Watch this one

Finweek English Edition - - MARKETPLACE -

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.

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