3rd Jun 2021 10:34
(Alliance News) - Workspace Group PLC swung to a substantial annual loss after its office rental income was stifled by lockdown restrictions and the rise of home working, it said Thursday.
However the office-space provider noted there had been a "strong pick-up in new customer activity" in the fourth quarter and that it was experiencing continued momentum on new lettings.
The cultural shift in home working during the pandemic led to Workspace posting a pretax loss for the year ended March 31 of GBP235.7 million, compared to a GBP122.0 million profit the year before. Net rental income dropped 33% year-on-year to GBP81.5 million from GBP122.0 million.
Like-for-like occupancy at Workspace dropped to 82% but stabilised in the fourth quarter as flexible working grew in popularity. The underlying value of its property dropped to GBP2.32 billion, a 10% reduction.
"Despite the unprecedented circumstances, we have delivered a resilient performance which underlines the strength of our model, prudence of our financial strategy and enduring appeal of our flexible offer," said Chief Executive Graham Clemett.
"We are perfectly positioned to benefit from this accelerated shift in attitudes by offering businesses a home they can grow in, without having to compromise their unique identity in a furnished or serviced office, or put up with the constraints of more traditionally leased offices."
Workspace did note signs for encouragement as flexible office working habits become more normalised. Significant improvement in enquiries, viewings and lettings had been experienced in recent months, it said, now reaching pre-Covid levels. The company had seen a "strong pick-up in new customer activity" and expects to see continued momentum on new lettings going forward.
"We are seeing encouraging signs of recovery in customer demand and we have a lot to be optimistic about in the next year and beyond," said Clemett.
"We see significant opportunities for organic and inorganic growth as the economy comes back to life."
Workspace paid a total dividend per share of 17.75 pence for the year, down 51% compared to the year prior.
Shares were down 2.4% at 890.95p on Thursday in London.
By Will Paige; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Workspace