13th Nov 2019 08:49
(Alliance News) - Workspace Group PLC said Wednesday its interim profit dropped due to a lower revaluation surplus and lack of profit on disposals, despite growth in net rental income.
For the six months to September 30, the FTSE 250 flexible office space provider reported pretax profit at GBP99.1 million, down 2.5% from GBP101.6 million a year before.
This was a result of Workspace making no profit on property disposals in the recent period, compared to GBP8.5 million made from such transactions the prior year, as well as a dip in revaluation gains to GBP59.6 million from GBP60.6 million.
Meanwhile, revenue grew by 12% to GBP80.2 million from GBP71.9 million, while net rental income rose by 11% to GBP60.1 million from GBP54.1 million.
As at September 30, Workspace's net asset value was GBP11.15 per share, up 3.7% from GBP10.75 the same date a year before, and 2.7% from GBP10.86 at the end of March.
The group's portfolio at the end of September held 32 properties with a total value of GBP2.68 billion, up from 30 properties at GBP2.44 billion the prior year.
Workspace declared an interim dividend of 11.67 pence per share, up 10% year-on-year from 10.61p.
"I am delighted with this strong set of results, my first as CEO. Our robust enquiry and letting levels reflect the appeal of our offering as an increasing number of occupiers look for flexible terms for their office space requirements. The 10% increase in the interim dividend we have announced today reflects our success to date and the board's continued confidence in our future growth prospects," said Chief Executive Officer Graham Clement.
Shares in Workspace Group - which is headquartered in London - were up 1.6% at 1,105.00 pence on Wednesday.
By Dayo Laniyan; [email protected]
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