7th Apr 2020 09:36
(Alliance News) - Workspace Group PLC on Tuesday said it expects a significantly lower level of cash rental income in the short term due to the Covid-19 pandemic, with around 50% of monthly and quarterly rent due at the end of March 2020 received in cash to date.
The office space provider also said that trading profit for the year to March-end will be in line with market expectations and that it is keeping its business centres open to support essential business activity in line with UK government guidelines
Shares in Workspace were up 1.9% at 692.50 pence each in London on Tuesday morning.
The FTSE 250-listed company is implementing cost reduction measures and reducing capital expenditure as part of plans to save cash in the challenging environment. It had GBP70 million cash and GBP96 million in undrawn revolving credit facilities at March-end.
CEO Graham Clemett said: "We are taking prudent steps to mitigate the impact of rent deferrals by implementing cost reduction measures and minimising capital expenditure. We have a strong balance sheet, good access to liquidity and significant headroom against our debt covenants. Our model of freehold ownership of our properties gives us the flexibility and control to respond quickly to developments in the current uncertain environment".
Workspace has decided against providing financial guidance in the short term due to ongoing uncertainty. It also has decided to evaluate its final dividend payout for financial 2020 at an appropriate time in future.
By Tapan Panchal; [email protected]
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