4th Mar 2014 10:04
LONDON (Alliance News) - Regus PLC said Tuesday full-year revenue grew 23% as the firm reports a record year of achievement, boosted by a 30% increase in the size of its global network
The serviced office accomodation provider said revenue for the year to December 31, 2013 jumped 23.3% to GBP1.53 billion from the GBP1.24 billion reported in 2012. Pretax profit saw a slight decline, down 4% to GBP81.5 million from GBP85.1 million.
Gross profit for the year was up 17% to GBP373.8 million from GBP320.7 million, while operating profit remained staedy at GBP90.8 million, notwithstanding the impact of a GBP301.1 million investment in growth and GBP7.4 million of MWB transaction adn restructuring costs, said Regus.
Regus acquired office provider, MWB, in February last year for GBP65 million. The firm said it is now fully integrated and is on track to add at least GBP15 million to group operating profit in 2014, said Regus.
Regus said it was a record year for investments, while recording strong group level peformance for the period, resulting in a 14% increase in final dividend to 2.5 pence from 2.2 pence in 2012, and a full-year increase of 13% to 3.6 pence per share from 3.2 pence, reflecting the business's strong mature performance, said the firm.
Mature business - described by Regus as centres opened on or before December 31, 2011 - is the lifeblood of Regus's business. The mature arm also recorded a year of growth, with revenues up 3.7% to GBP1.226 billion from GBP1.18 million. Gross profit of Regus's mature businesses was up 9% to GBP359.0 million from GBP328.3 million. The Mature division continues to perform well, said the firm, with occupancy remaining steady, though slightly down to 83.8% from 84.5% last year.
During the year Regus said it has invested GBP301.1 million in growth, with 448 new centres added and its network increased to 1,831 business centre locations.
Looking ahead, Mark Dixon, Chief Executive of the firm said the board remains confident in its business model and prospects for the full-year.
Dixon said that the firm is beginning to see the signs of improving market conditions, and has idenitfied the UK as one of its key growth markets, driven by companies increasing requirements for flexible working options.
Over the course of 2014, Regus plans to open at least 300 new centres, as well as increasing the number of its 'third place locations.'
Dixon said, "Current trading is good, although the strengthening of sterling in recent months will affect the transalation of our results, Notwithsatnding this, we remain confident in our business model and our prospects for the year ahead."
Regus shares dropped in early trading, and the stock sits as one of the biggest decliners on the FTSE 250 Tuesday morning, down 0.98% at 227.85 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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