eKourier Oct 2015

FEATURES Great Start To The 2015/16 Financial Year W e have completed the June 2015 financial year and are well into the new financial year. Well how did we do and how are we going for 2016? The fact extra Profit Share was paid is a great indication of how 2015 went!! the Carbon Tax as well as signing an improved contract. With invoices being sent to centres through Medius it will allow Teams to monitor and manage their centre usage and costs. and Waterloo. However the expansions at Pymble, Maroochydore, Kunda Park and Wellington will improve revenue. The new centres at Mittagong and Pymble will continue to grow revenue

• Merchandise has seen a 1% improvement in the margins we make for each box sale. This is as a result of the change to WRS AMCOR targeted training and improved procedures – a great outcome from all centres. • Overall the business has improved profit margins by 1% which means every $1 of sales we generate an extra 1cent of profit. This has been achieved through revenue growth and managing costs. 2016 has got off to a cracker start with occupancy improving at most centres for July and August. • We are unlikely to see significant revenue growth from the newly acquired premises at Hawthorn, Seaford Meadows and Murarrie or the expansions at Macquarie Park, Petersham 2016 Budget

• Insurance income will be significantly improved after the changes in April 2015.

2015 Summary

• Available square metres grew 21k and Occupied square metres grew 29k, indicating we filled up more space than we have added. • This was seen in revenue which grew 10% over the prior year. • Bad debts saw a 15% increase over 2014 indicating we need to be more diligent with our delinquents. • Bank charges are 21% favourable to the prior year as a result of no AMEX charges in the current year. This was a very successful change for Kennards with minimal impact to our customers. • Electricity has shown a 9% reduction on the prior period as a result of the removal of

• Merchandise will continue to improve profitability.

• Electricity will continue to improve over 2015.

• The total profit margin is forecast to lift another 1%, this will be a great achievement.

Overall we have seen very solid growth in 2015 and this will continue in 2016.

We look forward to working with everyone to deliver great results in 2016 and continue to be part of a growing business as we strive to become a Famous Household Name .

Anthony Rous Chief Financial Officer Forget Hats Off, It’s Hair Off For The Worlds Greatest Shave! I n January this year Tony Vuong one of our Kennards Teammates and his wife Lauren found out their one year old daughter has Leukaemia.

Those diagnosed undergo very difficult treatment while their families roll through unimaginable emotions and strain. So Kennards Self Storage decided to put a Team together to raise money and participate in the World's Greatest Shave. The money raised went towards continuing work to support people with blood cancer and find better treatments and eventually a cure. The Kennards Team were able to raise $19,925 with the support of family and friends. Recently Sam Kennard (Managing Director) and wife Claire along with Tony Vuong (NSW Operations Manager) and wife Lauren were invited to an event at Government House For the World’s Greatest Shave, to be presented with a 'Top 30' Award for the companies achievements. The Kennards Team raised enough money to put them in the top 30 group in NSW. Kennards came 18th in the State. The Leukaemia Foundation work is so important; they provide practical and emotional support to people facing the challenge of blood cancer. This initiative was a modest gesture on Kennards part to help the people we know fighting this, as well as the many others fighting this and for research.

Above L to R: Claire Kennard, Sam Kennard, David Hurley (Governor for NSW) Tony Vuong and Lauren Vuong.

Above L to R: Sam Kennard, Anthony Rous, Jesse Dux and Dianne White

Sharon Dux EA to the MD

12 Kennards Kourier October 2015