Vancouver, BC / ACCESSWIRE / July 10, 2014 / Less Mess Storage Inc. ("Less Mess" or the "Company") (TSX-V: LMS) is pleased to announce that it has today filed a Form 52-102F5 - Business Acquisition Report ("BAR") respecting its purchase of a mature portfolio of self-storage businesses in Poland and the Czech Republic, which closed on April 28, 2014. The businesses acquired include freehold interests in two self-storage facilities in Warsaw, freehold interests in two self-storage facilities in Prague, and one additional leasehold interest in Prague. All five stores are centrally located storage facilities, close to the respective city centers, and built on multiple levels. The Company purchased these businesses with the understanding that revenues would exceed $4M CDN for 2013 and that they were cash flow positive. The BAR confirms that these understandings remain accurate.
The BAR's principal content is the audited combined financial statements of the five companies acquired for 12 months ending December 31, 2012 and 2013, and the auditor reviewed statements for 3 months ending March 31, 2013 and 2014. Effectively, the BAR provides audited or reviewed financials for the acquired self-storage business up until very shortly before the acquisition took place. The BAR itself is available on SEDAR (www.sedar.com).
Specific highlights from the combined financial statements of the acquired entities include:
- Total sales in 2013 were $4,176,901, representing a growth of 7.4% over 2012.
- Operating profit in 2013 was $807,426, representing a growth of 6.9% over 2012.
- Pro-forma EBITDA in 2013, eliminating former parent company costs, was $2,013,944.
Guy Pinsent, President and CEO of Less Mess, commented:
"We are delighted that the Business Acquisition Report shows that numbers for the acquired businesses are all as expected. This acquisition launched Less Mess as the largest self-storage owner and operator in Poland and the Czech Republic, two markets which we see as having huge growth potential given current near zero penetration rates. The region has a robust macroeconomic outlook, with Poland in particular, Europe's highest growth economy over the past decade, forecast to continue on her strong growth path, averaging over 3% a year.
In buying this established portfolio with significant positive cash flow, Less Mess now has a solid platform from which to expand as we build and acquire further stores. The blue-sky potential is compelling when one considers the exponential growth trajectories of self-storage in other European markets combined with the demand drivers already in place in Poland, the Czech Republic and neighboring countries. Together with the existing, experienced staff in place, the Board looks forward to growing the Company substantially."
About the Company
Less Mess Storage Inc. owns and operates the largest self-storage chain in Central and Eastern Europe, with a portfolio of five stores, two in Warsaw (both freehold) and three in Prague (two freehold, one leasehold), offering over 180,000 square feet of net lettable area. Total revenues in 2013 were over $4 million and average store occupancy was approximately 80%. The Company plans to add additional stores and rentable space in Warsaw and Prague in the future. The Company's registered and records office is located in Vancouver, British Columbia, its operations head office is located in Warsaw, Poland, and it also has offices in Prague, Czech Republic.
For further information, please refer to the Company's disclosure record on SEDAR (www.sedar.com) or contact the Company by telephone at 778.999.7030.
ON BEHALF OF THE BOARD
"Guy Pinsent"
Guy Pinsent, President and CEO
Less Mess Storage Inc.
Peter Smith
VP Corporate Development
Phone: (778) 999-7030
The Howard Group Inc. (Investor Relations)
Jeff Walker
Vice President
Phone: (888) 221-0915
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SOURCE: Less Mess Storage Inc.