20th Jan 2022 10:29
(Alliance News) - Workspace Group PLC on Thursday reported a strong third quarter, despite Omicron work from home guidance that came in during December.
The London-based flexible officer provider said its third-quarter ended December 31 saw an average of 831 enquiries per month, up 24% year-on-year from 672, and 117 lettings per month, up 7.3% from 109.
Occupancy was at 87% in the quarter, up 1.0% on a like-for-like basis. Like-for-like rent per square foot was up 1.2% to GBP35.92, and the like-for-like rent roll was up 2.3% in the quarter to GBP89.3 million.
Workspace's November acquisition of The Busworks in Islington for GBP45 million contributed GBP1.4 million in rent in the quarter.
The company's business centres continued to be hit by Covid, as work from home advice brought in during December brought utilisation rates down from 55% of pre-Covid levels reached in November. It is recovering in January, currently at 43% on pre-Covid levels. Government restrictions on rent collection have not prevented the company from managing to collect 97% of rent over its first three quarters.
Workspace said it in December agreed a GBP200 million revolving three-year credit facility, with the potential to extend by two years to a total of GBP500 million.
Net debt was up by GBP43 million in its third quarter to a total of GBP575 million. Cash and undrawn facilities were GBP225 million as of December 31.
Chief Executive Graham Clemett commented: "It has been a good quarter, with continued positive momentum in occupancy and pricing. We are seeing strong demand for our space, with good levels of enquiries, viewings and lettings despite the renewed work from home guidance issued by the government in December.
"Our performance in the third quarter and early signs of trading in the fourth show that SMEs are looking through the current short-term uncertainty to choose the right space for their business longer-term. They are looking for flexible terms and attractive, sustainable office space in well-connected locations and Workspace is ideally placed to continue to capture this demand."
The UK government removed its advice to work from home in England on Wednesday.
Workspace's share price rose by 2.4% to 882.00 pence each in London on Thursday morning.
By Elizabeth Winter; [email protected]
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