Entries Tagged as 'Executive Suites'
Regus, the largest provider of executive suites, has reported their first half earnings for 2011.
Key statistics are as follows:
- Profit for the period 23.3 £m vs. a loss of 7.5 £m for the same period last year.
- Revenues up 9.7% to £565.6m (2010: £515.5m)
- Cash from operations up 49.0% to £70.2m (2010: £47.1m)
- Net cash of £197.8m (Year End 2010: £191.5m)
- Earnings per share of 2.5p (2010: (0.8p)
- Mature occupancy at a record level of 86.7% - benefitting from improved sales and marketing
- 12.7% increase in total customer numbers to 904,086 (2010: 801,938) of which more than 700,000 are home or mobile workers
Commenting on today's announcement Mark Dixon, Chief Executive of Regus plc, said: "We are pleased with the good strategic and financial progress the business is making at a time of prolonged economic uncertainty, with revenues up 10% and profits up over 35%.
Our strong performance drove cash from operations up 49% to £70.2m and meant that our expansion for the half was entirely self-funded, with cash at the end of the half higher than at the end of 2010. While we acknowledge the challenging environment, we continue to expect further improvements in revenues and cash from operations, as we continue to invest in growth.
It is the robustness of Regus' mature centres that enables this substantial ongoing investment in future growth. As we enter the second half of the year, Regus remains well-positioned to capitalise on these opportunities and is on track to deliver a full year performance in line with our expectations."
“The momentum with which the business ended 2010 has continued into 2011. As such I am pleased to report on a half year of solid revenue growth up 9.7% to £565.6m (2010: £515.5m) with EBIT1 growth up 35.3% to £13.8m (2010: £10.2m). Excluding the extra costs incurred from growth the EBIT from our mature business increased by 46% to £37.7m (2010: £25.8m).”
All in all this is a good showing in a tough market. Perhaps it is an indicator that the global office market is improving.Executive Suites , Flexible Workspace
A few partners and I recently launched a new business venture and one of the first major decisions we had to make was regarding office space. Should we simply all work from home and have a more virtual office space environment where we connect every day through skype, email, and phone, or should we shell out a few bucks to secure physical office space? This can be a tough decision for new companies that are not producing revenue yet.
One of the challenges of a new company is that you do not want to lock in to a 12 month lease for an office space that is not incredibly desirable. For example, if you lock in a 12 month lease on a cheap office space in an undesirable location, simply because you cannot yet afford a really nice space, then you may be a bit perturbed if the company starts bringing in solid cash flow 6 months later, and you can afford the nicer space, but you are locked into a 12 month lease.
One solution is to consider negotiating with business parks where you really want to set up shop. See if you can get into a very small office in an environment where it would be easy to upgrade during the life of your lease. The space may be smaller than you really want, but it also helps you get into the actual location you want to be at a price you can afford. Then, when working capital becomes available, it is easy to transition to a larger, nicer workspace.
Other possible low cost office solutions are to pay for a virtual office space or Coworking style space. Many top-tiered virtual office spaces actually provide conference room access on an as needed basis. These deals come in many shapes and sizes, but it is common for some conference room access to be included in the deal, and for additional hours to be available on a per-hour basis.
Remember to think long-term when you are considering your office space plans.Executive Suites , Flexible Workspace , Office Leasing Tips , Office Rental , Virtual Office Space
More good news for the office space market worldwide. As Regus goes, so does the rest of the executive suite market.
LONDON (MarketWatch) -- Regus (UK:RGU), the worlds largest prvoider of executive suite and flexible wokspace, was upgraded to outperform from neutral at Credit Suisse on Friday. "We had thought that occupancy in particular would have continued to decline throughout the first half of 2010 focusing investor attention on shorter-term earnings risk rather than longer-term value. But management now notes that pricing and occupancy has stabilized," the broker said. "With a trough in the first-half, we expect earnings and cashflow to more than quadruple between from 2010 estimates to 2013 estimates," the broker added. Shares rose 2.9%Executive Suites , Flexible Workspace
Is there a difference between an executive office suite and coworking office space? You bet there is. According to Frank Cottle, Chairman and Founder of Alliance Business Centers Network, " they are marketing to two different user groups and each using their own mixture of 'people, place and technology' to align themselves with their prospective client groups. A great deal is the 'packaging' as you suggest, but also the manner of service delivery is different on the emphasis of one end or the other on the 'collaboration and community' development issues"
The big difference, as Frank so well put it, is that an executive suite is focused on "facility" while the coworking space is focused on "community" and generally a focused community such as high tech, web development, accounting or businesses with a common thread. Even those executive suites that have networking meeting on a regular basis are still not really a coworking space.
See the full discussion, including 42 comments, with leading industry experts at our OfficeFinder LinkedIn Discussion Group.Executive Suites , Flexible Workspace , Office Space