19th Mar 2007 07:02
Regus Group PLC19 March 2007 19 March 2007 REGUS GROUP PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 Regus, the world's largest provider of outsourced workplace solutions, announcestoday its preliminary results for the year ended 31 December 2006. FINANCIAL HIGHLIGHTS •Revenues up by 46.8% to £680.0m - Like for like revenue growth of 9.0% •Gross profit (centre contribution) up 57.1% to £184.1m - Like for like contribution growth of 29.1% •Operating profit up 73.8% to £82.2m - Operating margin of 12.1% • Profit before tax doubled to £77.5m • Cash from operations up 70.0% to £132.8m • Basic EPS up 86.7% to 8.4p • Declaration of maiden dividend of 0.6p per share for the full year Like for Like is defined as the financial performance from centres owned andoperated at 1 January 2005. They therefore have a twelve month comparative STRATEGIC AND OPERATIONAL HIGHLIGHTS • Average available workstations increased by 36.4% to 107,257 with year end workstations of 120,108 • Average occupancy in the year increased to 81.8% with year end occupancy at 84.0% • Average Revenue Per Available Workstation (REVPAW) increased 7.6% to £6,340 • REVPAW for the mature business increased 8.5% to £6,485 • During the year, we opened 218 business centres through acquisition and organic growth bringing our total network to 790 centres at 31 December 2006. The acquisition of Regus UK accounted for 91 of these centres. • The acquisition of Managed Office Solutions has further strengthened our capabilities in the corporate outsourcing market Commenting on today's announcement Mark Dixon, Chief Executive of Regus Groupplc, said: "This has been another outstanding 12 months for the Group with record resultsfor the third year in succession. We have delivered strong, disciplined growthand improved performance in all of our key business metrics including revenues,profit and earnings per share. We have started 2007 with record levels of enquiries and a strong forward orderbook. With a healthy investment pipeline, an experienced management team and arobust infrastructure, I am confident that the Group will continue to deliverattractive rates of growth and cash generation in the year ahead." For further information, please contact: Regus Group plc Brunswick Tel: + 44 (0) 1932895135 Tel:+ 44 (0) 20 7404 5959Mark Dixon, Chief Executive Officer Simon Sporborg / Paul Scott / Stephen Gleadle, Chief Financial Officer Robert Gardener +-----------------------------------------------------------------------------+|This announcement contains certain forward looking statements with respect to||the operations of Regus. These statements and forecasts involve risk and ||uncertainty because they relate to events and depend upon circumstances that ||may or may not occur in the future. There are a number of factors that could ||cause actual results or developments to differ materially from those ||expressed or implied by these forward looking statements and forecasts. ||Nothing in this announcement should be construed as a profit forecast. |+-----------------------------------------------------------------------------+ Chairman's statement This year's results are a testament to Regus' strong business model. Operatingprofit has increased by 73.8% while at the same time we have grown the scale ofour business measured in actual available workstations by 45.4% year on year.This profitable growth and our strong cash conversion has enabled the Group tofund its expansion plans with minimal external funding. Net cash was £23.4million at 31 December 2006 (2005: £36.0 million). In an industry where size and scale are critical in order to provide customerswith the greatest range of product, service and price offerings and achieveoperating efficiencies, our network at 31 December 2006 consisted of 790 centresin 64 countries, operating under the respected Regus and HQ brands. Financial performance Group revenue has increased by 46.8% to £680.0 million and gross profit by 57.1%to £184.1 million. Excluding the impact of new centre growth the "like for like"improvement was 9.0% and 29.1% respectively. This overall result was driven byaverage occupancy increasing to 81.8% from 78.0% in 2005 and REVPAW increasing7.6% from £5,890 to £6,340. Earnings (profit after tax) grew by 83.7% to £82.3million and basic earnings per share increased by 3.9p to 8.4p. On 13 March 2006, we signed a new £100 million five-year revolving credit andletter of credit facility and in April added £50 million of term debt. Thelatter was used to finance the acquisition of the UK business. The newfacilities have been negotiated on significantly more favourable terms,reflecting the strong financial progress the business has made over the last twoyears. Sustaining growth We continue to implement our controlled and disciplined expansion strategy. Tosupplement our strong organic growth, during the financial year we acquired 28businesses for a net consideration of £88.5 million. These businesses have allbeen successfully integrated into the Regus network. In the year to 31 December 2006 our workstation capacity increased in line withour expansion plans by 45.4% to 120,108 workstations (December 2005: 82,586workstations) with the acquisition of Regus UK accounting for around 25,000workstations. Dividend Given the robust performance and positive outlook we are pleased to announcethat Regus will be paying a dividend. Subject to the approval of shareholders atthe 2007 AGM, the final dividend of 0.6p will be paid on 1 June 2007 toshareholders on the register at the close of business on 27 April 2007. The Group continues to monitor its capital structure and retains flexibility torepurchase its shares in the market place should surplus cash resources beavailable. Corporate Responsibility The Board believes that the integration of Corporate Responsibility throughoutthe business and the incorporation of broader social and environmental issuesinto day to day decision making will benefit all our key stakeholders and betterenable us to achieve our target levels of performance. This year we will set upa formal Corporate Responsibility Committee to oversee CR strategy. TheCommittee's aim is to ensure that we take a sustainable approach to business -to do the right thing for our shareholders, our customers, our suppliers, thecommunity and the world around us. We will be commissioning a series of initiatives to reduce energy consumption.Through our virtual office and video conferencing services we will continue topromote teleworking and therefore support a longer term approach to tackling theimpact of climate change on the environment. Our stakeholders We rely on the goodwill and commitment of our landlords, suppliers, customersand investors as we continue to maintain our record of double-digit sales growthsince 2003. The commitment, loyalty and efforts of our team members have playeda key role in our success. Our people are integral to differentiating Regus fromour competitors and maintaining the Company's position as the internationalleader in outsourced workplace solutions. Outlook Our strategy remains one of controlled and disciplined growth with the aim to benumber one in all the markets in which we operate. This well proven strategy hasresulted in our third year of consistent growth, both organically and throughacquisitions, and we expect this to continue. We will continue to open centres wherever our research indicates there is aprofitable opportunity to increase our geographic footprint and better serve ourcustomers. In addition, we will continue to acquire complementary businesses,which meet our strict investment criteria, enabling us to move into new marketsand develop a wider customer base. John MatthewsChairman19 March 2007 Chief Executive's Review Overview This has been another outstanding 12 months for the Group with record resultsfor the third year in succession. We have delivered strong, disciplined growthand improved performance in all of our key business metrics including revenues,profit and earnings per share. Our performance in 2006 demonstrates the benefitsof our longer term approach to the development of the business. We continue toimprove financial performance through growing our network of business centresand developing new products and services to meet the evolving needs of ourclients. Operational Review On a regional basis, revenues and centre contribution can be analysed asfollows: +----------+--------------+---------------+----------------+----------------+|(£ | Revenue | Contribution | Margin | Occupancy ||million) | | | | |+----------+------+-------+-------+-------+--------+-------+--------+-------+| | 2006 | 2005 | 2006 |2005 * | 2006 | 2005 | 2006 | 2005 |+----------+------+-------+-------+-------+--------+-------+--------+-------+|Americas |305.9 | 261.6 | 86.5 | 61.5 | 28% | 24% | 86% | 81% |+----------+------+-------+-------+-------+--------+-------+--------+-------+|EMEA |195.9 | 165.5 | 60.0 | 43.2 | 31% | 26% | 79% | 73% |+----------+------+-------+-------+-------+--------+-------+--------+-------+|Asia | 50.9 | 33.6 | 16.0 | 9.8 | 31% | 29% | 72% | 75% ||Pacific | | | | | | | | |+----------+------+-------+-------+-------+--------+-------+--------+-------+|UK |126.6 | - | 20.9 | - | 17% | - | 77% | - |+----------+------+-------+-------+-------+--------+-------+--------+-------+|Other | 0.7 | 2.6 | 0.7 | 2.6 | 100% | 100% | - | - |+----------+------+-------+-------+-------+--------+-------+--------+-------+| |680.0 | 463.3 | 184.1 | 117.1 | 27% | 25% | 82% | 78% |+----------+------+-------+-------+-------+--------+-------+--------+-------+ * excludes non recurring items of £0.1million in 2005 AMERICAS Our business in the Americas comprises Canada, USA and South America. The regionhas 429 centres across 13 countries. Our main business in the USA operates 353centres. During the year we added 67 centres which increased the average numberof workstations from 47,311 in 2005 to 52,611 in 2006. Acquisitions accountedfor 58 of these new centres, with the balance coming from the opening of 9 fullyowned centres. The region delivered revenues of £305.9 million - up 16.9% on2005 and achieved an average occupancy of 86% through the year (2005: 81%). Looking ahead into 2007 we will continue our aim to maximise yield in ourexisting centres and look to grow our portfolio in key cities where we haveminimal representation. The adoption of flexible working and environmentalpressures have further increased the demand for our product. We also intend toexpand our Regus Express concept (a retail/business centre which caters for theneeds of the mobile worker) across other airports in the USA. This expansionwill enable us to gain brand awareness and promote and sell our core business. EMEA Our business in EMEA encompasses 188 centres across 38 countries. During theyear we opened 15 new centres, which increased the average number ofworkstations from 25,871 in 2005 to 27,139 in 2006. Acquisitions accounted for2 of these new centres, with the balance of 13 coming from organic growth - 8fully owned centres, 3 joint ventures, 1 managed centre and 1 franchiseoperation. We opened centres in new markets such as Lebanon, Abu Dhabi, Bahrain,Nigeria, Kenya and Algeria. The region delivered revenues of £195.9 million - up18.4% on 2005 and achieved an average occupancy of 79% through the year (2005:73%). Looking ahead into 2007 we will continue to further improve occupancy and marginin our existing centres and expand our network into new markets. ASIA Our business in Asia operates in 67 centres across 12 countries. During the yearwe opened 30 new centres, which almost doubled the number of workstations from5,475 in 2005 to 9,009 in 2006. Acquisitions accounted for 14 of these newcentres, with the balance of 16 coming from the opening of 15 fully ownedcentres and 1 managed centre. The region delivered revenues of £50.9 million -up 51.5% on 2005 and achieved an average occupancy of 72% through the year(2005: 75%). This decrease in occupancy was due to the impact of new centres,which can take 6 to 12 months to achieve occupancy rates on par with maturecentres. Looking ahead into 2007 we will continue to consolidate our position as thelargest provider of serviced offices across all Asia Pacific markets. To achievethis objective we plan to continue our aggressive growth plan while continuingto improve the efficiency of our current portfolio of centres. To facilitatethis increase in demand and capitalise on scale efficiencies we will be adding anew customer service centre in the Philippines to handle all incoming enquiries. UK On 19 April 2006, we acquired the remaining 58% interest in Regus UK for a grossconsideration (including fees) of £89.4 million (£60.9 million net of cashacquired of £28.5 million). At the date of acquisition our UK business operated91 centres. During the year, we subsequently acquired the Gainsborough andLongford business centres and Managed Office Solutions - a company specialisingin property outsourcing. At the year end our UK business operated 106 centres of which just under halfare in the Greater London area. At 31 December 2006, UK capacity stood at 26,389workstations. In the full year 2006, Regus UK generated revenues of £168.4 million. Sinceacquisition, we have seen a significant increase in occupancy - rising from72% at April 2006 to a year end level of 81%. A restructured management team,renewed investment in our centres, investment in marketing and a drive onenquiries has helped to achieve this improved performance. During April of this year our new UK CEO, Nick Wood, will be joining us. Nickcomes from DSG international where he has held several senior positions, last ofwhich was Divisional Managing Director of the Group's Communication Division.Prior to this, Nick worked in venture capital and business development for anumber of companies including 3i plc. Looking ahead into 2007 we will continue to focus on new sales and marketingchannels such as TV and radio. In the first quarter of this year we launched areal time booking system for meeting rooms and have recently launched our UKTraining Centre Product specially geared to hosting conferences. Strategy and objectives Our strategy and objectives are simple - to use our skills and resources togenerate profitable growth and cash. We achieve these objectives through the following activities: •Expanding our network •Innovative products and services •Investment in systems and technology •Operational excellence •Developing our brand •Developing our team members Expanding our Network Our growth in 2006 has been exceptional. During the last financial year weopened 218 centres (inclusive of 91 centres in the UK) which added a further37,522 workstations to our capacity. Our expansion programme will continue in2007 with openings planned across all four regions. In addition we will continue to add complementary businesses, which meet ourstrict investment criteria. Several of these acquisitions have allowed us tomove into new markets such as airport locations and corporate outsourcing anddevelop a wider customer base (Government and support agencies) as well asfacilitating a broader service for our existing clients. Innovative products and services One of our core skills is our ability to anticipate the changing demands of ourcustomers. We therefore focus our research on developing new products andservices, which meet the future needs of our customers. Some examples of recent developments include: • Network Access - our membership programme, which provides members with immediate, unlimited access to our global network of business centres. • Managed Office Solutions - a fully outsourced office solution for larger clients where we manage the day-to-day running of the office. • Regus Express - a retail/business centre which caters for the needs of the mobile worker. Currently located at airport locations within the USA, our intention is to implement this concept in other airports and travel hubs in major cities across the world. Investment in systems and technology The growth of the business in 2006 has emphasised the need for Regus to havebest in class systems to support its unique market position. These systems willnot only be used for the benefit of our internal needs but as a platform tobring a broader range of services to our client. A flexible, secure and scaleable IT infrastructure is critical to our clientsneeds. Bandwidth on demand, guaranteed quality of service, increased securityand higher service level performance are some of the benefits that we are nowable to offer to our clients. The scale of our operations are being brought to bear in the sourcing andmanagement of our IT services, bringing benefits to our customers whileproviding further differentiation from our competitors. As an example of this, we are partnering with some of the leading names in ITand Telecoms to enable us to develop next generation Converged Network Solutions(CNS). The centralised nature of CNS provides Regus with economies of scale,lower cost of ownership, speed to market and a wider range of services thatenable greater revenue opportunities and provides our customers with bettercontrol of their cost bases. Additionally, Regus operates the world's largest video-conferencing network interms of geographical reach. The need for our customers to maximise theirproductivity and the increasing environmental concerns around business travelhave driven continued growth of this valuable service. Consequently we intend tomake further investments in this area to maximise its growing importance to ourclients. Operational excellence Our commitment to operational excellence is one of our key differentiators. Ourbusiness centre staff adopt globally defined standards of business processes andprocedures. A rolling programme of quality audits are conducted at leastannually in each centre and a scoring system helps ensure that centre teamsfocus on achieving the highest standard of operational excellence across ournetwork. In this way we can ensure clients experience a high quality andconsistent level of service irrespective of location. In addition to developing systems, our back office teams support our clientfacing staff with the efficient administration of the business. Our finance,human resource, billing and procurement teams operate on a regional basisallowing us to realise consistency of delivery and scale efficiencies. Developing our brands Our brands and business concept are recognised and respected globally. Aconsistent high quality product delivery is available in all of the world's mostin demand cities providing business executives the Regus experience on a globalbasis. In 2006, we invested in TV and Radio advertising in the UK and USA -specifically targeted at building awareness of the Regus brand. Our developmentof Regus Express and Network Access Card has allowed us to further promote ourbrand. In addition to our flagship Regus brand we also operate under our HQ brandprimarily in the USA. We continue to monitor options and opportunities fordeveloping our products under various trademarks as part of the Regus Groupnetwork. Developing our team members The skills, enthusiasm and commitment of our people are key to Regus's success.We recognise the need to recruit high quality individuals and to develop thepotential of our staff in order to provide a positive customer experience to ourclients. Our internal training programmes include regular operational updates, onlinetraining modules and classroom based training at our Global School of Excellencein Dallas, USA. During 2006 we trained 238 General and Operational Managers inDallas, various locations across the UK and Mexico City. In addition 254 teammembers completed a 3 week induction course. Our staff have taken over 10,000online training modules equivalent to nearly 3,000 hours of training. Future industry trends We believe we are well placed to take advantage of the favourable trends in ourindustry and these will contribute to the continued development of the Group.These include: Fragmented market Regus has the only global serviced office network, with no other players havingmore than 75 centres. Our geographic footprint spans 790 centres across 64countries and we will continue to seek opportunities to grow our network andacquire complementary businesses, enabling us to move into new markets anddevelop a wider customer base. Growth in home and mobile working The development of a mobile workforce has gathered pace and employers andemployees are increasingly adopting flexible working practices. Our meetingroom, video conferencing and virtual office products offer solutions to theseworkers and through our Regus Express outlets, we are bringing these solutionseven closer to our client base. Continued adoption of outsourcing Companies large and small are realising the benefits of outsourcing their officemanagement in order to concentrate on their core business. Regus helps customersto minimise the complexity of property management through providing clients witha single property and service provider. Outsourcing can help our customersreduce their cost base and provide them with flexibility to respond to theirchanging business needs. The Future The Group maintained strong growth in 2006, driven by all three parts of ourstrategy. Our core business centre operations delivered a solid performance,mobile and home working continues to grow at rates in excess of 20% and ourcorporate outsourcing business is poised for significant growth in the medium tolong term. Looking ahead, we will focus on driving margin improvement in ourmature business and continue to invest in new markets and products to drive thelong term growth of the business. As such I am confident that the Group will continue to deliver attractive ratesof growth and cash generation in the year ahead. Mark DixonChief Executive Officer19 March 2007 Financial Review Introduction Our 2006 financial performance has been impressive, reflecting strong like forlike growth and the additional contribution from acquisitions and 2006 newcentre openings. These results have been achieved whilst also investing inpeople, infrastructure, technology and marketing to secure future growth. The three key operational drivers have all been improved. The weighted averagenumber of workstations increased by 36.4% to 107,257. At the same time averageoccupancy increased from 78% to 82% and average revenue per occupied workstation(REVPOW) increased by 2.4% from £7,551 to £7,732. This results in an increase inREVPAW of 7.6% from £5,890 to £6,340. Against a relatively fixed cost base these factors have contributed to a £34.9million increase in operating profit from £47.3 million in 2005 to £82.2 millionin 2006. Revenue and Centre Contribution (excluding non recurring items) Revenue for the Group rose 46.8% to £680.0 million (2005: £463.3 million) andcentre contribution increased 57.2% to £184.1 million (2005: £117.1 million) This year-on-year movement can be analysed as follows: +-----------------------------------+---------+------------+-----------+|(£ million) | Revenue | Centre | Margin % || | |Contribution| || | | * | |+-----------------------------------+---------+------------+-----------+|2005 | 463.3 | 117.1 | 25.3% |+-----------------------------------+---------+------------+-----------+|Growth in mature business | 39.9 | 34.0 | |+-----------------------------------+---------+------------+-----------+|Subtotal | 503.2 | 151.1 | 30.0% |+-----------------------------------+---------+------------+-----------+|Centres added in 2005 | 33.8 | 12.7 | |+-----------------------------------+---------+------------+-----------+|Centres added in 2006 | 147.6 | 20.2 | |+-----------------------------------+---------+------------+-----------+|Centres closed | (4.6) | 0.1 | |+-----------------------------------+---------+------------+-----------+|2006 | 680.0 | 184.1 | 27.1% |+-----------------------------------+---------+------------+-----------+ * excludes non recurring items of £0.1million in 2005 The mature business, defined as those centres owned and operated at least 12months prior to 1 January 2006 increased revenue by £39.9 million principallydriven through improvements in occupancy, which increased from 79% to 84%. Thisresulted in a £34.0 million increase in centre contribution. Centres added in 2005 contributed a further £33.8 million of revenue and £12.7million of contribution. This was due to both underlying improvements in theperformance of these sites and the impact of including them for a full 12months. Expansions in 2006 include the repurchase of the UK business and a number ofbolt-on acquisitions and new centres. These contributed a further £147.6 millionof revenue and contribution of £20.2 million. Taking all this together, contribution margin (excluding non-recurring items)improved from 25.3% to 27.1%. Administration expenses Administration expenses (excluding non-recurring items incurred in 2005) haveincreased to 15.0% of revenue for the full year (2005: 14.0%). This increasearises principally from the impact of growth related investments incurred in thesecond half of 2005 and the first half of 2006 ahead of the full revenue impactof growth. These growth related costs focus on three main areas: •Marketing costs to drive occupancy primarily in new centres •Costs to support the growing scale of the business (e.g. country managers, improved systems and processes) •Costs necessarily incurred to secure workstation growth in a controlled and efficient manner (e.g. business development teams to identify, secure and integrate new business) As the growth benefits have been delivered, administration expenses as aproportion of revenue have fallen from 16.1% in the first half of 2006 to 14.1%in the second half of 2006. Non-recurring items In 2005, the Group incurred £4.9 million of non-recurring costs (net), whichprimarily relate to the integration of HQ. No similar costs have been incurredin 2006. Operating profit Operating profit was £82.2 million (2005: £47.3 million) representing a marginof 12.1% (2005: 10.2%). Share of operating loss in joint ventures and associate In the year ended 31 December 2006, the share of joint venture lossesattributable to Regus reduced to £0.1 million (2005: £0.2 million loss). Theunderlying improvement in our mature joint ventures was masked by the impact ofnewly opened joint ventures, which recognised losses of £0.3 million in theperiod due to the recognition of start up costs. During the period 1 January 2006 to 19 April 2006, the UK business was equityaccounted as an associate. Our 42% shareholding resulted in a profit after taxfor the period to 19 April of £1.2 million (2005 full year: £0.2 million). Financing costs Financing costs can be summarised as follows: +-----------------------------------+-------+-------+|(£ million) |2006 |2005 |+-----------------------------------+-------+-------+|Interest payable on bank loans and |(4.6) |(5.6) ||overdrafts | | |+-----------------------------------+-------+-------+|Interest receivable |1.8 |2.2 |+-----------------------------------+-------+-------+|Finance lease interest |(0.5) |(0.9) |+-----------------------------------+-------+-------+|Non cash - deferred financing fees |(0.4) |(4.3) |+-----------------------------------+-------+-------+|Non cash unwinding of discount - UK|(2.1) |- ||acquisition related (net) | | |+-----------------------------------+-------+-------+|Total |(5.8) |(8.6) |+-----------------------------------+-------+-------+ Interest payable has fallen despite a higher average debt balance in 2006 as aresult of refinancing our senior credit facility in March 2006 on morefavourable terms. Lower interest receivable reflects a decrease in the averagefree cash balance from £55.0 million in 2005 to £50.0 million in 2006. Although the Group is now in an overall net cash position a net cash interestcharge should still be anticipated for 2007. This is driven by the costs ofcommitment fees on the senior credit facility and letter of credit issuance feesas well as the impact of incurring a net charge from the margin between interestrates on our deposits and borrowings. Underlying finance lease costs have fallen in line with the reduction in financeleases. The amortisation of deferred financing fees relates to the £2.1 millionloan arrangement costs incurred on the new £150 million credit facility. The 2005 charge of £4.3 million included the write off of the remaining deferredfinancing fees on the US$155.0 million credit facility repaid in March 2006. Theunwinding of discounted fair value adjustments on the Regus UK acquisitionresulted in a non cash net financing charge of £2.1 million in 2006. Taxation As the business performance has strengthened, it has become necessary torecognise in the balance sheet an asset for a greater proportion of the value ofthe tax losses that the Group holds. Accordingly in 2006, a credit of £12.9million (2005: £15.0 million) has been recognised in the income statement,reflecting the increased deferred tax asset in the balance sheet. This has beenpartially offset by an £8.1 million tax charge (2005: £8.9 million), whichresulted in a net tax credit of £4.8 million (2005: £6.1 million) to the incomestatement. Consequently, despite being profitable, the Group has a net taxcredit for the year to 31 December 2006. However, on a cash basis the Group paid£6.6 million (2005: £2.6 million) of tax across a small number of countries.This represents approximately 8.5% of profit before tax. As at 31 December 2006, the Group had £197.9 million (2005: £270.2 million) oftax losses to carry forward against future corporation tax liabilities, of which£111.0 million (2005: £172.0 million) are in the USA. Based upon continued profitable growth and no significant changes to the Group'stax position the cash tax rate should be expected to rise through 2007 to 2009as the tax losses are progressively utilised. Earnings per share Basic earnings per share for the year rose to 8.4p (2005: 4.5p). This is basedon weighted average number of shares of 984,792,040. This is unchanged on 2005.Diluted earnings per share rose by 3.8p to 8.3p (2005: 4.5p) Cash flow Strong operating cash flow remains a prime feature of the Group. Driven by theimprovement in operating and an improved working capital performance, operatingcash flow increased by £54.7 million to £132.8 million (2005: £78.1 million). The Group's cash flow statement has been summarised as follows: +-----------------------------+-------------+-------------+|(£ million) |2006 |2005 |+-----------------------------+-------------+-------------+|Operating cash flow |132.8 |78.1 |+-----------------------------+-------------+-------------+|Tax and net interest paid |(10.1) |(6.9) |+-----------------------------+-------------+-------------+|Maintenance capex |(19.6) |(5.9) |+-----------------------------+-------------+-------------+|Free cash flow |103.1 |65.3 |+-----------------------------+-------------+-------------+|New centre openings |(26.7) |(11.1) |+-----------------------------+-------------+-------------+|Acquisitions and investments |(88.5) |(16.8) |+-----------------------------+-------------+-------------+|Financing |23.0 |(47.5) |+-----------------------------+-------------+-------------+|Other |(4.1) |1.9 |+-----------------------------+-------------+-------------+|Change in cash |6.8 |(8.2) |+-----------------------------+-------------+-------------+|Opening cash |74.1 |82.3 |+-----------------------------+-------------+-------------+|Closing cash |80.9 |74.1 |+-----------------------------+-------------+-------------+ During 2006 we acquired the remaining 58% interest in Regus UK and 27 bolt onacquisitions for a net consideration of £88.5 million. Goodwill and intangible assets relating to these acquisitions are £103.7 millionand £21.9 million respectively. The goodwill arising on the above acquisitionsreflects the anticipated future benefits Regus can obtain from operating thebusinesses more efficiently, primarily through increasing occupancy and theaddition of value adding services. The intangible amount relates to the brand,customer lists and software. In addition to these acquisitions, we spent £26.7 million on opening 32 ownedcentres - 15 in Asia, 9 in Americas and 8 in EMEA. We also opened a further 6centres through joint venture, management and franchise agreements. This growth has been part financed by net borrowings of £23.0 million. Following the above the Group's net cash position can be analysed as follows: +------------------------+--------+--------+|(£ million) |2006 |2005 |+------------------------+--------+--------+|Cash balance |80.9 |74.1 |+------------------------+--------+--------+|Term loan |(50.0) |(22.5) |+------------------------+--------+--------+|Other loans |(3.6) |(7.4) |+------------------------+--------+--------+|Finance leases |(3.9) |(8.2) |+------------------------+--------+--------+|Net Cash |23.4 |36.0 |+------------------------+--------+--------+ Of the cash balance, £17.1 million (2005: £19.1 million) is blocked and notavailable for use by the business. These amounts have mainly been used ascollateral against loan and lease obligations of the Group. Distributable reserves and Dividend During the year the Company created distributable reserves by undertaking acourt approved cancellation of our share premium account of £153.5 million, thisresulted in a corresponding increase in distributable reserves. As a result, theGroup has sufficient distributable reserves to pay dividends to itsshareholders. Given the Group's strong cash generation and its future prospects the Board isproposing, subject to shareholder approval at the 2007 AGM, the payment of afinal dividend of 0.6p per share. The total cost of this dividend payment willamount to £5.9 million. This dividend is expected to be paid on 1 June 2007 toshareholders on the register at the close of business on 27 April 2007. Stephen GleadleChief Financial Officer19 March 2007 Consolidated Income Statement Year ended Year ended 31 Dec 31 Dec 2006 2005 £m £m Revenue 680.0 463.3 Cost of sales before non-recurring costs (495.9) (346.2)Non-recurring cost of sales - 0.1 Cost of sales (495.9) (346.1)------------------------------------------------------------------ Gross profit (centre contribution) 184.1 117.2 Administration expenses before (101.9) (64.9)non-recurring expensesNon-recurring administration expenses - (5.0) Administration expenses (101.9) (69.9)------------------------------------------------------------------ Operating profit 82.2 47.3 Share of post-tax loss of joint ventures (0.1) (0.2)Share of post-tax profit of associate 1.2 0.2------------------------------------------------------------------ Profit before financing costs 83.3 47.3 Finance expense (8.0) (10.8)Finance income 2.2 2.2------------------------------------------------------------------ Profit before tax for the year 77.5 38.7 Tax - UK 0.8 (1.3) - Overseas 4.0 7.4------------------------------------------------------------------Profit after tax for the year 82.3 44.8------------------------------------------------------------------ Attributable to:Equity shareholders of the parent 82.3 44.5Minority interest - 0.3------------------------------------------------------------------- 82.3 44.8------------------------------------------------------------------ Earnings per ordinary share (EPS):Basic (p) 8.4 4.5 Diluted (p) 8.3 4.5 Dividend per ordinary share proposed for 0.6 -the year (p) Consolidated Balance Sheet 31 Dec 31 Dec 2006 2005 £m £m (restated)Non-current assetsGoodwill 212.1 122.1Other intangible assets 51.0 38.9Property, plant and equipment 127.6 76.6Deferred tax assets 35.4 21.9Other long term receivables 20.7 11.8Investments in joint ventures 0.9 0.7--------------------------------------------------------------------- 447.7 272.0Current assetsTrade and other receivables 151.1 87.8Cash and cash equivalents 80.9 74.1--------------------------------------------------------------------- 232.0 161.9Total assets 679.7 433.9---------------------------------------------------------------------Current liabilitiesTrade and other payables (124.3) (73.8)Customer deposits (103.4) (61.7)Deferred income (73.5) (45.6)Corporation tax payable (25.5) (12.3)Obligations under finance (2.5) (4.8)leasesBank and other loans (8.2) (24.5)Provisions for liabilities and charges (3.1) (7.2)--------------------------------------------------------------------- (340.5) (229.9)Net current liabilities (108.5) (68.0)Total assets less current 339.2 204.0liabilitiesNon-current liabilitiesOther payables (51.8) (27.9)Obligations under finance (1.4) (3.4)leasesBank and other loans (45.4) (5.4)Deferred tax liabilities (1.7) -Provisions for liabilities and (11.7) (7.9)chargesProvision for deficit on joint (2.7) (2.8)venturesProvision for deficit on associate - (3.8)--------------------------------------------------------------------- (114.7) (51.2)Total liabilities (455.2) (281.1)---------------------------------------------------------------------Total assets less liabilities 224.5 152.8---------------------------------------------------------------------Total equityIssued share capital 49.2 49.2Share premium account - 153.5Foreign currency translation (17.5) 5.0reserveRevaluation reserve 10.0 -Other reserves (22.6) (22.6)Retained earnings 205.4 (32.3)---------------------------------------------------------------------Total equity 224.5 152.8---------------------------------------------------------------------Total equity and liabilities 679.7 433.9--------------------------------------------------------------------- Approved by the Board on 19 March 2007. Mark Dixon Stephen GleadleChief Executive Officer Chief Financial Officer Consolidated Cash Flow Statement Year ended Year ended 31 Dec 2006 31 Dec 2005 £m £mProfit before tax for the year 77.5 38.7 Adjustments for: Net finance costs 5.8 8.6 Net share of profit on joint (1.1) -ventures and associate Depreciation charge 31.8 25.6 Loss on disposal of fixed assets 0.4 0.3 Amortisation of intangible assets 6.0 3.8 Decrease in provisions (0.6) (5.7) Operating cash flows before 119.8 71.3movements in working capital Increase in trade and other (31.3) (17.8)receivables Increase in trade and other 42.5 23.8payables Other non-cash movements - share 1.8 0.8based payments Cash generated from operations1 32.8 78.1----------------------------------------------------------- Interest paid on finance leases (0.5) (1.0)Interest paid on credit facilities (5.2) (5.5)Tax paid (6.6) (2.6)Net cash inflow from operating activities 120.5 69.0----------------------------------------------------------- Investing activitiesPurchase of subsidiary (88.5) (16.7)undertakings (net of cashacquired)Purchase of interest in joint - (0.1)ventureSale of tangible fixed assets 0.3 0.2Purchase of tangible fixed assets (46.3) (17.0)Purchase of intangible assets (0.4) (0.5)Interest received 2.2 2.2Net cash outflow from investing (132.7) (31.9)activities------------------------------------------------------------Financing activities Net proceeds from issue of loans 62.7 -Repayment of loans (33.5) (39.4)Repayment of capital elements of (5.0) (8.1)finance leasesFacility arrangement fees (1.2) -Net cash inflow /(outflow) from 23.0 (47.5)financing activities------------------------------------------------------------ Net increase/(decrease) in cash 10.8 (10.4)and cash equivalentsCash and cash equivalents at 74.1 82.3beginning of yearEffect of exchange rate (4.0) 2.2fluctuations on cash held Cash and cash equivalents at end 80.9 74.1of year------------------------------------------------------------ Consolidated Statement of Changes in Equity +--------------+------------------------------------------------------------------+---------+------+| | Attributable to equity holders of the parent (a) | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|£ million |Share |Share |Foreign |Revaluation|Other |Retained|Minority |Total || |capital|premium|currency |reserve |non-distributable|earnings|interests|equity|| | |account|translation| |reserves | | | || | | |reserve | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+| | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Balance at 1 | 49.3 | 153.5 | (8.3) | - | (22.7) | (77.5) | (0.6) | 93.7 ||January 2005 | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+| | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Profit | - | - | - | - | - | 44.5 | - | 44.5 ||attributable | | | | | | | | ||to equity | | | | | | | | ||holders | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Profit | - | - | - | - | - | - | 0.3 | 0.3 ||attributable | | | | | | | | ||to minority | | | | | | | | ||interest | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Currency | - | - | 13.3 | - | - | - | (0.1) | 13.2 ||translation | | | | | | | | ||differences | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Liquidation of| - | - | - | - | - | - | 0.6 | 0.6 ||subsidiary | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Acquisitions | - | - | - | - | - | - | (0.2) |(0.2) ||(b) | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Total | - | - | 13.3 | - | - | 44.5 | 0.6 | 58.4 ||recognised | | | | | | | | ||income and | | | | | | | | ||expense for | | | | | | | | ||the year | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Share based | - | - | - | - | - | 0.8 | - | 0.8 ||payments | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Redemption of | (0.1) | - | - | - | 0.1 | (0.1) | - |(0.1) ||preference | | | | | | | | ||shares | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+| | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Balance at 31 | 49.2 | 153.5 | 5.0 | - | (22.6) | (32.3) | - |152.8 ||December 2005 | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+| | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Profit | - | - | - | - | - | 82.3 | - | 82.3 ||attributable | | | | | | | | ||to equity | | | | | | | | ||holders | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Currency | - | - | (22.5) | - | - | - | - |(22.5)||translation | | | | | | | | ||differences | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Acquisitions | - | - | - | 10.0 | - | - | - | 10.0 |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Deferred tax | - | - | - | - | | 0.1 | | 0.1 ||effect of | | | | | | | | ||share options | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Total | - | - | (22.5) | 10.0 | - | 82.4 | - | 69.9 ||recognised | | | | | | | | ||income and | | | | | | | | ||expense for | | | | | | | | ||the year | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Share based | - | - | - | - | - | 1.8 | - | 1.8 ||payments | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Scheme of | - |(153.5)| - | - | - | 153.5 | - | - ||Arrangement | | | | | | | | ||(c) | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+|Balance at 31 | 49.2 | - | (17.5) | 10.0 | (22.6) | 205.4 | - |224.5 ||December 2006 | | | | | | | | |+--------------+-------+-------+-----------+-----------+-----------------+--------+---------+------+ (a) Total reserves attributable to equity holders of the parent: • Share capital and share premium represents the net proceeds (both the nominal value and any premium paid) on the issue of the Company's equity share capital. • The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries and joint ventures. • The revaluation reserve arose on the restatement of the assets and liabilities of the UK associate to fair value at the time of the acquisition of the outstanding 58% interest • Other reserves include £29.2 million arising from the Scheme of Arrangement undertaken in 2003, partly offset by £6.5 million relating to merger reserves and £0.1 million to the redemption of preference shares. (b) During the year ended 31 December 2005 the Group acquired the minority interest of subsidiaries in South Africa and Italy. (c) On 28 June 2006 the Group executed a court order granting the cancellation of the share premium account under a Scheme of Arrangement. The effect of this was to increase by the same amount the distributable reserves for the Group. The cancellation was undertaken in the books of Regus Group plc where the share premium was held. Notes to the Preliminary Announcement Basis of preparation and accounting policies Regus Group plc is a public limited company incorporated under the Companies Act1985 and domiciled in the United Kingdom whose shares are publicly traded on theLondon Stock Exchange. The Group's financial statements have been prepared and approved by thedirectors in accordance with International Financial Reporting Standards asadopted by the EU ("IFRS's"). The accounting policies are set out in full in the Annual Report, and have beenapplied consistently to all periods presented in these financial statements. Theaccounting policies have been applied consistently by group entities. The financial statements were approved by the directors on 19 March 2007. Basis of restatement In addition the Group has made certain presentational changes to the financialstatements for 2006 and has restated the comparative information for 2005 sothat the accounts are presented on a comparable basis. The following changeshave been made: • £0.7 million relating to the share of net assets of joint ventures has been reclassified from provisions for deficits in joint ventures to assets; • £11.8 million relating to long term assets, principally landlord deposits, have been reclassified from current assets Company Information The financial information set out above does not constitute the company'sstatutory accounts for the years ended 31 December 2006 or 2005 but is derivedfrom those accounts. Statutory accounts for 2005 have been delivered to theregistrar of companies, and those for 2006 will be delivered in due course. Theauditors have reported on those accounts; their reports were (i) unqualified,(ii) did not include references to any matters to which the auditors drewattention by way of emphasis without qualifying their reports, and (iii) did notcontain statements under section 237(2) or (3) of the Companies Act 1985. Annual Report Copies of the annual report, which will be posted to shareholders at least 20working days before the AGM on 24 May 2007, may be obtained from the registeredoffice at 3000 Hillswood Drive, Chertsey, Surrey, KT16 0RS. The report will alsobe available on the Company's website at www.regus.com. Note 2: Segmental Analysis - Management Basis Year ended 31 Dec 2006 Americas EMEA Asia UK Other Total Mature Workstations 45,911 24,626 4,281 - - 74,818 Occupancy (%) 87 79 82 - - 84 Revenue (£m) 276.4 178.2 29.9 - 0.7 485.2 Contribution (£m) 83.1 55.3 11.7 - 0.7 150.8 2005 Expansions Workstations 3,878 1,727 2,220 - - 7,825 Occupancy (%) 85 81 67 - - 79 Revenue (£m) 18.7 14.0 11.9 - - 44.6 Contribution (£m) 4.8 4.4 3.4 - - 12.6 2006 Expansions Workstations 2,608 479 2,508 18,498 - 24,093 Occupancy (%) 76 55 61 77 - 75 Revenue (£m) 9.6 2.3 9.1 126.6 - 147.6 Contribution (£m) (1.3) (0.3) 0.9 20.9 - 20.2 Closures Workstations 214 307 - - - 521 Occupancy (%) 82 69 - - - 74 Revenue (£m) 1.2 1.4 - - - 2.6 Contribution (£m) (0.1) 0.6 - - - 0.5 Totals Workstations 52,611 27,139 9,009 18,498 - 107,257Occupancy (%) 86 79 72 77 - 82Revenue (£m) 305.9 195.9 50.9 126.6 0.7 680.0Contribution (£m) 86.5 60.0 16.0 20.9 0.7 184.1 REVPAW (£) 5,813 7,219 5,647 6,843 - 6,340 Segmental Analysis - Management Basis Year ended 31 Dec 2005 Americas EMEA Asia UK Other Total Mature (for comparisonwith FY06) Workstations 45,825 24,291 4,407 - - 74,523 Occupancy (%) 81 73 79 - - 79 Revenue (£m) 254.8 159.0 28.9 - 2.6 445.3Contribution (£m) 60.7 43.3 10.2 - 2.6 116.8 2005 Expansions Workstations 1,054 450 935 - - 2,439 Occupancy (%) 70 61 50 - - 61 Revenue (£m) 4.4 2.7 3.7 - - 10.8 Contribution (£m) 0.4 - (0.5) - - (0.1) Closures (closed in FY05) Workstations - 122 133 - - 255 Occupancy (%) - 56 87 - - 72 Revenue (£m) - 0.3 1.0 - - 1.3 Contribution (£m) - - 0.1 - - 0.1 Closures (closed in FY06) Workstations 432 1,008 - - - 1,440 Occupancy (%) 91 63 - - - 72 Revenue (£m) 2.4 3.5 - - - 5.9 Contribution (£m) 0.4 (0.1) - - - 0.3 TotalWorkstations 47,311 25,871 5,475 - - 78,657Occupancy (%) 81 73 75 - - 78Revenue (£m) 261.6 165.5 33.6 - 2.6 463.3Contribution (£m) 61.5 43.2 9.8 - 2.6 117.1 REVPAW (£) 5,529 6,397 6,137 - - 5,890 Notes: - The mature business is defined as those centres owned and operated at least 12 months prior to 1 January 2006 and therefore have a full 12 month comparative. In comparing the mature business year on year the performance is measured on a true like for like basis as it excludes closed centres and centres open for less than a year. - Expansions include new centres opened and acquired businesses. - Workstation numbers are calculated as the weighted average for the year. - Contribution for the year ended 31 December 2005 is stated before non-recurring items. There were no non-recurring items in 2006. Note 3: Reconciliation of operating profit to adjusted EBIT and EBITDA Year ended 31 Dec 2006 Americas EMEA Asia UK Other Total £m £m £m £m £m £mOperating profit 49.1 34.9 8.9 7.0 (17.7) 82.2(excluding managementcharges)Non-recurring items - - - - - ------------------------------------------------------------------------------Adjusted EBIT 49.1 34.9 8.9 7.0 (17.7) 82.2Depreciation and 20.5 5.8 2.7 8.5 0.3 37.8amortisation-----------------------------------------------------------------------------EBITDA 69.6 40.7 11.6 15.5 (17.4) 120.0----------------------------------------------------------------------------- Year ended 31 Dec 2005 Americas EMEA Asia UK Other Total £m £m £m £m £m £mOperating profit 32.6 24.0 5.1 - (14.4) 47.3(excluding managementcharges)Non-recurring items - - - - 4.9 4.9-----------------------------------------------------------------------------Adjusted EBIT 32.6 24.0 5.1 - (9.5) 52.2Depreciation and 22.2 5.3 1.8 - 0.1 29.4amortisation-----------------------------------------------------------------------------EBITDA 54.8 29.3 6.9 - (9.4) 81.6----------------------------------------------------------------------------- Adjusted EBIT and EBITDA excludes the results of the joint ventures and UKassociate. Note 4: Analysis of financial resources At Cash Non-cash Exchange At 31 1 Jan flow changes movement Dec 2006 2006 £m £m £m £m £m-------------------------------------------------------------------------------- Cash and cash equivalents 74.1 10.8 - (4.0) 80.9 Debt due after one year (5.4) (45.2) 4.9 0.3 (45.4)Debt due within one year (24.5) 16.0 (0.2) 0.5 (8.2)Finance leases due after one (3.4) 1.9 (0.4) 0.5 (1.4)yearFinance leases due within (4.8) 3.1 (1.0) 0.2 (2.5)one year-------------------------------------------------------------------------------- (38.1) (24.2) 3.3 1.5 (57.5)Net financial assets 36.0 (13.4) 3.3 (2.5) 23.4-------------------------------------------------------------------------------- Cash and cash equivalents balances held by the Group that are not available foruse amounted to £17.1 million in 2006 (2005: £19.1 million). This cash serves ascollateral against certain obligations of the Group. Cash not available for use at 31 December 2006 includes cash held on deposit ofwhich £5.5 million (2005: £3.1 million) relates to collateral against bankloans; £9.6 million (2005: £14.1 million) relates to deposits which are held bybanks and landlords as security against lease commitments by Regus operatingcompanies and £2.0 million (2005: £1.9 million) held by the ESOP Trust. Theseamounts are blocked and not available for use by the business. Non-cash changes comprise new finance leases, changes due to businessacquisitions and movements between categories Note 5: Acquisition of subsidiaries The principal acquisition in the year was that of the 58% interest in the RegusUK business not already owned. All other acquisitions in the year wereindividually immaterial and have been grouped together for disclosure purposes.A minor adjustment has been made to the provisional acquisition accounting in2005. The impact of the Group's acquisitions on the financial statements issummarised in the table. +------------------------------+----+----+----+------+------+--------+--------+| | | | | Regus| Other| Prior| Total|| | | | | UK| | years| ||£ million | | | | | 2006| | || | | | | (58%)| | (100%)| || | | | | | | | || | | | | | | | |+------------------------------+----+----+----+------+------+--------+--------+|Net assets acquired | | | | 10.2| 7.1| -| 17.3|+------------------------------+----+----+----+------+------+--------+--------+|Consideration: | | | | | | | |+------------------------------+----+----+----+------+------+--------+--------+|Cash | | | | 88.0| 28.2| -| 116.2|+------------------------------+----+----+----+------+------+--------+--------+|Deferred consideration | | | | -| 1.8| 0.3| 2.1|+------------------------------+----+----+----+------+------+--------+--------+|Directly attributable costs | | | | 1.4| 1.6| -| 3.0|+------------------------------+----+----+----+------+------+--------+--------+| | | | | 89.4| 31.6| 0.3| 121.3|+------------------------------+----+----+----+------+------+--------+--------+|Goodwill | | | | 79.2| 24.5| 0.3| 104.0|+------------------------------+----+----+----+------+------+--------+--------+| | | | | | | | |+------------------------------+----+----+----+------+------+--------+--------+|Net cash out flow arising on | | | | | | | ||acquisition | | | | | | | |+------------------------------+----+----+----+------+------+--------+--------+|Cash consideration and | | | | 89.4| 29.8| -| 119.2||directly attributable costs | | | | | | | || | | | |(28.5)| (2.2)| -| (30.7)||Less: cash and cash | | | | | | | ||equivalents acquired | | | | 60.9| 27.6| -| 88.5|| | | | | | | | || | | | | | | | |+------------------------------+----+----+----+------+------+--------+--------+ The net assets of the UK business on acquisition and the associated fair valueswere as follows: +----------------------------------------------+--------+-----------+-----------+| | Book| Fair value| Fair value|| | values|adjustments| at date of|| | of| |acquisition|| |acquired| | || |business| | |+----------------------------------------------+--------+-----------+-----------+|Intangible assets - brand | -| 11.2| 11.2|+----------------------------------------------+--------+-----------+-----------+|Customer list and software | 0.3| 7.4| 7.7|+----------------------------------------------+--------+-----------+-----------+|Property, plant and equipment | 35.2| 2.4| 37.6|+----------------------------------------------+--------+-----------+-----------+|Other non current assets | 6.6| 3.7| 10.3|+----------------------------------------------+--------+-----------+-----------+|Cash and cash equivalents | 28.5| -| 28.5|+----------------------------------------------+--------+-----------+-----------+|Other current assets | 34.8| 1.6| 36.4|+----------------------------------------------+--------+-----------+-----------+|Current liabilities | (110.3)| 23.6| (86.7)|+----------------------------------------------+--------+-----------+-----------+|Non-current liabilities | (1.2)| (26.2)| (27.4)|+----------------------------------------------+--------+-----------+-----------+|Net assets at acquisition date | (6.1)| 23.7| 17.6|+----------------------------------------------+--------+-----------+-----------+|Net assets acquired (58% of net assets at | | | 10.2||acquisition date) | | | |+----------------------------------------------+--------+-----------+-----------+ END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RGU.L