29th Oct 2013 09:13
LONDON (Alliance News) - Serviced-office provider Regus PLC said Tuesday it booked a 26% increase in third-quarter revenue but expects full-year results to be impacted by the costs of its aggressive expansion programme.
Regus said turnover rose to GBP386.6 million in the quarter ended September 30 from GBP307.3 million in the same period a year before, a 25.5% growth at constant currency rates and 25.8% at actual rates.
As of September 30, Regus said it had a total of 1,687 office centres housing 288,406 workstations, including non-consolidated workstations, versus 1,605 centres and 277,216 workstations three months earlier.
Earlier, the company had expected to add at least 350 new serviced office centres this year. Having identified and completed more investment opportunities than its original anticipation, Regus said it now expects to add between 420 and 440 new centres to its network in 2013, bringing it closer to its short-term target of 2,000 centres during 2014.
Regus warned that this additional investment will impact its annual results. However, the company said this will be offset by the performance of its Mature Centre business, which Regus expects to deliver a strong result in 2013, in line with its expectations. The Mature Centres business, being office centres opened on or before December 31, 2011, posted third-quarter revenue of GBP302.9million, up 2.9% at constant currencies or 3.2% at actual exchange rates.
In order to support its expansion programme, Regus said it had extended its revolving credit facility by GBP120 million to GBP320 million, with a final maturity date of September 2017 and similar terms to its existing facility.
In morning trading Tuesday, Regus shares were trading down 5.1% at 194.40 pence.
By Tom Waite; [email protected]; @thomaslwaite
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