1st Mar 2016 08:07
LONDON (Alliance News) - Office provider Regus PLC on Tuesday hiked its dividend for 2015 and said it was in line to meet management expectations for 2016, as it reported a rise in revenue and pretax profit in its full year results.
Regus posted a pretax profit of GBP145.7 million for 2015, up 67% from GBP87.1 million in 2014, and hiked its full year dividend by 13% to 4.5p per share from 4.0 pence in 2014.
The FTSE 250-listed business said its revenue was up 15% at GBP1.93 billion for the year ended December 31, from GBP1.68 billion in 2014.
The group's mature portfolio, which covers offices opened before December 2013, remains robust, with revenue from the portfolio up 4.3% at GBP1.63 billion for the year from GBP1.57 billion in 2014, on the back of strong growth in its Americas division, where Regus has been increasing the range of price points by expanding the number of formats being offered.
On a like-for-like basis, mature revenues from Americas rose 3.9% to GBP712.1 million from GBP660.1 million.
Regus said it continues to have a good pipeline of new openings and as of February 22 it had visibility on net capital expenditure so far for 2016 of around GBP100.0 million. It said it is currently trading in line with management expectations and remains confident of its prospects for 2016.
"We remain confident in our business model and the long-term structural drivers of our industry. We will continue to invest to increase our levels of customer service, make our business relevant to a wider market, drive greater operational efficiency and deliver long-term shareholder value," said Chief Executive Mark Dixon.
"We will continue to adhere to our strict financial criteria in executing our growth plans and remain suitably vigilant given the current global macroeconomic uncertainty, with flexibility in both our expansion plans and our cost base," Dixon added.
Shares in Regus were up 1.7% at 294.40p on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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