19th Nov 2008 07:00
19 November 2008
REGUS PLC - INTERIM MANAGEMENT STATEMENT
Regus' financial performance in the year to date continues to be in line with the Board's expectations.
Revenues for the four months to 31st October 2008 (at actual exchange rates) were £367.0m, an increase of 24.7% over the £294.3m achieved for the same period last year.
Total capacity, including workstations in non-consolidated businesses (being joint ventures, management contracts and franchises) has increased over the last 4 months by 2.3% to 168,908. Of these 157,965 workstations were fully consolidated (an increase of 2.1% over the last 4 months).
Over the same period 26 centres have been opened (including Kiev, Jakarta, Sao Paulo, Taipei, Shanghai, and Singapore) and 8 centres closed. This brings our total number of centres to 968 and the countries in which we operate to 72.
Cash generation has remained strong with our net cash balance increasing in the 4 months to 31st October by 14.1% to £159.9m. Given the strength of this position, expected future net cash inflows and the adverse spread between the interest we earn on our gross cash balances of £190.2m compared to the interest we pay on our outstanding banks loans the Board has decided to repay at the end of November our remaining £24m of bank debt taken out under our facility agreement.
Following shareholder and Court approval, on the 14th October the scheme of arrangement became effective whereby Regus plc, a company incorporated in Jersey with its place of central administration (Head Office) in Luxembourg, became the holding company of the Regus group. At the same time the composition of the Board has been changed to reflect the growing breadth and diversity of the Regus Group's operations.
Given the increasing pressure we are currently seeing on revenues, driven by the impact of the credit crunch, and with market predictions of a worsening macro-economic climate to come, the Board believes that 2009 is likely to be a challenging year. However our business model with its broad range of customers and geographies and the flexibility in its cost base and lease portfolio should help us meet these challenges. Additionally our strong balance sheet and ongoing cash generation ensures that we are well positioned to exploit opportunities to drive continued growth.
For further information, please contact:
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Regus plc Tel: +35 222 9999 5160 Mark Dixon, Chief Executive Officer Stephen Gleadle, Chief Financial Officer |
Brunswick Tel: + 44 (0) 20 7404 5959 Simon Sporborg / Catherine Colloms |
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This interim management statement 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. |
About Regus
The Regus Group is the world's leading provider of pioneering workplace solutions, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the largest network of videoconference studios. The Regus Group delivers a new way to work whether it's from home, on the road or from an office.
Clients such as Google, GlaxoSmithKline, IBM, Nokia and Accenture join thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to The Regus Group and allowing them to focus on their core business.
Over 400,000 clients a day benefit from Regus Group facilities spread across a global footprint of 968 locations, in 400 cities and 72 countries which allows individuals and companies to work wherever, however and whenever they want to.
For more information, visit www.regus.com.
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