31st Oct 2014 08:40
LONDON (Alliance News) - Shares in Regus Group PLC were higher in early trade on Friday after the company said its financial performance remained strong in the third quarter, despite sterling impacting on its reported figures.
Regus shares were up 3.5% to 191.1 pence in early trade on Friday, making it one of the best performers in the FTSE 250.
The group said revenue in the third quarter to the end of September was GBP413.6 million, up from GBP386.6 million a year earlier, a 7% rise on a reported basis. On a constant currency basis, Regus said revenue rose 13.5%.
Revenue for the first nine months was up 15.7% on a constant currency basis but only 7.7% on actual rates, up to GBP1.2 billion against GBP1.1 billion last year.
Its mature business, which includes locations opened on or before December 31, 2012 and which makes up 65% of its portfolio, performed well on an underlying basis. Revenue was down 4.4% on actual currency rates to GBP320.8 million, though up 1.9% on a constant currency basis.
The group said that despite the impact of currency translation, its margin performance has not been impacted, with margins remaining strong and its mature business proving cash generative in the quarter.
In its new business arm, Regus said it was making strong progress against its growth targets, with GBP92.7 million in revenue produced from its new sites in the quarter.
Regus maintained its guidance for 450 new additions to its portfolio for the full year, adding it expects a a busy fourth quarter in line with the weighting of its investment plans to the second half.
The group said it retains its confidence of meeting expectations for the full year, saying its mature and new business arms are performing in line with forecasts.
By Sam Unsted; [email protected]; @SamUAtAlliance
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