Watch this one
Stor-Age is a company I have been watching since it listed late last year as self-storage is a very different business to anything else on the JSE. The latest results from the company highlight two concerns. First, net customer growth was only 200 to 14 500 and 48% of clients stay for less than a year. The latter is to be expected but does mean huge turnover of clients and in most cases they are one-off clients. This means a constant need to find new clients and the cost associated with this. Stor-Age has good branding and, in many cases, its facilities are located in good locations, which is important. Overall, I can’t get excited about this business, but will keep an eye on it, especially as it has two acquisitions in the pipeline and with new locations being added.