17th Apr 2020 10:08
(Alliance News) - Workspace Group PLC on Friday said it will reduce rents by 50% for business centre customers for the duration of the lockdown.
The London-based flexible office space provider said that the move comes as part of steps it has taken to support customers whose businesses have been hurt due to the Covid-19 outbreak. Other steps taken include offering certain customers the option to defer a portion of their rent payments.
"This is a very challenging time for all businesses, with many suffering immediate and significant reductions in income and adverse cashflow. While the government is providing a number of options to help businesses through this period, we have also been exploring ways of supporting our customers. We appreciate that for many customers this will only be the start of a very challenging time, and it is right that we share that burden with customers," said Chief Executive Graham Clemett.
Earlier in April, Workspace said it it expects a significantly lower level of cash rental income in the short term due to the Covid-19 pandemic, adding that it would implement cost reduction measures and reduce capital expenditure as part of plans to save cash.
As at the end of March, FTSE 250-listed company had GBP70 million cash and GBP96 million in undrawn revolving credit facilities.
Workspace shares were trading 1.3% lower a 762.50 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
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