks and opportunities. We have created a broad range of environmental metrics and targets with the intention of enabling our stakeholders to make informed decisions. The full comprehensive list has been compiled in response to the full Double Materiality Assessment that has been conducted this year. For full information and detail about our targets, metrics including Scope 1, 2 and 3 GHG emissions please see our full ESG report. # Metrics The metrics found below are taken from the Double Materiality Assessment results and are those that are relevant to the main risk themes defined by the TCFD framework detailed at the beginning of the report. ## Climate-related risk metrics | Aspect | KPI | 23-24 | 24-25 | Target | | --- | --- | --- | --- | --- | | Regulation | EPCs at least a B | 70 stores, 64% | 103 stores, 94% | All directly owned stores EPCs to B or above by 2028 | | Acute Physical – flooding | % of stores built in year with flood attenuation tanks | 100% | 100% | 100% | | Chronic physical – Precipitation hydrological variability | Investment in roof and gutter works to mitigate risks from water ingress | New for 2024-25 | £425,000 | £1 million per annum to 2028 | ## Climate-related opportunities metrics | Aspect | KPI | 23-24 | 24-25 | Target | | --- | --- | --- | --- | --- | | Transitioning to a low carbon economy | % of total energy from renewable energy generation[1] | 26% | 39% | 100% + by 2030 | | | Investment in retrofitting activities to drive decarbonisation [approximately][2] | £6.0m[2] | £4.5m[2] | £2m per annum to 2028 | | | % of electricity purchased from renewable sources [market-based] | 100% | 100% | 100% | | | Greenhouse Gas [GHG] emissions intensity from building energy consumption [Scope 1 & 2] – tCO₂e/CLA[m³] | 3.8 | 3.4 | As per our Sustainability Strategy | | | Greenhouse Gas [GHG] emissions intensity from Scope 3 – tCO₂e/CLA [sq ft] | 0.0021 | Scope 3 calculations to be published with half year results | As per our Science Based Targets | | Market opportunities | Deploy electric vehicle charging pods for customers and employees at each newly built store | 2 x 7KWh chargers at one store | 4 x 7KWh chargers at one store | At least 1 per store | [1] We have updated this indicator to include total energy as the sum of import grid use, solar used and gas used [2] Figure includes removal of gas boilers, retrofitting of solar installations all energy efficiency related projects and PHEV --- Annual Report and Accounts 2025 Big Yellow Group PLC # Principal Risks and Uncertainties continued ## Disclosure of Scope 3 emissions The Group is currently in the process of calculating its Scope 3 emissions for the year ended 31 March 2025, which is currently a time-consuming and largely manual process. We have procured new software which we will be implementing in the year ending 31 March 2026 which will assist in producing more timely Scope 3 emissions data. We intend to publish our Scope 3 data for the year ended 31 March 2025 with our half year results. For this reason, we consider ourselves to not be in full compliance with the TCFD requirements at this stage. ## Targets ### Targets to manage climate-related risks and opportunities. ## Emissions We have set out our full pathway for all Scope 1, 2 and 3 Emissions by 2032 in our Sustainability Strategy. In order to achieve our emissions reductions commitments, we have set a number of sub-targets that need to be achieved along our pathways. These are summarised in our annual ESG report, as well as in the Directors' Report. In order to track progress against our science-based targets, we have our Scope 3 footprint calculated annually starting with the calculation for the year ended 31 March 2023. For more information on this please refer to our Benchmarks and Standards section in the Full ESG Report. ## EPCs 94% of EPCs for our store portfolio are in the 'Green' range, i.e. an A+, A, B rating. We have 5 stores at a C rating either waiting for solar to be installed or that are leasehold, and the responsibility rests with the landlord. The final store with an EPC rating of 0 is due for renovation in 2025-26. 100% of our stores are covered by an Energy Performance Certificate. ![img-155.jpeg](img-155.jpeg) EPC by Number of Stores We aim to achieve a good balance between disclosing our risks and any mitigating actions we are taking and protecting commercially sensitive information. We trust this section achieves this balance; for any further questions, please contact csr@bigyellow.co.uk. --- Annual Report and Accounts 2025 Big Yellow Group PLC 57 # Section 172 Statement Section 172 of the Companies Act 2006 requires a Director of a Company to act in the way they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole. In performing this Section 172 requires a Director to have regards among other matters to: - the likely consequences of any decision in the long-term; - the interests of the Company's employees; - the need to foster the Company's business relationships with suppliers, customers and others; - the impact of the Company's operations on the community and the environment; - the desirability of the Company maintaining a reputation for high standards of business conduct; and - the need to act fairly with members of the Company. The Directors give careful consideration to the factors set out above in discharging their duties under section 172. The Board's obligations under Section 172 are considered at Board meetings within each relevant section of the Board pack. The stakeholders we consider in this regard are our employees, our customers, our shareholders, our suppliers, and the environment. The Board recognises that building strong relationships with our stakeholders will help us to deliver our strategy in line with our long-term values and operate the business in a sustainable way. The Board regularly receives reports from management on issues concerning customers, the environment, suppliers, employees, and investors, which it takes into account in its discussions and in its decision-making process under Section 172. ## Stakeholder engagement The Board is committed to effective engagement with all of our key stakeholders. The importance of each matter may differ to each stakeholder group, and hence the Group seeks to understand the relevant interests and priorities of each stakeholder Group, and to have regard to these in its decision making. The Board does acknowledge that not every decision that it makes will necessarily result in a positive outcome for all stakeholders. Information on interaction with our key stakeholders is included in the Corporate Governance Report on pages 83 to 89. ## Further information You can read further information on stakeholder engagement and our approach to S172 in the following places: | Employees | Chief Executive's Statement (page 18) ESG Report (page 67) Governance (page 89) | | --- | --- | | Customers | Chief Executive's Statement (page 18) Operating Review (page 26) Governance (page 88) | | Suppliers | ESG Report (page 72) Governance (page 88) | | Investors | Chairman's Statement (page 14) Chief Executive's Statement (page 19) Our Strategy (page 20) Our Investment Case (page 22) ESG Report (page 74) | | Environment | Chief Executive's Statement (page 19) ESG Report (pages 58 to 74) | | Long-term | Chairman's Statement (page 14) Chief Executive's Statement (page 18) Our Strategy (page 20) Our Investment Case (page 22) Risk Management (page 44) Viability Statement (page 49) | --- Annual Report and Accounts 2025 Big Yellow Group PLC ![img-156.jpeg](img-156.jpeg) # Environmental, Social and Governance Report Big Yellow Group PLC ("Big Yellow") is committed to responsible and sustainable business practices. ## Introduction The Big Yellow Board recognises that corporate social responsibility ("CSR") – when linked to clear commercial objectives will create a more sustainable business and increase shareholder and customer value, in both the medium and long term. People, Planet and Profit need to be aligned to make a sustainable business. Big Yellow seeks to meet the demand for self storage from businesses and private individuals by providing the storage space for their commercial and/or domestic needs, whilst aiding local employment and contributing to the local community. Our CSR Policy covers all of Big Yellow's activities, which now includes 109 trading stores and 14 proposed stores in the development pipeline, as both an operator and a developer of self storage facilities. We recognise that our operations can have significant economic, environmental, and social impacts. We are therefore committed to assessing our Environmental Social & Governance ("ESG") risks and opportunities, taking appropriate steps to mitigate negative impacts and, where possible, enhance positive impacts for the benefit of our business, our stakeholders, and our local environment. The governance of our sustainability activities is delivered by the Board level Sustainability Committee, chaired by Non-Executive Director, Heather Savory. For an update on the activities of the Committee please see the Sustainability Committee Report on page 94. Heather, along with the Board, oversees the sustainability agenda delivered by the Environmental Committee and the Head of Sustainability. The outcome of operating responsibly is the social value that we create and the long-term resilience of our business when faced with external pressures and changes, such as a changing climate and a changing political and legislative environment. Our full ESG Report and the relevant sections within our Annual Reports and Accounts (the Directors' Report and the ESG section) have been prepared in accordance with the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 implementing the Streamlined Energy and Carbon Reporting ("SECR") requirements. The Greenhouse Gas ("GHG") section of the ESG report has been reported in accordance with the WRI/WBCSD GHG Protocol – a Corporate Accounting and Reporting Standard. Our health and safety reporting are stated in accordance with the UK Health and Safety Executive guidance. You can read more about our business model on page 22. --- Annual Report and Accounts 2025 Big Yellow Group PLC 59 ![img-157.jpeg](img-157.jpeg) ![img-158.jpeg](img-158.jpeg) ![img-159.jpeg](img-159.jpeg) # 1. ESG executive summary ## 1.1 CEO introduction This year, we have built on the insightful work from our Double Materiality Assessment in 2024. This appraisal analyses both how a company's activities impact the environment and society (impact materiality), and how the company is influenced by sustainability issues (financial materiality). This assessment provided a framework to focus our efforts and broaden the topics we examine in depth. This, in turn, has led to the procurement and implementation of a new data management system. With this new system, we now have far better visibility of the impacts our projects and investments are having. Continuing our journey of Corporate Sustainability Reporting Directive ("CSRD") alignment, as we committed last year, we've increased the scrutiny level of our audited data and we are now more confident in the quality and reliability of the data we hold. An important project this year has been the successful installation of a second pilot battery at our Slough Farnham Road store. It gives our new store in Slough Farnham Road increased resilience against energy cost inflation by storing and reusing energy generated by the solar array on the store's roof. The percentage of generated energy used onsite is 24% across the estate but is 67% for Slough. With the data available to date, we believe this investment will pay back in just over nine years. We intend to build new stores with combined solar and battery. We are also considering retrofitting a further three stores. This will give us a portfolio of seven stores in which to assess the performance and returns on investment from which to inform our strategy going forward. We have removed all gas appliances from our owned freehold store estate, which leaves just two leasehold stores with gas appliances. We have now started an investigation into new solutions to keep driving our energy consumption and emissions down. We've successfully trialled 10 solutions across nine different stores, achieving an aggregated energy saving of 17%. Our solar retrofit programme continues to go from strength to strength, with Phase 4 delivering a further 12 stores and 1,621kWp capacity this year. This takes the total number of retrofitted stores to 48 at a cost of £16.8 million, increasing our total capacity to 8.5MWp* at 31 March 2025. We have continued to recertify our EPCs, even where certificates remain in date, to maintain an updated assessment of the energy performance of our estate. As market expectations and investor scrutiny around building efficiency intensifies, updated EPCs provide an up-to-date, reliable indicator of our portfolio's environmental credentials. This proactive approach enhances transparency, demonstrates our commitment to high-performing assets, and supports informed decision-making for stakeholders focused on sustainable investment. We have updated 35 certificates this year to reflect the great work our projects team have achieved with solar installations and energy efficiency projects, all of which have improved from Cs to Bs or above. We are projecting to have all (bar one short leasehold) of our stores at A+, A or B by the end of 2026. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Environmental, Social and Governance Report continued ![img-160.jpeg](img-160.jpeg) In 2022, we released our current sustainability strategy, setting out ambitious yet achievable plans. This year, we've completed the vast majority of the pathway actions, allowing us to reflect on our achievements and focus on what is important moving forward. At Board level, our Sustainability Committee, chaired by Heather Savory, is pleased with the progress made. The Board's planned future commitments and investments reflect our belief that environmentally based decisions are good sustainable decisions as part of the business's longevity. The Big Yellow Foundation has had its most successful year to date, with £345,000 donated to our seven charity partners, all focused on rehabilitating vulnerable young people and adults into meaningful work. Since its inception in 2018, the Foundation has donated £1.4 million to this cause. We continue to provide free space to small local charities and community organisations across our network. This year, this amounts to a total of £870,000* in donated space at current rents. Our volunteering programme allows our staff to give back to the community, with every member of staff given one day a year to volunteer with one of our seven charity partners or a charity of their choice. This year, 11% of employees volunteered. At Big Yellow, we embrace the Environmental and Social pillars of our ESG initiatives. Each action we take is not just about making a difference in the environment; it's about fostering stronger, more vibrant communities in the local neighbourhoods of our stores. We are not only doing the right thing, but making a real, tangible impact for the local environment and all our stakeholders. I would like to thank everyone involved with these initiatives throughout the business. # Jim Gibson Chief Executive Officer 19 May 2025 * Denotes values externally assured by SGS ## 1.2 Climate Change and our business looking forward We have a well-established strategy which we have been working towards since 2021. Building on this by setting Science-Based Targets ("SBTs") last year, this year we have gone a step further. The announcement of the CSRD for EU businesses has given us the opportunity to consider our own reporting structure. Although we are not obligated to report under the CSRD, we want our stakeholders to be able to compare us with our Real Estate Investment Trust ("REIT") and self storage peers with ease. We can also see the benefit of the transparent approach the directive has taken, and with these factors in mind, we have aligned ourselves to the directive. The biggest activity in this area has been to undertake a Double Materiality Assessment in the year ended 31 March 2024 to understand how the material topics for the business have changed since the last materiality assessment. This time we have looked both at the impact of the environment on the business as well as the impact the business has on our local environment. Please see section "Materiality and Materiality Assessments" for more detail. ## 1.3 Sustainability performance overview Last year, we completed our Double Materiality Assessment and reviewed our ongoing Key Performance Indicators ("KPIs"). We focused on the most critical areas for us. The table below shows our progress against 14 KPIs during the year ended 31 March 2025. These KPIs are derived from various topics discussed in our report and are related to both the CSRD topic (where appropriate) and the UN Sustainable Development Goals ("UNSDGs"). While we align with the CSRD, compliance is not required since we have no assets in the EU. We've identified appropriate KPIs for seven of our nine material topics. The remaining two are covered in our ESG Report or Annual Report. Risk Management falls under our Task Force on Climate-Related Financial Disclosures ("TCFD") section, and Management Site Acquisition & Growth Strategy is discussed in the Our Buildings section of this document. --- Annual Report and Accounts 2025 Big Yellow Group PLC 61 | UN SDG | Topic | CSRD | KPI | Progress | | --- | --- | --- | --- | --- | | **Our Environment** | | | | | | | Scope 1&2 emissions | Energy Management | 70% reduction to 948 tCO_{2}e by 2032 | 2,009 tCO_{2}e* 36% reduction from baseline | | | Total installed solar | Renewable Energy | Total installed capacity increase to 11,479 kWp by March 2028 | 8,545kWp*74% progress towards target | | | Scope 3 / embodied carbon | Carbon Management | Emissions data quality improvement KPI being discussed with revolving credit facility lenders | | | **Our People** | | | | | | | Turnover of full-time staff | | Maintain turnover below average UK retail levels^{(1)} of 33% | 14.5% | | | A staff training KPI | | Increase year on year of total hours trained, both male and female | 17,542, a 37% reduction in hours^{(2)} | | **Our Communities** | | | | | | | Free space donation to local charities | Access & Affordability | Trajectory in line with targets in revolving credit facility | £869,944* exceeding this year's target | | | Customer donations & matched funds | | Raise a minimum of £220k a year | £394,878 * | | **Our Buildings** | | | | | | | Estate EPCs | Sustainable Self Storage Design | Have all stores achieve a B or above by 2028 | 103* stores (94%) with a B or above rating | | | Biodiversity | | Average Biodiversity Net Gain ("BNG")^{(1)} per new store of over 10% | Slough Farnham Road 284% net gain | | **Our Suppliers** | | | | | | | Prompt payment | | Pay 95% of invoices within 60 days | 99.96% paid within 60 days | | **Our Health, Safety & Information Security** | | | | | | | Staff annual incident rate | | AllR to stay lower than industry^{(4)} category average of 1,169 | 0 (no reportable injuries in the year) | | | Information security breaches | Cyber & Data Security | Maintain a minimal level of high risk reportable breaches | Achieved – 0 high risk reportable ICO incidents in the year* | | **Our Governance** | | | | | | | ESG related LTIP vesting criteria – solar retrofit | Board Ownership & Responsibility | Retrofitting solar panels on 40 stores by 2025 | 48* stores retrofitted to date | | | ESG related LTIP vesting criteria – green loan debt facility | Board Ownership & Responsibility | 30-50% of the Group's total debt facilities being green loans by 2025 | 67%* of the Group's total debt facilities at 31 March 2025 are green loans | * Denotes values externally assured by SGS. (1) UK Retail levels of 33% – ONS Employee turnover levels and rates by industry section, UK. (2) Reductions in training hours due to training delivery optimisation – more being delivered online rather than in person. (3) BNG is a mandatory planning requirement that all developers must deliver a minimum BNG of 10%. This means a development will result in more or better-quality natural habitat than there was before development. (4) Industry – Warehousing and support activities for transportation. SIC 52 – HSE Work-related non-fatal injuries to employees in Great Britain by detailed industry. For our climate related risk and opportunity metrics, please see the TCFD section on page 49. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Environmental, Social and Governance Report continued ![img-161.jpeg](img-161.jpeg) ## 2. Our governance ### Environmental responsibilities Our ESG Policy sets out the aspects of what we manage. Our ESG Policy Standard and our web content provide further information on how we manage the impact of our business on society and the local environment, to control our risks and manage our opportunities in a sustainable manner. ### Reporting compliance Our full ESG Report and the relevant sections within our Annual Reports and Accounts (Directors' Report and ESG section) have been prepared in accordance with the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 implementing the Streamlined Energy and Carbon Reporting ("SECR") requirements. The GHG section of the ESG report has been reported in accordance with the WRI/WBCSD GHG Protocol – A Corporate Accounting and Reporting Standard. ### Fines, notifications, penalties or settlements There were no fines, notifications, penalties, or settlements received by the Company that are relevant to sustainability during the years ended 31 March 2025 and 31 March 2024. ### Approach Our ESG reporting is broken down into seven topics: governance, environment, people, communities, buildings, suppliers, and Health & Safety and information security. Within these sections we have pulled out the more material information ensuring all topics highlighted by our Double Materiality Assessment in 2023 are covered. A comprehensive set of KPIs have been created to all material topics and, where we feel further KPIs may be insightful, we have provided these too, including a brief narrative to explain variances where applicable. In the environment chapter we have provided a specific section on energy, emissions, water, and waste, reporting against all environmental European Public Real Estate Association ("EPRA") indicators (and GRI where relevant). Having achieved 'Gold' status in terms of transparency and quality of our reporting last year we continue to present our data in this format. All the changes we make to our reporting are tabled in our Basis of Reporting document. ### Benchmarking and standards We use the detail in this ESG Report to participate in external/industry benchmarks, such as the annual Carbon Disclosure Project ("CDP"), the Global Real Estate Sustainability Benchmark ("GRESB") and FTSE4Good to engage with our other Ethical Investors. The GRESB and CDP benchmarks inform our investor community of our general ESG performance, our governance approach, risk management protocols and a range of other indicators that give reassurance that our business is 'sustainable'. There have been significant changes in the questionnaire structure and scoring methodology for GRESB and CDP between 2023 and 2024 so our CDP scores for 2023 and 2024 are not directly comparable. Both benchmarks evolve each year to reflect rising industry standards and investor expectations. We have also queried the initial score we achieved as we do not feel some of our actions have been correctly assessed. As a result, we do not yet have a 2024 CDP score. The current appeal process with CDP is due to completed by July 2025. We are aware of the limitations we face with taking part in benchmarks designed for traditional Real Estate organisations rather than self storage but value the opportunity to be transparent and are committed to continued participation. ### Assurance of data We have commissioned SGS United Kingdom Ltd to carry out independent assurance of our Greenhouse Gas emissions disclosures and other select voluntary disclosures. Thirteen have now been assured at a reasonable level of assurance with the remaining nine being assured to a limited level according to the International Organisation for Standardization's (2006) ISO 14064-3 for select indicators for the financial year ended 31 March 2025. The full assurance statement is published in our ESG Report 2024-25. We are continuously growing in confidence in our data sets, this increase in a reasonable level of assurance is a continuation of the transition of all KPIs so that we can align with the CSRD. ![img-162.jpeg](img-162.jpeg) GRESB ![img-163.jpeg](img-163.jpeg) FTSE4Good ![img-164.jpeg](img-164.jpeg) C --- Annual Report and Accounts 2025 Big Yellow Group PLC 63 # 3. Our environment ## 3.1 Highlights - We now have 8.5MWp of solar generating capacity across 78 of our stores*. - Despite the opening of a new store and electrification of store heating in six stores, our absolute Scope 1 & 2 emissions have reduced. - We have had REGO accreditation for an additional 16 of our solar installations to enable us to sell the REGO certificates with our solar export. - We have installed a battery at our new Slough Farnham Road store. - We completed an energy efficiency pilot, saving 17% in the year. ![img-165.jpeg](img-165.jpeg) A battery storing rooftop solar energy at our Slough store. ## 3.2 Big Yellow Sustainability Strategy In a constantly developing landscape, we are faced with a number of variables in delivering the NREP Strategy through to 2032; and moving forward we intend to report our progress on an annual basis as part of our ESG Report. We have taken the decisions to update the strategy this year, broadening it out to cover a wider range of ESG topics and capturing some of the material topics from our CSRD reporting. A copy of the new Sustainability Strategy can be found at https://corporate.bigyellow.co.uk/index.php/sustainability/strategy. Our original Net Renewable Energy Positive strategy was first published in 2021, we have made great progress against the targets we set ourselves in this, overachieving on several of the commitments. Following a review of the existing strategy, the Sustainability Committee has approved budgets to deliver a number of key programmes. The Company has tackled six initiatives to ensure the delivery of the strategy is on track. The headlines are below with further detail later in the report: A. **Solar Generation**: deliver retrofitting of 36 stores that currently do not have solar. This commitment has been further extended to cover all suitable roofs on the estate. Exceeded. 48 stores now retrofitted. This commitment has been further extended to cover all suitable roofs on the estate. B. **Science-Based Targets**: our Science-Based Targets have been set and externally verified by the SBTi. Complete C. **Storage Batteries**: two batteries installed. Complete D. **Estate Decarbonisation**: gas boiler replacement programme completed: six gas boilers removed, four with electric boilers in the year; leaving only two leasehold stores still with gas. Complete E. **Sustainable Construction**: the Sustainability Committee reviewed the upfront investment the Company made to ensure all newly constructed stores were aligned with the retrofitted stores. From our Kingston North development onwards, all new stores will be equipped with the optimal capacity in the range 50kWp-200kWp subject to suitability of store roofs. Complete F. **Embodied Carbon of our construction projects**: this is now being considered and assessed at RIBA 2+, 4 and 6 on a project-by-project basis. On track We have created a number of environmental communications to help our customers understand what we are doing and why. These include our Big Yellow Green campaign with a short video [https://www.bigyellow.co.uk/green/] of the various sustainability features on our estate. During our customers' online journey, we have several ESG facts on holding screens to share the detail. In all our solar stores there are displays showing how much energy has been generated in the store that day rather than bought from the grid. We also use social media to share our sustainability messaging. We understand this is important to customers and so we want to share our journey with them. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Environmental, Social and Governance Report continued ## 3.3 Energy Our portfolio of stores with roof-mounted solar PV installations generates low carbon electricity that is monitored for performance and generates financial payments from the energy companies that we export to. We now have 78 stores with a total of 8.5MWp* that generate renewable solar electricity, with 13 new systems commissioned this year. ![img-166.jpeg](img-166.jpeg) Long Term Solar Electricity Generation ![img-167.jpeg](img-167.jpeg) ## Financial benefits of solar generation Having generated nearly 5 million kWh of power on our stores this year, we have saved over £600,000 in grid electricity bills. Once an export connection is established, which takes some time after the panel installation is complete, we are also able to sell any unused power back to the grid. Below is a summary of this year's financial benefits from our solar generation. This year as well as our Feed in Tariff ["FiT"] payments we have REG0 accreditation for our stores. This means that we can receive certificates for every megawatt of electricity generated on our sites, adding another revenue stream to the business. This year we have managed to secure accreditation for 57 stores. This has generated additional revenue of £42,000. | Year ended 31 March | 2021 | 2024 restated(1) | 2025 | | --- | --- | --- | --- | | Solar generation [MWh] | 681 | 3,396 | 4,831* | | Store solar use [MWh] | 391 | 2,564(1) | 2,975* | | Displaced grid energy savings [£] (2) | £93,116 | £438,447 | £621,570 | | PPA payments [£] (3) | – | £91,510 | £159,374 | | FiT payments [£] (4) | £108,951 | £134,761 | £122,409 | | REG0 payments [£] | New 2024 | £5,764 | £42,301 | | Total savings [£] | £202,067 | £670,482(5) | £945,654 | * Denotes values externally assured by SGS. (1) Store solar use amended due to meter comms issues resolved post year end. (2) Supplied UK Network displaced electricity savings = solar generated kWh x 23.8p Grid kWh charges for any power generated up to 30 September 2024 and the price of 18.5p/kWh from our new energy contract which started on 1 October 2024. (3) The process of setting up PPAe once a solar installation is complete can take some time, so the split of used compared to exported does change over time. (4) March 2025 FiT payments have been estimated using March 2024 data as current year not available until Q2. (5) Q4 FiT payment amended with actual data rather than estimated data. --- Annual Report and Accounts 2025 Big Yellow Group PLC 65 # Long-term electricity use Despite increasing store numbers, our long-term electricity use remains relatively stable. This is because new stores coming on board are more energy efficient and built to our updated sustainable construction standards, using the best technology available and come ready equipped with solar PV installations. This has been furthered by our investment in retrofitted solar across the estate. The proportion of solar used in store has grown substantially in recent years. The graph below shows that increase over the last six years, highlighting the impact of our retrofit programme: ![img-168.jpeg](img-168.jpeg) Total Store Energy and Solar Generated # 3.4 Emissions In addressing the environmental impacts of our operations, we recognise the significance of emissions management as a key component of our Sustainability Strategy. We are committed to minimising our carbon footprint and mitigating the effects of climate change. # Absolute Scope 1 & 2 Greenhouse Gas Emissions The UK government has made several commitments on the behalf of UK companies to reduce emissions, primarily aimed at addressing climate change and achieving net-zero greenhouse gas emissions by 2050. In addition to the government commitment, we have made a further Science Based Target commitment to reduce our Scope 1 & 2 emissions by 70% of our FYE 2020 baseline by 2032. The following graph shows our absolute Scope 1 & 2 emissions reduction since our baseline year in yellow. The red line shows a projection of what is needed to hit our Science Based Target by 2032. The yellow bars show the emission levels over the past six years under the straight trajectory from our baseline year to our target to show that to date we have done more than the minimum needed year-on-year to meet our target. ![img-169.jpeg](img-169.jpeg) SBT Absolute Scope 1 & 2 Trajectory For further information about our emissions and for all mandatory SECR and GHG reporting please refer to the Directors' Report on page 124. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Environmental, Social and Governance Report continued ![img-170.jpeg](img-170.jpeg) ## 3.5 Water We benchmark our water usage against the Better Building Partnership's ("BBP") Real Estate Environmental Benchmarks [Water]. Specifically, we use the 'Water Benchmarks – Enclosed Shopping Centres' category, focusing on 'Water Intensity' [litres/m² CPA/year]. Our water consumption remains significantly lower than BBP's 'Good Practice' – at 39 [18,154 m³ of water / 469,681 m² occupied space]. This year we are still benefiting from the £3,000 annual savings identified in last year's water charges and secured competitive supply contracts audit. Ongoing leak identification and repairs continue to save £17,000 per year. This year we have also begun implementing remotely read meters to enhance visibility and detect future leaks; to date these have been installed at 16 of our stores. ## 3.6 Waste Our main source of waste is from the operational activities of our stores. Our store staff apply best practice waste segregation for general and mixed dry recyclable materials. Also, our waste contractor provides further waste segregation and recycling services post collection. We report waste for our store portfolio but the occupied office space at our head office site is excluded as waste collection there is our landlord's responsibility. Since the instruction of our new waste contractors, we have far better oversight of our waste data with a much better handle on the quantities of waste generated as well as their processing route. Our contractor now gives us clear monthly collection data with associated emission information. This improves our emissions reporting and enables us to focus our efforts on waste reduction where possible. ## 3.7 Resources use As we are looking towards other potential opportunities, we are likely to focus our efforts on other areas of our business, such as paper use and will report on individual initiatives over time. Avoidance of unnecessary material helps to reduce carbon emissions; minimise waste going to landfill and demonstrates our commitment to sustainability. We have around 13 key processes that still involve the printing of paper, which we are trying to address by finding acceptable and compliant online solutions. We have graded each process by difficulty in terms of finding an alternative solution and intend to work our way through these over the next few years to reduce our paper consumption as much as possible. Most of our products are perfect for re-use or recycling – we have amended our online Box Shop to make the composition of individual products clearer, under the heading 'Environmental Attributes' and we have introduced a 'Your bit' section to inform customers if products can be recycled. Our longstanding relationship with Treepoints allows us to give back a little, for every box bought on our online Box Shop Treepoints plant a tree for us. Although there will be a positive carbon impact for this event, accounting for it can be difficult and not all that accurate, so we do not count the carbon for this process. We do this because it is the right thing to do and goes some way to replacing some of the trees used in our box making process. Our customer move-ins are paper-free which saves approximately 800,000 pieces of paper each year. --- Annual Report and Accounts 2025 Big Yellow Group PLC 67 ![img-171.jpeg](img-171.jpeg) ## 4. Our people We are dedicated to providing outstanding customer service by fostering a positive work environment and empowering our people. Our approach focuses on attracting, retaining, and inspiring talented individuals who demonstrate integrity. We invest heavily in training to maintain high standards of service while supporting career development for our team members. Emphasising personality over qualifications, our inclusive and diverse recruitment process ensures we select the right fit. We promote a culture of collaboration, offering benefits such as bonus schemes, share incentives, and acknowledging exceptional achievements through our Recognition Points Scheme. We are constantly striving to enhance our work environment and the benefits of being part of Big Yellow. Our recruitment and retention highlights reflect the progress that we have made over the past year. ![img-172.jpeg](img-172.jpeg) ## 4.1 Highlights ### Recruitment and retention - Produced a recruitment film, to demonstrate all aspects of store roles and responsibilities, as well as the culture and benefits of working for Big Yellow. - Updated our talent and retention training, to improve retention of existing team members, develop interviewing skills and successfully onboard new team members. - Developed the Our Culture section of the website, to offer prospective candidates a better insight into what it is like to work at Big Yellow. ### Benefits - Enhanced our healthcare benefits by introducing Vitality as our new healthcare provider, implementing a healthcare cash plan and switching providers to expand our eyecare benefits. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Environmental, Social and Governance Report continued ![img-173.jpeg](img-173.jpeg) ## 5. Our communities Our communities are made up of all the people who work and store in our facilities and everyone who lives around us. Our aim is to positively contribute to the local communities of our stores through community investments and engagement as well as with our Big Yellow Foundation. We do this in a number of ways, through free space provided at each store to local charities, fundraising by our employees with Big Yellow matching the funds raised by their endeavours and partnering with the Foundation's charity partners. ## 5.1 Highlights - Big Yellow's community investment for the year, delivered via free space, was £869,944*. - Our employees raised £7,380, which was matched by Big Yellow totalling £14,760 donated to the Foundation. - Big Yellow enabled the Foundation to deliver 14 successful and enriching work placements by welcoming candidates into our stores, in partnership with Back Up Trust, Breaking Barriers, Down's Syndrome Association, Street League and Working Chance. - We offered a permanent position in our Cardiff store to a young man with Down's Syndrome following the successful completion of his extended work placement. Additionally, we welcomed a woman on a work placement at our Gypsy Corner store a permanent position through our partnership with Working Chance. - We continue to support The Big Yellow Inner City Schools Rugby Programme in partnership with Southwark Rugby Club. The initiative introduces rugby to children from disadvantaged backgrounds attending urban schools where the sport is not usually offered. Now involving 12 local secondary schools, it promotes teamwork, fitness and healthy competition. - We support and provide studio space to the London Children's Ballet ["LCB"], a renowned charity that makes ballet accessible to children from challenged backgrounds through its outreach and performance opportunities. - We continue to support Headlong Theatre Company, an organisation committed to producing high-calibre theatre productions that engages with diverse audiences. *Denotes values externally assured by SGS --- Annual Report and Accounts 2025 Big Yellow Group PLC 69 ## 5.2 Community investments | Free space donated for community or charity use | £869,944* | | --- | --- | | Total employee Big Yellow Foundation fundraising & Big Yellow matched funds | £14,760 | | Foundation matched funds from customer donations | £394,878* | | Total Community Investment | £1,279,582 | Notes to the table: Definition of free space: space given to the charitable organisation completely for free for the whole of their stay during the reporting period. * Denotes values externally assured by SGS Our commitment is clear: for every customer move-in, Big Yellow donates a minimum of £1. Our store teams encourage customers to join us in supporting the Foundation. This year, we have pledged a total minimum donation of £220,000. If donations fall short, Big Yellow will top up the difference to ensure the Foundation receives the full amount. ## 5.3 Work placements at Big Yellow Our work placement programme, in collaboration with the Big Yellow Foundation, began in July 2021. It is designed to provide meaningful work experience opportunities for individuals with disabilities or those excluded from mainstream employment for a variety of reasons. These motivated individuals often face unique barriers to employment. Our placements offer a supportive and structured environment where they can build essential skills, grow in confidence and, ideally, move towards long-term employment that meets their individual needs. Big Yellow works closely with the Foundation and selected charity partners to deliver these placements. Notable outcomes from 2024/25 include: - One woman who uses a wheelchair, referred by Back Up Trust, is currently completing a placement at our Watford store. She is the first wheelchair user we have been able to accommodate in-store which is an important milestone in our journey towards greater accessibility and inclusion. - Two individuals supported by Breaking Barriers completed placements at our Nine Elms and Stockport stores. - One young man with Down's Syndrome, referred by the Down's Syndrome Association, progressed to a permanent role following an extended placement in our Cardiff store. - Four young people referred by Street League completed placements at our Dundee, Leeds and Liverpool Edge Lane stores, with additional support provided at our Liverpool store. - Four women referred by Working Chance undertook placements at our Portsmouth, Milton Keynes, Gypsy Corner and Sheffield Hillsborough stores. The individual placed at Gypsy Corner is now a permanent member of the team following an extended placement. ![img-174.jpeg](img-174.jpeg) ## 5.4 Big Yellow Foundation The Foundation's annual report and accounts are available on the charity commission website. Learn more about our partners and the Big Yellow Foundation on our website https://corporate.bigyellow.co.uk/index.php/big-yellow-foundation. Big Yellow, along with our customers and employees, provides the income for the Foundation. Our Steering Committee meets quarterly to raise funds and promote the Foundation to our stakeholders. The Foundation is our main vehicle for community programs that benefit both customers and employees. In the year ended 31 March 2025, the Foundation paid out £345,199 to its seven charity partners. Most grants are unrestricted funds, supporting essential needs for these organisations. Beyond Trustees and the Steering Committee, Big Yellow also contributes in-kind donations, financial services, and secretariat support to the Foundation Board of Trustees. The Foundation has filed its annual report and accounts, which can be found on the charity commission website. Big Yellow and our customers and employees provide the income to the Big Yellow Foundation. The Big Yellow Foundation Steering Committee, who meet on a quarterly basis, determines how best to raise funds, and promote the Foundation to our employees, customers, and suppliers. The Foundation is Big Yellow's main vehicle to deliver a consistent customer and employee facing community programme. In addition to the Trustees' time and the Steering Committee's time, Big Yellow furthermore supports the Big Yellow Foundation with donations in kind, by providing financial and accountancy services plus the secretariat to the Big Yellow Foundation Board of Trustees. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Environmental, Social and Governance Report continued ![img-175.jpeg](img-175.jpeg) ## 6. Our buildings Our buildings are one of the core parts of our business. Without our storage facilities we would have no business. We take pride in the buildings we design, and significant environmental consideration goes into each of our new stores, from the acquisition of land through to the opening and operation of a new store. Although we have been sharing our progress on this for several years, we now feel that this has become material enough to be discussed as a topic in its own right. ## 6.1 Highlights - There are currently 14 sites in our property pipeline. - We have achieved planning permission on 10 of our pipeline developments so far. - We have improved EPC scores across the estate. - This year's new store – Slough Farnham Road is: - Expected to achieve BREEAM Very Good - 43/45 on the Considerate Constructor Scheme - A+ rated EPC - Fitted with a Battery Energy Storage System ## 6.2 Acquisitions There are 14 sites in our current development pipeline. Prior to the acquisition of each of these sites several environmental considerations are made. Once a potential new site has been identified, satisfying a number of initial business criteria, including development yield, the Group will undertake a number of inspections. These inspections include, but are not limited to, flood risk assessments, conservation and canal assessments, contamination surveys and, daylight analysis. Future self storage developments also assess the potential impact on adjoining properties, the current use and heritage of the site, and the surrounding residences and businesses that may become neighbours and the potential impact on the local highways network. We have developed a number of thresholds that need to be met in order for us to proceed with a purchase. We prioritise brownfield redevelopment and infill sites whenever feasible, never developing on greenfield sites to preserve valuable ecosystems. Our design process incorporates principles of sustainable urban planning, such as compact development, green infrastructure, and biodiversity enhancement, to create vibrant and resilient stores. ## 6.3 Planning Once the procurement of the site has been completed the process of preparing for the planning application begins. The planning process varies across the country, but common threads run through all applications. These include highways assessments drainage surveys, habitat surveys to inform our biodiversity net gain plan, air quality assessments and travel plans, to name just a few. Urban regeneration is a key focus of our planning efforts. We seek to revitalise urban areas, enhancing community connectivity and liveability. Our stores aim to create an inclusive space that contributes to the social, economic, and environmental well-being of the surrounding area. As part of the planning process, we must demonstrate to the planning department the local economic benefits of the self storage facility in terms of job creation, business opportunities, and local economic development. --- Annual Report and Accounts 2025 Big Yellow Group PLC 71 ![img-176.jpeg](img-176.jpeg) ![img-177.jpeg](img-177.jpeg) ![img-178.jpeg](img-178.jpeg) ## Biodiversity net gain We are committed to achieving biodiversity net gain in all our developments. By enhancing green spaces through green walls and roofs, creating additional wildlife habitats, and planting hedgerows and trees, we strive to increase biodiversity value beyond the pre-development baseline. Our aim is to leave a positive legacy by conserving and enhancing natural ecosystems for future generations. As part of the Ecology Report conducted at pre-planning for the Slough Farnham Road site B28 units were recorded. Although these B28 units were removed a further 2,354 units were planted and recorded on completion of the store to deliver a biodiversity net gain. With an additional 2,354 units deemed to be created an overall post-development score of 284% of the pre-development score was awarded. We were awarded an exemplary credit for this as part of BREEAM certification. ## 6.4 Design We design our stores to prioritise energy efficiency and sustainability by incorporating green building standards and best practices into our designs. Big Yellow has set an external minimum commitment of BREEAM Very Good, as standard for all new builds, even where local planning does not demand a specific standard. A number of our stores have been built to BREEAM Excellent standard. As part of this commitment, we consider optimising building orientation, including high-performance insulation, implementing energy-efficient lighting systems, and integrating renewable energy technologies where feasible. Our goal is to minimise energy consumption, reduce greenhouse gas emissions, and enhance the long-term sustainability of our properties. ## 6.5 Construction During the construction of our stores, where possible, we select sustainable materials with low environmental impact, such as concrete with increased aggregate and recycled content, recycled steel, and non-toxic materials. Additionally, we implement construction practices that minimise waste generation, optimise material use, and prioritise responsible sourcing and disposal. We have been required to complete Whole Life Cycle Assessments ("WLCA") at RIBA Stages 2 and 4. This year we have decided to take this analysis a step further, by engaging our lifecycle consultants to complete full WLCAs at both RIBA stage 4 (detailed design) and RIBA stage 6 (post practical completion). We are making a commitment to reduce our embodied carbon in future construction and will be able to use the findings in these reports to find real world opportunities for carbon saving measures in future building designs. ## 6.6 Store sustainability and green store portfolio Along with the environmental consideration of our new stores we also take pride in the ongoing sustainability of our whole estate. We share the details of this in our full ESG report in the appendix, which details all of the environmental credentials of each of our stores. We are continuously upgrading our older buildings through the removal of gas and upgrading of lighting as examples. We have been retrofitting solar to our stores for a number of years and at the end of a successful second phase of our battery pilot on our Slough Bath Road store, we will be able to start to deliver battery storage alongside our solar installations. ## Energy Performance Certificates This year we have conducted a large EPC recertification programme to ensure the EPC scores reflect the investment that has been made across the estate in generation and energy efficiency. We now have 103 stores*, or 94% with a B or better Energy Performance Certificates. This year we are also able to boast, for the first time, six A+ EPC scores. This represents the highest possible performance under the UK's Energy Performance Certificate framework. These stores generate more energy than they consume using the solar panels on their roofs. * Denotes values externally assured by SGS --- Annual Report and Accounts 2025 Big Yellow Group PLC # Environmental, Social and Governance Report continued ## 7. Our suppliers Big Yellow recognises that it can have a significant impact on its suppliers and that its suppliers can represent an important asset to help Big Yellow to deliver its own environmental and social responsibilities. We manage our suppliers on a decentralised basis, with each Department Head overseeing the onboarding, contracting and in-life management of their suppliers. Many of our suppliers have become trusted partners, having worked with us for many years. In addition, our construction partners source a broad variety of materials from companies all over the world on our behalf. Whilst these goods are not sourced directly by us, some may be specified by us. We place great value on using recycled materials in our construction process and these are procured in accordance with our guidelines. ## 7.1 Highlights - Our confidential Whistleblowing Helpline was used once in the last financial year, a thorough investigation was conducted and satisfactorily concluded. - We have updated our spend-based Scope 3 Footprint assessment for 2023-24. - We continue to deliver strong payment performance: - We paid 92.5% of invoices within 30 days and 7.2% between 30 and 60 days. - Our average time to pay an invoice was 23 days. ## 7.2 Supplier payment performance We measure our payment performance to our suppliers on a quarterly basis. Prompt payment is especially important to our smaller suppliers, who may not have the cash flow to manage with very long payment terms. | Year ended 31 March | 2023 | 2024 | 2025 | | --- | --- | --- | --- | | Within 30 days | 89% | 92% | 92.5% | | Between 30 and 60 days | 10% | 8% | 7.2% | | Over 60 days | 1% | 0% | 0.4% | | Average time to pay an invoice | 24 days | 23 days | 23 days | ![img-179.jpeg](img-179.jpeg) ## 7.3 Supply chain risk Our confidential Whistleblowing Helpline was used once in the last financial year, a thorough investigation was conducted and satisfactorily concluded. ## 7.4 Supply chain engagement Regular meetings are held between suppliers and their Big Yellow contact. Appropriate external tendering is carried out for any new suppliers. On anti-corruption and anti-bribery matters, we expect all our suppliers to be compliant with the Modern Slavery Act and we work closely with our suppliers to promote best practice. We have previously engaged with suppliers we had identified as being within potentially high-risk categories and carrying out audits of their compliance with these regulations and providing support to them. During the year we continued our work with our suppliers on supply chain ethics. No material issues were noted, albeit we have been working with them during the year to improve standards further. We intend to continue to provide updates as part of our UK Modern Slavery Act Statement. ![img-180.jpeg](img-180.jpeg) --- Annual Report and Accounts 2025 Big Yellow Group PLC 73 # 8. Our Health & Safety and information security Big Yellow recognises the importance of maintaining high standards of Health & Safety for our customers, staff, contractors, and any visitors to our stores. ## 8.1 Highlights - There were no "Fatal Injuries, Notices or Prosecutions" in any part of our operations during the year ended 31 March 2025. - There were no high risk reportable Information Security breaches this year.* * Denotes values externally assured by SGS ## Health & Safety Our Health & Safety Committee reviews policies, risk assessments, performance, and records on a quarterly basis. The Policies cover two distinct areas – our routine store operations and our fit-out construction activities. The Health & Safety Committee discuss and review any issues reported from our regular meetings held at Bagshot (our head office), Maidenhead (our distribution warehouse), the stores and our construction sites. Our Health & Safety Policy states that all employees have a responsibility for Health & Safety, but that managers have special responsibilities. The responsibilities of our CEO are to keep the Board advised on Health & Safety issues and to ensure compliance with the Policy in respect of Construction (via the Construction Director) and store operations (via the Head of Facilities and Head of Store Operations). Externally, other interested stakeholders include the Health & Safety Executive ("HSE") and Local Government Authorities. # Data Protection and Information Governance Big Yellow is committed to upholding information security and protecting personal data. Our Data Compliance Officer and the Head of IT ensure that staff are adequately trained in UK GDPR, data protection and information security. We are certified to IASME Cyber Assurance Level 2 which is the highest level of certification for this qualification. Our library of policies on UK GDPR and information security are reviewed and updated on an annual basis to ensure they remain relevant, fit for purpose and, in the ever-changing world of data protection legislation and technological advances, legally accurate. The Group disclosed one minor information security breach in the past year in the interest of accountability and transparency. The ICO regarded this as no further action and were satisfied with our response. We have not had any high-risk reportable breaches in the year*. We have cyber insurance in place in the event a breach should occur in the future. * Denotes values externally assured by SGS ![img-181.jpeg](img-181.jpeg) # 9. Benchmarks and standards We have a number of Benchmarks and standards that we submit each year. Below is a summary of this year's rankings | Report | 2021/22 score | 2022/23 score | 2023/24 score | | --- | --- | --- | --- | | GRESB | 86% 4/5 gold stars | 89% 5/5 gold stars | 85% 4/5 gold stars | | EPRA | Gold | Gold | Gold | | CDP | B | A- | TBC* | | FTSE4Good | 3.1 | 3 | 3.1 | | ISS | C with Prime status | C with Prime status | C with Prime status | | MSCI | A | BBB | BBB | * We are currently in discussions with CDP about the 2024 score – appeals process expected to be completed by July 2025 There are a number of factors that have impacted our MSCi score, including the way we disclose some of our metrics. We have completed a full review of our ESG content to ensure that we use the language MSCi are looking for in their review. We have updated our risk and opportunities assessment as part of our commitment to implement the TCFD recommendations – for more information, please see the 'Managing Risks and Opportunities' section. For Construction activities, we also sign up to BREAAM standards and the Considerate Constructor Scheme ("CCS"); Slough Farnham Road is expecting a Very Good rating with a CCS score of 43/45. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Environmental, Social and Governance Report continued ## 9.1 Science-Based Targets Science-Based Targets ("SBT") have increased in popularity as a way of businesses showing genuine commitment to reducing their emissions and impact on the wider world. The process of target verification is a rigorous one, completed by qualified individuals at the Science-Based Targets initiative. The process has multiple stages of scrutiny with each calculation and target pathway considered. We have now had our targets externally verified. Our public commitment is as follows: ### Our commitment Big Yellow Group PLC commits to: - reduce absolute Scope 1 and 2 GHG emissions 70% by FY2032 from a FY2019 base year. - reduce Scope 3 GHG emissions from purchased goods and services, capital goods, and fuel and energy related activities by 61.1% per square foot within the same time frame. | Scope of emission | Coverage of baseline | Type of target | 2020 baseline | 2032 target % | 2032 target | | --- | --- | --- | --- | --- | --- | | Scope 1 & 2 | 100% | absolute | 3,160 tCO₂e | -70% | 948 tCO₂e | | Scope 3 | 78% | intensity | 3.3 kgCO₂e /sq ft | -61.1% | 1.3 kgCO₂e /sq ft | ## Our Progress To date we have been mainly focusing on our Scope 1 & 2 reductions with a big drive for gas removal and an increase in onsite solar generation. This is shown in our results last year, with our Scope 1 & 2 absolute figures reducing. We are making steady progress towards our Scope 1 & 2 SBT. We are now looking towards what we can focus on next year. Once we have removed gas from the estate we will need to focus our efforts in a new area of improvement for the estate. Our Scope 3 figures are an intensity target. This means that any emissions that are generated through the construction of new storage space are somewhat abated by the increased square footage created, however when we invest in improving our existing stores, through, for example, adding solar and associated roof works, this has a negative impact on our Scope 3 emissions. We have started the process of calculating our Scope 3 emissions for this year. We intend to report our Scope 3 results at the half year when we have a full understanding of the calculations and emissions conversion factors. ## 10. Legislation Big Yellow has obligations under several regimes and regulations, namely: - The Companies [Directors' Report] and Limited Liability Partnerships [Energy and Carbon Report] Regulations 2018 ("SECR"); - EU Energy Efficiency Directive, The UK Energy Savings Opportunities Scheme ("ESOS"); - Energy Performance Certificate ("EPCs") – please see 'asset list & green store portfolio' section in the full ESG report for more information. ## 11. Our stakeholders This year, the Board of Directors has set out in the Governance section of our Annual Report and Accounts an overview of engagement activities with our key stakeholder groups. These are identified as [1] our employees, [2] our shareholders, [3] our customers, [4] our suppliers and [5] our communities. Please note that in our ESG Stakeholder assessment we also name 'the Environment' as well as local and national Government as further stakeholder groups, and their needs and our engagement activities are set out here. As mentioned earlier we have undertaken a double materiality assessment last year which has included engagement with all of our stakeholder groups, through tailored questionnaires followed by interviews with a number of the stakeholders. These have been used to get into the detail of the questions answered in the questionnaire stage. We have been able to get a detailed understanding of what our stakeholders feel to be material both from the point of view of how the environment impacts Big Yellow but also how Big Yellow impacts its immediate environment and communities. Ten material topics were identified through the process. These are included at the beginning of this report and in detail in the full ESG report. ## Investors The GRESB and CDP benchmarks inform our investor community of our general ESG performance, our governance approach, risk management protocols and a range of other indicators that give reassurance that our business is 'sustainable'. For more information on these benchmarks, please see the 'Benchmarks, Legislation and Standards' section above. We have seen a shift in the level of environmental detail our investors are interested in. This is one of the reasons we have decided to align ourselves with the CSRD. We have also conducted CRREM pathway analysis from the year ended 31 March 2025 to give ourselves and our investors as much transparency about the impact our sustainability and environmental efforts are having on our estate. The Directors run a programme of face-to face investor engagement activities by holding roadshows following annual and interim reporting cycles and attend investor conferences and other ad-hoc meetings with investors, both in the UK and internationally. We also provide specific information on request to other investor benchmarks, where available. --- Annual Report and Accounts 2025 Big Yellow Group PLC 75 # Assurance Statement SGS United Kingdom Ltd's report on selected KPIs pertaining to sustainability activities in the sustainability report 2024/25 of Big Yellow Group PLC for the review period 1 April 2024 to 31 March 2025 SGS ## Nature of the assurance/verification SGS United Kingdom Ltd [hereinafter referred to as SGS] was commissioned by Big Yellow Group PLC [hereinafter referred to as Big Yellow] to conduct an independent assurance of selected KPIs included in the report 'Sustainability Report 2024/25' [herein referred to as the report]. ## Intended users of this assurance statement This Assurance Statement is provided with the intention of informing all of Big Yellow Group PLC's Stakeholders. ## Responsibilities The information in the Report and its presentation are the responsibility of the directors and the management of Big Yellow Group PLC, and SGS has not been involved in the preparation of any of the material included in the Report. Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of verification with the intention to inform all of the Big Yellow Group PLC's stakeholders. ## Assurance standards, type and level of assurance In obtaining a 'reasonable' and 'limited' level of assurance as indicated against each KPI in this engagement, we have used the guidance provided through the ISAE3000 [Revised, International Standard on Assurance Engagements] Assurance Engagements Other than Audits or Reviews of Historical Financial Information and standard EN ISO14064-3:2019 Specification with guidance for the validation and verification of Greenhouse Gas assertions, to establish conformance with the requirements of the applicable reporting criteria. ## Scope of assurance and reporting criteria The scope of the assurance included evaluation of quality, accuracy and reliability of specified performance information as detailed below: ### Reporting Criteria - GHG & Environmental KPIs 1. GHG Protocol – A Corporate Accounting & Reporting Standard. ### Reporting Criteria - Social & Governance KPIs 1. None selected ## Specified performance information and disclosures included in scope The scope of the assurance included data only for the following KPIs: ### GHG & Environmental KPIs - reasonable level of assurance FY2024/25 - Total installed renewables capacity (kW) - Number of solar retrofit stores between 2022-2025 - Estate EPCs with a B or above - Absolute carbon dioxide emissions (tCO₂e) (Store and non-store portfolio) – location-based - Absolute carbon dioxide emissions (tCO₂e) (Store and non-store portfolio) – market-based - Store water supply and treatment (tCO₂e) - Store waste disposal (tCO₂e) - Store electricity consumption (MWh) - Like for like store electricity consumption (MWh) - Total store fuel consumption (MWh) - Like for like total fuel energy consumption (MWh) - Total amount of direct and indirect energy used in yr by current lettable area (MWh/m²/year) - GHG intensity by current lettable area (location-based, store and non-store) (tCO₂e/m²/year) - Total direct GHG emissions (Store & Non-store) (tCO₂e) - Indirect GHG emissions (Scope 2) (Store) (tCO₂e) --- Annual Report and Accounts 2025 Big Yellow Group PLC # Assurance Statement continued ## Social & Governance Indicators **FY2024/25** Community investment data: - KPI – Free space donated for community or charity use (reported value, an equivalence of £869,944.00) – Limited level of assurance. - KPI – Foundation matched funds from customer donations – raise a minimum of £220,000 a year (reported value, £394,878.18) – Reasonable level of assurance. Sustainability linked funding: - % of groups total debt facilities being green loans (67%) – Limited level of assurance Information security: - Reportable information security breaches ('0' reportable) – Limited level of assurance ## Assurance methodology ### GHG & Environmental KPIs CO₂ emissions from own operations and value chain were verified at a reasonable level of assurance according to standard EN ISO14064-3:2019 Specification with Guidance for the Validation and Verification of Greenhouse Gas Assertions, to establish conformance with the requirements of Big Yellow's reporting methodology as stated in its 'Basis of Reporting 2024/25' and the WRI/WBCSD GHG Protocol – A Corporate Accounting and Reporting Standard ('The WRI/WBCSD GHG Protocol'), within the scope of the verification. The materiality required of the verification was considered by SGS to be below 5%, based on the needs of the intended user. The engagement included verification of emissions from anthropogenic sources of greenhouse gases included within the organisation's boundary and meeting the requirements of Big Yellow's 'Basis of Reporting 2024/25' and the WRI/WBCSD GHG Protocol. The organisational boundary was established following the operational control approach. - Description of activities: Self Storage services - Location/boundary of the activities: United Kingdom - Physical infrastructure, activities, technologies and processes of the organisation: Self Storage stores and administrative offices - GHG sources, sinks and/or reservoirs included: - Scope 1 – stationary combustion, mobile combustion and fugitive emissions; - Scope 2 – purchased electricity and solar generation; - Scope 3 – FERA, water and waste. - Types of GHGs included: CO₂, N20, CH4, HFCs (PFCs, SF6 and NF3 are excluded) - Directed actions: none ## Social & Governance KPIs The assurance comprised a combination of: - Preliminary research and desk based reviews. - Remote interviews with the head of sustainability, data compliance officer, financial accountant, the managers with responsibility for risk assessment, control, and reporting processes associated with the KPIs, metrics, and disclosures. - Extended scrutiny around KPIs assured at a 'reasonable' level of assurance including bank reconciliation evidence. - Remote interviews with the managers responsible for internal data collection for each KPI. - Document review of relevant management systems, policies and procedures. - Remote interrogation of and testing of relevant data collection systems and procedures, including interviews with relevant data analysts and data accuracy checking. - Final data verification checks to ensure KPI data is accurate and aligns with expectations. - Reviewing Report content against our findings and making recommendations for improvement. Verification was conducted upon all KPIs within the verification scope as an evaluation of historical data and information to determine whether the reported KPI data is materially correct and conforms to the criteria described above. SGS' approach is risk-based, drawing on an understanding of the risks associated with modelling KPI information and the controls in place to mitigate these risks. Our examination included assessment, on a sample basis, of evidence relevant to the voluntary reporting of KPIs, including emission information. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. --- Annual Report and Accounts 2025 Big Yellow Group PLC 77 # Limitations and mitigations Financial data drawn directly from independently audited financial accounts has not been checked back to source as part of this assurance process. Note here any other specific limitations for the assurance engagement and actions taken to mitigate those limitations. # Statement of independence and competence The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries and providing services including management systems and service certification; quality, environmental, social and ethical auditing and training; environmental, social and sustainability report assurance. SGS affirm our independence from Big Yellow Group PLC, being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders. In conducting assurance engagements, SGS is governed by the 'SGS Code of Conduct' and the 'Assurance Ethical Code SAGSP2', which has been established with the requirements of the IESSA (International Ethics Standard for Sustainability Assurance), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. At SGS assurance quality control is governed through the Sustainability Assurance Global Systems Procedure (SAGSP). This quality management system compliments the requirements of ISAEs and are designed to be as demanding as quality control requirements stipulated by ISO17029:2019, and the ISOM1. The assurance team was assembled based on their knowledge, experience and qualifications for this assignment, and comprised auditors registered with relevant bodies. The assurance team comprised of; Lead Assurance Practitioners / Assessors – Indika Edussuriya, Laura Berns, and Technical Reviewers – Finn Han & Abdullah Buhidma. # Findings and conclusions ## Assurance/verification opinion ### GHG & Environmental KPIs Big Yellow provided the GHG assertion based on the requirements of its 'Basis of Reporting 2024/25' and the WRI/WBCSD GHG Protocol. The GHG information for the period 1st April 2024 to 31st March 2025 disclosing gross emissions of 2,674 metric tonnes of $\mathrm{CO}_{2}$ equivalent (Location-Based) and 718 metric tonnes of $\mathrm{CO}_{2}$ equivalent (Market-Based) are verified by SGS to a reasonable level of assurance, consistent with the agreed verification scope, objectives, and criteria. Please note the emissions from non-store water consumption and waste disposal are excluded. Verified emissions by Scope are as follows: Scope 1 (store and non-store): $53\mathrm{tCO}_{2}\mathrm{e}$ Scope 2 – Location-based (store and non-store): $1,956\mathrm{tCO}_{2}\mathrm{e}$ Scope 2 – Market-based (store and non-store): $0\mathrm{tCO}_{2}\mathrm{e}$ Scope 3 – Category 3 (FERA) (store and non-store): $651\mathrm{tCO}_{2}\mathrm{e}$ Scope 3 – Water and Waste (excludes non-store facilities): $14\mathrm{tCO}_{2}\mathrm{e}$ SGS concludes with reasonable assurance that the presented KPIs and $\mathrm{CO}_{2}$ equivalent assertion is materially correct and is a fair representation of the KPI and $\mathrm{CO}_{2}$ equivalent data and information and is prepared following the requirements of Big Yellow's 'Basis of Reporting 2024/25' and the WRI/WBCSD GHG Protocol. We planned and performed our work to obtain the information, explanations, and evidence that we considered necessary to provide a reasonable level of assurance that the $\mathrm{CO}_{2}$ equivalent emissions for the period 1 April 2024 to 31 March 2025 are fairly stated. This statement shall be interpreted with the $\mathrm{CO}_{2}$ equivalent assertion of Big Yellow as a whole. ### Social & Governance KPIs On the basis of the methodology described and the verification work performed, nothing has come to our attention that causes us to believe that the specified performance information included in the scope of assurance is not fairly stated and has not been prepared, in all material respects, in accordance with the reporting criteria. Overall, the communication and presentation of information is appropriate to the size of the business, and its ESG impacts, risks and opportunities. We believe that the organisation has chosen an appropriate level and scope of assurance for this stage in their reporting. Signed: For and on behalf of SGS United Kingdom Ltd Liz Moran Business Manager Frimley, Surrey, 14 May 2025 www.sgs.com --- Annual Report and Accounts 2025 Big Yellow Group PLC # Executive Chairman's Introduction ## Dear Shareholder, I am pleased to present the Corporate Governance Report for 2025. This report should be read in conjunction with the report on pages 83 to 89, which set out how we have complied with the UK Corporate Governance Code in 2025. As outlined in my report on pages 14 to 15, 2025 has seen revenue, cash flow and adjusted profit and adjusted earnings per share all up on the prior year. ## Governance The Board believes that the effective delivery of the Company's strategy requires the underpinning of strong corporate governance. The governance of the Group is supported by a robust structure which allows for constructive debate and challenge by its members. This allows the Directors to make effective decisions. ## Engagement with our stakeholders The Board is conscious that there are a number of stakeholders in our business and considers the interests of each of our stakeholder groups in its discussions. We have a comprehensive investor relations programme in place, with the Executive team carrying out a significant number of meetings with our shareholders during the year. The Non-Executive Directors engage with our shareholders as appropriate. Independent feedback on presentations by the Executive Board Directors to major shareholders is provided to the Non-Executive Directors on a regular basis. The culture of the business is a key part of our success. In the year to 31 March 2025, the Executive Board Directors have continued to visit each of the Group's stores and maintain a flat, apolitical, non-hierarchical culture within the business. We continue to monitor the Net Promoter Score that we receive from our customers, which remains at a very high level of 82.8 (2024. 80.5). ## Looking ahead Following our performance this year, our attention for the coming year is focussed on continuing to drive the operating performance of the business to deliver shareholder value. We will continue to invest in our Big Yellow Foundation and its partner charities and also work with local charities throughout our network assisting with space which they need to deliver their programmes. We will continue to focus on delivering attractive long-term shareholder returns, behaving responsibly to our stakeholders including employees, customers, suppliers, and the community, and appropriately managing risk. ![img-182.jpeg](img-182.jpeg) Nicholas Vetch CBE Executive Chairman 19 May 2025 --- Annual Report and Accounts 2025 Big Yellow Group PLC 79 # How We Are Structured The Board has overall responsibility for the manner in which the Company runs its affairs: | Position | Responsible for | More information | | --- | --- | --- | | The Board | - setting the strategic direction of the business | | | Nicholas Vetch Executive Chairman | - setting the culture and values of Big Yellow | | | | - overseeing the internal control system of the Group and its risk management | | | | - approving the annual business plan for the Group | | | | - approving site and store acquisitions and major items of capital expenditure | | | | - approving the Group's financing structure | | | | - ensuring a positive dialogue with our stakeholders is maintained | | | Executive Directors | - implementing the Group's business plan and strategy | Page 84 | | | - managing the risk of the business | | | | - focussing on financial performance | | | Nomination Committee | - reviewing the structure, size and composition of the Board | Pages 90 to 93 | | | - succession planning for Directors and other senior Executives | | | | - promoting diversity | | | Audit Committee | - overseeing the Group's financial reporting | Pages 120 to 123 | | | - overseeing the Group's internal control framework and risk management process | | | | - overseeing the relationship with the external auditor and monitoring their independence | | | Remuneration Committee | - setting, reviewing and recommending the policy on the remuneration of the Executive Directors | Pages 96 to 119 | | | - overseeing the senior management team and general workforce remuneration approach | | | | - monitoring the implementation of the Remuneration policy | | | | - overseeing the alignment of reward, incentives and culture | | | Sustainability Committee | - overseeing the Group's sustainability framework and strategy | Pages 94 to 95 | | | - monitoring sustainability performance | | | | - providing guidance on emerging environmental issues, including environmental risk, and their impact on the Group's business | | | | - overseeing the Group's ESG reporting, including external audit/assurance mechanisms | | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Directors, Officers and Advisers ## Executive Directors ### Nicholas Vetch CBE #### Executive Chairman **Appointment to the Board** Nicholas was a co-founder of Big Yellow in September 1998 and held the position of CEO until July 2003, when he became Executive Chairman. **Background and relevant experience** Prior to Big Yellow, Nicholas was joint Chief Executive of Edge Properties plc, which he co-founded in 1989, was subsequently listed on the Official List of the London Stock Exchange in 1996 and then sold to Grantchester Properties plc in 1998. Nicholas was appointed a Commander of the British Empire ("CBE") in the 2023 New Year's Honours List. **Other appointments** Nicholas is a Trustee of the Royal Drawing School, and the Ukrainian Sponsorship Pathway UK, and a Non-Executive Director of Conduit Holdco Limited. **Committee Membership** None. **Skills and contribution** The Company under Nicholas Vetch's leadership has an outstanding track record for delivering consistently strong returns and share price outperformance. Nicholas, along with his co-founder Jim Gibson, developed the strategy of the business and this continues to this day. He is also responsible for leading the property team and has over 35 years' experience working within the UK property sector. Further details on Nicholas' contribution to the business is included in the annual report on page 83. ### Jim Gibson #### Chief Executive Officer **Appointment to the Board** Jim was a co-founder of Big Yellow in September 1998, initially as Finance Director and he was subsequently appointed Chief Executive in July 2003. **Background and relevant experience** Jim is a Chartered Accountant by background having trained with Arthur Andersen & Co. where he specialised in the property and construction sectors, before leaving in 1989. He was Finance Director of Heron Property Corporation Limited and then Edge Properties plc which he joined in 1994. Edge Properties was listed on the Official List of the London Stock Exchange in 1996 and then sold to Grantchester Properties plc in 1998. **Other appointments** Jim is a Non-Executive Director and shareholder of AnyJunk Limited, a Non-Executive Director and shareholder of CityStasher Limited, an investor in Moby Self Storage, a Brazilian Self Storage business, and an investor in Swift Storage, Queensland, Australia. He is the Chairman of Trustees of the London Children's Ballet, and a Trustee of the Bede's Development Foundation. **Committee Membership** None. **Skills and contribution** Jim has been with Big Yellow since its formation, and along with his co-founder Nicholas Vetch, has been instrumental in developing the strategy of the business. He leads the day-to-day running of the business and brings substantial knowledge of self storage to the Board, which is invaluable to Big Yellow as it continues to grow. As CEO, the Board believes Jim has demonstrated outstanding leadership and drive, notably in managing the business through the recent geo-political uncertainties. He will continue to be instrumental in maintaining Big Yellow's market-leading position. ### John Trotman #### Chief Financial Officer **Appointment to the Board** John joined Big Yellow in June 2007 and was appointed to the Board in September 2007. **Background and relevant experience** John is a Chartered Accountant having trained with Deloitte LLP, where he specialised in the real estate sector and self storage. On leaving Deloitte in 2005, John worked for a subsidiary of the Kajima Corporation until he joined Big Yellow. **Other appointments** None. **Committee Membership** None. **Skills and contribution** John brings strong financial experience to the Group from his 18 years with Big Yellow and prior to that in his previous roles. As CFO, in addition to dealing with the traditional aspects of the role, John is involved in strategy, and in all aspects of the day-to-day operations of the business. He has extensive knowledge of the self storage sector. --- Annual Report and Accounts 2025 Big Yellow Group PLC 81 # Committee key N Nominations Committee A Audit Committee R Remuneration Committee S Sustainability Committee C Committee Chair # Non-Executive Directors ## Dr Anna Keay OBE ### Non-Executive Director N A R S **Appointment to the Board** Anna joined the Board in March 2018. ## Background and relevant experience Anna has been CEO of the Landmark Trust since 2012, operating a portfolio of 200 historic buildings let for holidays. She has a PhD from London University, starting her career at Historic Royal Palaces and from 2002 to 2012 she was Curatorial Director of English Heritage. She was a trustee of Leeds Castle Foundation from 2009 to 2016 and was a Governor and Chair of the Buildings and Projects Committee at Bedales School until November 2021. She writes and broadcasts widely, presenting on history and buildings for Channel 4. ## Other appointments Anna is a Trustee of the Royal Collection Trust, a Director of Architrave Historical Services and of the Lundy Company. ## Committee Membership Member of Audit, Nominations, Remuneration and Sustainability Committees. Anna is the designated Non-Executive Director for workforce engagement. ## Skills and contribution Anna, as a historian, and with significant experience in the third sector, adds another dimension to the Board alongside her operational experience from her current role as CEO of the Landmark Trust. In her role as the designated Non-Executive Director for workforce engagement, she has worked closely with the HR team in all aspects of employee engagement reporting back to the Board on a regular basis. ## Vince Niblett ### Senior Independent Non-Executive Director N A R S **Appointment to the Board** Vince was appointed to the Board in June 2017. ## Laela Pakpour Tabrizi ### Non-Executive Director N A R S **Appointment to the Board** Laela was appointed to the Board in July 2020. ## Background and relevant experience Vince was the Global Managing Partner Audit for Deloitte. He previously held a number of senior leadership roles within Deloitte including as a member of the UK Board of Partners and of the Global Executive Group and the UK Executive Group before his retirement from Deloitte in May 2015. ## Other appointments Vince is also a Non-Executive Director and Chair of the Audit Committee of Forterra plc, a Non-Executive Director of Target Healthcare REIT plc, and a Trustee of the Ruth Strauss Foundation. ## Committee Membership Senior Independent Non-Executive Director, Chair of the Nominations Committee and Member of the Audit, Remuneration and Sustainability Committees. ## Skills and contribution Vince has many years of financial and commercial experience gained from his leadership roles at Deloitte, which he brings to his role as Senior Independent Non-Executive Director. ## Background and relevant experience Laela has 18 years' experience in corporate finance and is currently the Finance Director of Consumer Converged at Virgin Media 02. She was previously the Chief Financial Officer of OpenClassrooms, an online educational platform, the Group Chief Financial Officer of MotorK, a venture-backed software as a service tech scale-up, which subsequently listed on Euronext Amsterdam, the Group CFO of VistaJet, the global private jet operator (now part of Vista Global), and before that worked in Structured Finance for BNP Paribas. She is a graduate of the Institut d'Etudes Politiques de Paris (Sciences-Po) and the London School of Economics. ## Other appointments Laela also currently serves as a Trustee of the British Library, where she is Chair of the Audit Committee and sits on the Remuneration Committee. ## Committee Membership Chair of Audit Committee and Member of Nominations, Remuneration and Sustainability Committees. ## Skills and contribution Laela has significant corporate and financial experience in high growth businesses. She is the Chair of the audit committee, which involves monitoring KPMG LLP as auditors to the Company, and meeting with the external valuers of the Company. She has maintained close dialogue with the external auditors and the senior finance team throughout the year. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Directors, Officers and Advisers continued ## Committee key N Nominations Committee A Audit Committee R Remuneration Committee S Sustainability Committee C Committee Chair ## Heather Savory ### Non-Executive Director N A R S **Appointment to the Board** Heather joined the board of the Big Yellow in March 2021. **Background and relevant experience** Heather was Vice President of Engineering and Operations for 3Dlabs, a high-tech start-up delivering the world's first semiconductor 3D-graphics accelerators for consumer devices and moved on into leadership and advisory roles for high-tech UK SMEs. Heather then worked in various senior government roles including as Director General for Data Capability at the Office for National Statistics which she modernised through a cross-organisation digital, data and workforce transformation. She was also co-Chair of the United Nations Global Working Group on Big Data, developing innovative global data solutions to assist with the measurement and delivery of the United Nations 2030 Agenda for Sustainable Development. **Other appointments** Heather serves as a Non-Executive Director of the UK House of Lords Information Authority, as a Non-Executive Director on the Ministry of Justice Audit and Risk Assurance Committee, as a Trustee of the Ukrainian Sponsorship Pathway Charity [USPUK] and on several Not-for-Profit Advisory Boards. **Committee Membership** Chair of the Sustainability Committee, Member of Audit, Nominations and Remuneration Committees. **Skills and contribution** Heather brings a track record on sustainability to Big Yellow, following her work with the UN. She has a wealth of experience in the private and public sectors. ## Michael O'Donnell ### Non-Executive Director N A R S **Appointment to the Board** Michael joined the board of the Big Yellow in September 2021. **Background and relevant experience** Michael is a former Managing Director of LGV Capital, a private equity firm. He has a particular focus on the healthcare and business services sectors. Past roles include as a Non-Executive Director, and chair of the Remuneration Committee, of Helical plc. **Other appointments** Through his company, Ebbtide Partners, which he started in 2009, Michael acts as a consultant/director to, and investor in, private companies. He has been the Chair of Home REIT plc since January 2024. **Committee Membership** Chair of the Remuneration Committee and Member of Audit, Nominations, and Sustainability Committees. **Skills and contribution** Michael has a wealth of experience in the private equity sector, with a focus on high growth businesses, and as Chair of the Remuneration Committee has led the consultation with shareholders on the new remuneration policy this year. ## Company Secretary and registered office Shauna Beavis 2 The Deans Bridge Road Bagshot Surrey GU19 5AT Company Registration No. 03625199 ## Bankers Aviva Commercial Finance Limited Barclays Bank plc HSBC Bank plc Lloyds Bank plc M&G Investments Limited Pricoa Private Capital ## Solicitors CMS Cameron McKenna Nabarro Olswang LLP Fladgate LLP Lester Aldridge LLP Shoosmiths LLP Slaughter and May ## Financial advisers and stockbrokers Barclays Bank plc J P Morgan Cazenove ## Statutory Auditor KPMG LLP Chartered Accountant and Statutory Auditors ## Valuers Jones Lang LaSalle --- Annual Report and Accounts 2025 Big Yellow Group PLC Strategic Report Governance Report Financial Statements # Corporate Governance Report The Company is committed to the principles of corporate governance contained in the UK Corporate Governance Code issued by the Financial Reporting Council in 2018. ## Introduction The Board also takes account of the Corporate Governance guidelines of institutional shareholders and their representative bodies. The Board continues to monitor external governance developments and in particular, oversees the Company's preparations to ensure compliance with, and effective reporting against, the new UK Corporate Governance Code, which was published by the FRC in January 2024. The new Code will first apply to the Company in its financial year beginning on 1 April 2025. At Big Yellow, we aim to create a culture in which integrity, openness and fairness are rewarded. We continue to review the composition of the Board to ensure that it has the appropriate skills, knowledge, and balance for the effective stewardship of the Company. The Board has overall responsibility for the manner in which the Company runs its affairs. ## Statement of compliance with the Code Throughout the year ended 31 March 2025, the Company has been in compliance with the Code provisions set out in section 1 of the 2018 UK Corporate Governance Code, with the exception of Provision 19 in that the Executive Chairman of the Company has served in position for longer than the recommended period of nine years. ## Chairman's position During the year ended 31 March 2020, which was the Company's first operating under the principles of the new UK Corporate Governance Code, Richard Cotton (then Senior Independent Non-Executive Director) and Vince Niblett (current Senior Independent Non-Executive Director) consulted with a number of the Company's largest shareholders about the length of Nicholas Vetch's tenure as Executive Chairman (21 years), which is in contravention of the UK Corporate Governance Code. It is advised as governance best practice that the Chairman should serve for a maximum of nine years. It is the view of the Board that it is in the Company's best interest for Nicholas Vetch to continue as Executive Chairman for the foreseeable future. In arriving at this conclusion, the Non-Executive Directors have carefully considered the leadership position that Nicholas Vetch fulfils in the Company and also his leadership of the property team. Moreover, they looked at the governance checks and balances, which are, in their opinion, strong and effective. It is recognised that having a founder Director in post as Chairman for considerably longer than advised, needs justification and the reasons detailed below should inform shareholders that this has been given very thorough scrutiny. 1. The Company under Nicholas Vetch's leadership has an outstanding track record for delivering consistently strong returns and share price outperformance. In the twenty five years since flotation in May 2000, Big Yellow has delivered a Total Shareholder Return ("TSR"), including dividends reinvested, of 12.1% per annum, in aggregate 1,610.7% at the closing price of £9.32 on 31 March 2025. This compares to 4.1% per annum for the FTSE Real Estate Index and 5.4% per annum for the FTSE All Share index over the same period. He has been an integral part of the business since inception. 2. Big Yellow has a strong culture, which has benefited from stable and consistent leadership of the business. 3. The Board has five independent NEDs who have a wide range of corporate experience and provide effective challenge to the Chairman and the other Executive Directors, which was endorsed by the external appraisal undertaken by Simon Robertson Associates in 2023. 4. The Board has separate committees for Audit, Nomination, Remuneration and Sustainability, each of which are chaired by a Non-Executive Director, and we have a Senior Independent Director who is considered important in sharing the role of Chairman's duties. Specific examples of the board discussion include examination and engagement in the acquisition of new sites, funding decisions, and the Group's net zero carbon plan. 5. As a Board, we have contingency plans in place in the event one of the Executive Directors cannot fulfil their responsibilities, with a matrix of who would step in to cover their roles. Considerable thought has been given by the Board to succession, which has been approached in the context of a very successful senior team of whom the majority have been in post since the Company was listed in 2000. More detail is provided in the Nominations Committee Report. The Board has been encouraged by the support of its major independent shareholders as it chooses to explain rather than comply with the Code on this issue. The FRC has made it clear in its guidance that departures from the Code are acceptable, specifically stating in a guidance paper the following: "The Code establishes best practice, but importantly it offers flexibility. This flexibility is an opportunity, not a threat; it allows boards to take a thoughtful approach to governance. Where companies depart from the Provisions of the Code they need to provide clear and compelling explanations for why the approach taken is the right one for the particular circumstances of the Company." (Source: FRC Review of Corporate Governance Reporting November 2020). The Company believes that the reasons set out above for Nicholas Vetch serving as Executive Chairman do provide that clear and compelling explanation. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Corporate Governance Report continued ## Statement about applying the principles of the Code The Company has applied the principles set out in the Code, including both the main principles and the supporting principles, by complying with the Code as reported above. Further explanation of how the principles and supporting principles have been applied is set out below and in the Nominations Committee Report, the Remuneration Report, and the Audit Committee Report. ## Leadership The Board's role is to provide entrepreneurial leadership of the Company within a framework of prudent and effective controls which enables risk to be assessed and managed. ## Chairman and Chief Executive The division of responsibilities between the Chairman and the Chief Executive has been agreed by the Board and encompasses the following parameters: - the Chairman's role is to provide continuity, experience, governance, and strategic advice, while the Chief Executive provides leadership, drives the day-to-day operations of the business, and works with the Chairman on overall strategy; - the Chairman, working with the Senior Independent Non-Executive Director, is viewed by investors as the ultimate steward of the business and the guardian of the interests of all the shareholders; - the Board believes that the Chairman and the Chief Executive work together to provide effective and complementary stewardship; the Chairman: - takes overall responsibility for the composition and capability of the Board; - takes overall executive responsibility for the property development team; and - consults regularly with the Chief Executive and is available on a flexible basis for providing advice, counsel, and support to the Chief Executive. the Chief Executive: - manages the CFO and COO and the Group's day-to-day activities; - prepares and presents to the Board strategic options for growth in shareholder value; - sets the operating plans and budgets required to deliver agreed strategy; and - ensures that the Group has in place appropriate risk management and control mechanisms. The Directors believe it is essential for the Group to be led and controlled by an effective Board that provides entrepreneurial leadership within a framework of sound controls which enables risk to be assessed and managed. The Board is responsible for setting the Group's strategic aims, its values and standards and ensuring the necessary financial and human resources are in place to achieve its goals. The Board ensures that its obligations to shareholders and other stakeholders are understood and met. The Board also regularly reviews the performance of management. ## Effectiveness ### Composition of the Board The Nominations Committee is responsible for reviewing the Board Composition and makes recommendations to the Board on the appointment of Directors. There are presently five independent Non-Executive Directors on the Board, with Vince Niblett being the Senior Independent Director. The Company complies with the UK Corporate Governance Code in that at least half of the Board, excluding the Chair, is comprised of independent Non-Executive Directors. All of the Non-Executive Directors bring considerable knowledge, judgement, and experience to Board deliberations. Non-Executive Directors do not participate in any of the Company's share option or bonus schemes and their service is non-pensionable. The Non-Executive Directors are encouraged to communicate directly with Executive Board Directors between formal Board meetings. The Non-Executive Directors meet at least once a year without the Executive Board Directors being present. The Non-Executive Directors scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance. They are required to satisfy themselves on the integrity of the financial information and that financial controls and systems of risk management are robust and defensible. They are responsible for determining appropriate levels of remuneration for Executive Board Directors and have a prime role in appointing and, where necessary, removing Executive Board Directors, and in succession planning. The tenure of the independent Non-Executive Directors at 31 March 2025 is set out below: ![img-183.jpeg](img-183.jpeg) ### Changes to the Board and its Committees There have been no changes to the composition of the Board and its Committees during the year. --- Annual Report and Accounts 2025 Big Yellow Group PLC 85 # The board and its committees ## Standing committees of the Board The Board has Audit, Remuneration, Nominations and Sustainability Committees, each of which has written terms of reference. They deal clearly with the authorities and duties of each Committee and are formally reviewed annually. Copies of these terms of reference are available on the Company's website. Each of these Committees is comprised of Independent Non-Executive Directors of the Company who are appointed by the Board on the recommendation of the Nominations Committee. All the Committees are authorised to obtain legal or other professional advice as necessary; to secure, where appropriate, the attendance of external advisers at its meetings and to seek information required from any employee of the Company in order to perform its duties. The Chair of each Committee reports the outcome of the meetings to the Board. The Company Secretary is secretary to each Committee. Attendance at meetings of the individual Directors at the Board Meetings that they were eligible to attend is shown in the table below: | Director | Position | Number of meetings attended | | --- | --- | --- | | Jim Gibson | Chief Executive Officer | ● ● ● ● ● ● | | Anna Keay | Non-Executive Director | ● ● ● ● ● ● | | Vince Niblett | Non-Executive Director | ● ● ● ● ● ● | | Michael O'Donnell | Non-Executive Director | ● ● ● ● ● ● | | Laela Pakpour Tabrizi | Non-Executive Director | ● ● ● ● ● ● | | Heather Savory | Non-Executive Director | ● ● ● ● ● ● | | John Trotman | Chief Financial Officer | ● ● ● ● ● ● | | Nicholas Vetch | Executive Chairman | ● ● ● ● ● ● | ● attended ● absent ● not applicable Other members of the senior leadership team attend Board meetings on invitation. The Board meets approximately once every two months to discuss a whole range of significant matters including strategic decisions, major asset acquisitions and performance. A procedure to enable Directors to take independent professional advice if required has been agreed by the Board and formally confirmed by all Directors. There is a formal schedule of matters reserved for the Board's attention including the approval of Group strategy and policies; major acquisitions and disposals, major capital projects and financing, Group budgets and material contracts other than in the normal course of business. The Board also considers matters such as cyber security, reputational risks, and other non-financial risks as part of its review of the Group's risk register. At each Board meeting, the latest available financial information is produced which consists of detailed management accounts with the relevant comparisons to budget. A current trading appraisal is given by the Executive Board Directors. ## Information and professional development All Directors are provided with detailed financial information throughout the year. On a weekly basis they receive a detailed occupancy report showing the performance of each of the Group's open stores. Management accounts are circulated to the Executive monthly and a detailed Board pack is distributed a week prior to each Board meeting. All Directors are kept informed of changes in relevant legislation and changing commercial risks with the assistance of the Company's external advisers where appropriate. All Directors have access to the advice of the Company Secretary on governance matters. The professional development requirements of Executive Board Directors are identified and progressed as part of each individual's annual appraisal. All new Directors are provided with a full induction programme on joining the Board. Non-Executive Directors are encouraged to attend seminars and undertake external training at the Company's expense in areas they consider to be appropriate for their own professional development. Each year, the programme of senior management meetings is tailored to enable meetings to be held at the Company's stores. During the year, the Executive Board Directors made visits to all the Group's stores. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Corporate Governance Report continued ## Accountability ### Risk management and internal control The Group operates a rigorous system of risk management and internal control, which is designed to ensure that the possibility of misstatement or loss is kept to a minimum. There is a comprehensive system in place for financial reporting and the Board receives a number of reports to enable it to carry out these functions in the most efficient manner. These procedures include the preparation of management accounts, forecast variance analysis and other ad hoc reports. There are clearly defined authority limits throughout the Group, including those matters which are reserved specifically for the Board. The Board has established a continuous process for identifying, evaluating, and managing the significant risks the Group faces and for determining the nature and extent of the significant risks it is willing to take in achieving its strategic objectives. The Board regularly reviews the process, which has been in place from the start of the year to the date of approval of this report and which is in accordance with the FRC's guidance on risk management, internal control and related reporting that was issued in September 2014. The Board is also responsible for the Group's system of internal control and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Board regularly reviews the effectiveness of the Group's risk management and internal control systems. In anticipation of the revised requirements set out in the 2024 UK Corporate Governance Code, which take effect for accounting periods beginning on or after 1 January 2025 (with Provision 29 coming into effect for periods commencing on or after 1 January 2026), the Group has taken proactive steps during the year to enhance its risk management and internal control framework. The Board, supported by the Audit Committee, has overseen a structured programme of work to strengthen the Group's internal controls environment. This programme has focused on ensuring the Group is well-positioned to meet the Code's enhanced expectations around the effectiveness of internal controls and the associated Board declaration. The Board's monitoring covers all controls, including financial, operational and compliance controls and risk management. It is based principally on reviewing reports from management to consider whether significant risks are identified, evaluated, managed, and controlled and whether any significant weaknesses are promptly remedied and indicate a need for more extensive monitoring. The Board has also performed a specific assessment for the purpose of this annual report. This assessment considers all significant aspects of risk management and internal control arising during the period covered by the report, including the work carried out by the Group's Store Compliance team. The Audit Committee assists the Board in discharging its review responsibilities. A formal risk identification and assessment exercise has been carried out resulting in a risk framework document summarising the key risks, potential impact and the mitigating factors or controls in place. The key risks the Group faces are detailed on pages 44 to 48. The Board has a stated policy of reviewing this risk framework at least once a year or in the event of a material change. The risk identification process also considered significant non-financial risks. During the reviews in the year, the Directors: - challenged the framework to ensure that the list of significant risks to business objectives is still valid and complete; - considered new and emerging risks to business objectives and included them in the framework if significant; - ensured that any changes in the impact or likelihood of the risks are reflected in the risk framework; and - ensured that there are appropriate action plans in place to address unacceptable risks. The results of this exercise have been communicated to the Board and the Audit Committee. This was in the form of a summary report which included: - a prioritised summary of the key risks and their significance; - any changes in the list of significant risks or their impact and likelihood since the last assessment; - new or emerging risks that may become significant to business objectives in the future; - progress on action plans to address significant risks; and - any actual or potential control failures or weaknesses during the period (including "near misses"). During the course of its review of the risk management and internal control systems, the Board has not identified, nor been advised of any failings or weaknesses which it has determined to be significant, consistent with the prior year. Therefore, a confirmation in respect of necessary actions has not been considered appropriate. All management are encouraged to stay abreast of all technical and other competitive advances that could impact the business. ## Going concern The Group's activities, and a fair review of the business, are included in the Strategic Report on pages 18 to 48. The financial position of the Group, including its cash flow, liquidity, and committed debt facilities are discussed in the Financial Review on pages 38 to 43. The Directors have a reasonable expectation that the Group and Company have adequate resources to continue operations for the foreseeable future. They have therefore continued to adopt the going concern basis in preparing the financial statements. ## Engagement with stakeholders The long-term success of our business is dependent on the way we work with our various stakeholders. The table below shows our key stakeholder groups, how we engage with them, and how the results of this engagement are reported up to the Board and influence the decision making with the business. Not all the information is reported directly to the Board, however it informs business-level decisions with an overview of developments being reported on a regular basis to the Board. The Board has identified a number of key stakeholders which it seeks to engage with on a regular basis. The key stakeholders are our employees, our shareholders, our customers, our suppliers, and our communities. --- Annual Report and Accounts 2025 Big Yellow Group PLC 87 | Stakeholder Group | Form of engagement | How this influenced the Board during the year | | --- | --- | --- | | **Our employees** | We carried out an engagement survey of our staff in May 2023, which showed a very pleasing engagement score of 88% and a response rate of 92%. Our next survey is being carried out in May 2025, and we will report on the results of that in next year's annual report. The Directors have continued to visit every store in the portfolio over the course of the year. Further detail is provided below on how Anna Keay, the designated Workforce Engagement Director has carried out her role during the year. | We are dedicated to providing outstanding customer service by fostering a positive work environment and empowering our people. Our approach focuses on attracting, retaining, and inspiring talented individuals who demonstrate integrity. We invest heavily in training to maintain high standards of service, while supporting career development for our team members. Emphasising personality over qualifications, our inclusive and diverse recruitment process ensures we select the right fit. We promote a culture of collaboration, offering benefits such as bonus schemes, share incentives, and acknowledging exceptional achievements through our Recognition Points Scheme. We are constantly striving to enhance our work environment and the benefits of being part of Big Yellow. During the past year this has included, enhancing our healthcare benefits, introducing and training all managers on a new Disability Support Policy, training team members to mentor people with convictions, as well as additional Inclusivity and Diversity Experts. We have also further enhanced communication across the business, with monthly business and regular people updates / recognition of achievements. The number of employees completing apprenticeships has continued to grow across the business. We've also revamped our induction training programme to provide better support for new team members, incorporating a buddy system and Learning and Development Experts. Peer-to-peer training has been a central focus this year, fostering stronger relationships between Head Office and the stores. Additionally, we've placed a greater emphasis on internal succession by reviewing and enhancing our development discussions and performance management processes. There is further detail on how the Board engage with our people on page 89. | | **Our shareholders** | The Company has an active dialogue with its shareholders through a programme of investor meetings which include formal presentation of the full and half year results. The Executive Board Directors have participated in a number of investor conferences and meetings during the year. During the year ended 31 March 2025, the Chief Executive and other Executive Board Directors carried out 267 meetings with UK and overseas institutional shareholders and potential investors. These meetings comprised group and individual presentations. The Board also welcomes the interest of private investors and believes that, in addition to the Annual Report and the Company's website, the Annual General Meeting is an ideal forum at which to communicate with investors and the Board encourages their participation. | The Board receives regular feedback on investor perceptions about the Company. After each set of results, key investors are interviewed on their perceptions of the performance of the business and management. The findings are reviewed by the Board. At each Board Meeting, the Board is updated on any shareholder meetings that have taken place, and any views expressed, or issues raised by the shareholders in these meetings. | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Corporate Governance Report continued | Stakeholder Group | Form of engagement | How this influenced the Board during the year | | --- | --- | --- | | Our customers | The Group sends surveys to all customers who have moved in and moved out of the business. A high response rate is received to these surveys, which show a net promoter score of 82.8 [2024: 80.5]. | The net promoter scores are reported to the Board at each Board meeting and any recurring themes highlighted to allow discussion around the approach to our customers. The Directors discuss net promoter scores and customer feedback with store teams on their regular visits to the Group's stores. The net promoter scores achieved from our customers are used as one of the metrics in the bonus plan of the Executive Board Directors. | | Our suppliers | Regular meetings are held between suppliers and their Big Yellow contact. Appropriate external tendering is carried out for any new suppliers. On anti-corruption and anti-bribery matters, we expect all our suppliers to be compliant with the Modern Slavery Act and we work closely with our suppliers to promote best practice. During the prior year we engaged with suppliers we had identified as being within potentially high-risk categories and carrying out audits of their compliance with these regulations and providing support to them. | The Board annually approves the Group's Modern Slavery statement. The Group was previously a member of the Prompt Payment Code, supporting our smaller suppliers with on time payments. This is being replaced by the Fair Payment Code next year, which the Group will participate in. During the year we continued our work with our suppliers on supply chain ethics. No material issues were noted, albeit we have been working with them during the year to improve standards further. | | Our communities | We demonstrate Big Yellow's culture and commitment to our communities through the work of the Big Yellow Foundation which aims to help vulnerable people lead better lives, working in partnership with several charities. Big Yellow matches any donations from our customers at move-in and move-out. We also match any funds raised by our employees and allow each member of our team one paid day per year for volunteering. We also support approximately 200 local charities with free or discounted space throughout our network. | The Board receives regular updates regarding the Foundation's activities. The Board endorses the culture of giving back time to support these charities and the financial commitment made by Big Yellow. Jim Gibson, CEO, is the Chair of the Trustees of the Big Yellow Foundation. | | Our environment | We engage relevant subject matter experts to assess the impact our business has in the first instance as part of the planning and construction process. Our partners perform detailed assessments on likely impacts on land, water, biodiversity, air quality and other key aspects. It is our aim to not just minimise any negative aspects, but also 'listen' carefully and enhance where possible, through the installation of green roofs or bird or bat nesting boxes for example. We extensively report on our operational impacts, such as energy consumption, carbon emissions, waste we create and water we use as part of our Full ESG Report and have systems and processes in place to manage material aspects, such as energy. | The Board receives regular updates on our environmental performance and activities. The Board endorses the Group's commitment to investing at all stages of our stores' lifespan to ensure our impact on the environment is minimised. It signs off on the budgets to deliver solar installations and electric vehicle charging pods for example. The Board established a formal Sustainability Committee in 2020 chaired by Non-Executive Director Heather Savory. | --- Annual Report and Accounts 2025 Big Yellow Group PLC Strategic Report Governance Report Financial Statements # Employee relations and company culture Our teams are a key resource of the business. From the start we have always aimed to create a culture which is accessible, apolitical, inclusive, non-hierarchical, socially responsible, and very importantly, an enjoyable place to work. We believe in the employees benefiting from the success of the business. All staff are eligible for an annual bonus; a Sharesave scheme is open to all employees; and the Company's Long Term Incentive Plan is provided to a significant number of employees. The Executive Board Directors spend a considerable amount of time meeting with the Group's employees and visit every store at least once a year. We recognise the value of the culture of the business and these visits create an opportunity for it to be cascaded from the boardroom. The Group's Non-Executive Directors also participate in some of these visits, allowing them to develop and maintain a greater insight into the business, producing an informed and higher quality Board discussion on employee matters. The Group carries out regular engagement surveys of its staff and carried out a full survey in May 2023. These surveys tell us what our staff value about the business and the importance of continued personal development. Detailed action plans are created following these engagement surveys and a number of changes to the way we operate have been made as a result of these surveys. The level of employee engagement evidenced by these surveys remained very high. We are carrying out our next survey in May 2025 and will report on the results in next year's Annual Report. Regular training is provided to the Group's employees, and detailed courses are provided to allow employees to further their careers and seek promotion opportunities within the business. The Board has, in conjunction with the work of the Audit Committee, reviewed the whistleblowing policies that are in place for the Group's employees. There have been no significant issues raised under the Group's whistleblowing arrangements during the financial year. # Workforce Engagement Director The Code requires that the Board should understand the views of its key stakeholders, with a particular reference to engagement with the workforce. Specifically, it states that for engagement with the workforce, one or a combination of the following methods should be used: - A Director to the main Board should be appointed from the workforce; - A formal workforce advisory panel should report to the Board; and / or - A designated Non-Executive Director should sit on the workforce advisory panel. A designated Non-Executive Director, Anna Keay, has been chosen as the primary method of workforce engagement for Big Yellow. She oversees and is responsible for the following: - involvement in the Workforce Engagement Group discussions and occasional attendance at Workforce Engagement Group meetings; - involvement in key employee project groups where for example employee views are sought on the business or policy and procedural changes; - maintaining an awareness of the suggestions made under the Company's Bright Ideas Scheme to include key trends and awards made; - along with all the Company's Non-Executive Directors, participation on store tours (pre-planned visits to individual stores); - along with all the Company's Non-Executive Directors attending the Annual Sales Conference; - provision of feedback to the Board on the bi-annual employee engagement survey, with assistance from the Human Resources team and our survey partner; - receiving detailed feedback from the Executive Board Directors on their interaction with employees; - regular meetings with the Head of HR to discuss employee relations and issues; - annual face-to-face sessions with groups of employees in different areas of the business to hear views and concerns; - acting as an alternative contact to whom employees can report confidential matters and raise concerns under the Company's Whistleblowing Policy; and - reporting back to the Board and Non-Executive Directors on the above. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Nominations Committee Report The Committee is responsible for reviewing the Composition of the Board. It also makes recommendations for membership of the Board and considers succession planning for Directors. The Committee is also responsible for evaluating Board and Committee performance. ## Committee members and attendance | Member | Number of meetings attended | | --- | --- | | Vince Niblett – Chair and Senior Independent Director | ● ● | | Anna Keay – Member | ● ● | | Michael O'Donnell – Member | ● ● | | Laela Pakpour Tabrizi – Member | ● ● | | Heather Savory – Member | ● ● | - attended - absent - not applicable ## Introduction The Nominations Committee is responsible for reviewing the structure, size and composition of the Board and giving consideration to succession planning for Directors and other senior Executives. Where changes are required, it is also responsible for the identification, selection and proposal to the Board for approval of persons suitable for appointment or reappointment to the Board, whether as Executive or Non-Executive Directors and to seek approval from the Remuneration Committee of the remuneration and terms and conditions of service of any proposed Executive Director appointment. The Chair of the Committee reports to the Board as appropriate to enable the Board as a whole to agree the appointments of new Directors. The Committee meets at least once a year and otherwise as required and as determined by its members. The terms and conditions of appointment for the Non-Executive Directors are available for inspection at the Company's Head Office during normal working hours. They are also available for inspection at the Company's AGM. ## Board performance evaluation During 2023, the effectiveness of the Board and its Committees was evaluated by Simon Robertson Associates LLP ("SRA"). Simon Robertson Associates have no other business relationship with the Group or any of the Company's Directors. SRA met each Director individually, the Company Secretary, many of the senior management team and certain external advisers to the Company. They also attended Board and Committee meetings, with the results of the evaluation presented to the full Board. There had been three new NED appointments and a new SID. Consequently, the dynamics of the Board have altered but SRA noted that it operates just as effectively, with the new NEDs strengthening skills and experience, particularly around the ESG agenda. SRA was positive about the implementation of recommendations made following the last review. --- Annual Report and Accounts 2025 Big Yellow Group PLC 91 # Findings The overall conclusion was that the Board operates with a high degree of efficiency, with a good level of leadership and in a way that promotes honest discussion and healthy debate. High-priority business is unanimously recognised and given the appropriate allocation of time for detailed discussion. This does not detract from other tabled business which is well covered; conversations are straightforward and substantive. SRA was complimentary of the comprehensive approach to governance, noting that the Board is appropriately structured and balanced, with its Committees both well-defined and purpose-driven. SRA noted that a distinct entrepreneurial culture and set of values are evident at Board level, a sentiment echoed by others who were part of the review process. SRA's main recommendations were: - consider internal deep-dive exercises on risk management systems and financial controls to test the robustness of current processes; - continue open dialogue around Board evolution to help with succession planning; - nurture board dynamics through opportunities for the Board to meet independently of main meetings; and - restructure the NEDs induction process to allow for a more extensive introduction to senior management and continue the NEDs education and visibility around the business. # Current year board evaluation During the current year, the Senior Independent Director led an internal evaluation of the Board's performance. This consisted initially of a round table discussion on the Board's performance. The Senior Independent Director then sent a detailed questionnaire to each member of the Board asking them to assess the effectiveness of the Board and its discussions, and to raise any suggestions for improvement. As part of this review the recommendations from SRA in 2023 were revisited to ensure these had been implemented. The Senior Independent Director provided a paper summarising the results of these exercises to the Board. It was considered that the Board was operating effectively, with some minor areas identified for improvement. # Director evaluation During the current year, the Executive Chairman evaluated the performance of the other Executive Board Directors, and the performance of the Chairman was evaluated by the Senior Independent Non-Executive Director. It was considered that the individuals were operating effectively, with appropriate procedures put in place for minor areas identified for improvement. # Succession planning It is a key responsibility of the Committee to advise the Board on succession planning. The Committee ensures that any future changes in the Board's composition are foreseen and effectively managed. The Board comprises a team of three Executive Board Directors, two of whom were co-founders of the Company, complemented by Non-Executive Directors who have wide business experience and skills as well as a detailed understanding of the Group's philosophy and strategy. The Executive Board Directors have worked together for a significant length of time. Continuity of experience and knowledge, particularly of self storage, within the executive team is important in a long-term focussed business such as Big Yellow. The team has confirmed individually and collectively that they all remain committed to the business for the foreseeable future. Each Executive has a significant personal financial interest in the Company. The risk of unforced succession within the business is therefore low. Given the financial interest of each member of the team in the Company, any planned change in the team in the medium-term (e.g. upon retirement) will be staggered to ensure there is not significant disruption to the overall team. The Directors work closely together across the various departments that each manages, and so each carries knowledge of the way the whole business operates and would be able to take over the running of that department in the short-term should a vacancy arise. Equally important is the strength of the Senior Management team within the business. The majority of department heads have worked for the business for a substantial period of time and are highly capable individuals. The Committee has confidence that they would be able to step up if there is a gap in the Executive Director team at any point. In the event of unforeseen changes, the Committee ensures that management and oversight of the Group's business and long-term strategy will not be affected. The Committee also addresses the development and continuity of the Senior Management team below Board level and has considered succession planning for this team during the year. The Committee also considers the succession planning for Non-Executive Directors being cognisant of when the nine year terms expire for each Non-Executive. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Nominations Committee Report continued ## Big Yellow Executive team Big Yellow operates with a leadership team of fifteen, comprising of three Executive Board Directors, supported by twelve key executives within the business. The Group does not have a formal Executive Committee or formal Operating Board, as a more flexible approach to the day-to-day management of the business is used within a relatively flat management structure. In addition to the three Executive Board Directors, the other members of the Executive team cover finance, sales and marketing, operations, facilities, construction, property acquisitions, human resources, information technology and digital security, and ESG. The business is run through small sub-groups of decision-making committees, which meet regularly throughout the year around particular key delivery areas which contribute to our growth and success. These committees are attended by members across the leadership team and other employees as required. All of these meetings are also attended by at least one of the Executive Board Directors, and in many cases more than one Executive Director. All strategic and acquisition decisions are made at the PLC Board level and then the Committees implement and take the detailed decisions to drive operational performance and deliver growth. There are also specific thematic executive committees, such as an Environmental Committee and a Health and Safety Committee. ## Gender identity reporting under LR9.8.6R(9) and LR9.8.6R(10) All aspects of diversity, including gender are considered at every level of recruitment. All appointments to the Board are made on merit. The Board's policy states that the Board seeks a composition with the right balance of skills and diversity to meet the demands of the business. The listing rules set out a target of 40% representation of the Board as women. The Company at 31 March 2025 had 38% of the Board as women, and this requirement will be an important consideration in future board level appointments. The listing rules also target Boards to have at least one woman in the roles of Chair, Senior Independent Director ["SID"] and/or as CEO or CFO. It is our intention to have at least one woman in one of the defined roles above by the end of our next financial year. Gender diversity of the Board, Key Executives and Company at 31 March 2025 is set out below: | | Number of board members | % of the board | Number of senior positions (CEO, CFO, SID and Chair) | Number in executive management | Percentage of executive management | | --- | --- | --- | --- | --- | --- | | Men | 5 | 62.5% | 4 | 7 | 58% | | Women | 3 | 37.5% | | 5 | 42% | | Not specified/ prefer not to say | | | | | | The data in the table was collected via written submissions completed by each relevant individual within scope of the reporting requirements set out in Listing Rule 9.8.6R(10). ![img-184.jpeg](img-184.jpeg) --- Annual Report and Accounts 2025 Big Yellow Group PLC 93 # Ethnic background identity reporting under LR9.8.6R(9) and LR 9.8.6R(10) As at 31 March 2025, being the relevant reference date for the purposes of Listing Rule 9.8.6R(9)(a), two of the Board's eight members identified as non-white (25%), exceeding the target set in the Listing Rules and the Parker Review. | | Number of board members | % of the board | Number of senior positions (CEO, CFO, SIO and Chair) | Number in executive management | Percentage of executive management | | --- | --- | --- | --- | --- | --- | | White British or other White (including minority-white groups) | 6 | 75% | 3 | 11 | 100% | | Mixed/Multiple Ethnic Groups | 1 | 12.5% | 1 | | | | Asian/Asian British | | | | | | | Black/African/Caribbean/Black British | | | | | | | Other ethnic group, including Arab | 1 | 12.5% | | | | | Not specified/prefer not to say | | | | | | The data in the table was collected via written submissions completed by each relevant individual within scope of the reporting requirements set out in Listing Rule 9.8.6R(10). # External appointments On making new appointments, the Board takes into account the other demands on a Director's time. Prior to any appointment, significant commitments are disclosed with an indication of the time involved. Any additional external appointments are only undertaken with prior approval of the Board. The Group's Executive Board Directors may not take on more than one non-executive Directorship within a FTSE 350 company or other significant and time-consuming appointment. # Directors standing for re-election All of the Directors will retire in accordance with the UK Corporate Governance Code and will offer themselves for re-election at the Annual General Meeting. Following a performance appraisal process, the Board has concluded that the Directors retiring are effective, committed to their roles and operate as effective members of the Board. The Board, on the advice of the Committee, therefore recommends the re-election of each Director standing for re-election. Full biographical details of each Director are available on page 80. # Vince Niblett Nominations Committee Chair 19 May 2025 --- Annual Report and Accounts 2025 Big Yellow Group PLC # Sustainability Committee Report ## Committee members and attendance | Member | Number of meetings attended | | --- | --- | | Heather Savory – Chair | ● ● | | Anna Keay – Member | ● ● | | Vince Niblett – Member | ● ● | | Michael O'Donnell – Member | ● ● | | Laela Pakpour Tabrizi – Member | ● ● | - attended - absent - not applicable ## Introduction The Sustainability Committee is responsible for: - overseeing the Group's sustainability framework and strategy; - monitoring the sustainability performance; - providing guidance on emerging environmental issues, including environmental risks, and their impact on the Group's business; and - overseeing the Group's ESG reporting, including external audit and assurance mechanisms. The Sustainability Committee has determined its scope as: - material, covering all environmental aspects of Big Yellow's business, i.e. the 'E' in ESG; and - comprehensive, from energy to waste, considered in order of their impact on the business. The scope of the Sustainability Committee excludes: - social and personnel aspects of ESG, which the Big Yellow Board considers elsewhere, under the guidance of Non-Executive Director Anna Keay; and - governance aspects of ESG which are considered directly by the Big Yellow Board. --- Annual Report and Accounts 2025 Big Yellow Group PLC 95 # Overview The Sustainability Committee meets twice a year: in September and in March, attended by all Big Yellow Board Members and the Head of Sustainability. The Head of Sustainability and the delivery of Big Yellow's Sustainability Strategy are supported through an executive-level, cross-disciplinary Environmental Committee of Big Yellow staff, with external experts called in to assist as and when required. Big Yellow's Sustainability Strategy was first published in 2021, setting out pathways to become Net Renewable Energy Positive by 2030 and working towards Science-Based Targets for emissions reductions by 2032. An updated version will be published this year. The Sustainability Committee commends the excellent progress made against the Sustainability Strategy during 2024-25. Big Yellow now has two Science-Based Targets set and verified by the Science-Based Target initiative (SBTi). These have been put in place to help us decarbonise our Scope 1, 2 and 3 activities. In addition to the work to gain formal approval for the Science-Based Targets this year we have also seen: - strong progress on the Solar Retrofit programme – now standing at 48 retrofit installations, which contribute to a total generating capacity of over 8.5 Megawatts across 78 stores; - completion of the Battery Pilot – a second phase of the pilot has been completed successfully, with further substantial savings seen at Slough Farnham Road; and - completion of a series of Energy Efficiency pilot projects to inform the roll out of further energy efficiency measures across the estate in the coming years. This year we have continued to work to understand our Scope 3 emissions. We have carried out multistage Life Cycle Assessments of our construction activities and, moving forward, we are committed to having our Scope 3 footprint externally calculated and verified. The information we gather from these activities will be used to understand how our design decisions impact our carbon emissions and influence future construction specifications. I am pleased to confirm that Big Yellow is continuing to deliver well against its Sustainability Strategy, whilst maintaining a flexible approach in light of new developments in the sustainability space. The business is continually seeking to innovate and make the best of new opportunities as they arise in its work to meet the long-term targets of the strategy. # Heather Savory Sustainability Committee Chair 19 May 2025 --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report This report has been prepared by the Remuneration Committee and approved by the Board. It has been prepared in accordance with Schedule 8 of the Large and Medium-size Companies and Groups (Accounts and Report) (Amendment) Regulations 2013 (the "Regulations"). ## Attendance at Remuneration Committee meetings Attendance at meetings of the individual Directors at the Remuneration Committee Meetings that they were eligible to attend is shown in the table below: ## Committee members and attendance | Member | Number of meetings attended | | --- | --- | | Michael O'Donnell – Chair | ● ● ● | | Anna Keay – Member | ● ● ● | | Vince Niblett – Member | ● ● ● | | Laela Pakpour Tabrizi – Member | ● ● ● | | Heather Savory – Member | ● ● ● | - attended - absent - not applicable ## Introduction The report is divided into three main sections: - The Annual Statement – which summarises the remuneration outcomes in the year ended 31 March 2025 and how the Remuneration Policy will be operated in the year ending 31 March 2026; - The Remuneration Policy Report – which sets out the proposed Remuneration Policy which will be put to shareholders for approval at the 2025 AGM; and - The Annual Report on Remuneration – which sets out how the Committee intends to operate the Remuneration Policy for the year ending 31 March 2026, the link between Company performance and remuneration and payments and awards made to the Directors in respect of the year just ended. The Companies Act 2006 requires the auditor to report to the shareholders on certain parts of the Remuneration Report and to state whether, in their opinion, those parts of the report have been properly prepared in accordance with the Regulations. The parts of the Annual Report on Remuneration that are subject to audit are indicated in the report. --- Annual Report and Accounts 2025 Big Yellow Group PLC 97 # The Committee and its Work During the Year Committee Chair: Michael O'Donnell Current Committee members: Vince Niblett, Anna Keay, Laela Pakpour Tabrizi and Heather Savory Terms of Reference: https://corporate.bigyellow.co.uk/investors/corporate-governance The Committee met three times during the year under review. The Committee's main activities during the year ended 31 March 2025 (full details are set out in the relevant sections of this report) included: - Agreeing Executive Director base salary increases from 1 April 2025; - Agreeing the cash annual bonus awards for the year ended 31 March 2024 and setting the targets for the year ended 31 March 2025; - Agreeing the deferred annual bonus plan awards for the year ended 31 March 2024 and setting the targets for the year ended 31 March 2025; - Reviewing the EPS and Total Shareholder Return ("TSR") performance targets and determining the percentage vesting for the 2021 LTIP awards which vested in 2024; - Reviewing the CEO Pay Ratio calculations and disclosures; - Reviewing the Company's Gender Pay calculations and disclosures; - Reviewing the Company's Ethnicity Pay calculations and disclosures; and - Reviewing the 2024 AGM voting results and considering shareholder feedback received. In addition, the Committee has considered how the current and proposed Policy and practices are consistent with the six factors set out in Provision 40 of the UK Corporate Governance Code: ## Clarity Our Policy is understood by our senior executive team and is clearly articulated to our shareholders and representative bodies (both on an ongoing basis and when changes are proposed). ## Simplicity The Committee is mindful of the need to avoid overly complex remuneration structures which can be misunderstood and deliver unintended outcomes. Therefore, a key objective of the Committee is to ensure that our executive remuneration policies and practices continue to be straightforward to communicate and operate. ## Risk Our Policy has been designed to ensure that inappropriate risk-taking is discouraged and will not be rewarded via: (i) the balanced use of annual and long-term pay which employ a blend of financial, non-financial and shareholder return targets; (ii) the significant role played by equity in our incentive plans; and (iii) malus/clawback provisions. ## Predictability Our incentive plans are subject to individual caps, our share plans are also subject to market standard dilution limits. ## Proportionality There is a clear link between individual awards, delivery of strategy and our long-term performance. In addition, the significant role played by incentive/'at-risk' pay, together with the structure of the Executive Board Directors' service contracts, ensures that poor performance is not rewarded. ## Alignment to culture Our executive pay policies are fully aligned to Big Yellow's culture through the use of metrics in both the annual bonus, deferred bonus and LTIP that measure how we perform against our KPIs. Strategic Report Governance Report Financial Statements --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued ## Annual Statement ### Dear Shareholder I am pleased to present the Directors' Remuneration Report for the year ended 31 March 2025. ### Performance, Decisions and Reward Outcomes for the year ended 31 March 2025 The business conditions and performance of the Group in the year ended 31 March 2025 are described more fully in the Chairman's Statement and the Operating and Financial Review of this Annual Report. In summary: - The business of the Group performed resiliently despite the current economic headwinds; - Big Yellow remains the clear UK brand leader in self storage and delivered growth in revenue, cash flow and adjusted profit for the sixteenth year in a row; - Revenue, operating cash flow and adjusted profit before tax increased 2%, 2% and 8% respectively; and - Dividends are up by 3% on the prior year. Payments made to the Executive Board Directors under the cash annual bonus plan for the year ended 31 March 2025 amounted to 9.8% of salary (out of a maximum of 25% of salary), based on performance against pre-set targets for occupancy, store profitability, store audits and customer satisfaction. The targets set, and the out-turn, were identical to the average bonus awarded across the stores and head office. Awards made to the Executive Board Directors under the deferred annual bonus plan for the year ended 31 March 2025 amounted to 64.1% of salary (out of a maximum of 125% of salary), based on performance against financial and non-financial performance targets linked to the business plan. In respect of the Long Term Incentive Plan ("LTIP") awards granted in 2021, which vested in July 2024, three-year EPS and TSR performance resulted in 100% of awards vesting. Further details of the targets, and performance against the targets, for cash and deferred annual bonus plans and share award vesting levels are set out in the Annual Report on Remuneration. ### Operation of the Policy and use of discretion The Remuneration Policy operated as intended for the year ended 31 March 2025, and no discretion was applied. ### Policy review As the current Remuneration Policy approved by shareholders in 2022 is reaching the end of its three-year life, the Committee has carried out a detailed review of the Policy and consulted with Big Yellow Group's major shareholders and the main representative bodies. On the basis that our strategy remains unchanged, no changes are proposed in respect of the Policy structure or quantum. We are, however, proposing one minor change to annual bonus deferral. The Big Yellow annual bonus is split into two parts as follows: - Cash – up to 25% of salary is aligned with the workforce annual bonus (measured against store performance, through occupancy growth, store profitability, store audits and customer satisfaction scores); and - Deferred Bonus Plan – up to 125% of salary measured against financial, operational, real estate and strategic measures which is deferred into shares for 3 years. Vesting is subject to continued employment. Noting that the proportion of Big Yellow's annual bonus that is deferred into shares (125% out of 150% of salary) is significantly greater than typical sector practice and the recent change to the Investment Association ("IA") principles, the Committee wishes to reduce the level of deferral where shareholding guidelines have been met. As such, if an Executive Director has met the 200% of salary shareholding guideline (which is the case for the current Executive Directors), two thirds of this part of the bonus will be delivered in shares which vest immediately, while one third will be deferred into shares for 3 years. Where an Executive Director has not met the shareholding guidelines, all of this part of the bonus (or such part between one third and 100% of the bonus as required to meet the shareholding guideline) will be deferred into shares for three years as per current practice. The level of cash potential for Big Yellow's annual bonus will continue to be below sector/FTSE 250 norms, and the Committee is comfortable that the proposed change follows the spirit of the IA's Principles of Remuneration while still proving significant alignment with shareholders. ## Implementing the Policy for the Year Ending 31 March 2026 ### Base salary The Committee continues to operate a policy of targeting base salaries "close to (but generally just below) median" although current base salary levels are well below the market level for a FTSE 250 company of Big Yellow's size and complexity. From 1 April 2025, Executive Director salary levels were increased by 2% which was in line with the increase across the wider workforce (albeit a proportion of lower paid team members received a higher increase). | | Chief Executive (Jim Gibson) | Executive Chairman (Nicholas Vetch) | Chief Financial Officer (John Trotman) | | --- | --- | --- | --- | | From 1 April 2024 | £509,725 | £434,425 | £376,500 | | From 1 April 2025 | £519,925 | £443,125 | £384,050 | | % increase | 2% | 2% | 2% | --- Annual Report and Accounts 2025 Big Yellow Group PLC Strategic Report Governance Report Financial Statements # Pension and benefits Pension provision for the Executive Directors will continue at 6% of salary, which is in line with the pension offered to the general workforce. Benefit provision will remain unchanged (private fuel, private medical insurance, permanent health insurance, life assurance and relocation allowances, where relevant). # Annual bonus Annual bonus potential will continue to be capped at 150% of salary for the year ending 31 March 2026. Up to 25% of salary will continue to be aligned to the workforce annual bonus (measured against store performance, through occupancy growth, store profitability, store audits and customer satisfaction scores). Any bonus earned under this part will be payable in cash, following the year ending 31 March 2026. The remaining 125% of salary will continue to be measured against financial, operational, real estate and strategic targets measured over the financial year ending 31 March 2026. Any award under this part will be delivered in Big Yellow shares in line with the Directors' Remuneration Policy. # LTIP The LTIP will continue to operate in its current form with the award potential at up to 200% of salary (albeit award levels will remain below market in value terms given the below market salary levels). As per the 2024 LTIP awards, 80% of awards will be measured against Earnings Per Share ("EPS") and relative Total Shareholder Return ("TSR") and 20% will be based on ESG related performance metrics. Details of the proposed targets for the 2025 LTIP awards are set out in the Annual Report on Remuneration. # Shareholding guidelines – in employment The guideline to build and maintain a holding of at least 200% of salary in shares of the Company will continue to apply and has been met by all of the current Executive Board Directors. Where a newly appointed Executive Director does not meet the 200% of salary 'in employment' shareholding guideline in the future, 100% of the net of tax shares which vest under any discretionary share award are to be retained. # Shareholding guidelines – post employment The post-cessation shareholding guideline whereby Executive Directors will need to retain shares equal to 100% of the shareholding guideline (or the actual number of shares held against the guideline if the guideline is not met at cessation) up until the second anniversary of cessation will continue to apply. # Conclusion I hope that, at the AGM on 17 July 2025, you will support the resolution on the remuneration paid to the Directors in the last financial year, and the implementation of the new Remuneration Policy for the forthcoming year. I would like to extend my thanks to my fellow colleagues on the Committee for their support and work in 2024/25. # Michael O'Donnell Chair of the Remuneration Committee 19 May 2025 # Directors' Remuneration Policy This section of the Remuneration Report contains the Company's Directors' Remuneration Policy (the "Policy") which governs the Company's approach to remuneration. It is the policy of the Company to ensure that the executive remuneration packages are designed to attract, motivate, and retain Directors of a high calibre and reward the executives for enhancing value to shareholders. As a result, a substantial element of the remuneration of the Executive Board Directors is structured to be dependent on the performance of the Company. The policy aims to support a performance culture where there is appropriate reward for the achievement of strong Company performance without creating incentives which will encourage excessive risk-taking or unsustainable Company performance. # Policy scope The Policy applies to the Executive Board Directors and Non-Executive Directors. # Policy duration The current Directors' Remuneration Policy Report was approved by a binding shareholder vote at the AGM on 21 July 2022. A new Remuneration Policy is being put to shareholders for approval at the forthcoming AGM. # Policy changes On the basis that our strategy remains unchanged, no changes are proposed in respect of the Policy structure or quantum. We are, however, proposing one minor change to annual bonus deferral. The Big Yellow annual bonus is split into two parts as follows: - Cash – up to 25% of salary is aligned with the workforce annual bonus (measured against store performance, through occupancy growth, store profitability, store audits and customer satisfaction scores); and - Deferred Bonus Plan – up to 125% of salary measured against financial, operational, real estate and strategic measures which is deferred into shares for 3 years. Vesting is subject to continued employment. Noting that the proportion of Big Yellow's annual bonus that is deferred into shares (125% out of 150% of salary) is significantly greater than typical sector practice and the recent change to the Investment Association ("IA") principles, the Committee wishes to reduce the level of deferral where shareholding guidelines have been met. As such, if an Executive Director has met the 200% of salary shareholding guideline (which is the case for the current Executive Directors), two thirds of this part of the bonus will be delivered in shares which vest immediately, while one third will be deferred into shares for 3 years. Where an Executive Director has not met the shareholding guidelines, all of this part of the bonus (or such part between one third and 100% of the bonus as required to meet the shareholding guideline) will be deferred into shares for three years as per current practice. While the level of cash potential for Big Yellow's annual bonus will continue to be below sector/FTSE 250 norms, the Committee is comfortable that the proposed change follows the spirit of the IA's Principles of Remuneration while still proving significant alignment with shareholders. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued ## Summary Policy table (Executive Board Directors) The main components of the Directors' Remuneration Policy, and how they are linked to and support the Company's business strategy are summarised below: ## Executive Board Directors | | Purpose and link to strategy | Operation | Maximum potential value | Performance conditions and assessment | | --- | --- | --- | --- | --- | | Base salary | To provide competitive fixed remuneration that will attract and retain key employees and reflect their experience and position in the Company. | Base salary is normally set annually on 1 April. When considering any increases to base salaries in the normal course (as opposed to a change in role or responsibility), the Committee will take into consideration: - level of skill, experience, scope of responsibilities and performance; - business performance, economic climate, and market conditions; - pay and employment conditions of employees throughout the Group, including increases provided to staff; - inflation; and - increases provided to Executive Board Directors in comparable companies (although such data would be used with caution). | Salaries are typically set after considering the salary levels in companies of a similar size and complexity in the FTSE 250. Our overall policy is normally to target salaries at close to (but generally just below) median levels. Base salaries are intended to increase in line with inflation and general employee increases in salary. Higher increases may apply if there is a change in role, level of responsibility or experience or if the individual is new to the role. There is no maximum salary cap in place. | None | | Annual bonus | The annual bonus aligns reward to key Group strategic objectives and drives short-term performance. | Executive Board Directors participate in an annual performance-related bonus scheme. Up to 25% of salary will be paid in cash. If shareholding guidelines are met: Up to 125% of salary will be payable against the Deferred Bonus targets with two thirds awarded in shares which vest immediately and one third awarded in shares which vest after three years subject to continued employment. If shareholding guidelines are not met: Up to 125% of salary payable against the Deferred Bonus targets with 100% awarded in shares which vest after three years subject to continued employment. Dividend equivalents may be payable on deferred share awards. The annual bonus plan rules contain clawback and malus provisions. | 150% of salary. | Assessed annually and determined by the Committee based on financial, strategic and/or personal performance against the Group's business plan for each financial year. | | Long Term Incentive Plan | The Long Term Incentive Plan aligns Executive Director interests with those of shareholders and rewards value creation. | Awards are made annually to the Executive Board Directors (and certain senior managers who are in a position to significantly influence the performance of the Group) in the form of nil-paid options. The awards granted under the Long Term Incentive Plan are subject to performance conditions to be met over a performance period of three years. Dividend equivalents may be payable on LTIP awards during the vesting period, to the extent awards vest. The LTIP contains malus and clawback provisions. A two year post vesting holding period applies to LTIP awards granted to Executive Directors following the 2018 AGM. | 200% of salary, albeit actual award levels may be lower. | Vesting under the LTIP will be based on financial, share-price, strategic and/or ESG related performance measures. | --- Annual Report and Accounts 2025 Big Yellow Group PLC 101 | Purpose and link to strategy | Operation | Maximum potential value | Performance conditions and assessment | | --- | --- | --- | --- | | Pension | To provide competitive levels of retirement benefit. | Contribution made into Executive Director’s personal pension plan, or a cash supplement of equivalent value paid in lieu of pension contribution. | Workforce aligned [currently 6% of salary] | | Other benefits | To provide competitive levels of employment benefits. | Benefits include: – Private fuel; – Private medical insurance; – Permanent health insurance; – Company car via salary sacrifice; – Life assurance of four times base salary, and – Relocation allowances [where relevant]. Other benefits may be provided where appropriate. The type and level of benefits provided is reviewed annually to ensure they remain market competitive. | Maximum opportunity is the total cost of providing the benefits. There is no monetary cap on benefits. | | Shareholding policy – in employment | To ensure that Executive Board Directors’ interests are aligned with those of shareholders over a longer time horizon. | Requirement to build and maintain a holding of shares in the Company, through retaining at least 100% of post-tax shares vesting in discretionary share-based incentive plans if this guideline has not been met. | | | Shareholding policy – post employment | | Requirement to retain shares equal to 100% of the shareholding guideline [or the actual number of shares held against the guideline if the guideline is not met at cessation] up until the second anniversary of cessation. Own shares purchased and share awards granted prior to the 2021 AGM are excluded from the post-cessation guideline. | 200% of salary. | | All Employee Scheme | To encourage share ownership by all employees. This allows them to align their interests with those of investors and to share in the long-term success of the Company. | Executive Board Directors may participate in any HMRC tax favoured all employee arrangements. | In line with the prevailing HMRC limits. | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued ## Notes to the policy table The key principle for the short and long-term incentives is to provide a strong link between reward and individual and Group performance to align the interests of Executive Board Directors with those of shareholders. ## 1. Annual bonus performance measures and targets Annual bonuses for the Executive Board Directors are based on: - 25% of salary cash bonus: the average of the stores' performance against their quarterly targets providing direct alignment of the Directors' bonuses to performance (and the bonus levels) of the staff. The four Key Performance Indicators used to assess store performance are occupancy growth, store profitability, store audits and customer satisfaction. Store targets are set every quarter and an average of the four quarters is taken. - 125% of salary deferred share bonus: measured against pre-set financial, operational, real estate, strategic and ESG-related targets. ## 2. Long Term Incentive Plan performance measures and targets Performance metrics and targets for LTIP awards will provide a direct link between the incentive for the Executive Board Directors and the long-term value created for shareholders. The main two performance metrics, which may be supplemented by strategic and/or ESG-related metrics are: - Relative TSR against the constituents of the FTSE Real Estate Index, given that Big Yellow's historic performance has been closely aligned to the performance of this Index. - Adjusted EPS figure as reported in the audited results of the Group for the last complete financial year ending before the start of the performance period and the last complete financial year ending before the end of the performance period. ## 3. Malus and clawback The cash annual bonus, deferred annual bonus plan and LTIP include malus and clawback provisions. Malus is the adjustment of outstanding deferred bonus and LTIP awards as a result of the occurrence of one or more of the circumstances listed below. The adjustment may result in the value being reduced to zero. Malus will apply for the three year period from grant to vesting for the deferred bonus and LTIP awards. Clawback is the recovery of payments/vestings under the cash bonus and LTIP as a result of the occurrence of one or more circumstances listed below. Clawback will apply for three years post payment of a cash bonus/grant of deferred share awards and three years post vesting for LTIP awards. The circumstances in which malus and clawback could apply are as follows: - discovery of a material misstatement resulting in an adjustment in the audited consolidated accounts of the Company; - the assessment of any performance target or condition in respect of an award was based on error, or inaccurate or misleading information; - the discovery that any information used to determine the amount of an award was based on error, or inaccurate or misleading information; - corporate failure or the occurrence of an insolvency event; - action or conduct of an award holder which, in the reasonable opinion of the Board, amounts to fraud or gross misconduct; and - events or behaviour which have led to the censure of the Company by a regulatory authority or have had a significant detrimental impact on the reputation of any Group Company. ## 4. Discretion The Committee has discretion in several areas of policy as set out in this report. The Committee may also exercise operational and administrative discretion under relevant plan rules approved by shareholders as set out in those rules. In addition, the Committee has the discretion to amend policy with regard to minor or administrative matters where it would be, in the opinion of the Committee, disproportionate to seek or await shareholder approval. In certain circumstances, the Committee will be required to exercise its discretion, taking into consideration the particular circumstances of an Executive Director's departure and/or the recent performance of the Company in determining the specific level of payments to be made. In addition to the discretion under the terms of the annual bonus plan (both cash and deferred shares) and LTIP, the Committee has discretion to determine whether an individual is classified as a "good leaver". It should be noted that it is the Committee's policy to only apply its discretion if the circumstances at the time are, in its opinion, sufficiently exceptional, and to provide a full explanation to shareholders where discretion is exercised. The Committee does not currently intend to amend or waive any performance conditions. --- Annual Report and Accounts 2025 Big Yellow Group PLC 103 # 5. Differences in remuneration policy for all employees All employees are currently entitled to base salary, benefits, pensions, and the Sharesave Scheme. Additionally, all employees are eligible for annual bonuses with the maximum opportunity available based on the seniority and responsibility of the role held. The Company's LTIPs are granted to a number of key team members within Head Office, the area manager team and also to store managers. # Illustrations of application of Remuneration Policy The graphs below seek to demonstrate how pay varies with performance for the Executive Board Directors based on the current Remuneration Policy. The assumptions used in determining the level of pay out under given scenarios are as follows: | Scenario | Description | Chief Executive | Executive Chairman | Chief Financial Officer | | --- | --- | --- | --- | --- | | Fixed Pay | Base salary [from 1 April 2025] | £519,925 | £443,125 | £384,050 | | | Estimated Benefits | £5,000 | £5,000 | £2,000 | | | Pension [% of salary] | 6% | 6% | 6% | | On-target | 50% of annual bonus award being paid and 50% vesting of the LTIP. | | | | | Maximum | 100% of annual bonus award being paid [i.e. 150% of salary] and 100% vesting of the LTIP [i.e. 200% of salary, albeit actual awards levels may be lower]. | | | | | Maximum Plus 50% share price growth | As per the Maximum scenario but assuming 50% share price growth on LTIP awards. | | | | ![img-185.jpeg](img-185.jpeg) Chief Executive Share price growth - LTIP - Annual Bonus - Fixed Pay ![img-186.jpeg](img-186.jpeg) Executive Chairman ![img-187.jpeg](img-187.jpeg) Chief Financial Officer --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued Summary Policy table (Non-Executive Directors) | | Objective and link to the strategy | Operation | Maximum potential value | Performance conditions and assessment | | --- | --- | --- | --- | --- | | Fees | To attract Non-Executive Directors with the requisite skills and experience. | Fee levels are normally reviewed annually in March. The Non-Executive Director fee structure is a matter for the full Board. Non-Executive Directors may be entitled to benefits relating to travel and office support and such other benefits as may be considered appropriate. | Fee levels are normally set at broadly median levels for comparable roles at companies of a similar size and complexity within the FTSE 250. Fees are normally intended to increase in line with inflation. | N/A | Non-Executive Directors' fees comprise of a base fee, with an additional fee for Committee Chairs, the Senior Independent Non-Executive Director and the Employee Representative Director. # Approach to recruitment remuneration of Executive Directors The table below summarises our key policies with respect to recruitment remuneration: | Salary and benefits | - Set by reference to market and taking account of individual experience and expertise in the context of the role. - Salary would also be set with reference to the salary of any departing Executive Director and the remaining Executive Board Directors. - The Executive Director would be eligible to receive benefits in line with Big Yellow Group's benefits policy as set out in the remuneration policy table – this includes either a contribution to a personal pension scheme or cash allowance in lieu of pension benefits in line with the policies set out in the policy table. | | --- | --- | | Maximum variable incentive | - Annual bonus of up to 150% of base salary. - Long term incentive plan award of equivalent to 200% of base salary. | | Sign-on payments | - The Company does not provide sign-on payments to Executive Board Directors. | | Share buy-outs | - Any previous outstanding share awards which the Executive Director holds which would be forfeited on cessation of his or her previous employment may be compensated. - Where this is the case, the general principle is that the outstanding award will be valued based on the consideration of the following factors: - The proportion of the performance period completed on the date of the Director's cessation of employment; - The performance conditions attached to the vesting of the incentives and the likelihood of them being satisfied; and - Any other terms and conditions having a material impact on their value. - The valuation will be conducted using a recognised valuation methodology by an independent party and the equivalent 'fair value' may be awarded as a one-off LTIP on date of joining under the Company's existing long-term incentive plan. To the extent that this is not possible, a bespoke arrangement will be used. - To ensure effective retention of the Executive Director upon recruitment, any new award will be granted subject to performance conditions and vesting may be over the same period as those forfeited from the previous employer or a new three year period. - The exact terms will be determined by the Remuneration Committee on a case-by-case basis taking into account all relevant factors. | | Relocation policies | - In instances where the new Executive Director is relocating from one work location to another, the Company may provide, as a one-off or otherwise, a relocation allowance as part of the Director's relocation benefits. - The level of the relocation package will be assessed on a case-by-case basis but will take into consideration any cost of living differences, housing allowance and schooling. | --- Annual Report and Accounts 2025 Big Yellow Group PLC 105 # Service contracts The Company's policy on Directors' service contracts is that they should be on a rolling basis without a specific end-date providing for one year's notice. All Executive Board Directors have contracts which reflect this policy. The Non-Executive Directors do not have service contracts with the Company. Their appointments are governed by letters of appointment which are available for inspection on request at the Company's registered office and which will be available for inspection at the Company's AGM. Each appointment is for a period of up to three years, although the continued appointment of all Directors is put to shareholders at the AGM on an annual basis. In addition, the appointment is terminable by either party giving notice of three months. ## Payments for loss of office | Element | Approach | | --- | --- | | **Salary and benefits** | Salary and benefits may be paid in lieu of notice. In cases where a contract is terminated other than on the terms of the service contract, the Company will seek to mitigate any damages payable. There will be no compensation for normal resignation or in the event of termination by the Company due to misconduct. | | **Annual bonus** | If the individual is a good leaver, any bonus will be paid/awarded on a pro-rata basis in respect of the period from the start of the financial year. Deferred share awards would normally vest at the normal vesting date [although may vest at the date of cessation]. A good leaver is defined as an individual ceasing employment due to ill-health, disability, redundancy, or retirement or in any other circumstances which the Committee permits. A bad leaver is an Executive Director who does not fall within the category of “good leaver” and bad leavers will forfeit any entitlement to a bonus payment in respect of the current financial year or any completed financial year in respect of which the bonus has not been paid at the cessation date. | | **Long term incentives (LTIP)** | A proportion of the LTIP awards held by good leavers will vest at the Committee's discretion determined by taking into account whether, and to what extent, any performance conditions have been satisfied and the length of time the LTIP award has been held at the date of cessation of employment. The LTIP awards will not normally vest until the end of the performance period with performance tested at that time, although exceptionally such awards may, at the discretion of the Committee, vest at cessation of employment. A good leaver is defined as an individual ceasing employment as a result of ill-health, injury, disability, redundancy, retirement, or the sale out of the Group of his employing business or any other reason which the Committee in its absolute discretion permits. A bad leaver is an Executive Director who does not fall within the category of good leaver, and bad leavers will forfeit any unvested awards. | | **Other** | The Group may meet relocation and other incidental expenses on termination of employment, the fees of legal or other professional advisers, outplacement, compensation in respect of statutory rights under relevant employment protection legislation and accrued but untaken holiday. It may also elect to continue to provide certain benefits rather than making payment in lieu of the benefit in question. | # Statement of consideration of shareholders' views The views of our shareholders are very important to the Committee, and we actively consulted with our major shareholders and the main representative bodies to help formulate the current Remuneration Policy. Any consultations on remuneration with shareholders and representative bodies will usually be led by the Chair of the Remuneration Committee. The Remuneration Committee also considers shareholder feedback received in relation to the AGM each year at its first meeting following the relevant AGM. This feedback, as well as any additional feedback received during any other meetings with shareholders throughout the year, is then considered as part of the Company's annual review of remuneration policy. The Remuneration Committee notes that shareholders do not speak with a single voice, but we engage with our largest shareholders to ensure we understand the range of views which exist on remuneration issues. When any material changes are proposed to the Remuneration Policy, the Remuneration Committee Chair will consult major shareholders in advance and will offer a meeting to discuss these. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued ## Shareholder voting The Company has an annual advisory vote from shareholders on its Remuneration Report, and a binding vote on its Remuneration Policy when a new policy is proposed. The Group is committed to ongoing shareholder dialogue and takes an active interest in voting outcomes. Where there are substantial votes against resolutions in relation to Directors' remuneration, the reasons for that voting will be sought and any actions in response will be detailed here. There have been no significant issues raised by shareholders in respect of remuneration in the year. The table below shows the advisory vote on the 2024 Remuneration Report at the AGM held on 18 July 2024, and the binding vote on the Remuneration Policy at the AGM held on 21 July 2022. | | Votes for | % | Votes Against | % | Votes withheld | | --- | --- | --- | --- | --- | --- | | 2024 Remuneration Report | 161,186,557 | 96.1% | 6,597,202 | 3.9% | 1,267,821 | | 2022 Remuneration Policy | 146,535,231 | 97.9% | 3,210,946 | 2.1% | 2,662,664 | ## Annual Report on Remuneration This section of the Remuneration Report contains details of how the Directors' Remuneration Policy will be implemented for the year ending 31 March 2026 and how it was implemented during the year ended 31 March 2025. ## Implementing the Policy for the Year Ending 31 March 2026 ### Base salary The Committee continues to operate a policy of targeting base salaries "close to (but generally just below) median" although current base salary levels are well below the market level for a FTSE 250 company of Big Yellow's size and complexity. From 1 April 2025, Executive Director salary levels were increased by 2% which was in line with the increase across the wider workforce (albeit a proportion of lower paid team members received a higher increase). | | Chief Executive (Jim Gibson) | Executive Chairman (Nicholas Vetch) | Chief Financial Officer (John Trotman) | | --- | --- | --- | --- | | From 1 April 2024 | £509,725 | £434,425 | £376,500 | | From 1 April 2025 | £519,925 | £443,125 | £384,050 | | % increase | 2% | 2% | 2% | ### Pension & benefits Pension provision for the Executive Directors will continue at 6% of salary, which is in line with the pension offered to the general workforce. Benefit provision will remain unchanged (private fuel, private medical insurance, permanent health insurance, life assurance, company car via salary sacrifice, and relocation allowances, where relevant). ### Annual bonus Annual bonus potential will continue to be capped at 150% of salary for the year ending 31 March 2026. Up to 25% of salary will continue to be aligned to the workforce annual bonus (measured against store performance, through occupancy growth, store profitability, store audits and customer satisfaction scores). Any bonus earned under this part will be payable in cash, following the year ending 31 March 2026. The remaining 125% of salary will be measured against financial, operational, real estate and strategic targets measured over the financial year ending 31 March 2026. Any award under this part will be delivered in Big Yellow shares in line with the Directors' Remuneration Policy. --- Annual Report and Accounts 2025 Big Yellow Group PLC 107 # LTIP The LTIP will continue to operate in its current form and the targets for the 2025 LTIP awards are as follows: | | Weighting | Threshold (25% of this part of an award vests, other than for adjusted EPS where 0% vests at threshold) | Maximum (100% of this part of an award vests) | | --- | --- | --- | --- | | Adjusted EPS | 50% | 2% p.a. | 6% p.a. | | Relative TSR | 30% | Median | Upper Quintile | | Installation of solar and batteries at the Group's stores | 10% | Install solar panels on 12 stores, and batteries on 8 stores | Install solar panels on 20 stores and batteries on 12 stores | | Energy efficiency retro-fit project | 10% | 45 of the Group's stores having the energy efficiency retro-fit programme installed | 60 of the Group's stores having the energy efficiency retro-fit programme installed | In respect of the adjusted eps target range for these awards, the target for the 2024 awards was set at a minimum of 4% per annum (with 25% of the award vesting), increasing pro rata to 9% per annum growth (100% vesting). In setting this year's targets the Committee has taken into account the current macroeconomic climate, the Group's business plan and market expectations of Big Yellow's performance. In addition, as shareholders are aware the Company has embarked on a significant investment plan over the next three years and is currently on site at nine developments. These store openings will provide a short term drag on earnings. Noting the change to the targets this year, the Committee has reduced the level of threshold vesting from 25% to 0% for this part of the award. No changes have been made to the TSR or ESG vesting schedules. The Committee will revisit the adjusted eps target range in advance of the 2026 LTIP awards to ensure it reflects prevailing conditions. # Shareholding guidelines - in employment The guideline to build and maintain a holding of at least 200% of salary in shares of the Company will continue to apply and has been met by all of the current Executive Board Directors. Where an Executive Director has not met the 200% of salary 'in employment' shareholding guideline, the Committee requires 100% of the net of tax discretionary share awards which vest to be retained until the shareholding guideline is met. # Shareholding guidelines - post employment Executive Directors are required to retain shares equal to 100% of the shareholding guideline (or the actual number of shares held against the guideline if the guideline is not met at cessation) up until the second anniversary of cessation. # Non-Executive Directors Non-Executive Director base fees for the year ending 31 March 2026 have been increased by 2% (in line with the general workforce increase) to £49,100. The increment for Committee Chairs and additional responsibilities has also been increased by 2% to £12,175 for the year ending 31 March 2026. These increases took effect from 1 April 2025. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued ## Single total figure of remuneration (Audited) The table below sets out the single total figure of remuneration and breakdown for each Executive Director paid in the year ended 31 March 2025. | | Fixed pay | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Salary £ | | Taxable benefits¹ £ | | Pensions² £ | | Total fixed pay £ | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | Nicholas Vetch | 434,425 | 417,700 | 9,426 | 5,999 | 26,066 | 25,062 | 469,917 | 448,761 | | Jim Gibson | 509,725 | 490,100 | 13,468 | 8,502 | 30,584 | 29,406 | 553,777 | 528,008 | | John Trotman | 376,500 | 362,000 | 2,998 | 2,154 | 22,590 | 21,720 | 402,088 | 385,874 | | Total | 1,320,650 | 1,269,800 | 25,892 | 16,655 | 79,240 | 76,188 | 1,425,782 | 1,362,643 | | | Variable pay | | | | | | | | Total pay | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Annual bonus – cash £ | | Annual bonus – deferred £ | | Long term incentive¹ £ | | Total variable pay £ | | £ | | | | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | | Nicholas Vetch | 42,574 | 35,505 | 278,304 | 280,903 | 325,881 | 370,645 | 646,759 | 687,053 | 1,116,676 | 1,135,814 | | Jim Gibson | 49,953 | 41,659 | 326,543 | 329,592 | 382,367 | 436,494 | 758,863 | 807,745 | 1,312,640 | 1,335,753 | | John Trotman | 36,897 | 30,770 | 241,195 | 243,445 | 282,433 | 324,428 | 560,525 | 598,643 | 962,613 | 984,517 | | Total | 129,424 | 107,934 | 846,042 | 853,940 | 990,681 | 1,131,567 | 1,966,147 | 2,093,441 | 3,391,929 | 3,456,084 | ¹ Taxable benefits comprise medical cover, permanent health insurance, life insurance, company car via salary sacrifice, and private fuel usage. ² The Directors receive a cash supplement in lieu of their full pension contributions. ³ The values shown in long-term incentives in the current year are the LTIP award granted in 2021 which vested on 22 July 2024 to 100% of its maximum value and is valued using the share price on that date of £11.80. The average salary increase across the Group in the year was 4.8%. ## Cash Annual Bonus Plan awards – cash (25% of salary maximum) The policy of the Company is that the cash bonus paid to the Executive Board Directors is the same as the average of the bonus awards (as a % of salary) paid to all the Group's stores on achieving their targets during the course of the year. It is an important part of the Group's culture that the Executive team are rewarded with the same level of annual bonus as the average for all staff. In respect of the year under review, and in line with the average bonus as a percentage of salary paid across the stores the Executive Board Directors received a cash bonus of 9.8% of salary (out of a maximum of 25% of salary). ## Overview of the staff (and Executive Director) cash bonus scheme The staff bonus scheme is designed on a quarterly basis, to reward each store with a bonus of up to 25% of their quarterly salary, made up of the following four key elements set out below. Following feedback received from our shareholders on previous remuneration reports to increase the disclosure around the annual bonus, we have shown the average annual distribution of performance against target for each of the bonus measures across our stores and the corresponding average pay-out as a percentage of salary which directly corresponds to the bonus percentage pay-out for the Executive Board Directors. The individual store targets have not been disclosed as it would be impractical and commercially sensitive to disclose the targets for every one of our stores in this report. --- Annual Report and Accounts 2025 Big Yellow Group PLC 109 The average performance against the four key targets and the associated bonus reward for the stores totalling 9.8% were as follows: ## 1. Occupancy Stores that have recently opened receive occupancy targets on a quarterly basis, and their performance against this occupancy target contributes to their bonus. The bonus awarded to each store increases as the store moves further ahead of target. No bonus is awarded if the store fails to meet its target. The significant majority of the Group's stores are bonused solely on profitability. The weighted average bonus paid to the newly opened stores for performance against occupancy targets was 0.4% of salary for the year. ## 2. Profitability Each store is set a quarterly target for profitability. The weighting of the contribution of these metrics to the bonus varies based on store occupancy, with higher occupied stores having a higher weighting towards their performance against their profitability target. The bonus awarded to each store increases as the store moves further ahead of target. The performance distribution of the stores' performance against their individual targets are provided below. | Performance against target | Below target | 0 to 1% ahead of target | 1 to 2% ahead of target | 2 to 3% ahead of target | >3% ahead of target | Total | | --- | --- | --- | --- | --- | --- | --- | | No of stores | 60 | 19 | 15 | 8 | 7 | 109 | | Average bonus paid | 0.5% | 6.2% | 13.6% | 17.9% | 18.9% | 5.6% | The weighted average bonus paid to stores for performance against profitability targets is therefore 5.6% of salary for the year. ## 3. Store audits Stores receive a bonus if they receive a certain audit score based on visits carried out by the Group's store compliance team. There were 102 instances of stores receiving an audit bonus score across the year, leading to a weighted average bonus paid to the stores of 1.8% of salary. ## 4. Customer satisfaction Stores are rewarded based on two elements of customer satisfaction, net promoter scores and individual customer service awards. The awards based on net promoter scores are summarised in the table below: | NPS score | <75 | >75 | Total | | --- | --- | --- | --- | | No of stores | 21 | 88 | 109 | | Average bonus paid | 0% | 2.5% | 2.0% | The weighted average bonus paid to stores for performance against net promoter scores is therefore 2.0% of salary for the year. ## Summary The bonus received by the stores against their targets in the year is summarised as follows: | Category | Actual % weighting for category | Average % of salary bonus paid across stores | | --- | --- | --- | | 1. Occupancy | 0.4% | 4.1% | | 2. Profitability | 5.6% | 57.1% | | 3. Store audits | 1.8% | 18.4% | | 4. Customer satisfaction | 2.0% | 20.4% | | Total | 9.8% | 100% | In line with the Remuneration Policy an award of 9.8% of salary has therefore also been paid to the Executive Board Directors for the year, which equated to the following payments: | Nicholas Vetch | £42,574 | | --- | --- | | Jim Gibson | £49,953 | | John Trotman | £36,897 | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued ## Deferred Annual Bonus Plan awards – deferred shares (125% of salary maximum) The Group operates a deferred annual bonus plan. The Remuneration Committee sets targets at the start of the financial year across a broad range of financial and non-financial targets. The targets and the performance against them in the year is shown in the table below: Sliding scale targets [60% weighting]: | Pay-out | 0% | 100% | Performance | Pay-out | | --- | --- | --- | --- | --- | | 1. Revenue | | | | | | Weight: 25% | <£208m | >£215m | Revenue for the year was £204.5 million, an increase of 2% from the prior year. | 0% | | 2. Adjusted Earnings per share | | | | | | Weight: 25% | <56.0p | >60.0p | Adjusted earnings per share for the year was 57.8p, an increase of 3% from the prior year. | 45% | | 3. Staff Turnover | | | | | | Weight: 5% | >22 | <16 | The Group's staff turnover for the year was 14.5% | 100% | | 4. Net promoter score | | | | | | Weight: 5% | <70 | >80 | The Group's net promoter score for the year was 82.8 [2024:80.5] | 100% | Other targets [40% weighting]: | Pay-out | Fail | Pass | Actual performance | Pay-out | | --- | --- | --- | --- | --- | | | 0% | 100% | | | | 5. Property Acquisitions | | | | | | Weight: 10% | Acquire at least two new sites for the Group during the year, either through new site acquisitions, or through the purchase of existing self storage centres, which complement the existing portfolio and which are consistent with the Group's strategy and long-term plans. | The Group acquired a development site in Leamington Spa during the year, and subsequent to the year end acquired a site in Coventry. | 50% | | | 6. Planning | | | | | | Weight: 10% | Obtain planning consent on at least two of the Group's development sites during the year, consistent with the strategy to continue to add high quality capacity to the Group's existing open store portfolio. | The Group has obtained planning consent during the year on its development sites at West Kensington, Kentish Town and Staples Corner [the first two at appeal]. | 100% | | | 7. Disposal of Battersea | | | | | | Weight 5% | Complete the sale of the Battersea retail units during the year. | The land at Battersea was sold in September 2024 for a total consideration of £30.9 million. | 100% | | | 8. Harrow | | | | | | Weight: 5% | Lease up 8 of the 11 units of the Harrow Industrial Scheme by 31 March 2025. | This target was not met during the year. | 0% | | | 9. Foundation | | | | | | Weight 5% | Raise sufficient funds through our store network and matched contributions from the Group sufficient to provide grants of a minimum of £210,000 to our partner charities. | The income raised through fundraising, matching donations, customer donations, move-in donations and gift-aid enabled us to provide grants of £345,000 to our seven charity partners over the year. | 100% | | --- Annual Report and Accounts 2025 Big Yellow Group PLC 111 # Summary table The performance against each target, and its contribution to the deferred bonus payable is summarised in the table below: | Target | % achieved | Weighting | Contribution to plan vesting (%) | | --- | --- | --- | --- | | Revenue | 0% | 25% | 0% | | Earnings per share | 45% | 25% | 11.25% | | Staff turnover | 100% | 5% | 5% | | Net promoter score | 100% | 5% | 5% | | Property acquisitions | 50% | 10% | 5% | | Planning | 100% | 10% | 10% | | Disposal of Battersea | 100% | 5% | 5% | | Harrow | 0% | 5% | 0% | | Foundation | 100% | 10% | 10% | | Total | | 100% | 51.25% | The above performance assessment of 51.25% translates into a 64.1% award, of the 125% maximum potential. In addition to performance against the targets detailed above, the Committee has also reviewed the stakeholder experience in respect of the year ended 31 March 2025. Based on this review, the Committee considers the 64.1% of maximum award level to be appropriate. The value of award for each of the Executive Board Directors is shown below: | Director | Value of award | | --- | --- | | Nicholas Vetch | £278,304 | | Jim Gibson | £326,543 | | John Trotman | £241,195 | The number of shares will be calculated by reference to the closing share price on the date of grant, which will be after the Company's Preliminary Announcement in May 2025. The awards will vest three years after the date of grant of each award. # Long Term Incentive Plan ("LTIP") awards (Audited) The awards granted under the LTIP are subject to performance conditions to be met over a performance period of three years. There is no retesting of performance conditions and, if they are not satisfied, the awards will lapse. The performance conditions applicable to the LTIP which vested in the year, which relate to EPS and TSR, are set out below. The Committee assessed the extent to which the EPS and TSR performance condition has been satisfied for the 2021 award which vested in 2024, with the following results: | Condition | Weighting | Threshold Performance required | Maximum Performance Required | LTIP value for meeting threshold and maximum performance (% salary) | Performance achieved | Vesting % | | --- | --- | --- | --- | --- | --- | --- | | Adjusted eps growth | 50% | Adjusted EPS growth 4% per annum | Adjusted EPS growth 8% per annum | 25% to 100% | 10.6% growth per annum | 100% | | Relative TSR | 50% | Median of comparator group of real estate companies | Upper quartile of the comparator group | 25% to 100% | 11^{th} out of 48 in comparator group of companies in the FTSE Real Estate Index | 100% | | Total | 100% | | | | | 100% | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued The vesting of the 2021 LTIP award in 2024, equated to the following value for the Executive Board Directors based on the share price at the date of vesting: | Director | Shares Awarded | Shares vested (based on 100% vesting) | Value at Vesting | | --- | --- | --- | --- | | Nicholas Vetch | 27,617 | 27,617 | £325,881 | | Jim Gibson | 32,404 | 32,404 | £382,367 | | John Trotman | 23,935 | 23,935 | £282,433 | # LTIP awards granted in year ended 31 March 2025 (Audited) The table below sets out the details of the long-term incentive awards granted in the year ended 31 March 2025 where vesting will be determined according to the achievement of performance conditions that will be tested in future reporting periods. | Director | Award Type | Awards as a % of salary | Face value of award(1) | Percentage of award vesting at threshold performance | Maximum percentage of face value that could vest | Performance Period end date | Performance conditions | | --- | --- | --- | --- | --- | --- | --- | --- | | Nicholas Vetch | Annual cycle of awards over nil cost options | 200% of salary | £868,850 | | | | Adjusted EPS growth, relative TSR, ESG performance | | Jim Gibson | | 200% of salary | £1,019,450 | 25% | 100% | 18 July 2027 | | | John Trotman | | 150% of salary | £564,750 | | | | | (1) The face value of the award is calculated using the average share price three days prior to the grant date of 18 July 2024 (average share price of £12.25). The performance conditions applicable to the awards granted in July 2024 are set out below: | Condition | Weighting | Threshold Performance required | Maximum Performance Required | LTIP value for meeting threshold and max performance (% salary) | Basis for measurement | | --- | --- | --- | --- | --- | --- | | Relative TSR | 30% | Median of comparator group of real estate companies | Upper quintile of the comparator group | 25% to 100% | The average of the Group's closing mid-market share price over the three months preceding the start of the performance period and preceding the end of the performance period will be used, including dividends re-invested. | | Adjusted EPS | 50% | Adjusted average annual compound EPS growth of 4% | Adjusted average annual compound EPS growth of 9% | 25% to 100% | The adjusted EPS figure reported in the audited results of the Group for the last complete financial year ending before the start of the performance period and the last complete financial year ending before the end of the performance period will be used. | | Fitting of solar panels on the Group's estate | 10% | Fitting of solar panels on 30 of the Group's stores | Fitting of solar panels on 40 of the Group's stores | 25% to 100% | Based on the number of completed fits over the award period. | | Proportion of Group's external debt facilities that are green loans | 10% | 30% of the Group's total debt facilities being green loans | 50% of the Group's total debt facilities being green loans | 25% to 100% | Based on the Group's external debt facilities at 31 March 2027. | # Sharesave Scheme The Group's Sharesave Scheme is open to all UK employees (including Executive Board Directors) with a minimum of six months' service and meets UK HMRC requirements, thus giving all eligible employees the opportunity to acquire shares in the Company in a tax efficient manner. All of the Executive Board Directors participated in the scheme during the financial year. The details of the Sharesave scheme options are shown on page 114. # Pension entitlements The Company pays pension contributions into the Executive Board Directors' personal pension plans or makes a cash contribution in lieu of pension contributions. They do not participate in any defined benefit scheme. For the year ended 31 March 2025, the Company contribution was 6% of salary for the Executive Board Directors, in line with the contribution for the Company's employees. --- Annual Report and Accounts 2025 Big Yellow Group PLC 113 # Board Changes (Audited) There were no board changes during the year. No payments: - of money or any other assets were made to any former Director of the Company in the financial year ended 31 March 2025 in respect of qualifying services as a Director (2024: no payments); and - were made to any Director in respect of loss of office during the financial year ended 31 March 2025 (2024: no payments). # Non-Executive Directors (Audited) The table below sets out the single total figure of remuneration and breakdown for each Non-Executive Director paid in the year ended 31 March 2025. | | 2025 £ | 2024 £ | | --- | --- | --- | | Anna Keay | 60,060 | 57,750 | | Vince Niblett | 72,020 | 69,250 | | Michael O'Donnell | 60,060 | 57,750 | | Laela Pakpour Tabrizi | 60,060 | 57,750 | | Heather Savory | 60,060 | 57,750 | | Total | 312,260 | 300,250 | Non-Executive Directors received no taxable benefits for the year ended 31 March 2025. # Statement of Directors' shareholding (Audited) The Executive Board Directors are required to build and maintain a holding of two times base salary. These requirements have been met by all Executive Board Directors throughout the year. Non-Executive Directors are not subject to a shareholding requirement. Details of the Directors' interests in shares are set out below (all interests are beneficial interests). The table below shows, in relation to each Director, the total number of shares and share options in which they have an interest at 31 March 2025: | Executive Director | Share ownership requirement (multiple of salary) | Share ownership requirements met | Holding as multiple of March 2025 salary | Beneficially owned shares | LTIP awards subject to performance conditions | Deferred bonus plan awards | Unexercised LTIP options | Unexercised Sharesave options | Options exercised in the financial year | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Nicholas Vetch | 2x | Yes | 140x | 6,520,548 | 207,290 | 99,316 | 62,716 | 1,697 | 133,409 | | Jim Gibson | 2x | Yes | 34x | 1,848,062 | 243,220 | 116,531 | 73,587 | 848 | 152,594 | | John Trotman | 2x | Yes | 6x | 242,896 | 134,736 | 156,326 | 54,354 | 1,962 | 44,713 | # Non-Executive Directors' shareholdings (Audited) | Non-Executive | Beneficially owned shares | | --- | --- | | Michael O'Donnell | 9,000 | | Vince Niblett | 3,000 | | Anna Keay | - | | Laela Pakpour Tabrizi | - | | Heather Savory | - | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued ## Directors' share awards (Audited) To provide further context on the shareholding of the Executive Board Directors, options in respect of ordinary shares for Directors who served in the year are as below: | Name | Date option granted | Scheme | No. of shares under option at 31 March 2024 | Granted during the year | Exercised during the year(1) | Lapsed during the year | No. of shares under option at 31 March 2025 | Exercise price | Market price at date of exercise | Date from which first exercisable | Expiry Date | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Nicholas Vetch | 19 July 2018 | LTIP | 20,035 | - | [20,035] | - | - | nil p | 1324.9p | 19 July 2021 | 18 July 2028 | | 23 May 2019 | DBP | 30,519 | - | [30,519] | - | - | nil p | 1241.4p | 23 May 2022 | 22 May 2029 | | 19 July 2019 | LTIP | 30,548 | - | [30,548] | - | - | nil p | 1324.9p | 19 July 2022 | 18 July 2029 | | 15 June 2020 | DBP | 20,691 | - | [20,691] | - | - | nil p | 1241.4p | 15 June 2023 | 14 June 2030 | | 5 August 2020 | LTIP | 35,099 | - | - | - | 35,099 | nil p | - | 5 August 2023 | 4 August 2030 | | 22 July 2021 | DBP | 31,616 | - | [31,616] | - | - | nil p | 1324.9p | 22 July 2024 | 21 July 2031 | | 22 July 2021 | LTIP | 27,617 | - | - | - | 27,617 | nil p | - | 22 July 2024 | 21 July 2031 | | 8 June 2022 | DBP | 34,442 | - | - | - | 34,442 | nil p | - | 8 June 2025 | 7 June 2032 | | 21 July 2022 | LTIP | 58,103 | - | - | - | 58,103 | nil p | - | 21 July 2025 | 20 July 2032 | | 8 August 2022 | SAYE | 1,697 | - | - | - | 1,697 | 1060.3p | - | 8 August 2025 | 8 February 2026 | | 20 July 2023 | DBP | 41,216 | - | - | - | 41,216 | nil p | - | 20 July 2026 | 19 July 2033 | | 20 July 2023 | LTIP | 78,243 | - | - | - | 78,243 | nil p | - | 20 July 2026 | 19 July 2033 | | 21 May 2024 | DPB | - | 23,658 | - | - | 23,658 | nil p | - | 21 May 2027 | 20 May 2034 | | 18 July 2024 | LTIP | - | 70,944 | - | - | 70,944 | nil p | - | 18 July 2027 | 17 July 2034 | | Jim Gibson | 19 July 2018 | LTIP | 22,261 | - | [22,261] | - | - | nil p | 1324.9p | 19 July 2021 | 18 July 2028 | | 23 May 2019 | DBP | 33,910 | - | [33,910] | - | - | nil p | 1241.4p | 23 May 2022 | 22 May 2029 | | 19 July 2019 | LTIP | 34,912 | - | [34,912] | - | - | nil p | 1324.9p | 19 July 2022 | 18 July 2029 | | 15 June 2020 | DBP | 23,647 | - | [23,647] | - | - | nil p | 1241.4p | 15 June 2023 | 14 June 2030 | | 5 August 2020 | LTIP | 41,183 | - | - | - | 41,183 | nil p | - | 5 August 2023 | 4 August 2030 | | 1 March 2021 | SAYE | 996 | - | [996] | - | - | 903.2p | 1264.0p | 1 April 2024 | 1 October 2024 | | 22 July 2021 | DBP | 36,868 | - | [36,868] | - | - | nil p | 1324.9p | 22 July 2024 | 21 July 2031 | | 22 July 2021 | LTIP | 32,404 | - | - | - | 32,404 | nil p | - | 22 July 2024 | 21 July 2031 | | 8 June 2022 | DBP | 40,412 | - | - | - | 40,412 | nil p | - | 8 June 2025 | 7 June 2032 | | 21 July 2022 | LTIP | 68,174 | - | - | - | 68,174 | nil p | - | 21 July 2025 | 20 July 2032 | | 8 August 2022 | SAYE | 848 | - | - | - | 848 | 1060.3p | - | 8 August 2025 | 8 February 2026 | | 20 July 2023 | DBP | 48,360 | - | - | - | 48,360 | nil p | - | 20 July 2026 | 19 July 2033 | | 20 July 2023 | LTIP | 91,805 | - | - | - | 91,805 | nil p | - | 20 July 2026 | 19 July 2033 | | 21 May 2024 | DPB | - | 27,759 | - | - | 27,759 | nil p | - | 21 May 2027 | 20 May 2034 | | 18 July 2024 | LTIP | - | 83,241 | - | - | 83,241 | nil p | - | 18 July 2027 | 17 July 2034 | | John Trotman | 19 July 2018 | LTIP | 16,537 | - | [16,537] | - | - | nil p | 1324.9p | 19 July 2021 | 18 July 2028 | | 23 May 2019 | DBP | 25,190 | - | - | - | 25,190 | nil p | - | 23 May 2022 | 22 May 2029 | | 19 July 2019 | LTIP | 26,184 | - | [26,184] | - | - | nil p | 1324.9p | 19 July 2022 | 18 July 2029 | | 15 June 2020 | DBP | 17,735 | - | - | - | 17,735 | nil p | - | 15 June 2023 | 14 June 2030 | | 5 August 2020 | LTIP | 30,419 | - | - | - | 30,419 | nil p | - | 5 August 2023 | 4 August 2030 | | 1 March 2021 | SAYE | 1,992 | - | [1,992] | - | - | 903.2p | 1264.0p | 1 April 2024 | 1 October 2024 | | 22 July 2021 | DBP | 27,329 | - | - | - | 27,329 | nil p | - | 22 July 2024 | 21 July 2031 | | 22 July 2021 | LTIP | 23,935 | - | - | - | 23,935 | nil p | - | 22 July 2024 | 21 July 2031 | | 8 June 2022 | DBP | 29,850 | - | - | - | 29,850 | nil p | - | 8 June 2025 | 7 June 2032 | | 21 July 2022 | LTIP | 37,766 | - | - | - | 37,766 | nil p | - | 21 July 2025 | 20 July 2032 | | 20 July 2023 | DBP | 35,719 | - | - | - | 35,719 | nil p | - | 20 July 2026 | 19 July 2033 | | 20 July 2023 | LTIP | 50,857 | - | - | - | 50,857 | nil p | - | 20 July 2026 | 19 July 2033 | | 21 May 2024 | DPB | - | 20,503 | - | - | 20,503 | nil p | - | 21 May 2027 | 20 May 2034 | | 18 July 2024 | LTIP | - | 46,113 | - | - | 46,113 | nil p | - | 18 July 2027 | 17 July 2034 | | 10 July 2024 | SAYE | - | 1,962 | - | - | 1,962 | 945.1p | - | 1 September 2027 | 1 March 2028 | (1) The aggregate gains made by Directors for the year ended 31 March 2025 on share options totals £4,247,000 [2024: £nil]. --- Annual Report and Accounts 2025 Big Yellow Group PLC 115 # Performance and pay The graph below shows the Group's performance, measured by TSR, compared with the performance of the FTSE All Share Real Estate Index and the FTSE All Share Index for the period since flotation. The FTSE All Share Real Estate Index is used for the assessment of the Company's LTIP. ![img-188.jpeg](img-188.jpeg) # CEO Remuneration The table below sets out the details of remuneration of the CEO over the past ten financial years. | Year | CEO single figure of total remuneration (£) | Annual bonus (cash) pay-out % against maximum of 25% of salary | Annual bonus (deferred) pay-out % against maximum of 125% of salary | Long term incentive weighted average vesting rates against maximum opportunity % | | --- | --- | --- | --- | --- | | 2025 | 1,312,640 | 39.2% (9.8% of salary) | 51.25% (64.1% of salary) | 100% | | 2024 | 1,335,753 | 34% (8.5% of salary) | 53.8% (67.25% of salary) | 95% | | 2023 | 1,543,941 | 39.6% (9.9% of salary) | 88.85% (110.6% of salary) | 90.1% | | 2022 | 1,380,532 | 41.2% (10.3% of salary) | 95.4% (119.25% of salary) | 61.6% | | 2021 | 1,393,490 | 62.8% (15.7% of salary) | 95% (118.75% of salary) | 83.6% | | 2020 | 1,136,633 | 37.2% (9.3% of salary) | 47.5% (59.4% of salary) | 100% | | 2019 | 1,182,482 | 40.8% (10.2% of salary) | 81.875% (102.3% of salary) | 100% | | 2018 | 2,178,066 | 51.6% (12.9% of salary) | n/a | 95% | | 2017 | 850,619 | 40% (10% of salary) | n/a | 100% | | 2016 | 988,811 | 48% (12% of salary) | n/a | 100% | The single figure of remuneration for 2018 is higher than in other years due to the vesting of the three year Long Term Bonus Performance Plan in that year delivering a reward of £1,343,995 (93.33% vesting) for the three year period ended in that year. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued ## Percentage change in the Director remuneration The table below compares the percentage change in each Director's annual remuneration (i.e. salary/fees, benefits, and annual bonus) with the remuneration of Big Yellow Group employees. | | % Change from 2019/2020 to 2020/2021 | | | % Change from 2020/2021 to 2021/2022 | | | % Change from 2021/2022 to 2022/2023 | | | % Change from 2022/2023 to 2023/2024 | | | % Change from 2023/2024 to 2024/2025 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Salary/Fee | Benefits | Bonus | Salary/Fee | Benefits | Bonus | Salary/Fee | Benefits | Bonus | Salary/Fee | Benefits | Bonus | Salary/Fee | Benefits | Bonus | | Nicholas Vetch | 5% | [13%] | 78% | 4% | 3% | [30%] | 4% | [6%] | 0% | 5% | 28% | [10%] | 4% | 57% | 20% | | Jim Gibson | 8% | 9% | 81% | 4% | 6% | [30%] | 4% | 17% | 0% | 5% | 11% | [10%] | 4% | 58% | 20% | | John Trotman | 6% | [26%] | 79% | 4% | 18% | [30%] | 4% | 10% | 0% | 5% | 2% | [10%] | 4% | 39% | 20% | | Adrian Lee | 4% | 9% | 76% | 3% | 11% | [30%] | n/a | n/a | n/a | 5% | n/a | n/a | 4% | n/a | n/a | | Anna Keay | 2% | n/a | n/a | 3% | n/a | n/a | 4% | n/a | n/a | 5% | n/a | n/a | 4% | n/a | n/a | | Vince Niblett | 2% | n/a | n/a | 3% | n/a | n/a | 23% | n/a | n/a | 5% | n/a | n/a | 4% | n/a | n/a | | Michael O'Donnell | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 5% | n/a | n/a | 4% | n/a | n/a | | Laela Pakpour Tabrizi | n/a | n/a | n/a | 3% | n/a | n/a | 9% | n/a | n/a | 5% | n/a | n/a | 4% | n/a | n/a | | Heather Savory | n/a | n/a | n/a | 3% | n/a | n/a | 4% | n/a | n/a | 5% | n/a | n/a | 4% | n/a | n/a | | Average employees | 3% | 2% | 74% | 2% | 2% | (29%) | 5% | 5% | 1% | 5.6% | 21% | (9%) | 4.8% | 13% | 21% | Where a Director has not served on the Board for the full financial year, "n/a" is shown in the salary/fee column of the above table. ## CEO pay ratio The data shows how the CEO's single figure remuneration for the year ended 31 March 2025 (as taken from the single figure remuneration table) compares to equivalent single figure remuneration for full-time equivalent UK employees, on a Group basis, ranked at the 25th, 50th and 75th percentile. | Year | Method | 25th percentile pay ratio | Median pay ratio | 75th percentile pay ratio | | --- | --- | --- | --- | --- | | 2025 | Option A | 45 to 1 | 39 to 1 | 28 to 1 | | 2024 | Option A | 50 to 1 | 42 to 1 | 28 to 1 | | 2023 | Option A | 55 to 1 | 49 to 1 | 31 to 1 | | 2022 | Option A | 58 to 1 | 50 to 1 | 36 to 1 | No components of pay and benefits have been omitted for the purpose of the above calculations. Option A was selected given that this method of calculation was considered to be the robust approach in respect of gathering the required data. The underlying quartiles for salary and total remuneration numbers for full-time equivalent UK employees are set out below. The CEO's remuneration in each year includes LTIPs that have vested (but not yet been exercised); for employees the total pay includes proceeds from LTIP exercises, rather than vested LTIPs. | Year | Salary | | | Total pay and benefits | | | | --- | --- | --- | --- | --- | --- | --- | | | 25th %tile | Median | 75th %tile | 25th %tile | Median | 75th %tile | | 2025 | £25,563 | £29,037 | £39,749 | £29,057 | £33,809 | £47,108 | | 2024 | £24,375 | £28,392 | £38,251 | £26,876 | £31,864 | £47,516 | | 2023 | £23,005 | £26,790 | £37,440 | £28,148 | £31,398 | £48,746 | | 2022 | £21,278 | £24,669 | £34,445 | £23,535 | £27,286 | £38,098 | --- Annual Report and Accounts 2025 Big Yellow Group PLC 117 # Statement of consideration of employment conditions elsewhere in the Group The Committee reviews the reward and retention of the whole employee population periodically throughout the year to ensure that it can attract and retain top talent. Consideration is given to the general basic salary increase, remuneration arrangements and employment conditions. Furthermore, the annual cash bonus awarded to Executive Board Directors is directly linked to the bonuses awarded to all staff. The Directors are invited to be present at this review of the proposals for salary increase for the employee population generally and on any other changes to remuneration policy within the Company. The information presented at this review is taken into consideration when setting the pay levels of the executive population. Additionally, the Committee has guidelines for the grant of all LTIP awards across the Company and responsibility for approving the total annual bonus cost of the Company. The Company, through the Workforce Engagement Non-Executive Director, invited employees to comment on the remuneration of Directors during the year, and has engaged with the workforce to explain how executive remuneration aligns with the wider Company pay policy. When considering remuneration levels to apply, the Committee takes into account base pay increases, bonus payments and share awards made to the Company's employees generally. # Relative importance of spend on pay The graph below sets out the relative importance of spend on pay in the year ended 31 March 2025 and 31 March 2024 compared with other disbursements from profit, being the distributions to shareholders and retained earnings (comprehensive gain for the year less dividends). ![img-189.jpeg](img-189.jpeg) # Gender and ethnicity pay The Group has reported on its gender pay gap for April 2024. The full report can be found on our investor relations website http://corporate.bigyellow.co.uk/investors.aspx. The Group's mean gender pay gap was 20% (2023: 24%), with a median gap of 4% (2023: 3%). Excluding Executive Board Directors, the mean gender pay gap falls to 9% (2023: 10%) with a median gap of 4% (2023: 3%). The reduction in the mean gap is due to a greater representation of women in the upper quartile, which has increased to 35% in April 2024 compared to 31% in April 2023. All staff are paid equally according to job role. The Group has also analysed its ethnicity pay for April 2024. The Group's mean ethnicity pay gap was 5% (2023: 6%), with a median gap of 7% (2023: 4%). Our Median Ethnicity Pay Gap has increased as we have recruited fewer new employees for the year 2024, compared to 2023. All staff are paid equally according to job role. We believe that diversity and inclusion are key to a successful and sustainable business, and we are committed to creating a culture where all team members can be themselves, feel empowered to succeed and deliver a customer experience that is second to none. We encourage and enable all employees, regardless of their gender, race, background, or any other characteristics, to reach their full potential as we believe that having a diverse workforce with fair representation is strategically important and generates value to our stakeholders. In the year we have continued to collect ethnicity data to better understand the ethnic mix of our workforce. To date, 99% of our team have volunteered their ethnicity data. This data indicates that 21% of Big Yellow's team members belong to a Black, Asian, Mixed or other ethnic group, compared with 18.3% of people who make up this group in the UK (2021 census data). --- Annual Report and Accounts 2025 Big Yellow Group PLC # Remuneration Committee Report continued Over the last 12 months we have continued the work of our Inclusivity and Diversity Committee, actively listening to feedback from our colleagues across the business to drive change and improve awareness. Here are just some of our key achievements during this time: ## Policy and Strategy - In line with our strategy of improving our brand awareness and recognition as an employer of different diverse groups, we have continued to include posts on Facebook and LinkedIn throughout the year relating to our culture, religious festivals / celebrations, LGBTQ+, gender and mental health. - We improved the communication and awareness of the work we are doing in relation to Inclusivity and Diversity and Wellbeing throughout the Company through our new Company Intranet which has specific Inclusivity and Diversity and Wellbeing sub-sites. - We launched two new policies, Recruiting People with Convictions, to support people with convictions to return to work and Work Placements for People with Convictions, to support the rehabilitation of people who are serving a conviction. - We introduced a new Employee Assistance Programme to provide counselling and advice and support on a range of issues including health relationships, caring responsibilities, and work related matters. ## Recruitment / Talent - Our Big Yellow Foundation supports seven charities who work with vulnerable adults to help find them sustainable employment. During the year we provided 14 work placements within our Finance Department and stores. - The number of females promoted internally has remained high at 59% in 2025 (2024: 64%). - The proportion of our female Store Managers remained stable at 33% (2024: 34%). - 42% of new starters in our stores in the year ended 31 March 2025 were of an ethnic minority group (2024: 33%). - 21% of our team members in stores are over 50, an increase from 19% in 2024. ## Learning and Development - We ran a series of Recruiting People with Convictions Workshops via Working Chance, one of our Foundation Charity Partners, which just under 150 of our managers attended. - Our Neurodiversity Workplace Assessor has attended additional dyslexia and dyscalculia training to enable them to provide further support to our neurodiverse team members. - We re-trained our Wellbeing Experts with Mental Health First Aid England, to ensure that they maintain their knowledge and skills to provide support to team members as required. Whilst our Gender Pay Gap is reducing on a gradual basis and we will continue to work to reduce it further, we recognise that it would be unrealistic to close this gap quickly, given that all three of the Executive Directors are male and two of them were founders of the business over 25 years ago. We have however, made significant progress in relation to inclusion and diversity initiatives over the last three years and will continue to challenge our thinking around how we recruit new skills and manage and develop existing talent going forward. We will continue to drive change via our Inclusivity and Diversity Committee and through listening to feedback from our people. Our future initiatives include developing new recruitment policies for people with convictions and disabilities and providing training for our hiring managers and mentors. We will continue to use social media to develop our brand recognition as a truly inclusive and diverse employer. We will also be retraining our Wellbeing Experts to enable them to carry on providing support to team members with physical and mental health conditions. We will continue to work with our seven Big Yellow Foundation charity partners to help vulnerable people such as ex-offenders, refugees, ex-service personnel and people living with disabilities to find employment and create a better future for themselves. We also intend to create a programme of volunteering opportunities through which our team members can support the charities themselves, for which they will be given time off during their working day. --- Annual Report and Accounts 2025 Big Yellow Group PLC 119 # Advisers to the Remuneration Committee In undertaking its responsibilities, the Committee seeks independent external advice as necessary. FIT Remuneration Consultants LLP have been advisers to the Committee since 2017. The Committee is comfortable that the FIT team provides independent remuneration advice to the Committee and does not have any other connections with Big Yellow that may impair their independence. FIT is a founding member and signatory of the Code of Conduct for Remuneration Consultants, details of which can be found at www.remunerationconsultantsgroup.com. During the year, FIT provided independent advice on a wide range of remuneration matters including on the renewal of the Company's LTIP plan. FIT provides no other services to the Company. The fees paid to FIT in respect of work carried out for the year under review were £32,000 (ex VAT). # Approval This policy report was approved by the Board of Directors on 19 May 2025 and signed on its behalf by Michael O'Donnell Remuneration Committee Chair Strategic Report Governance Report Financial Statements --- Annual Report and Accounts 2025 Big Yellow Group PLC # Audit Committee Report The Audit Committee is appointed by the Board from the Non-Executive Directors of the Company. The Audit Committee's terms of reference include all matters indicated by Disclosure Guidance and Transparency Rule 7.1, the UK Corporate Governance Code, and the new FRC ethical standard. ## Committee members and attendance | Member | Number of meetings attended | | --- | --- | | Laela Pakpour Tabrizi – Chair | ● ● ● | | Anna Keay – Member | ● ● ● | | Vince Niblett – Member | ● ● ● | | Michael O'Donnell – Member | ● ● ● | | Heather Savory – Member | ● ● ● | - attended - absent - not applicable ## Introduction The terms of reference are considered annually by the Audit Committee and are then referred to the Board for approval. The terms of reference are available on the Company's website. https://corporate.bigyellow.co.uk/investors/corporate-governance The Audit Committee is responsible for: - monitoring the integrity of the financial statements of the Group and any formal announcements relating to the Group's financial performance and reviewing significant financial reporting judgements contained therein; - reviewing the Group's internal financial controls and the Group's internal control and risk management systems, including consideration of the need for an internal audit function; - making recommendations to the Board, for a resolution to be put to the shareholders for their approval in general meetings, on the appointment of the external auditor, and the approval of the remuneration and terms of engagement of the external auditor; - assessing and challenging estimates and judgements included within the financial statements; - reviewing and monitoring the external auditor's independence and objectivity and the effectiveness of the audit process, taking into consideration relevant UK professional and regulatory requirements; and - ensuring the external auditor only provides those services permitted by the Ethical Standard of the FRC. The Audit Committee is required to report its findings to the Board, identifying any matters on which it considers that action or improvement is needed, and make recommendations on the steps to be taken. This year the Committee has continued to focus on the narrative reporting and corporate governance disclosures in the Annual Report. The Committee was asked by the Board to review the statement by the Directors that the Annual Report presents a fair, balanced, and understandable view of the Group's position and performance, strategy, and business model. The Committee also reviewed the Group's going concern and viability statements. --- Annual Report and Accounts 2025 Big Yellow Group PLC 121 All Audit Committee members are expected to be financially literate. Furthermore, the Audit Committee structure requires the inclusion of one financially qualified member (as recognised by the Consultative Committee of Accountancy Bodies). Vince Niblett, as a Fellow of the Institute of Chartered Accountants of England and Wales and Laela Pakpour Tabrizi as an experienced Finance Director, currently carrying out that role at Consumer Converged at Virgin Media O2, fulfil that requirement. The Group provides an induction programme for new Audit Committee members and ongoing training to enable all of the Committee members to carry out their duties. The induction programme covers the role of the Audit Committee, its terms of reference and expected time commitment by members and an overview of the Group's business, including the main business and financial dynamics and risks. New Committee members also meet some of the Group's staff. Ongoing training includes attendance at formal conferences, internal company seminars and briefings by external advisers. ## Meetings The Audit Committee is required to meet three times per year and has an agenda linked to events in the Group's financial calendar. The agenda is predominantly cyclical and is therefore approved by the Audit Committee Chair on behalf of her fellow members. Each Audit Committee member has the right to require reports on matters of interest in addition to the cyclical items. The Audit Committee invites the Chief Executive, Chief Financial Officer, Financial Controller, and senior representatives of the external auditor to attend its meetings in full, although it reserves the right to request any of these individuals to withdraw. The Committee meets as required with the external auditor without the Executive Board Directors or senior management present. Other senior management are invited to present such reports as are required for the Committee to discharge its duties. ## Overview of the actions taken by the Audit Committee to discharge its duties Since the beginning of the financial year the Audit Committee has: - reviewed published financial information including the year-end results, Annual Report, half year results and the Quarterly Trading Statements, including review of Alternative Performance Measures used by the Group; - considered whether the Annual Report provides a fair, balanced, and understandable view of the Group's position and performance, strategy, and business model; - assessed and concluded on the Group's viability statement and the going concern assessment for the annual and half yearly financial statements; - considered the output from the Group-wide process used to identify, evaluate, and mitigate risks; - reviewed the effectiveness of the Group's internal controls and disclosures made in the annual report and financial statements on this matter, and considered the impact of the new Combined Code and the BEIS review on the Group; - reviewed and agreed the scope of the audit work to be undertaken by the external auditor; - agreed the fees to be paid to the external auditor for their audit of the financial statements and review of the half-yearly report; - considered and agreed the approach of performing Directors' valuations of investment properties for the half-year report; - undertaken an assessment of the qualification, expertise and resources, and independence of the external auditor and the effectiveness of the audit process; - considered the audit partner and audit firm rotation; - undertaken an evaluation of the performance of the external auditor and assessed its effectiveness; - held discussions with the auditors on key judgements; - considered the need for an internal audit function; - considered the FRC ethical standard governing non-audit services and audit committees; - reviewed the arrangements for "whistleblowing" by employees to ensure that there is a consistent policy in the Group to enable employees to voice concerns particularly in respect of possible financial reporting improprieties. A whistleblowing policy is included in the employee handbook and there is an external whistleblowing monitoring service; - met the Group's external valuers and considered their competence and independence; - met the Group's Store Compliance Manager; - reviewed the Audit Committee's Report; and - reviewed its own effectiveness. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Audit Committee Report continued ## Financial reporting and significant financial judgements The Committee reviews all financial information published by the Group in year-end and half-year financial statements, including the presentation and disclosure of the financial information. It also considers the appropriateness of the accounting policies adopted by the Group and the accounting judgements made by management in the preparation of the financial information. The Committee has considered whether the Annual Report for the year ended 31 March 2025 provides a fair, balanced, and understandable view of the Group's position and performance, strategy, and business model and whether it provides the necessary information to enable shareholders and prospective shareholders to assess the Group's position and performance, strategy, and business model. The Committee is satisfied that the Annual Report for the year ended 31 March 2025 provides a fair, balanced, and understandable view and includes the necessary information as set out above. The Committee has confirmed this to the Board, whose statement is included in the Statement of Directors' Responsibilities on page 129. The Committee focuses on matters it considers important in their impact on the reported results of the Group, and on matters where there is a high degree of complexity and/or judgement. The critical accounting estimate that the Committee focuses on at the reporting date is the valuation of the investment property portfolio. This is carried out by independent external valuers, but by its nature it is subjective, with significant judgement applied to the valuation, particularly given the lack of transactional evidence for prime self storage assets. The Chair of the Committee met the external valuers to discuss the valuations, review the key judgements, and discussed whether there were any disagreements with management. This year the Committee reviewed and challenged the valuers on the cap rates, rental growth assumptions and stabilised occupancy levels, to agree on the appropriateness of the assumptions adopted. The Committee also met with the external valuers and satisfied itself on their independence, their quality control processes (including peer partner review) and qualifications to carry out the valuations. Management also have processes in place to review the external valuations. In addition, the external auditor use valuation specialists to review the valuations and report its findings and conclusions to the Audit Committee. The Committee has also considered a number of other judgements made by management in the preparation of the financial statements. The Committee has concluded that there are not significant levels of judgements involved. There has been no change to the other key judgement included in the financial statements, which is that the Group's stores should be accounted for as Investment Property. Management has reported to the Audit Committee that it is satisfied that it is not aware of any material misstatements in the financial statements. Based on the above, the Committee concluded that the financial statements appropriately apply the key estimates and critical judgements, in respect of the disclosures and the amounts reported. The Committee also concluded that the annual report and financial statements, taken as a whole, are fair, balanced, and understandable and provide the information necessary for shareholders to assess the Group's position and performance, strategy, and business model. ## External auditor The Audit Committee is responsible for the development, implementation, and monitoring of the Group's policy on external audit. The policy assigns oversight responsibility for monitoring the independence, objectivity, and compliance with ethical and regulatory requirements to the Audit Committee, and day-to-day responsibility to the Chief Financial Officer. The policy states that the external auditor is jointly responsible to the Board and the Audit Committee and that the Audit Committee is the primary contact. To fulfil its responsibility regarding the independence of the external auditor, the Audit Committee reviewed: - the external auditor's plan for the current year, noting the role of the senior statutory audit partner, who signs the audit report and who, in accordance with professional rules, has not held office for more than five years, and any changes in the key audit staff; - the arrangements for day-to-day management of the audit relationship; - a report from the external auditor describing their arrangements to identify, report and manage any conflicts of interest; and - the overall extent of non-audit services provided by the external auditor, in addition to its case-by-case approval of the position of non-audit services by the external auditor. ## Audit rotation During 2016 following a robust tender process, the Committee appointed KPMG LLP as auditors, with effect from the year ended 31 March 2018. As part of the tender process, the Committee reviewed KPMG's proposals for the audit and determined that they had an appropriate plan in place to carry out an effective audit. KPMG confirmed to the Committee that it maintained appropriate internal safeguards to ensure its independence and objectivity. Anna Jones is the current audit partner, and this is the fourth year that she has been the signatory to the Group's financial statements. The Company's policy is to rotate audit partners every five years, and to tender its audit to include new firms at least every ten years. The Company complies with the requirements of the Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Tender Processes and Audit Committee Responsibilities) Order 2014 and the Code. To comply with the Order the Company intends to conduct a formal tender process for audit services during the financial year ending 31 March 2027, so that should a new firm be appointed, they will be able to shadow KPMG during the audit of the 31 March 2027 financial statements. --- Annual Report and Accounts 2025 Big Yellow Group PLC 123 # Annual auditor assessment The Audit Committee has adopted a formal framework in its review of the effectiveness of the external audit process and audit quality which include the following areas: - the arrangements for ensuring the external auditor's independence and objectivity; - the senior statutory auditor and the audit team; - the external auditor's fulfilment of the agreed audit plan and variations from the plan; - the quality of the formal audit report to shareholders; - the effectiveness of the external audit process, taking into consideration relevant UK professional and regulatory requirements; - the robustness and perceptiveness of the auditor in his handling of the key accounting and audit judgements; and - the content of the external auditor's comments on control improvement recommendations. Regard is paid to the nature of, and remuneration received, for other services provided by KPMG LLP to the Group and, inter alia, confirmation is sought from them that the fee payable for the annual audit is adequate to enable them to perform their obligations in accordance with the scope of the audit. The only non-audit service provided is the auditors' review of the half year report. # Non-audit work The Group's policy on external audit sets out the categories of non-audit services which the external auditor will and will not be allowed to provide to the Group, including those that are pre-approved by the Audit Committee and those which require specific approval before they are contracted for, subject to de minimis levels. The Group's non-audit policy reflects the Ethical Standard on Non-Audit Services which came into effect on 15 March 2020. The Committee's policy is that the auditors will not be asked to carry out non-audit work with the exception of the half year review and regulatory and bank required reporting. More generally, the auditors may not provide a service which places them in a position where they may be required to audit their own work. Specifically, they are precluded from providing services relating to bookkeeping, financial information system design and implementation, appraisal or evaluation services, actuarial services, any management functions, taxation advisory services, investment banking services, legal services unrelated to the audit or advocacy services. In respect of the year ended 31 March 2025, the auditor's remuneration comprised £641,000 for audit work and £65,000 for other work, solely relating to the interim review. Over a three year rolling period, the level of non-audit fees is below the audit fee, with non-audit fees representing 11% of audit fees in 2024 and 11% in 2023. # Risk management and internal control The Committee and the Board reviewed the internal control processes of the business and the Group's risk register during the year. The risks and uncertainties facing the Group, and its internal control processes are considered in the Strategic Report on page 44. The Committee remains focused on ensuring that finance and risk capability is appropriate to the scale of the business, whilst also acknowledging an increasingly regulated environment. As the UK's regulatory landscape continues to evolve, the Committee will continue to monitor developments from the review led by the Department for Business and Trade into restoring trust in audit and corporate governance, and the impact the recommendations may have on the Group. In particular, the Committee will spend time working with management to prepare to report on the updated UK Corporate Governance Code, published by the FRC in January 2024, with particular attention to the changes introduced in respect of audit, risk and internal control. # Internal audit The Committee has considered the Board's view that, given the relatively straightforward nature of the Group's business and the control environment in place, no formal internal audit function is required. The Group has a store compliance team, which effectively carries out an internal audit role for the Group's stores, visiting each store at least once every nine months. This provides the Committee comfort over the store related aspects of the Group's business. The Committee meets with the Store Compliance Manager as required, and at least once a year. Additionally, on a regular cycle, the Board appoints external consultants to assess specific business areas of risk and provide a report to the Board and the Committee on this area. The cycles covered by this activity include construction expenditure, treasury, taxation, and facilities management. This gives the Committee comfort over the controls over key business cycles within the Company. With the combination of the store internal audit and the external assessment of the key business cycles, the Committee considers that this provides a robust internal audit assessment for the Group. # Overview As a result of its work during the year, the Audit Committee has concluded that it has acted in accordance with its terms of reference and has ensured the independence and objectivity of the external auditor. The Chair of the Audit Committee will be available at the Annual General Meeting to answer any questions about the work of the Committee. Approved by the Audit Committee and signed on its behalf by: Laela Pakpour Tabrizi Audit Committee Chair 19 May 2025 --- Annual Report and Accounts 2025 Big Yellow Group PLC # Directors' Report The Directors present their annual report on the affairs of the Group, together with the audited financial statements and auditor's report for the year ended 31 March 2025. The Report on Corporate Governance on pages 83 to 89 forms part of this report. Details of significant events since the balance sheet date are included in note 25 to the financial statements. An indication of likely future developments in the business of the Company is included in the strategic report. Included in note 18 are the Group's financial risk management objectives and policies and an indication of the Group's exposure to certain risks. Those elements of that note form part of this report and are incorporated by reference. ## Dividends The Directors are recommending the payment of a final dividend of 23.8 pence per share for the year (2024: 22.6 pence per ordinary share). An interim dividend of 22.6 pence per share was paid in the year (2024: 22.6 pence per share). All of the 46.4 pence per share payable for the year is a Property Income Distribution. Subject to approval by shareholders at the Annual General Meeting to be held on 17 July 2025, the final dividend will be paid on 25 July 2025. The Ex-div date is 3 July 2025 and the Record date is 4 July 2025. From April 2018 dividend tax credits have been replaced by an annual £2,000 tax-free allowance on dividend income across an individual's entire share portfolio. Above this amount, individuals will pay tax on their dividend income at a rate dependent on their income tax bracket and personal circumstances. The Company will continue to provide registered shareholders with a confirmation of the dividends paid by Big Yellow Group PLC, and this should be included with any other dividend income received when calculating and reporting total dividend income received. It is the shareholder's responsibility to include all dividend income when calculating any tax liability. ## SECR and Mandatory GHG Reporting The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 ('SECR') came into force on 1 April 2019 and apply to companies with financial years starting on or after 1 April 2019. The 2018 Regulations define what must be included in the Directors' Report, namely: - Annual Greenhouse Gas ("GHG") emissions from activities for which the Company is responsible including combustion of fuel and operation of any facility, such as such as our flexi-office gas heating, reception area air conditioner coolant replacement, one Company van diesel fuel use emissions and fit-out 'diesel' use emissions (assuming qualifying fit-out activities have taken place during the year); - Annual emissions from the purchase of electricity, heat, steam or cooling by the Company for its own use, such as the electricity for our stores and construction fit-out activities; - Underlying global energy use; - Previous year's figures for energy use and GHG; - At least one intensity ratio metric; - Energy efficiency action taken; and - Methodology used. Voluntary GHG emissions, from our waste and water supply chains, are assessed as 'not material'. We will also retain the practice of reporting our previous few years of performance to show longer term trends. The 'Market-based emissions' reported here reflect the emissions associated with the electricity tariff we have purchased; whereas 'Location-based emissions' are emissions associated with the UK grid and applies the required DEFRA conversion factors. Where we have not indicated market-based or location-based figures, location-based can be assumed. Please note, our operations are solely based in the UK, and we therefore will be reporting a single geographical scope – UK and offshore area only. --- Annual Report and Accounts 2025 Big Yellow Group PLC 125 ## a) Data | Year ended | | 31 March 2024 (restated*) | 31 March 2025 | | --- | --- | --- | --- | | GHG scope 1 total tonnes CO₂e | Total Scope 1 Emissions (location-based) store and non-store | 115.1 | 52.9 | | GHG scope 2 total tonnes CO₂e | Total Scope 2 Emissions (location-based) store and non-store | 2,136.9 | 1,956.5 | | GHG scope 2 total tonnes CO₂e | Total Scope 2 Emissions market-based store and non-store | 0.0 | 0.0 | | Total GHG scope 1 & 2 | | | | | Total tonnes CO₂e | Total Scope 1 & 2 Emissions (location-based) store and non-store | 2,252.0 | 2,009.4 | | Total GHG scope 1 & 2 | | | | | Total tonnes CO₂e | Total Scope 1 & 2 Emissions (market-based) store and non-store | 115.1 | 52.9 | | kgCO₂e/ revenue (£000s) – location-based | GHG emissions intensity from building energy consumption | 11.3 | 9.8 | | kgCO₂e/ revenue (£000s) – market-based | GHG emissions intensity from building energy consumption | 0.6 | 0.3 | | kgCO₂e/ Occupied space (1,000m²) | GHG emissions intensity from building energy consumption (scope 1 and 2 location-based) | 4.8 | 4.3 | | kgCO₂e/ CLA (1,000m²) | GHG emissions intensity from building energy consumption (scope 1 and 2 location-based) | 3.8 | 3.4 | | Energy data | Underpinning Scope 1 and 2 emissions data (kWh) | 10,939,300 | 9,656,425 | *Please note: Regarding restating each year, the last 3 months of our emissions data is reported using the prior year's conversion factors, due to an emission factor publication lag – we operate on a 'best available data' principle and will therefore restate each year. Regarding Market based emissions, we purchase REG0 backed 100% renewable energy, so are able to provide both location-based and market-based CO₂e emissions. The three location-based intensity metrics are calculated from the location-based Scope 1 & 2 totals. The one market-based intensity metric is calculated from the market-based Scope 1 & 2 totals. We have previously reported on specific Scope 3 categories. The Group is currently in the process of calculating its full Scope 3 emissions for the year ended 31 March 2025, and we intend to publish our Scope 3 data for the year ended 31 March 2025 with our half year results (see further commentary on page 56. ## b) Methodology for Calculating Emissions ### Scope 1 #### Gas Data collection: Big Yellow gas data – and some of our Armadillo gas data – is metered and automatically transmitted into our energy and emission reporting platform, UL360. Gas use for the remaining stores with gas is obtained from supplier invoices and manually uploaded onto UL360. This process is part of the assurance work undertaken by SGS each year. Any gaps are accrued. Calculations: Our software platform, UL360, contains our consumption data as well as the current DESNZ emission factors. These are used to calculate emissions automatically when our reports are produced. Our annual data straddles two emission factor years; as soon as the latest factors are released, our partners ensure Envizi contains the most up to date set and this is applied against the relevant data set. ### Scope 1 #### Van Data collection: our maintenance manager records any miles driven to service our stores. The data is collected quarterly and sent to our partners for uploading into UL360. UL360 commutes the mileage data into emissions. Calculations: km travelled x emission conversion factor for a diesel average van (up to 3.5 tonnes) in km/kgCO₂e / 1000 to convert to tCO₂e. In the reporting period we switched to a hybrid vehicle and thus the calculation was updated. Calculations: km travelled x emission conversion factor for a PHEV average van (up to 3.5 tonnes) in km/kgCO₂e / 1000 to convert to tCO₂e. ### Scope 1 #### Fit-out diesel Data collection: diesel consumption used on our fit-out construction projects is collected manually by the construction team and reported weekly in the Construction Fit-Out report. The final report for the financial year is used to assess the overall diesel consumption during the year. Calculation: the total diesel consumption in litres converted to kWh using the gross CV kWh/litre for Diesel (average biofuel blend) x emission conversion factor in kWh (Gross CV)/kgCO₂e for a Diesel (average biofuel blend) / 1000 to convert to tCO₂e. As we are not the principal contractor for the fit-out at our new store Slough Farnham Road, the emissions reported for this year is 0tCO₂e. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Directors' Report continued ## Scope 2 ### Location-based, electricity Data collection: Big Yellow electricity data – and most of our Armadillo electricity data – is metered and automatically transmitted into our energy and emission reporting platform, UL360. Electricity used for the remaining stores is obtained from supplier invoices and manually uploaded onto UL360. This process is part of the assurance work undertaken by SGS each year. Any gaps are accrued. Calculations: Our software platform, UL360, contains our consumption data as well as the current DESNZ emission factors. These are used to calculate emissions automatically when reports are produced. Our annual data straddles two emission factor years; as soon as the latest factors are released, our partners ensure UL360 contains the most up to date set and this is applied against the relevant data set. ## Scope 2 ### Market-based, electricity Data collection: the same as for location-based electricity. Calculations: instead of applying the location-based emission factors, we manually set electricity emissions at 0 as we have been purchasing 100% Rego backed electricity since 1 October 2019. For total Scope 1 & 2 emissions, market-based, we set Scope 2 at 0 and Scope 1 the same as per above. ## Scope 3 We have previously reported on specific Scope 3 categories. The Group is currently in the process of calculating its full Scope 3 emissions for the year ended 31 March 2025, and we intend to publish our Scope 3 data for the year ended 31 March 2025 with our half year results (see further commentary on page 56). ## c) Energy Efficiency Measures ### Background We have a long-standing strategy of pro-actively managing our energy consumption and seeking to become an ever more efficient business. We have reported progress over the years both in our Annual Reports as well as in our standalone annual ESG Reports; all these are available online in our Investor and Sustainability sections respectively. Although most of the lighting upgrades to LED was completed, a small number of 'mop-up' LED activities continue to take place, especially where we have not been able to gain access to customers' units to execute the changeover. All other stores' electricity meters and gas meters are fitted with HH automatic meter readers; the data is available to us via an externally hosted platform and used by the internal Environmental Committee to review our performance on a quarterly basis. Three years ago, we commenced a programme to remove the gas central heating and hot water boilers at a number of our stores with the aim of decarbonising our business by 2030. We have removed gas from our owned estate and as a result we have focused our efforts on energy efficiency to ensure the continued reduction of our scope 1 & 2 emissions. A pilot of energy efficiency solutions has been completed this year. We've successfully trialled 10 solutions across 9 stores, achieving an aggregated energy saving of 17%. We have retrofitted 36 Big Yellow stores that currently do not have solar with solar systems. We have also committed to expanding this programme to cover all stores that are able to hold solar, to date we have 48 retrofitted systems meaning we have installed 7.0MWp of solar as part of the retrofit programme. The one new store that were opened during the year (Slough Farnham Road) was fitted with a 195kWp solar installation. --- Annual Report and Accounts 2025 Big Yellow Group PLC 127 # Most recent ESOS assessment findings & resulting actions We have completed our ESOS Phase 3 assessment and submitted our Action Plan. The assessment has continued to emphasise the limited amount of potential energy saving measures we are able to undertake. Our independent ESOS assessor recommendations have remained similar to that of our Phase 2 assessor; we have continued to focus on increasing our Solar PV estate in line with our sustainability strategy. During the year, we have installed solar systems at 13 stores: - One newly built store, with a total installed capacity of 195kWp - 12 stores were retrofitted with solar totalling a capacity of 1,621kWp During the year, we have generated 4,831 MWh of solar energy (an increase of 42% from the previous year), thereby (a) reducing our energy demand from the grid by the kWh we are using on site and (b) increasing the grid's renewable mix by exporting part of our energy as the size of our solar installations exceed our demand. # Capital structure Details of the authorised and issued share capital, together with details of the movements in the Company's issued share capital during the year are shown in note 22. The Company has one class of ordinary shares which carry no right to fixed income. Each share carries the right to one vote at general meetings of the Company. There are no specific restrictions on the size of a holding nor on the transfer of shares, which are both governed by the general provisions of the Articles of Association and prevailing legislation. The Directors are not aware of any agreements between holders of the Company's shares that may result in restrictions on the transfer of securities or on voting rights. Details of employee share schemes are set out in note 23, and details of shares held by the Company's Employee Benefit Trust are set out in note 22. No person has any special rights of control over the Company's share capital and all issued shares are fully paid. With regard to the appointment and replacement of Directors, the Company is governed by its Articles of Association, the Corporate Governance Code, the Companies Acts and related legislation. The Articles themselves may be amended by special resolution of the shareholders. The powers of Directors are described in the Report on Corporate Governance on page 83. There are a number of agreements that take effect, alter, or terminate upon a change of control of the Company such as commercial contracts, bank loan agreements, property lease arrangements and employee share plans. The Directors are not aware of any agreements between the Company and its Directors or employees that provide for compensation for loss of office or employment that occurs because of a takeover bid. During the year the Company issued 519,409 shares to satisfy the exercise of share options (2024: 289,102). # Directors The Directors of the Company who served throughout the year and to the date of approval of the financial statements were as follows: | Jim Gibson | Chief Executive Officer | | --- | --- | | Anna Keay | Non-Executive Director | | Vince Niblett | Senior Independent Director | | Michael O'Donnell | Non-Executive Director | | Heather Savory | Non-Executive Director | | Laela Pakpour Tabrizi | Non-Executive Director | | John Trotman | Chief Financial Officer | | Nicholas Vetch | Executive Chairman | The Company's policy is that all Directors who are seeking re-election will be put forward to a shareholder vote at each Annual General Meeting. Biographical details of the Executive and Non-Executive Directors standing for re-election are set out on page 80. # Directors' indemnities The Company purchases liability insurance covering the Directors and officers of the Company and its subsidiaries, which remains in force at the date of these accounts. # Political contributions No political donations were made by the Company in either the current or preceding financial year. # Substantial shareholdings The Company had been notified, in accordance with Chapter 5 of the Disclosure Guidance and Transparency rules, of the following voting rights as a shareholder of the Company at 31 March 2025 and 15 May 2025. | | No. of ordinary shares 31 March 2025 | Percentage of voting rights and issued share capital 31 March 2025 | No. of ordinary shares 15 May 2025 | Percentage of voting rights and issued share capital 15 May 2025 | | --- | --- | --- | --- | --- | | Blackrock Inc | 20,235,809 | 10.3% | 20,452,662 | 10.4% | | Resolution Capital | 16,106,373 | 8.2% | 16,422,867 | 8.4% | | The Vanguard Group Inc | 10,616,820 | 5.4% | 10,693,805 | 5.4% | | MFS Investment Management | 8,212,288 | 4.2% | 7,797,370 | 4.0% | | CPP Investment Board | 7,370,532 | 3.7% | 7,370,532 | 3.7% | | T Rowe Price | 7,066,486 | 3.6% | 7,641,755 | 3.9% | | Cohen & Steers Inc | 6,275,137 | 3.2% | 6,354,707 | 3.2% | The interest of the Directors in the share capital of the Company is shown on page 113 of the Remuneration Report. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Directors' Report continued ## Purchase of own shares The Company was granted authority at the AGM in 2024 to purchase its own shares up to a total aggregate value of 10% of the issued nominal capital. That authority expires at this year's AGM and a resolution will be proposed for its renewal. During the year the Company made no purchases of its own shares. ## Suppliers and customers Details on how the Group engages with Suppliers, Customers, and others in business relationships with the Company can be found on page 88. ## Employee consultation The Group seeks to ensure employee commitment to its objectives in a number of ways. Strategic changes are communicated directly to all staff who are encouraged to address queries to the Executive Directors. The Directors' executive meetings are frequently held in stores and in addition Directors and senior management visit the stores on a regular basis. Furthermore, there are regular team briefings at store level to provide employees with information about the performance of and initiatives in their store. A wide range of information is also communicated across the Group's Intranet, including the e-publication of the Group's financial results and all press releases, and regular updates from each Department. As discussed in the Corporate Governance Report, the Board has appointed a designated Non-Executive Director, Anna Keay, to act as the primary method of workforce engagement for Big Yellow in accordance with the Corporate Governance Code. Employees are encouraged to participate in the Group's performance through Employee Share Schemes and performance related bonuses. 50% of eligible employees participate in the Group's Sharesave Scheme. The Group's recruitment policy is committed to promote equality, judging neither by race, nationality, religion, age, gender, disability, sexual orientation, nor political opinion and to treat all stakeholders fairly. ## Disabled employees Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Group continues and that appropriate training is arranged. It is the policy of the Group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. ## Human Rights Big Yellow respects Human Rights and aims to provide assurance to internal and external stakeholders that we are committed to human rights and the principles of the Universal Declaration of Human Rights. We are committed to creating and maintaining a positive and professional work environment that reflects and respects the basic rights of freedom to lead a dignified life, free from fear or want, and where stakeholders are free to express their independent beliefs. Our employment policies and practices reflect a culture where decisions are made solely on the basis of individual capability and potential in relation to the needs of the business. ## Modern Slavery Act The Group is committed to ensuring that there is no modern slavery or human trafficking in our supply chains or in any part of our business. Our Anti-slavery Policy reflects our commitment to acting ethically and with integrity in all our business relationships and to implementing and enforcing effective systems and controls to ensure slavery and human trafficking is not taking place anywhere in our supply chains. Our policy is published in full on our website. ## Auditor In accordance with Section 489 of the Companies Act 2006, a resolution for the re-appointment of KPMG LLP as auditor of the Company is to be proposed at the forthcoming Annual General Meeting. ## Disclosure of information to auditor The Directors who held office at the date of approval of this Directors' Report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's auditor is unaware; and each Director has taken all the steps that he/she ought to have taken as a Director to make himself/herself aware of any relevant audit information and to establish that the Company's auditors is aware of that information. This confirmation is given and should be interpreted in accordance with s418 of the Companies Act 2006. Approved by the Board of Directors and signed on behalf of the Board Shauna Beavis Company Secretary 19 May 2025 --- Annual Report and Accounts 2025 Big Yellow Group PLC 129 # Statement of Directors' Responsibilities in Respect of the Annual Report and the Financial Statements The Directors are responsible for preparing the Annual Report and the Group and parent Company financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare Group and parent Company financial statements for each financial year. Under that law they are required to prepare the Group financial statements in accordance with UK-adopted international accounting standards and applicable law and have elected to prepare the parent Company financial statements in accordance with UK accounting standards and applicable law, including FRS 101 Reduced Disclosure Framework. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and parent Company and of the Group's profit or loss for that period. In preparing each of the Group and parent Company financial statements, the Directors are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable, relevant, and reliable and, in respect of the parent Company financial statements only, prudent; - for the Group financial statements, state whether they have been prepared in accordance with UK-adopted international accounting standards; - for the parent Company financial statements, state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the parent Company financial statements; - assess the Group and parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and - use the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the parent Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that complies with that law and those regulations. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In accordance with Disclosure Guidance and Transparency Rule ("DTR") 4.1.16R, the financial statements will form part of the annual financial report prepared under DTR 4.1.17R and 4.1.18R. The auditor's report on these financial statements provides no assurance over whether the annual financial report has been prepared in accordance with those requirements. # Responsibility statement of the Directors in respect of the annual financial report We confirm that to the best of our knowledge: - the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and - the strategic report includes a fair review of the development and performance of the business and the position of the issuer and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. We consider the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy. This responsibility statement was approved by the Board of Directors on 19 May 2025 and is signed on its behalf by: Jim Gibson Chief Executive Officer John Trotman Chief Financial Officer --- Annual Report and Accounts 2025 Big Yellow Group PLC # Independent Auditor's Report to the Members of Big Yellow Group PLC ## 1. Our opinion is unmodified We have audited the financial statements of Big Yellow Group PLC ("the Company") for the year ended 31 March 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Cash Flow Statement, Company Balance Sheet, Company Statement of Changes in Equity, and the related notes, including the accounting policies in note 2 and 29. ### In our opinion: - the financial statements give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 2025 and of the Group's profit for the year then ended; - the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards; - the parent Company financial statements have been properly prepared in accordance with UK accounting standards, including FRS 101 Reduced Disclosure Framework; and - the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. ### Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) "ISAs (UK)" and applicable law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the audit committee. We were first appointed as auditor by the shareholders on 20 July 2017. The period of total uninterrupted engagement is for the eight financial years ended 31 March 2025. We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that standard were provided. ## Overview | Materiality: | | | --- | --- | | group financial statements | £22.4m (2024: £20.4m) | | as a whole | 0.74% (2024: 0.70%) of total assets | | Key audit matters | vs 2024 | | --- | --- | | Recurring risks | Valuation of Investment Property, including Investment Property Under Construction | | | Recoverability of amounts owed by Group undertakings (Parent company only) | ## 2. Key audit matters: our assessment of risks of material misstatement Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. We summarize below the key audit matters (unchanged from 2024), in decreasing order of audit significance, in arriving at our audit opinion above, together with our key audit procedures to address those matters and, as required for public interest entities, our results from those procedures. These matters were addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate opinion on these matters. --- Annual Report and Accounts 2025 Big Yellow Group PLC 131 | The risk | Our response | | --- | --- | | Valuation of Investment Property, including Investment Property under Construction | Subjective valuation: Investment property valuation is subjective and inherently judgemental in nature and therefore results in a risk of error. | | Investment Property £2,807.5 million; (2024: £2,718.5m) Investment Property Under Construction £185.2 million; (2024: £146.5m) | Investment property values are calculated using actual and subjective assumptions inputs such as store occupancy, future growth in net rent, discount rates and exit capitalisation rates for investment property and in addition, capital expenditure forecasts for investment property under construction. | | Refer to page 122 (Audit Committee Report), page 148 (accounting policy) and pages 159 to 163 (financial disclosures). | The Group engages an external valuer to apply professional judgement concerning market conditions and factors impacting individual properties. | | | The investment market for prime self storage is subject to inherent uncertainty due to the low volume of comparable transactions. | | | The effect of these matters is that, as part of our risk assessment, we determined that the value of investment properties including investment property under construction has a high degree of estimation uncertainty, with a potential range of reasonable outcomes greater than our materiality for the financial statements as a whole, and possibly many times that amount. | | | We consider the fraud risk relating to valuation of Investment Property including Investment Property under Construction has reduced compared to FY24 due to the cumulative evidence identified in relation to utilisation of third-party independent valuers and the limited opportunity for management to materially manipulate the inputs into the valuation. | | Disclosure quality: The financial statements (note 15) disclose the sensitivity estimated by the Group. | | | The Directors' assessment of the extent of the disclosure is based on an evaluation of the inherent risks to the valuation. | | | The risk for our audit is whether or not those disclosures adequately address the uncertainties within the valuation. | | Our procedures included: - Assessment of accounting policy application: We assessed whether the valuation, presentation and disclosure of Investment Properties and Investment Property under Construction is in accordance with the Group accounting policy and applicable accounting standards. - Assessment of valuer's credentials: With the assistance of our valuation specialist we assessed the external valuer's qualifications and expertise and read its terms of engagement with the Group to determine whether there were any matters that might have affected their independence and objectivity or may have imposed scope limitations upon their work. - Methodology choice: With the assistance of our valuation specialist we read the external valuation report which covers 100% of the investment properties (including those under construction) and assessed whether the valuation approach was in accordance with the Royal Institution of Chartered Surveyors (RICS) standards and suitable for use in determining the value for the purpose of the financial statements. - Personnel interview: We met with the external valuer, the Group's senior Management and the audit committee chair with our own internal valuation specialists to discuss the valuation process, key assumption inputs such as occupancy, future growth in net rent, exit capitalisation rates for investment property, capital expenditure forecasts for investment property under construction and discount rates, and the rationale behind significant or unusual valuation movements during the year. - Our sector experience: With the assistance of our valuation specialist we used our knowledge of the entity, our experience of the real estate industry and observed industry norms when assessing the key assumptions and the significant or unusual valuation movements and, for investment property under construction, we considered the judgement made by the Directors and external valuers for planning risk for non-consented sites. - Data provided to the valuer: We tested the accuracy of information used to generate key inputs to the valuation such as store occupancy and net rental income by testing a sample of rooms rented back to contract and cash receipts. - Independent re-calculation: Using our own internally produced model and the external valuer and Directors' inputs we assessed the accuracy of the valuation as produced by the external valuer. - Tests of detail: For investment property under construction we agreed a sample of costs incurred to date to third party supporting information. For cost to complete we compared forecasts, supplied to the valuer, to third party estimates and where appropriate third party contracts. We also obtained evidence that planning permission had been granted for those development sites for which this was applicable. In addition, for a sample of properties under construction our internal valuation specialist assessed the assumptions inputs and their application in line with the valuation methodology. - Assessed valuation changes: We critically assessed the changes between the draft external valuation report subject to Director review, and the final external valuation report including tie through to the financial statements, to ensure changes were appropriately substantiated. - Assessed transparency: We assessed whether the group's disclosure about the sensitivity of the valuation of investment properties to changes in key assumptions adequately reflect the related risks We performed the detailed tests above rather than seeking to rely on any of the Group's controls because our knowledge of the design of these controls indicated that we would not be able to obtain the required evidence to support reliance on controls. ## Our results - We found the valuation of investment properties, and investment properties under construction and the disclosure of the associated level of uncertainty to be acceptable (2024: acceptable). --- Annual Report and Accounts 2025 Big Yellow Group PLC # Independent Auditor's Report continued | | The risk | Our response | | --- | --- | --- | | Recoverability of amounts owed by Group undertakings (Parent company only) | Low risk, high value: The carrying amount of amounts owed by Group undertakings represents 94% [2024: 95%] of the company's total assets at 31 March 2025. | We performed the tests below rather than seeking to rely on any of the parent Company's controls because the nature of the balance is such that we would expect to obtain audit evidence primarily through the detailed procedures described. | | £697.2 million; [2024: £765.4 million] | Their recoverability is not at a high risk of material misstatement or subject to significant judgement. However, due to their materiality in the context of the parent Company financial statements, this is considered to be the area that had the greatest effect on our overall parent Company audit. | Our procedures included: - Tests of detail: We assessed 100% of amounts owed by Group undertakings to identify, with reference to the relevant debtors' balance sheet, whether they have a positive net asset value and therefore coverage of the debt owed, as well as assessing whether those debtors' companies have historically been profit making. | | Refer to page 149 (accounting policy) and page 184 (financial disclosures). | | Our results - We found the conclusion that there is no impairment of the amounts owed by Group undertakings balance to be acceptable [2024: acceptable] | --- Annual Report and Accounts 2025 Big Yellow Group PLC 133 # 3. Our application of materiality and an overview of the scope of our audit Materiality for the Group financial statements as a whole was set at £22.4 million (2024: £20.4 million), determined with reference to a benchmark of total assets of which it represents 0.74% (2024: 0.70%). Materiality for the parent Company financial statements as a whole was set at £7.9 million (2024: £8.4 million), determined with reference to a benchmark of Company total assets, of which it represents 1% (2024: 1%). In line with our audit methodology, our procedures on individual account balances and disclosures were performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account balances add up to a material amount across the financial statements as a whole. Performance materiality was set at 75% (2024: 75%) of materiality for the financial statements as a whole, which equates to £16.8 million (2024: £15.3 million) for the Group and £5.92 million (2024: £6.3 million) for the parent Company. We applied this percentage in our determination of performance materiality because we did not identify any factors indicating an elevated level of risk. We agreed to report to the Audit Committee any corrected or uncorrected identified misstatements exceeding £1.12 million (2024: £1 million) and in addition to other identified misstatements that warranted reporting on qualitative grounds. In addition, we applied a materiality of £4.9 million (2024: £4.7 million) to Revenue, Cost of Sales, Admin Expenses, Finance costs, Trade receivables, Cash, Deferred Income (part of account caption accruals and deferred income), trade payables and other payables (2024: all balances and classes of transactions impacting adjusted profit before tax as reconciled to profit before tax in note 10 of the financial statements) for which we believe misstatement of a lesser amount than materiality for the financial statements as a whole could be reasonably expected to influence the Company's members' assessment of the financial performance of the Group. In relation to these balances, we applied performance materiality of £3.67 million (2024: £3.5 million) and we agreed to report to the Audit Committee any corrected or uncorrected identified misstatements exceeding £245k (2024: £230k), in addition to other identified misstatements that warranted reporting on qualitative grounds. # Impact of controls on our audit We identified the finance system and the billing system to be the main IT systems relevant to our audit. We didn't plan to rely on general IT controls having considered the efficiency and effectiveness of approaches to gaining the appropriate audit evidence in the context of the nature of the organisation and balances, and considering control deficiencies identified. We tested operating effectiveness and placed reliance on manual controls in some areas of the audit such as cash. However, as we did not rely on IT controls we performed substantive procedures over journals and revenue. A direct testing approach was taken to assessing the completeness and reliability of system information used in those manual controls and where we performed substantive procedures that utilised data from the IT systems. In the other areas of the audit a fully substantive approach was performed. # Overview of the scope of our audit The Group team performed the audit of the Group as a single component. The audit was performed using the materiality and performance materiality levels set out above. ![img-190.jpeg](img-190.jpeg) ![img-191.jpeg](img-191.jpeg) ![img-192.jpeg](img-192.jpeg) ![img-193.jpeg](img-193.jpeg) ![img-194.jpeg](img-194.jpeg) --- Annual Report and Accounts 2025 Big Yellow Group PLC # Independent Auditor's Report continued ## 4. The impact of climate change on our audit In planning our audit, we have considered the potential impact of risks arising from Group's business and its financial statements. Further information is provided in the Group's strategic report (pages 49 to 56), the environmental, social and governance report (pages 58 to 74) and the corporate governance report (pages 83 to 89) which have been incorporated into the 2025 Annual Report. Climate change risks and opportunities have had a limited impact on the Group. As part of our audit we performed a risk assessment of the impact of climate change risk on the Group's Financial statements and our audit approach. This included making enquiries to understand management's assessment of the potential impact of climate change risk on the Group's financial statements including their risk assessment process. We also read the climate related information in the front half of the Annual Report and considered consistency with the financial statements and our audit knowledge. On the basis of our risk assessment, we concluded that the risk of climate change to the financial statements was not significant when we considered the nature of the assets and relevant contractual terms. As a result, there was no material impact from this on our key audit matters. ## 5. Going concern The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the Company or to cease their operations, and as they have concluded that the Group's and the Company's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least 18 months from the date of approval of the financial statements ("the going concern period"). We used our knowledge of the Group, its industry, and the general economic environment to identify the inherent risks to its business model and analysed how those risks might affect the Group's and Company's financial resources or ability to continue operations over the going concern period. The risk that we considered most likely to adversely affect the Group's and Company's available financial resources and metrics relevant to debt covenants over this period were: - The impact of macro economic trends on customer activity, particularly customer occupancy rates. We considered whether this risk could plausibly affect the liquidity and covenant compliance in the going concern period by assessing the Directors' sensitivities over the level of available financial resources and covenant thresholds indicated by the Group's financial forecasts taking account of severe, but plausible adverse effects that could arise from this risk individually and collectively. ## Our procedures also included: - Critically assessing assumptions in base case and downside scenarios relevant to covenant metrics, in particular in relation to customer performance (namely occupancy rates and net rent levels) by comparing to historical trends in severe economic situations and overlaying knowledge of the entity's trading performance to date, historical accuracy in budgeting and our knowledge of the entity and the sector in which it operates. - We inspected confirmations from the lender on the level of committed financing, the associated covenant requirements and restrictions on the use of funds. - We have challenged the Directors' assessment of the refinancing of loans due for expiry within the going concern period and considered the liquidity of the Group in a severe but plausible downside should no new facilities be obtained. - We considered whether the going concern disclosure in note 2 to the financial statements gives a full and accurate description of the Directors' assessment of going concern, including the identified risks, dependencies, and related sensitivities. Our conclusions based on this work: - we consider that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate; - we have not identified, and concur with the directors' assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Group or Company's ability to continue as a going concern for the going concern period; - we have nothing material to add or draw attention to in relation to the Directors' statement in note 2 to the financial statements on the use of the going concern basis of accounting with no material uncertainties that may cast significant doubt over the Group and Company's use of that basis for the going concern period, and we found the going concern disclosure in note 2 to be acceptable; and - the related statement under the UK Listing Rules set out on pages 48 to 49 is materially consistent with the financial statements and our audit knowledge. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Group or the Company will continue in operation. --- Annual Report and Accounts 2025 Big Yellow Group PLC 135 # 6. Fraud and breaches of laws and regulations – ability to detect ## Identifying and responding to risks of material misstatement due to fraud To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: - Enquiring of Directors, the audit committee, and the store compliance function and inspection of policy documentation as to the Group's high-level policies and procedures to prevent and detect fraud, including the Group's channel for "whistleblowing", as well as whether they have knowledge of any actual, suspected or alleged fraud. - Inspecting Board and audit committee minutes. - Considering remuneration incentive schemes and performance targets for directors and management including the adjusted EPS target, LTIP scheme (long term incentive plan), SAYE scheme (employee share save scheme) and deferred bonus plan. - Using analytical procedures to identify any unusual or unexpected relationships. We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that Group management may be in a position to make inappropriate accounting entries and the risk of bias in accounting estimates and judgements such as the valuation of investment property and investment property under construction. On this audit we do not believe there is a fraud risk related to revenue recognition because there are limited judgemental aspects to the Group's low value, high volume revenue streams. We did not identify any additional fraud risks. We performed procedures including: - Identified journal entries to test based on high risk criteria and obtained and corroborated supporting documentation for the identified entries. These included those posted to the investment property and investment property under construction account, those posted to seldom used accounts, those with narrative containing certain key words, those posted to the cash and borrowings and unexpected revenue and expense pairings. - Assessed whether the judgements made in making accounting estimates are indicative of a potential bias including assessing fair value of investment property and investment property under construction for bias. ## Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the Directors and other management (as required by auditing standards) and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations. As the Group is regulated, our assessment of the risks involved gaining an understanding of the control environment including the entity's procedures for complying with regulatory requirements. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation, Real Estate Investment Trust (REIT) legislation and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, anti-bribery, employment law, data protection laws, building safety legislation and certain aspects of company legislation recognising the financial and regulated nature of the Company's activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. ## Context of the ability of the audit to detect fraud or breaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Independent Auditor's Report continued ## 7. We have nothing to report on the other information in the Annual Report The Directors are responsible for the other information presented in the Annual Report together with the financial statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work we have not identified material misstatements in the other information. ## Strategic report and Directors' report Based solely on our work on the other information: - we have not identified material misstatements in the strategic report and the Directors' report; - in our opinion the information given in those reports for the financial year is consistent with the financial statements; and - in our opinion those reports have been prepared in accordance with the Companies Act 2006. ## Directors' remuneration report In our opinion the part of the Directors' Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006. ## Disclosures of emerging and principal risks and longer-term viability We are required to perform procedures to identify whether there is a material inconsistency between the Directors' disclosures in respect of emerging and principal risks and the viability statement, and the financial statements and our audit knowledge. Based on those procedures, we have nothing material to add or draw attention to in relation to: - the Directors' confirmation within the Viability Statement on page 49 that they 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 and liquidity; - The principal risks and uncertainties disclosures describing these risks and how emerging risks are identified, and explaining how they are being managed and mitigated; and - the Directors' explanation in the Viability Statement of how they have assessed the prospects of the Group, over what period they have done so and why they considered that period to be appropriate, and their statement as to whether they have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions. We are also required to review the Viability Statement, set out on page 49 under the UK Listing Rules. Based on the above procedures, we have concluded that the above disclosures are materially consistent with the financial statements and our audit knowledge. Our work is limited to assessing these matters in the context of only the knowledge acquired during our financial statements audit. As we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of anything to report on these statements is not a guarantee as to the Group's and parent Company's longer-term viability. ## Corporate governance disclosures We are required to perform procedures to identify whether there is a material inconsistency between the directors' corporate governance disclosures and the financial statements and our audit knowledge. Based on those procedures, we have concluded that each of the following is materially consistent with the financial statements and our audit knowledge: - the Directors' statement that they consider that the annual report and financial statements taken as a whole is fair, balanced and understandable, and provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy; - the section of the annual report describing the work of the Audit Committee, including the significant issues that the audit committee considered in relation to the financial statements, and how these issues were addressed; and - the section of the annual report that describes the review of the effectiveness of the Group's risk management and internal control systems. We are required to review the part of the Corporate Governance Statement relating to the Group's compliance with the provisions of the UK Corporate Governance Code specified by the UK Listing Rules for our review. We have nothing to report in this respect. --- Annual Report and Accounts 2025 Big Yellow Group PLC 137 # 8. We have nothing to report on the other matters on which we are required to report by exception. Under the Companies Act 2006, we are required to report to you if, in our opinion: - adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent Company financial statements and the part of the Directors' Remuneration Report to be audited are not in agreement with the accounting records and returns; or - certain disclosures of Directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. We have nothing to report in these respects. # 9. Respective responsibilities ## Directors' responsibilities As explained more fully in their statement set out on page 129, the Directors are responsible for: the preparation of the financial statements including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Group and parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. ## Auditor's responsibilities Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC's website at www.frc.org.uk/auditorsresponsibilities. The Company is required to include these financial statements in an annual financial report prepared under Disclosure Guidance and Transparency Rule 4.1.17R and 4.1.18R. This auditor's report provides no assurance over whether the annual financial report has been prepared in accordance with those requirements. # 10. The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Anna Jones (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 2 Forbury Place 33 Forbury Road Reading RG1 3AD 19 May 2025 --- Annual Report and Accounts 2025 Big Yellow Group PLC # Consolidated Statement of Comprehensive Income Year ended 31 March 2025 | | Note | 2025 £000 | 2024 £000 | | --- | --- | --- | --- | | Revenue | 3 | 204,495 | 199,619 | | Cost of sales | | (62,126) | (55,994) | | Gross profit | | 142,369 | 143,625 | | Administrative expenses | | (15,763) | (15,219) | | Operating profit before fair value changes on property assets | | 126,606 | 128,406 | | Gain on the revaluation of investment properties | 14a,15 | 79,667 | 131,159 | | Gain on disposal of non-current asset | 14a | 8,754 | - | | Operating profit | | 215,027 | 259,565 | | Other income | 3 | 4,047 | 6,517 | | Investment income | 7 | 161 | 45 | | - fair value movement on derivatives | | 547 | - | | Finance costs | 8 | (15,928) | (22,946) | | - fair value movement on derivatives | 8 | - | (2,146) | | Profit before taxation | | 203,854 | 241,035 | | Taxation | 9 | (1,963) | (1,202) | | Profit for the year (attributable to equity shareholders) | 5 | 201,891 | 239,833 | | Total comprehensive income for the year (attributable to equity shareholders) | | 201,891 | 239,833 | | Basic earnings per share | 12 | 103.2p | 127.1p | | Diluted earnings per share | 12 | 102.8p | 126.4p | Adjusted earnings per share are shown in Note 12. All items in the statement of comprehensive income relate to continuing operations. The accompanying notes on pages 142 to 186 form part of the financial statements. --- Annual Report and Accounts 2025 Big Yellow Group PLC 139 # Consolidated Balance Sheet 31 March 2025 | | Note | 2025 £000 | 2024* £000 | | --- | --- | --- | --- | | Non-current assets | | | | | Investment property | 14a | 2,807,535 | 2,718,525 | | Investment property under construction | 14a | 185,225 | 146,485 | | Right-of-use assets | 14a | 15,651 | 17,152 | | Plant, equipment, and owner-occupied property | 14b | 3,813 | 3,870 | | Intangible assets | 14c | 1,433 | 1,433 | | Investment | 14d | 588 | 588 | | | | 3,014,245 | 2,888,053 | | Current assets | | | | | Inventories | | 437 | 486 | | Trade and other receivables | 16 | 5,822 | 4,873 | | Cash and cash equivalents | | 8,765 | 9,356 | | | | 15,024 | 14,715 | | Total assets | | 3,029,269 | 2,902,768 | | Current liabilities | | | | | Trade and other payables | 17 | (52,109) | (44,153) | | Borrowings | 19 | (3,483) | (3,317) | | Obligations under lease liabilities | 21 | (1,857) | (2,253) | | | | (57,449) | (49,723) | | Non-current liabilities | | | | | Borrowings | 19 | (389,769) | (386,371) | | Obligations under lease liabilities | 21 | (15,222) | (16,474) | | Derivative financial instruments | 18c | (1,283) | (1,830) | | | | (406,274) | (404,675) | | Total liabilities | | (463,723) | (454,398) | | Net assets | | 2,565,546 | 2,448,370 | | Equity | | | | | Share capital | 22 | 19,671 | 19,620 | | Share premium account | | 398,444 | 397,686 | | Reserves | | 2,147,431 | 2,031,064 | | Equity shareholders' funds | | 2,565,546 | 2,448,370 | The financial statements were approved by the Board of Directors and authorised for issue on 19 May 2025. They were signed on its behalf by Jim Gibson     John Trotman Director                                                 Director Company Registration No. 03625199 The accompanying notes on pages 142 to 186 form part of the financial statements. * two balances have been netted down in the prior year balance sheet, see notes 16 and 17. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Consolidated Statement of Changes in Equity Year ended 31 March 2025 | | 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 2024 | 19,620 | 397,686 | 74,950 | 1,795 | 1,955,316 | [997] | 2,448,370 | | Total comprehensive income for the year | – | – | – | – | 201,891 | – | 201,891 | | Issue of share capital | 51 | 758 | – | – | – | – | 809 | | Dividend | – | – | – | – | [88,379] | – | [88,379] | | Use of own shares to satisfy share options | – | – | – | – | [198] | 198 | – | | Credit to equity for equity-settled share-based payments | – | – | – | – | 2,855 | – | 2,855 | | At 31 March 2025 | 19,671 | 398,444 | 74,950 | 1,795 | 2,071,485 | [799] | 2,565,546 | 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 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 accompanying notes on pages 142 to 186 form part of the financial statements. --- Annual Report and Accounts 2025 Big Yellow Group PLC 141 # Consolidated Cash Flow Statement Year ended 31 March 2025 | | Note | 2025 £000 | 2024 £000 | | --- | --- | --- | --- | | Cash generated from operations | 26 | 134,623 | 129,826 | | Bank interest paid | | (21,657) | (24,069) | | Interest on obligations under lease liabilities | | (557) | (575) | | Interest received | | 142 | 45 | | Loss of income insurance proceeds | | 4,047 | 1,561 | | Tax paid | | (2,024) | (1,996) | | Cash flows from operating activities | | 114,574 | 104,792 | | Investing activities | | | | | Purchase of non-current assets | | (58,258) | (30,910) | | Disposal of non-current asset | | 30,591 | 5,400 | | Insurance proceeds on fit-out | | - | 4,722 | | Cash flows from investing activities | | (27,667) | (20,788) | | Financing activities | | | | | Issue of share capital | | 809 | 108,022 | | Payment of lease liabilities | | (1,816) | (1,829) | | Equity dividends paid | | (88,542) | (85,259) | | Loan arrangement fees paid | | (632) | (3,752) | | Increase/(decrease) in borrowings | 26b | 2,683 | (100,159) | | Cash flows used in financing activities | | (87,498) | (82,977) | | Net (decrease)/increase in cash and cash equivalents | | (591) | 1,027 | | Opening cash and cash equivalents | | 9,356 | 8,329 | | Closing cash and cash equivalents | | 8,765 | 9,356 | The accompanying notes on pages 142 to 186 form part of the financial statements. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 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 on pages 18 to 30. ## 2. Significant accounting policies ### Basis of preparation of financial statements The Group financial statements have been prepared in accordance with UK-adopted international accounting standards. The Group financial statements consolidate those of the Company and its subsidiaries [together referred to as the "Group"]. The accounting policies adopted are consistent with those of the previous financial year. The financial statements are presented in Sterling, being the currency of the primary economic environment in which the Group operates. Unless otherwise stated, figures are rounded to the nearest thousand. The Company has adopted the following new accounting standards in these financial statements: **Amendments to IAS 1** [Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants] from 1 January 2024. The amendments apply retrospectively. The Amendments clarify certain requirements for determining whether a liability should be classified as current or non-current and require new disclosures for non-current loan liabilities that are subject to covenants within 12 months after the reporting period. There has been no material impact on the financial statements of adopting this standard. **Amendments to IFRS 16** [Lease Liability in a Sale and Leaseback] from 1 January 2024. The amendments apply retrospectively. The Amendments require a seller-lessee to include variable lease payments when it measures a lease liability arising from a sale-and-leaseback transaction. Subsequent to initial recognition, the seller-lessee is required to apply the general requirements for subsequent accounting of the lease liability such that it recognises no gain or loss relating to the right of use it retains. There has been no material impact on the financial statements of adopting this standard. **Amendments to IAS 7 and IFRS 7** [Supplier Finance Arrangements] from 1 January 2024. The amendments introduce new disclosures to help users of the financial statements to assess the effects of supplier finance arrangements on an entity's liabilities, cash flows and liquidity risk. There has been no material impact on the financial statements of adopting this standard. With the exception of IFRS 18 – Presentation and Disclosure in Financial Statements, new accounting standards, amendments to standards and IFRIC interpretations which have been published but are not yet effective, were either not relevant or are not expected to have a material impact on the Group's results or net assets. IFRS 18 introduces new requirements for the presentation and disclosure of information in financial statements, pending UK endorsement. The standard will influence how information is reported, particularly in the income statement, and may also affect the level of detail disclosed in the notes to the financial statements. The Group is currently evaluating the impact of the standard which applies for accounting periods beginning on, or after, 1 January 2027 and will apply to comparative information. --- Annual Report and Accounts 2025 Big Yellow Group PLC 143 ## 2. Significant accounting policies continued ### Basis of accounting The financial statements have been prepared on the historical cost basis, except for the revaluation of investment properties and derivative financial instruments. Historical cost is generally based on the fair value of the consideration given in exchange for the assets. The principal accounting policies adopted, which have been applied consistently to the results, other gains and losses, assets, liabilities, and cash flows of entities included in the consolidated financial statements in the current and preceding year, are set out below: ### 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 2025 the Group had available liquidity of approximately £184 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 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 2025, had cash flow from operating activities [after net finance costs and pre-working capital movements] of £111.9 million, with capital commitments at the balance sheet date of £77.5 million. The Group has net current liabilities at the balance sheet date and draws on its Revolving Credit Facility [current headroom of £175 million] as required, as it is inefficient for the Group to hold significant amounts of cash. 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 2026 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 impact of rising inflation. 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 2. Significant accounting policies continued ### Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company made up to 31 March each year. Control is achieved where the Company has the power to direct the relevant activities of an investee entity so as to obtain benefits from its activities. The Group consolidates the financial results and balance sheets of Big Yellow Group PLC and all of its subsidiaries at the year-end using acquisition accounting principles. All intra-group transactions, balances, income, and expenses are eliminated on consolidation. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. The results of subsidiaries acquired or disposed of during the year are included in the statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate. The acquisition of subsidiaries is accounted for using the acquisition method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Any costs directly attributable to the business combination are recognised in the statement of comprehensive income. The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations, which are recognised and measured at the lower of their carrying amount and fair value less costs to sell (excluding investment property which is measured at fair value). ### Intangible assets Intangible assets acquired in a business combination and recognised separately from goodwill are initially recognised at their fair value at their acquisition date (which is typically regarded as their cost). Subsequent to their initial recognition, intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses. Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period with the effect of any changes in estimate being accounted for on a prospective basis. --- Annual Report and Accounts 2025 Big Yellow Group PLC 145 ## 2. Significant accounting policies continued ### Revenue recognition Revenue represents amounts derived from the provision of services which fall within the Group's ordinary activities after deduction of trade discounts and any applicable value added tax. Self storage income is recognised over the period for which the storage room is occupied by the customer on a straight-line basis. Any future revenue is recognised as deferred income at the balance sheet date. The opening offer discount of 50% off for up to 8 weeks is spread evenly over the term of the discount period. Other storage related income comprises: - packing material sales are recognised at the point of sale, as there is no further ongoing performance obligation beyond the point of sale; and - enhanced liability service income which is recognised on a straight-line basis over the period a customer occupies their room. The Group recognises ELS income as a principal, as the ELS contract is between the Group and the customer. Under the Group's ELS policy, routine customer claims (with an individual customer limit of £100,000) under the policy are settled by the Group directly, but in the event of a major loss, the Group has third party insurance in place which will pay the aggregate customer claims to the extent that they exceed £250,000. The Group recognises non-storage income, which is principally rental income from tenants of properties awaiting development, on a straight-line basis over the period in which it is earned. ### Borrowings Interest-bearing loans and overdrafts are initially measured at fair value, net of direct issue costs. Premiums payable on settlement or redemption and direct issue costs are accounted for on an accruals basis in the statement of comprehensive income using the effective interest rate method and are added to the carrying value amount of the instrument to the extent that they are not settled in the period in which they arise. Borrowings are subsequently held at amortised cost. ### Finance costs and income All borrowing costs are recognised in the statement of comprehensive income in the period in which they are incurred, unless the costs are incurred as part of the development of a qualifying asset, when they will be capitalised. Commencement of capitalisation is the date when the Group incurs expenditure for the qualifying asset, incurs borrowing costs and undertakes activities that are necessary to prepare the assets for their intended use when it is probable that they will result in future economic benefits to the entity and the costs can be measured reliably. In the case of suspension of activities during extended periods, the Group suspends capitalisation. The Group ceases capitalisation of borrowing costs when substantially all of the activities necessary to prepare the asset for use are complete, typically when a store opens. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount. The Group classifies finance costs and income as operating cash flow in the cash flow statement. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 2. Significant accounting policies continued ### Debt modification A change in debt carried at amortised cost that is considered substantial is accounted for as an extinguishment, which means that the original debt is derecognised, with any gain or loss recorded in the statement of comprehensive income, and a new financial liability recorded based on the new terms. If the change is not considered to be substantial (substantial is defined as a change in the net present value of the cash flows of more than 10%), the original debt remains on the books and any modification gain or loss arising will be recognised in the statement of comprehensive income. ### Operating profit Operating profit is stated after gains and losses on surplus land, movements on the revaluation of investment properties and before the share of results of associates, investment income and finance costs. ### Taxation The Group is a REIT and as a result 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 tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from the net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary differences arise from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates substantively enacted at the balance sheet date that are expected to apply in the period when the liability is settled, or the asset is realised. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, and when the deferred tax assets and liabilities have been levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities on a net basis or to realise the assets and settle the liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. --- Annual Report and Accounts 2025 Big Yellow Group PLC 147 ## 2. Significant accounting policies continued ### Leases The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the following: - fixed payments, including in-substance fixed payments; - variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; - amounts expected to be payable under a residual value guarantee; and - the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension, or termination option. Where the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. ### Alternative Performance Measures (APMs) 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 refinancing costs and insurance proceeds on the fit-out of stores. 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 2. Significant accounting policies continued ### Plant, equipment, and owner occupied property All property, plant, and equipment, not classified as investment property, is carried at historic cost less depreciation and any recognised impairment loss. Depreciation is charged so as to write off the cost or valuation of assets, other than land and investment properties, less any residual value over their estimated useful lives, using the straight-line method, on the following bases: | Freehold property | 50 years | | --- | --- | | Leasehold improvements | over period of the lease | | Plant and machinery | 10 years | | Motor vehicles | 4 years | | Fixtures and fittings | 5 years | | Computer equipment | 3 to 5 years | The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of comprehensive income. ### Investment property The criteria used to distinguish investment property from owner-occupied property is to consider whether the property is held for rental income and/or for capital appreciation. Where this is the case, the Group recognises these owned or leased properties as investment properties. Investment property is initially recognised at cost and revalued at the balance sheet date to fair value as determined by professionally qualified external valuers. In accordance with IAS 40, investment property held as a leasehold is stated gross of the recognised right-of-use liability. Gains or losses arising from the changes in fair value of investment property are included in the statement of comprehensive income for the period in which they arise. In accordance with IAS 40, as the Group uses the fair value model, no depreciation is provided in respect of investment properties including integral plant. Leasehold properties are classified as investment properties and included in the balance sheet at fair value. The obligation to the lessor for the buildings element of the leasehold is included in the balance sheet at the present value of the minimum lease payments at inception and is shown within note 21. Note 21 does also include leases which are not classified as investment properties. When the Group redevelops an existing investment property for continued future use as investment property, the property remains an investment property measured at fair value and is not reclassified. ### Investment property under construction Investment property under construction is initially recognised at cost and revalued at the balance sheet date to fair value as determined by professionally qualified external valuers. Gains or losses arising from the changes in fair value of investment property under construction are included in the statement of comprehensive income in the period in which they arise. --- Annual Report and Accounts 2025 Big Yellow Group PLC 149 ## 2. Significant accounting policies continued ### Impairment of assets At each balance sheet date, the Group reviews the carrying amounts of its assets (excluding investment property and derivative financial instruments which are carried at fair value) to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). The recoverable amount is the higher of an asset's net selling price and its value-in-use (i.e. the net present value of its future cash flows discounted at the Group's average pre-tax interest rate that reflects the borrowing costs and risk for the asset). ### Inventories Inventories, representing the cost of packing materials, are stated at the lower of cost and net realisable value. ### Financial instruments Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument. Financial assets at fair value through profit and loss ("FVTPL") are stated at fair value, with any gains or losses arising on re-measurement recognised in the statement of comprehensive income. The net gain or loss recognised in the statement of comprehensive income incorporates any dividend or interest earned on the financial asset and is included in the 'other gains and losses' line item in the statement of comprehensive income. ### A – Derivative financial instruments The Group's activities expose it primarily to the financial risks of interest rates. The Group uses interest rate swap contracts to hedge these exposures. The Group does not use derivative financial instruments for speculative purposes. The use of financial derivatives is governed by the Group's policies approved by the Board of Directors. The policy in respect of interest rates is to maintain a balance between flexibility and the hedging of interest rate risk. Derivatives are initially recognised at fair value and are subsequently reviewed at each balance sheet date. The fair value of interest rate derivatives at the reporting date is determined by discounting the future cash flows using the forward curves at the reporting date and the credit risk inherent in the contract. Changes in the fair value of derivative financial instruments are recognised in the statement of comprehensive income as they arise. The Group has not adopted hedge accounting. ### B – Financial assets Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price. On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 2. Significant accounting policies continued A financial asset is measured at amortised cost if it meets both of the following conditions: - it is held within a business model whose objective is to hold assets to collect contractual cash flows; and - its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A debt investment is measured at FVOCI if it meets both of the following conditions: - it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and - its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment's fair value in OCI. This election is made on an investment-by-investment basis. All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. ## Subsequent measurement and gains and losses Financial assets at FVTPL – these assets (other than derivatives designated as hedging instruments) are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Financial assets at amortised cost – these assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. Debt investments at FVOCI – these assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. Equity investments at FVOCI – these assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. ## C – Impairment of financial assets Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses ("ECLs"). When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment and including forward-looking information. The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in full. --- Annual Report and Accounts 2025 Big Yellow Group PLC 151 ## 2. Significant accounting policies continued ### Measurement of ECLs ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset. ### Write-offs The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. ### D – Cash and cash equivalents Cash and cash equivalents comprises cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. The carrying amounts of these assets approximate to the fair value. ### E – Financial liabilities and equity Financial instruments issued by the Company are treated as equity only to the extent that they meet the following two conditions: a) they include no contractual obligations upon the Company to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the Company; and b) where the instrument will or may be settled in the Company's own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the Company's own equity instruments or is a derivative that will be settled by the Company exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments. To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the Company's own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares. Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. ### Retirement benefit costs Pension costs represent contributions payable to defined contribution schemes and are charged as an expense to the statement of comprehensive income as they fall due. The assets of the schemes are held separately from those of the Group. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 2. Significant accounting policies continued ### Share-based payments The Group issues equity-settled share-based payments to certain employees. These are measured at fair value at the date of grant. The fair value determined at the grant date of the share-based payment is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest. Fair value is measured by use of the Black-Scholes model and excludes the effect of non-market-based vesting conditions. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations. At each balance sheet date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is recovered in the statement of comprehensive income such that the cumulative expense reflects the revised estimate with a corresponding adjustment to equity reserves. For cash-settled share-based payments, a liability is recognised for the goods or services acquired, measured initially at the fair value of the liability. At each balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is re-measured, with any changes in fair value recognised in the statement of comprehensive income for the year. ### Climate change In preparing the financial statements, the Directors have considered the impact of climate change, particularly in the context of the climate change risks identified in the Sustainability section of the Strategic Report and the Group's stated target of a 70% reduction in Scope 1 and 2 emissions against the 2019/20 baseline by 2032. These considerations did not have a material impact on the financial reporting judgements and estimates in the current year. This reflects the conclusion that climate change is not expected to have a significant impact on the Group's short-term or medium-term cash flows including those considered in the going concern and viability assessments, the valuation of the Group's investment property portfolio, the carrying value of non-current assets and the estimates of future profitability used in our assessment of the recoverability of deferred tax assets. ### Critical accounting estimates and judgements In the application of the Group's accounting policies, which are described above, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. ### Estimate of fair value of Investment Properties and Investment Property under Construction [critical accounting estimate] The Group's self storage centres and stores under development are valued using a discounted cash flow methodology which is based on projections of net operating income. The Group employs expert external valuers, JLL, who report on the values of the Group's stores on an annual basis. The principal assumptions underlying the estimation of the fair value are those related to: stabilised occupancy levels; expected future growth in storage rents; capitalisation rates; and discount rates. For investment property under construction, the Group estimates the total costs to complete the construction of each store based on its latest assessment of costs for each development, which is based off the most recent market evidence the Group obtains from tender returns and discussion with key suppliers. JLL also consider climate change in their valuations, and the impacts that this could have on each of the Group's investment properties. A more detailed explanation of the background and methodology adopted in the valuation of the Group's investment properties is set out in note 15 to the financial statements. The Directors have also considered a number of other judgements made in the preparation of the financial statements. The Directors have concluded that there are not significant levels of judgements involved. --- Annual Report and Accounts 2025 Big Yellow Group PLC 153 # 3. Revenue Analysis of the Group's operating revenue can be found below and in the Portfolio Summary on page 31. | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Open stores | | | | Self storage income | 177,823 | 173,147 | | Enhanced liability service income | 18,563 | 17,649 | | Packing materials income | 2,815 | 2,854 | | Other income from storage customers | 2,285 | 2,051 | | Ancillary store rental income | 1,638 | 1,411 | | Total store revenue | 203,124 | 197,112 | | Non-storage income | 1,371 | 2,507 | | Total revenue | 204,495 | 199,619 | Non-storage income derives principally from rental income earned from tenants of properties awaiting development. The Group has also earned other income of £4.0 million in the year (2024: £6.5 million). This relates to insurance proceeds for loss of income following the destruction of the Group's Cheadle store by fire in 2022, with the claim having been settled with the insurers in the current year (2024: £1.8 million). This has been included in the Group's adjusted profit before tax for the year as it is current period earnings, and the income the insurance proceeds are replacing would have also been included in the Group's adjusted profit before tax for the year. The balance of £4.7 million in the prior year is the insurance proceeds for the fit-out of the Cheadle store. The Group has considered IFRS 17 in respect of our sale of the Enhanced Liability Service, and concluded any impact from IFRS 17 would be immaterial. # 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 5. Profit for the year a) Profit for the year has been arrived at after charging/(crediting): | | Note | 2025 £000 | 2024 £000 | | --- | --- | --- | --- | | Depreciation of plant, equipment, and owner-occupied property | 14b | 837 | 864 | | Depreciation of interest in leasehold properties | | 1,624 | 1,707 | | Gain on the revaluation of investment property | | (79,667) | (131,159) | | Cost of inventories recognised as an expense | | 1,310 | 1,411 | | Employee costs | 6 | 25,826 | 25,250 | b) Analysis of auditor's remuneration: | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Fees payable to the Company's auditor for the audit of the Company's annual accounts | 587 | 539 | | Fess payable to the Company's auditor for the subsidiaries' annual accounts | 54 | 54 | | Total audit fees | 641 | 593 | | Audit related assurance services – interim review | 65 | 64 | | Total non-audit fees | 65 | 64 | | Total audit and non-audit fees paid to KPMG LLP | 706 | 657 | ## 6. Employee costs The average monthly number of full-time equivalent employees (including Executive Directors) was: | | 2025 Number | 2024 Number | | --- | --- | --- | | Sales | 396 | 402 | | Administration | 63 | 62 | | | 459 | 464 | At 31 March 2025 the total number of Group employees was 485 (2024: 503). The average number of employees for the year was 496 (2024: 504). | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Their aggregate remuneration comprised: | | | | Wages and salaries | 19,138 | 18,647 | | Social security costs | 2,981 | 1,692 | | Other pension costs | 852 | 829 | | Share-based payments | 2,855 | 4,082 | | | 25,826 | 25,250 | Details of Directors' Remuneration is given on pages 96 to 119. The Directors are the employees assessed as key management personnel. --- Annual Report and Accounts 2025 Big Yellow Group PLC 155 # 7. Investment income | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Bank interest receivable | 161 | 45 | | Fair value movement on derivatives | 547 | – | | Total investment income | 708 | 45 | # 8. Finance costs | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Interest on bank borrowings | 23,269 | 25,624 | | Capitalised interest | (7,898) | (3,254) | | Interest on obligations under lease liabilities | 557 | 575 | | Other interest payable | – | 1 | | Total interest payable | 15,928 | 22,946 | | Fair value movement on derivatives | – | 2,146 | | Total finance costs | 15,928 | 25,092 | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 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. | UK current tax | 2025 £000 | 2024 £000 | | --- | --- | --- | | - Current year | 2,504 | 2,270 | | - Prior year | (541) | (1,068) | | | 1,963 | 1,202 | A reconciliation of the tax charge is shown below: | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Profit before tax | 203,854 | 241,035 | | Tax charge at 25% (2024 – 25%) thereon | 50,964 | 60,259 | | Effects of: | | | | Revaluation of investment properties | (19,917) | (32,790) | | Other permanent differences | (8) | 111 | | Utilisation of brought forward losses | - | (284) | | Profits from the tax-exempt business | (28,535) | (25,026) | | Current year tax charge | 2,504 | 2,270 | | Prior year adjustment | (541) | (1,068) | | Total tax charge | 1,963 | 1,202 | 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 2024 was £0.5 million lower than had been provided in the accounts (2024: £1.1 million lower). At 31 March 2025 the Group has unutilised tax losses from the non-REIT taxable business of £34.2 million (2024: £33.1 million) available for offset against certain types of future taxable profits. All losses can be carried forward indefinitely. The losses have not been recognised as a deferred tax asset, as there is no certainty over their future use. ## 10. Adjusted profit | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Profit before tax | 203,854 | 241,035 | | Gain on revaluation of investment properties | (79,667) | (131,159) | | Gain on disposal of non-current asset | (8,754) | - | | Change in fair value of interest rate derivatives | (547) | 2,146 | | EPRA adjusted profit before tax | 114,886 | 112,022 | | Cheadle fit-out insurance proceeds | - | (4,723) | | Costs associated with closure of Slough leasehold store | 694 | - | | Adjusted profit before tax | 115,580 | 107,299 | | Tax | (1,963) | (1,202) | | Adjusted profit after tax | 113,617 | 106,097 | Adjusted profit before tax which excludes gains and losses on the revaluation of investment properties, changes in fair value of interest rate derivatives, net gains and losses on disposal of investment property, and material non-recurring items of income and expenditure have been disclosed as, in the Board's view, this provides a clearer understanding of the Group's underlying trading performance. --- Annual Report and Accounts 2025 Big Yellow Group PLC 157 # 11. Dividends | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Amounts recognised as distributions to equity holders in the year: | | | | Final dividend for the year ended 31 March 2024 of 22.6p [2023: 22.9p] per share. | 44,135 | 41,939 | | Interim dividend for the year ended 31 March 2025 of 22.6p [2024: 22.6p] per share. | 44,244 | 44,074 | | | 88,379 | 86,013 | | Proposed final dividend for the year ended 31 March 2025 of 23.8p [2024: 22.6p] per share. | 46,608 | 44,135 | Subject to approval by shareholders at the Annual General Meeting to be held on 17 July 2025, the final dividend will be paid on 25 July 2025. The ex-div date is 3 July 2025 and the record date is 4 July 2025. The Property Income Distribution ("PID") payable for the year is 46.4 pence per share (2024: 45.2 pence per share). # 12. Earnings per share | | Year ended 31 March 2025 | | | Year ended 31 March 2024 | | | | --- | --- | --- | --- | --- | --- | --- | | | Earnings £m | Shares million | Pence per share | Earnings £m | Shares million | Pence per share | | Basic | 201.9 | 195.6 | 103.2 | 239.8 | 188.7 | 127.1 | | Dilutive share options | - | 0.8 | (0.4) | - | 1.1 | (0.7) | | Diluted | 201.9 | 196.4 | 102.8 | 239.8 | 189.8 | 126.4 | | Adjustments: | | | | | | | | Gain on revaluation of investment properties | (79.7) | - | (40.6) | (131.2) | - | (69.1) | | Gain on disposal of non-current asset | (8.7) | - | (4.5) | - | - | - | | Change in fair value of interest rate derivatives | (0.6) | - | (0.3) | 2.2 | - | 1.1 | | EPRA earnings | 112.9 | 196.4 | 57.4 | 110.8 | 189.8 | 58.4 | | Cheadle fit-out insurance proceeds | - | - | - | (4.7) | - | (2.5) | | Costs associated with closure of Slough leasehold store | 0.7 | - | 0.4 | - | - | - | | Adjusted – diluted | 113.6 | 196.4 | 57.8 | 106.1 | 189.8 | 55.9 | | Adjusted – basic | 113.6 | 195.6 | 58.1 | 106.1 | 188.7 | 56.2 | 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. EPRA earnings and adjusted earnings per ordinary share have been disclosed to give a clearer understanding of the Group's underlying trading performance. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 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 2025 | | | Year ended 31 March 2024 | | | | --- | --- | --- | --- | --- | --- | --- | | | Equity attributable to ordinary shareholders £000 | Shares £000 | Pence per share £000 | Equity attributable to ordinary shareholders £000 | Shares £000 | Pence per share £000 | | Basic NAV | 2,565,546 | 195,833,336 | 1,310.1 | 2,448,370 | 195,096,601 | 1,255.0 | | Share and save as you earn schemes | 584 | 2,022,198 | (13.6) | 2,019 | 2,515,556 | (15.0) | | Diluted NAV | 2,566,130 | 197,855,534 | 1,297.0 | 2,450,389 | 197,612,157 | 1,240.0 | | Fair value of derivatives | 1,283 | - | 0.6 | 1,830 | - | 0.9 | | Intangible assets | (1,433) | - | (0.7) | (1,433) | - | (0.7) | | EPRA NTA | 2,565,980 | 197,855,534 | 1,296.9 | 2,450,786 | 197,612,157 | 1,240.2 | | Valuation methodology assumption (see note 15) (£000) | 116,110 | - | 58.7 | 111,095 | - | 56.2 | | Adjusted NAV | 2,682,090 | 197,855,534 | 1,355.6 | 2,561,881 | 197,612,157 | 1,296.4 | --- Annual Report and Accounts 2025 Big Yellow Group PLC 159 # 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 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 | 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 | | Additions | 14,955 | 55,280 | 101 | 70,336 | | Transfer on opening | 17,394 | (17,394) | – | – | | Disposal | (22,152) | – | (112) | (22,264) | | Revaluation (see note 15) | 78,813 | 854 | – | 79,667 | | Depreciation | – | – | (1,490) | (1,490) | | At 31 March 2025 | 2,807,535 | 185,225 | 15,651 | 3,008,411 | 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 £72.3 million (2024: £78.4 million) is included within the investment property total. The transfer on opening during the year is our Slough Farnham Road store moving from investment property under construction to investment property. The disposal in the prior year is the proceeds from a land swap transaction at our Kings Cross store realising the Group £5.4 million. The disposal of investment property in the current year was the sale of land adjacent to our Battersea store for £30.9 million for residential development. The gain on disposal of non-current assets is shown in the comprehensive statement of income and has been excluded from the Group's adjusted profit before tax for the year. 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 on page 31. Included within additions is £7.9 million of capitalised interest (2024: £3.3 million), calculated at the Group's average borrowing cost for the year of 5.7%. 96 of the Group's investment properties are pledged as security for loans, with a total external value of £2.39 billion. The difference between additions to investment property above and the purchase of non-current assets in the cash flow statement is principally due to capitalised interest of £7,898,000 and payables relating to our construction programme at the balance sheet date of £4,104,000. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 14. Non-current assets continued b) Plant, equipment, and owner-occupied property | | Freehold property £000 | Leasehold improvements £000 | Plant and machinery £000 | Motor vehicles £000 | Fixtures, fittings & office equipment £000 | Right of use assets £000 | Total £000 | | --- | --- | --- | --- | --- | --- | --- | --- | | Cost | | | | | | | | | 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 | | Retirement of fully depreciated assets | - | - | [98] | [32] | [560] | - | [690] | | Additions | 80 | - | 79 | 40 | 722 | - | 921 | | Disposals | - | - | [7] | - | [15] | - | [22] | | At 31 March 2025 | 2,449 | 59 | 743 | 40 | 1,668 | 1,006 | 5,965 | | Depreciation | | | | | | | | | 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] | | Retirement of fully depreciated assets | - | - | 98 | 32 | 560 | - | 690 | | Charge for the year | [51] | [3] | [176] | [6] | [601] | [134] | [971] | | Disposals | - | - | 4 | - | 11 | - | 15 | | At 31 March 2025 | [783] | [27] | [332] | [6] | [313] | [691] | [2,152] | | Net book value | | | | | | | | | At 31 March 2025 | 1,666 | 32 | 411 | 34 | 1,355 | 315 | 3,813 | | At 31 March 2024 | 1,637 | 35 | 511 | - | 1,238 | 449 | 3,870 | ## 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC 161 # 15. Valuation of investment property | | Deemed cost £000 | Revaluation on deemed cost £000 | Valuation £000 | | --- | --- | --- | --- | | Freehold (including long leasehold) | | | | | At 31 March 2024 | 1,078,305 | 1,608,045 | 2,686,350 | | Transfer from investment property under construction | 18,681 | (1,287) | 17,394 | | Disposals | (22,152) | - | (22,152) | | Movement in year | 14,741 | 88,302 | 103,043 | | At 31 March 2025 | 1,089,575 | 1,695,060 | 2,784,635 | | Leasehold | | | | | At 31 March 2024 | 20,898 | 11,277 | 32,175 | | Movement in year | 214 | (9,489) | (9,275) | | At 31 March 2025 | 21,112 | 1,788 | 22,900 | | Total investment property | | | | | At 31 March 2024 | 1,099,203 | 1,619,322 | 2,718,525 | | Transfer from investment property under construction | 18,681 | (1,287) | 17,394 | | Disposals | (22,152) | - | (22,152) | | Movement in year | 14,955 | 78,813 | 93,768 | | At 31 March 2025 | 1,110,687 | 1,696,848 | 2,807,535 | | Investment property under construction | | | | | At 31 March 2024 | 178,761 | (32,276) | 146,485 | | Transfer to investment property | (18,681) | 1,287 | (17,394) | | Movement in year | 55,280 | 854 | 56,134 | | At 31 March 2025 | 215,360 | (30,135) | 185,225 | | Valuation of all investment property | | | | | At 31 March 2024 | 1,277,964 | 1,587,046 | 2,865,010 | | Disposals | (22,152) | - | (22,152) | | Movement in year | 70,235 | 79,667 | 149,902 | | At 31 March 2025 | 1,326,047 | 1,666,713 | 2,992,760 | 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 2025 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 fourth 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 15. Valuation of investment property continued 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 2025 averages 87% (31 March 2024: 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 2.3% per annum (2024: 2.5% 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 5.0% (31 March 2024: 5.2%). The weighted average exit capitalisation rate adopted (for both freeholds and leaseholds) is 5.2% (31 March 2024: 5.4%). 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 6.7% (31 March 2024: 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 five short leasehold properties is 11.4 years (31 March 2024: 10.4 years unexpired). --- Annual Report and Accounts 2025 Big Yellow Group PLC 163 # 15. Valuation of investment property continued ## Sensitivities As noted in 'Significant judgements and key estimates' on page 152, 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 could 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 | | 2025 | 4.9% | (4.5%) | 1.0% | (1.1%) | | 2024 | 4.8% | (4.4%) | 0.9% | (1.0%) | 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 could 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. Three 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 £218.2 million (2024: £214.4 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 2025 of £3,108.9 million (£116.1 million higher than the value recorded in the financial statements) translating to 58.7 pence per share. We have included this revised valuation in the adjusted diluted net asset calculation (see note 13). ## Valuer rotation On 19 October 2023 the RICS published guidelines on a new time-limited, mandatory rotation cycle for regulated purposes valuations. Rules are effective from 1 May 2024, and require, after a two-year transition period, a valuation firm to be rotated after 10 consecutive years of valuing a given asset. These guidelines match our existing voluntary policy of 10 yearly valuation rotation, therefore our planned valuer rotation cycle remains unchanged. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 16. Trade and other receivables | | 31 March 2025 £000 | 31 March 2024* £000 | | --- | --- | --- | | Current | | | | Trade receivables | 1,580 | 1,007 | | Other receivables | 505 | 312 | | Prepayments and accrued income | 3,737 | 3,554 | | | 5,822 | 4,873 | * – the prior year trade receivables balance has been reduced by £5,243,000 with an equal adjustment to deferred income to remove amounts that relate to post year end activity. Trade receivables are net of a bad debt provision of £622,000 [2024: £579,000]. 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 national customer, 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 £771,000 [2024: £782,000] 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 15 days past due [2024: 18 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 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: --- Annual Report and Accounts 2025 Big Yellow Group PLC 165 # 16. Trade and other receivables continued | Year ended 31 March 2025 | Not past due | <31 days | 31-45 days | >45 days | Total | | --- | --- | --- | --- | --- | --- | | Expected credit loss rate [%] | 2.0% | 33.5% | 34.7% | 50.0% | 28.2% | | Gross carrying amount [£000] | 814 | 468 | 72 | 848 | 2,202 | | Lifetime ECL [£000] | [16] | [157] | [25] | [424] | [622] | | Net trade receivables at 31 March 2025 | 798 | 311 | 47 | 424 | 1,580 | | Year ended 31 March 2024 | Not past due | <31 days | 31-45 days | >45 days | Total | | Expected credit loss rate [%] | 3.3% | 43.3% | 25.4% | 52.8% | 36.5% | | Gross carrying amount [£000] [restated] | 457 | 155 | 63 | 911 | 1,586 | | Lifetime ECL [£000] | [15] | [67] | [16] | [481] | [579] | | Net trade receivables at 31 March 2024 | 442 | 88 | 47 | 430 | 1,007 | 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 | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Balance at the beginning of the year | 579 | 1,070 | | Amounts provided/[released] in year | 326 | [192] | | Amounts written off as uncollectible | [283] | [299] | | Balance at the end of the year | 622 | 579 | 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 2025 £000 | 31 March 2024* £000 | | --- | --- | --- | | Current | | | | Trade payables | 9,006 | 2,437 | | Other payables | 14,624 | 18,166 | | Accruals and deferred income | 28,479 | 23,550 | | | 52,109 | 44,153 | * – the prior year deferred income balance has been reduced by £5,243,000 with an equal adjustment to trade receivables to remove amounts that relate to post year end activity. 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 Group's deferred income balance at 31 March 2025 was £13.1 million, an increase of 5% from 31 March 2024 (£12.5 million). Within trade payables is £4,104,000 of invoices relating to the Group's construction programme (2024: £394,000). --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 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: | | 2025 £000 | 2024 £000 | | --- | --- | --- | | Debt | (397,451) | (394,768) | | Cash and cash equivalents | 8,765 | 9,356 | | Net debt | (388,686) | (385,412) | | Balance sheet equity | 2,565,546 | 2,448,370 | | Net debt to equity ratio | 15.2% | 15.7% | ## B. Debt management The Group currently borrows through a senior term loan, secured on 61 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC 167 # 18. Financial instruments continued At 31 March 2025 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: | | 2025 £000 | 2024 £000 | | --- | --- | --- | | At 1 April | (1,830) | 316 | | Fair value movement in the year | 547 | (2,146) | | At 31 March | (1,283) | (1,830) | 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 2024 | (394,768) | (18,727) | (1,830) | (415,325) | | Cash movement in the year | (2,683) | 1,816 | - | (867) | | Lease variations | - | (168) | - | (168) | | Fair value movement | - | - | 547 | 547 | | At 31 March 2025 | (397,451) | (17,079) | (1,283) | (415,813) | The difference between the loans balance above and the balance sheet is loan arrangement fees of £4,199,000. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 18. Financial instruments continued | | 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. ## 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 2025, 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 £525,000 [2024: reduced adjusted profit before tax by £510,000] 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 £525,000 [2024: increased adjusted profit before tax by £510,000]. 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 increased slightly during the year, following the increase 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC 169 # 18. Financial instruments continued ## H. Financial maturity analysis In respect of interest-bearing financial liabilities, the following table provides a maturity analysis for individual elements. | 2025 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 | 152,451 | 3,483 | 3,658 | 145,310 | – | | 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 | 125,000 | – | – | 125,000 | – | | Total | 397,451 | 3,483 | 3,658 | 390,310 | – | | 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 | ## 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 18. Financial instruments continued ### 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: | 2025 | 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 | – | – | – | 20,315 | 20,315 | | From two to five years | – | [485] | 429,640 | 3,067 | 432,222 | | From one to two years | – | [232] | 28,528 | 1,878 | 30,174 | | Due after more than one year | – | [717] | 458,168 | 25,260 | 482,711 | | Due within one year | 23,630 | [131] | 23,465 | 1,878 | 48,842 | | Total | 23,630 | [848] | 481,633 | 27,138 | 531,553 | | 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 | --- Annual Report and Accounts 2025 Big Yellow Group PLC 171 # 18. Financial instruments continued ## 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. | 2025 | Borrowings £000 | Interest £000 | Unamortised borrowing costs £000 | Borrowings and interest £000 | | --- | --- | --- | --- | --- | | From five to twenty years | – | – | – | – | | From two to five years | 390,310 | 35,131 | 4,199 | 429,640 | | From one to two years | 3,658 | 24,870 | – | 28,528 | | Due after more than one year | 393,968 | 60,001 | 4,199 | 458,168 | | Due within one year | 3,483 | 19,982 | – | 23,465 | | Total | 397,451 | 79,983 | 4,199 | 481,633 | | 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 | | Total | 394,768 | 88,400 | 5,080 | 488,248 | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 19. Borrowings | Secured borrowings at amortised cost | 31 March 2025 £000 | 31 March 2024 £000 | | --- | --- | --- | | Current liabilities | | | | Aviva loan | 3,483 | 3,317 | | | 3,483 | 3,317 | | Non-current liabilities | | | | Bank borrowings | 125,000 | 119,000 | | Aviva loan | 148,968 | 152,451 | | M&G loan | 120,000 | 120,000 | | Unamortised loan arrangement costs | (4,199) | (5,080) | | Total non-current borrowings | 389,769 | 386,371 | | Total borrowings | 393,252 | 389,688 | The weighted average interest rate paid on the borrowings during the year was 5.7% (2024: 5.5%). The Group has £175 million in undrawn committed bank borrowing facilities at 31 March 2025, which expire after between two and three years (2024: £181 million expiring after between two and three years). The Group has a £152.5 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 £7.5 million which runs to April 2027. The Group has a secured £300 million Sustainability-linked revolving bank facility with Lloyds, HSBC and Barclays expiring in December 2027, with a margin of 1.25%. The Group has the option to extend the facility by a further one-year term 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 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 2025 and throughout the year. As stated in the going concern review, we forecast compliance with our covenants going forward. We therefore do not consider it likely that these loans would become repayable within 12 months. The principal covenants are summarised in the table below: | Covenant | Covenant level | At 31 March 2025 | | --- | --- | --- | | Consolidated EBITDA to net finance costs | Minimum 1.5x | 6.1x | | Consolidated net tangible assets | Minimum £500m | £2,565.5m | | Bank loan interest cover | Minimum 1.75x | 9.0x | | Net debt to EBITDA ratio | Maximum 8x | 3.1x | | Aviva loan interest service cover ratio | Minimum 1.5x | 6.4x | | Aviva loan debt service cover ratio | Minimum 1.2x | 3.9x | | M&G interest cover | Minimum 1.5x | 2.8x | 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC 173 # 19. Borrowings continued Interest rate profile of financial liabilities | | Total £000 | Floating rate £000 | Fixed rate £000 | Weighted average interest rate £000 | Period for which the rate is fixed £000 | Weighted average period until maturity £000 | | --- | --- | --- | --- | --- | --- | --- | | At 31 March 2025 | | | | | | | | Gross financial liabilities | 397,451 | 210,000 | 187,451 | 5.0% | 3.6 years | 3.5 years | | At 31 March 2024 | | | | | | | | Gross financial liabilities | 394,768 | 204,000 | 190,768 | 5.4% | 4.6 years | 4.2 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 £0.2 million (2024: £0.1 million), corporation tax losses £6.5 million (2024: £6.2 million), capital allowances in excess of depreciation £0.1 million (2024: £0.1 million) and capital losses £2.1 million (2024: £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 | | | --- | --- | --- | --- | --- | | | 2025 £000 | 2024 £000 | 2025 £000 | 2024 £000 | | Amounts payable under lease liabilities: | | | | | | Within one year | 1,878 | 2,279 | 1,857 | 2,253 | | Between one and five years inclusive | 4,945 | 5,526 | 4,533 | 5,112 | | Greater than five years | 20,315 | 20,784 | 10,689 | 11,362 | | | 27,138 | 28,589 | 17,079 | 18,727 | | Less: future finance charges | (10,059) | (9,862) | | | | Present value of lease liabilities | 17,079 | 18,727 | | | 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 22. Share capital | | Called up, allotted, and fully paid | | | --- | --- | --- | | | 2025 £000 | 2024 £000 | | Ordinary shares of 10 pence each | 19,671 | 19,620 | | Movement in issued share capital | | | | 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 | | Exercise of share options – Share option schemes | | 519,409 | | Number of shares at 31 March 2025 | | 196,714,696 | 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 2025 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 2025 | Number of ordinary shares 2024 | | --- | --- | --- | --- | --- | --- | --- | | 21 July 2015 | nil p | LTIP | 21 July 2018 | 21 July 2025 | 239 | 989 | | 22 July 2016 | nil p | LTIP | 22 July 2019 | 21 July 2026 | 1,415 | 1,415 | | 2 August 2017 | nil p | LTIP | 2 August 2020 | 2 August 2027 | 2,320 | 9,217 | | 24 July 2018 | nil p | LTIP | 24 July 2021 | 24 July 2028 | 1,552 | 53,697 | | 19 July 2019 | nil p | LTIP | 19 July 2022 | 19 July 2029 | 16,824 | 148,587 | | 5 August 2020 | nil p | LTIP | 5 August 2023 | 5 August 2030 | 101,814 | 189,504 | | 1 March 2021 | 903.2p | SAYE | 1 April 2024 | 1 October 2024 | - | 77,395 | | 22 July 2021 | nil p | LTIP | 22 July 2024 | 22 July 2031 | 130,662 | 285,440 | | 21 July 2022 | nil p | LTIP | 21 July 2025 | 21 July 2032 | 412,863 | 425,523 | | 8 August 2022 | 1060.3p | SAYE | 1 September 2025 | 1 March 2026 | 45,660 | 57,665 | | 20 July 2023 | nil p | LTIP | 20 July 2026 | 19 July 2033 | 570,838 | 590,931 | | 1 August 2023 | 891.5p | SAYE | 1 September 2026 | 1 March 2027 | 65,553 | 79,382 | | 18 July 2024 | nil p | LTIP | 18 July 2027 | 17 July 2034 | 548,499 | - | | 10 July 2024 | 945.1p | SAYE | 1 September 2027 | 1 March 2028 | 80,726 | - | | | | | | | 1,978,965 | 1,919,745 | ## 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. 881,360 shares are held in the Employee Benefit Trust (2024: 1,098,686), and no shares are held in treasury. --- Annual Report and Accounts 2025 Big Yellow Group PLC 175 ## 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 £2,855,000 (2024: £4,082,000). ## 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 on page 112 of the Remuneration Report. The weighted average share price at the date of exercise for options exercised in the year was £12.60 (2024: £10.77). | LTIP scheme | 2025 No. of options | 2024 No. of options | | --- | --- | --- | | Outstanding at beginning of year | 1,705,303 | 1,350,147 | | Granted during the year | 566,193 | 678,088 | | Lapsed during the year | (41,171) | (72,932) | | Exercised during the year | (443,299) | (250,000) | | Outstanding at the end of the year | 1,787,026 | 1,705,303 | | Exercisable at the end of the year | 254,826 | 403,409 | The weighted average fair value of options granted during the year was £1,708,000 (2024: £1,564,000). Participants pay the nominal value of the shares when exercising options under the LTIP scheme. Options outstanding at 31 March 2025 had a weighted average contractual life of 8.0 years (2024: 7.8 years). Strategic Report Governance Report Financial Statements --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 23. Share-based payments continued | Employee Share Save Scheme ("SAYE") | 2025 No. of options | 2025 Weighted average exercise price (£) | 2024 No. of options | 2024 Weighted average exercise price (£) | | --- | --- | --- | --- | --- | | Outstanding at beginning of year | 214,442 | £9.41 | 196,661 | 9.71 | | Granted during the year | 86,354 | £9.45 | 82,656 | 8.91 | | Forfeited during the year | (32,747) | £9.63 | (25,773) | 9.99 | | Exercised during the year | (76,110) | £9.01 | (39,102) | 9.47 | | Outstanding at the end of the year | 191,939 | £9.54 | 214,442 | 9.41 | | Exercisable at the end of the year | – | – | – | – | Options outstanding at 31 March 2025 had a weighted average contractual life of 2.0 years (2024: 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 | 26% | | Expected life | 3 years | 3 years | | Risk-free rate | 0% | 4.08 | | Expected dividends | 4.1% | 5.5% | 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 2025 the Group had £77.5 million of amounts contracted but not provided in respect of the Group's properties (2024: £3.9 million of capital commitments). ## 25. Events after the balance sheet date In April 2025 the Group acquired a development site in Coventry for £2.5 million. --- Annual Report and Accounts 2025 Big Yellow Group PLC 177 ## 26. Cash flow notes ### a) Reconciliation of profit after tax to cash generated from operations | | Note | 2025 £000 | 2024 £000 | | --- | --- | --- | --- | | Profit after tax | | 201,891 | 239,833 | | Taxation | | 1,963 | 1,202 | | Other income | 3 | [4,047] | [6,517] | | Investment income | | [708] | [45] | | Finance costs | | 15,928 | 25,092 | | Operating profit | | 215,027 | 259,565 | | Gain on the revaluation of investment properties | 14a, 15 | [79,667] | [131,159] | | Gain on disposal of non-current asset | 14a | [8,754] | – | | Depreciation of plant, equipment, and owner-occupied property | 14b | 837 | 864 | | Depreciation of right-of-use assets | 14a,14b | 1,701 | 1,734 | | Employee share options | 6 | 2,855 | 4,082 | | Cash generated from operations pre working capital movements | | 131,999 | 135,086 | | Decrease in inventories | | 49 | 10 | | Increase in receivables | | [1,024] | [1,650] | | Increase/(decrease) in payables | | 3,599 | [3,620] | | Cash generated from operations | | 134,623 | 129,826 | ### b) Reconciliation of net cash flow movement to net debt | | Note | 2025 £000 | 2024 £000 | | --- | --- | --- | --- | | Net (decrease)/increase in cash and cash equivalents in the year | | [591] | 1,027 | | Cash flow from (increase)/decrease in debt financing¹ | | [2,683] | 100,159 | | Change in net debt resulting from cash flows | | [3,274] | 101,186 | | Movement in net debt in the year | | [3,274] | 101,186 | | Net debt at the start of the year | | [385,412] | [486,598] | | Net debt at the end of the year | 18A | [388,686] | [385,412] | ¹) Made up of a net increase of £6.0 million in the RCF facility and repayments of the Aviva facility of £3.3 million [2024: Made up of a net decrease of £97.0 million in the RCF facility and repayments of the Aviva facility of £3.2 million]. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 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. ## Key management personnel remuneration Key management personnel are made up of our Executive and Non-Executive Directors, and the Group's C00. The remuneration of the key management personnel of the Group, is set out below in aggregate. Further information on the remuneration of individual Directors is found in the audited part of the Directors' Remuneration Report on pages 108 to 114. | | 31 March 2025 £000 | 31 March 2024 £000 | | --- | --- | --- | | Short term employee benefits | 2,146 | 1,959 | | Post-employment benefits | 99 | 90 | | Share-based payments | 1,836 | 2,267 | | | 4,081 | 4,316 | ## 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 £25,000 (2024: £17,000). At 31 March 2025 a balance of £3,000 was included in trade payables for amounts owing to AnyJunk Limited (2024: £nil). ## 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 (2024: £4,000). The Group sponsored a London Children's Ballet development programme during the year, amounting to £8,000 (2024: £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 £358,000 (2024: £319,000). At 31 March 2025 a balance of £nil was included in trade payables for amounts owing to DSOC (2024: £95,000). ## 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 (2024: £2,000). At 31 March 2025 and 31 March 2024 there were no amounts included in trade payables for amounts owing to Treepoints Limited. ## Ukrainian Sponsorship Pathway UK Nicholas Vetch and Heather Savory are trustees of a charity called 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. In the prior year the Board approved a donation of £50,000 (2025: £nil). In the current year, the Group has provided free office space to USPUK worth £10,000 (2024: £nil). ## Landmark Trust and Ruth Strauss Foundation Dr Anna Keay is the CEO of the Landmark Trust and Vince Niblett is a Trustee of the Ruth Strauss Foundation. During the year the Company provided free storage to the Landmark Trust and the Ruth Strauss Foundation with a total value of £10,000 (2024: £9,000). No other related party transactions took place during the years ended 31 March 2025 and 31 March 2024. --- Annual Report and Accounts 2025 Big Yellow Group PLC 179 # Company Balance Sheet Year ended 31 March 2025 | | Note | 2025 £000 | 2024 £000 | | --- | --- | --- | --- | | Non-current assets | | | | | Plant, equipment, and owner-occupied property | 30a | 1,534 | 1,608 | | Investment in subsidiary companies | 30b | 42,022 | 39,167 | | Amounts owed by Group undertakings | 31 | 697,204 | 765,420 | | | | 740,760 | 806,195 | | Current assets | | | | | Trade and other receivables | 31 | 962 | 912 | | Cash and cash equivalents | | 1 | 1 | | | | 963 | 913 | | Total assets | | 741,723 | 807,108 | | Current liabilities | | | | | Trade and other payables | 32a | (7,303) | (7,680) | | Amounts owed to Group undertakings | 32a | (15,683) | (43,068) | | Obligations under lease liabilities | | (16) | (30) | | | | (23,002) | (50,778) | | Non-current liabilities | | | | | Obligations under lease liabilities | | - | (16) | | Bank borrowings | 32b | (121,948) | (115,359) | | | | (121,948) | (115,375) | | Total liabilities | | (144,950) | (166,153) | | Net assets | | 596,773 | 640,955 | | Equity | | | | | Share capital | 22 | 19,671 | 19,620 | | Share premium account | | 398,444 | 397,686 | | Reserves | 28 | 178,658 | 223,649 | | Equity shareholders' funds | | 596,773 | 640,955 | The Company reported a gain for the financial year ended 31 March 2025 of £40.5 million (2024: loss of £0.9 million). The financial statements and the income statement were approved by the Board of Directors and authorised for issue on 19 May 2025. They were signed on its behalf by: Jim Gibson John Trotman Director Director Company Registration No. 03625199 The accompanying notes form part of the financial statements. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Company Statement of Changes in Equity Year ended 31 March 2025 | | 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 2024 | 19,620 | 397,686 | 74,950 | 1,795 | 147,901 | [997] | 640,955 | | Total comprehensive gain for the year | – | – | – | – | 40,533 | – | 40,533 | | Issue of share capital | 51 | 758 | – | – | – | – | 809 | | Dividend | – | – | – | – | [88,379] | – | [88,379] | | Use of own shares to satisfy share options | – | – | – | – | [198] | 198 | – | | Credit to equity for equity-settled share-based payments | – | – | – | – | 2,855 | – | 2,855 | | At 31 March 2025 | 19,671 | 398,444 | 74,950 | 1,795 | 102,712 | [799] | 596,773 | The Company's share capital is disclosed in note 22. The own shares balance represents amounts held by the Employee Benefit Trust (see note 22). 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 | 230,735 | [1,019] | 615,745 | | Total comprehensive loss for the year | – | – | – | – | [881] | – | [881] | | 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 | 147,901 | [997] | 640,955 | The accompanying notes form part of the financial statements. --- Annual Report and Accounts 2025 Big Yellow Group PLC 181 ## 28. Gain/(loss) for the year As permitted by section 408 of the Companies Act 2006, the statement of comprehensive income of the Company is not presented as part of these financial statements. The gain for the year attributable to equity shareholders dealt with in the financial statements of the Company was £40.5 million (2024: loss of £0.9 million). ## 29. Basis of accounting These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework ("FRS 101"). In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted international accounting standards ("Adopted IFRSs"), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken: - Cash Flow Statement and related notes; - Comparative period reconciliations for plant, equipment and owner-occupied property and investment properties; - Disclosures in respect of transactions with wholly owned subsidiaries; - Disclosures in respect of capital management; - The effects of new but not yet effective IFRSs; and - Disclosures in respect of the compensation of Key Management Personnel. As the consolidated financial statements include the equivalent disclosures, the Company has also taken the exemptions under FRS 101 available in respect of the following disclosures: - IFRS 2 Share-Based Payments in respect of group settled share-based payments; and - Certain disclosures required by IFRS 13 Fair Value Measurement and the disclosures required by IFRS 7 Financial Instrument Disclosures. The financial statements have been prepared on the historic cost basis except that derivative financial instruments are stated at fair value. The Company's principal accounting policies are the same as those applied in the Group financial statements. The parent Company financial statements present information about the Company as a separate entity and not about its Group. ## Going concern See note 2 for the review of going concern for the Group and the Company. ## Investment in subsidiaries These are recognised at cost less provision for any impairment. ## Bank borrowings This is the Revolving Credit Facility Loan which is held by the Company. Please see note 19 for further information. ## IFRIC 11, IFRS 2 Group and Treasury Share Transactions The Company makes equity settled share-based payments to certain employees of certain subsidiary undertakings. Equity settled share-based payments that are made to the employees of the Company's subsidiaries are treated as increases in equity over the vesting period of the award, with a corresponding increase in the Company's investments in subsidiaries, based on an estimate of the number of shares that will eventually vest. This is the only addition to investment in subsidiaries in the current year. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 30. Non-current assets a) Plant, equipment, and owner-occupied property | | Freehold property £000 | Leasehold improvements £000 | Fixtures, fittings & office equipment £000 | Right-of-use assets £000 | Total £000 | | --- | --- | --- | --- | --- | --- | | Cost | | | | | | | At 31 March 2024 | 2,243 | 46 | 9 | 177 | 2,475 | | Additions | – | – | – | – | – | | At 31 March 2025 | 2,243 | 46 | 9 | 177 | 2,475 | | Accumulated depreciation | | | | | | | At 31 March 2024 | [723] | [9] | [4] | [131] | [867] | | Charge for the year | [45] | [1] | [1] | [27] | [74] | | At 31 March 2025 | [768] | [10] | [5] | [158] | [941] | | Net book value | | | | | | | At 31 March 2025 | 1,475 | 36 | 4 | 19 | 1,534 | | At 31 March 2024 | 1,520 | 37 | 5 | 46 | 1,608 | b) Investments in subsidiary companies | | Investment in subsidiary undertakings £000 | | --- | --- | | Cost | | | At 31 March 2024 | 39,167 | | Additions | 2,855 | | At 31 March 2025 | 42,022 | The additions in the year relate to the capitalisation of share-based payments in accordance with IFRS 2. The Directors assessed the carrying value of the investment in subsidiary undertakings for indicators of impairment. There were no indications of impairment. --- Annual Report and Accounts 2025 Big Yellow Group PLC 183 # 30. Non-current assets continued The Group's subsidiaries are all wholly-owned, the Group holds 100% of the voting power and the companies are incorporated, registered, and operate in England and Wales. The registered office of all subsidiaries is 2 The Deans, Bridge Road, Bagshot, Surrey, GU19 5AT. All subsidiaries are included in the consolidated accounts. The subsidiaries at 31 March 2025 are listed below: | Name of subsidiary | Principal activity | | --- | --- | | Apollo Self Storage Limited | Self storage | | Armadillo Self Storage Limited | Self storage | | Armadillo Self Storage 2 Limited | Self storage | | Armadillo Storage Holding Company Limited | Dormant | | Armadillo Storage Holding Company 2 Limited | Dormant | | Armadillo Storage One Limited | Holding Company | | .Big Yellow Self Storage {GP} Limited | General Partner | | .Big Yellow Self Storage Company Limited | Self storage | | Big Yellow {Battersea} Limited | Self storage | | The Big Yellow Construction Company Limited | Construction management | | The Big Yellow Holding Company Limited | Dormant | | Big Yellow Limited Partnership | Self storage | | Big Yellow Nominee No. 1 Limited | Dormant | | Big Yellow Nominee No.2 Limited | Dormant | | Big Yellow Self Storage Company 1 Limited | Dormant | | Big Yellow Self Storage Company 2 Limited | Dormant | | Big Yellow Self Storage Company 3 Limited | Dormant | | Big Yellow Self Storage Company 4 Limited | Dormant | | Big Yellow Self Storage Company A Limited | Self storage | | Big Yellow Self Storage Company M Limited | Self storage | | Big Yellow [Wapping 2] Limited | Self storage | | BYRCO Limited | Property management | | BYSSCO A Limited | Dormant | | BYSSCO Limited | Self storage | | The Last Mile Company Limited | Holding Company | | Quickstore Storage Limited | Self storage | In addition, the Group has a 100% interest in Pramerica Bell Investment Trust Jersey, a trust registered in Jersey, its registered office is First Island House, Peter Street, St Helier, Jersey, Channel Islands, JE2 4SP. # Audit exemption statement All subsidiary undertakings of Big Yellow Group PLC are included in the consolidated Financial Statements of the Group. The subsidiary undertakings noted below are exempt from the Companies Act 2006 [the 'Act'] requirements relating to the audit of their individual accounts by virtue of Section 479A of the Act, as Big Yellow Group PLC has guaranteed the liabilities of them under Section 479C of the Act. The members of these companies have not required them to obtain an audit of their financial statements for the year ended 31 March 2025: | Name of subsidiary | Principal activity | | --- | --- | | Apollo Self Storage Limited | Big Yellow Nominee No.2 Limited | | Armadillo Self Storage Limited | Big Yellow Self Storage Company 1 Limited | | Armadillo Self Storage 2 Limited | Big Yellow Self Storage Company 2 Limited | | Armadillo Storage Holding Company Limited | Big Yellow Self Storage Company 3 Limited | | Armadillo Storage Holding Company 2 Limited | Big Yellow Self Storage Company 4 Limited | | Armadillo Storage One Limited | Big Yellow [Wapping 2] Limited | | .Big Yellow Self Storage {GP} Limited | BYRCO Limited | | Big Yellow {Battersea} Limited | BYSSCO Limited | | The Big Yellow Construction Company Limited | BYSSCO A Limited | | The Big Yellow Holding Company Limited | The Last Mile Company Limited | | Big Yellow Nominee No. 1 Limited | Quickstore Storage Limited | --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 30. Non-current assets continued Under paragraph 7 of SI 2008 No 569 Big Yellow Limited Partnership is exempt from the requirement under paragraph 4 of that SI to prepare their annual accounts and reports, and have them audited, on the basis that the partnership is dealt with on a consolidated basis in the consolidated financial statements of the Company. ## 31. Trade and other receivables | | 31 March 2025 £000 | 31 March 2024 £000 | | --- | --- | --- | | Non-current | | | | Amounts owed by Group undertakings | 697,204 | 765,420 | | Current | | | | Prepayments and accrued income | 962 | 912 | Amounts owed by Group undertakings are unsecured. The Company recharges its external interest cost to its subsidiaries. Amounts owed by Group undertakings have historically had immaterial levels of bad debt, and the Directors have assessed for Expected Credit Losses and concluded that it is immaterial and has therefore not been recognised. ## 32A. Trade and other payables | | 31 March 2025 £000 | 31 March 2024 £000 | | --- | --- | --- | | Current (all due within one year) | | | | Other payables | 6,936 | 7,102 | | Amounts owed to Group undertakings | 15,683 | 43,068 | | Accruals and deferred income | 367 | 578 | | | 22,986 | 50,748 | Amounts owed to Group undertakings are repayable on demand and accrues interest bi-annually at a rate of 1.25% over the Bank of England base rate during the period, based on the average outstanding balance during the period. ## 32B. Bank borrowings | | 31 March 2025 £000 | 31 March 2024 £000 | | --- | --- | --- | | Bank loan | 125,000 | 119,000 | | Unamortised loan arrangement costs | (3,052) | (3,641) | | | 121,948 | 115,359 | --- Annual Report and Accounts 2025 Big Yellow Group PLC 185 # 33. 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 store operating costs Store operating costs excluding one-off items and the operating costs of a store opened in the preceding or current financial year. ## 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 2025 this excludes Kings Cross. We previously excluded Armadillo from the like-for-like occupancy metrics but are now including these stores to show the occupancy performance of all the Group's like-for-like trading stores. ## 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 2025 this excludes Kings Cross. --- Annual Report and Accounts 2025 Big Yellow Group PLC # Notes to the Financial Statements Year ended 31 March 2025 ## 33. Glossary continued 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 Our strategy as set out in https://corporate.bigyellow.co.uk/index.php/sustainability/strategy. 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 and 2 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 2025 this excludes Kings Cross. 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 year. Store EBITDA Store earnings before interest, tax, depreciation, and amortisation, see reconciliation in the portfolio summary on page 31. 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. --- Annual Report and Accounts 2025 Big Yellow Group PLC 187 # Ten Year Summary | | 2025 £m | 2024 £m | 2023 £m | 2022 £m | 2021 £m | 2020 £m | 2019 £m | 2018 £m | 2017 £m | 2016 £m | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Results | | | | | | | | | | | | Revenue | 204.5 | 199.6 | 188.8 | 171.3 | 135.2 | 129.3 | 125.4 | 116.7 | 109.1 | 101.4 | | Operating profit before gains and losses on property assets | 126.6 | 128.4 | 120.0 | 106.6 | 81.5 | 80.0 | 76.7 | 70.9 | 65.3 | 59.9 | | Cash flow from operating activities | 114.6 | 104.8 | 112.0 | 107.1 | 76.7 | 73.6 | 72.2 | 63.0 | 55.9 | 55.5 | | Profit before taxation | 203.9 | 241.0 | 75.3 | 698.9 | 265.8 | 93.4 | 126.9 | 134.1 | 99.8 | 112.2 | | Adjusted profit before taxation | 115.6 | 107.3 | 106.0 | 96.8 | 74.6 | 71.0 | 67.5 | 61.4 | 54.6 | 49.0 | | Net assets | 2,565.5 | 2,448.4 | 2,182.4 | 2,184.4 | 1,453.9 | 1,163.9 | 1,123.9 | 981.1 | 890.4 | 829.4 | | Diluted adjusted earnings per share | 57.8p | 55.9p | 56.5p | 52.5p | 42.4p | 42.1p | 41.4p | 38.5p | 34.5p | 31.1p | | Declared total dividend per share | 46.4p | 45.2p | 45.2p | 42.0p | 34.0p | 33.8p | 33.2p | 30.8p | 27.6p | 24.9p | | Key statistics | | | | | | | | | | | | Number of stores open** | 109 | 109 | 108 | 105 | 78 | 75 | 74 | 74 | 73 | 71 | | Store MLA (000 sq ft) | 6,421 | 6,419 | 6,292 | 6,098 | 4,930 | 4,688 | 4,622 | 4,631 | 4,551 | 4,464 | | Sq ft occupied (000)** | 5,056 | 5,029 | 5,088 | 5,107 | 4,201 | 3,781 | 3,810 | 3,730 | 3,551 | 3,363 | | Occupancy (decrease)/increase in year (000 sq ft)* | 27 | (59) | (19) | 906 | 420 | (29) | 80 | 179 | 188 | 185 | | Closing net rent per sq ft** | £35.17 | £34.14 | £32.48 | £29.92 | £28.71 | £28.15 | £27.28 | £26.74 | £26.03 | £25.90 | | Number of occupied rooms** | 73,000 | 73,000 | 73,000 | 73,000 | 62,000 | 56,500 | 56,000 | 55,000 | 52,500 | 50,000 | | Average number of employees during the year** | 459 | 464 | 465 | 427 | 370 | 361 | 347 | 335 | 329 | 318 | * 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 --- Annual Report and Accounts 2025 Big Yellow Group PLC This report is printed on paper certified in accordance with the FSC® (Forest Stewardship Council®) and is recyclable and acid-free. Pureprint Ltd is FSC certified and ISO 14001 certified showing that it is committed to all round excellence and improving environmental performance is an important part of this strategy. Pureprint Ltd aims to reduce at source the effect its operations have on the environment and is committed to continual improvement, prevention of pollution and compliance with any legislation or industry standards. Pureprint Ltd is a Carbon / Neutral® Printing Company. Designed and produced by MAGEE www.magee.co.uk ![img-195.jpeg](img-195.jpeg) --- . --- Big Yellow Group PLC 2 The Deans, Bridge Road, Bagshot, Surrey GU19 5AT 01276 470190 info@bigyellow.co.uk ![img-196.jpeg](img-196.jpeg) You can access more information about us on our website bigyellow.co.uk BIC BELL STREET UKAS MANAGEMENT SYSTEMS