Interim dividend up 6% to 0.85p per share (H1 2009: 0.8p)
Commenting on today's announcement Mark Dixon, Chief Executive Officer of Regus plc, said:
"Despite the challenging trading environment I am pleased that we continue to generate cash, deliver cost savings and open new centres on attractive deals. While the market remains difficult to predict, we remain committed to our strategy of restoring our margins by both driving up our revenues and progressively reducing cost while continuing to maximise growth opportunities as changes in how and where we work evolve."
The good news for Regus is that they have cash, £224.2m, to continue their expansion plans which are to "open a centre per day over the remainder of the year." According tot he report Regus is focused on reducing risk through variable rent arrangements that combine operational flexibility for both landlords and for Regus - minimizing risks inherent with longer, more conventional leases.
The really bad news is that their stock prices have plummeted:
The bottom line is that Regus is suffering along with the rest of the worldwide commercial real estate market.
The second biggest mistake made by tenants looking for office space is not allowing enough time for the process. Far too often tenants will not get started early enough and have to settle for less than they could have had otherwise. This applies to tenants who are looking for conventional space and not executive suite, virtual office space, or co-working space. Typically a tenant can be in these spaces as soon as the next day or at least within the month.
Tenants looking for conventional office space under 10,000 should get started at least 6 months prior to their move in date. This will allow enough time to find some good alternatives, negotiate the best deal and have any tenant improvements completed for an on time move-in. This is true even in a soft market. In fact, even more so since there will be many more possibilities to investigate.
For office tenants over 10,000 square feet, at least 9 months should be allowed. The larger the tenant, the more complicated the process and more time is needed.
Two relatively new office space trends that have impacted the general office space market are co-working office space and virtual office space. As we approach the three year mark of the recession and slow recovery, many professionals have had to look for means to reduce their overheads. With conventional office space costing an average of $4,000 per year per person along with the additional cost of staff, equipment, furniture, telecommunications and Internet on top of that, many small companies have found other means to the way they work that does not include conventional office space.
Two of those alterative workplace methods are co-working space and virtual offices. Co-working space is space in which business people can use tables, conference rooms and shared facilities such as WiFi and videoconferencing on as needed and a pay-per-use basis, significantly reducing overhead. In manu cases it is simply an open room with tables or can be similar to a lounge.
A virtual office is essentially an official address, in a typically prestigious building, in which a small business can have a full time identity and use the facilities on an as needed basis.
Both of these alternatives have impacted the office space market by reducing the need for small business to have a full time office space. Executive suites have been impacted hardest since many of these busisness would have chosen full time offices with them. Even after the effects of the recession are gone, many small businesses will continue to use these alternatives, In fact, it is our believe that these modes of office space occupancy will continue to expand and become even more popular, not just with small businesses, but many large businesses as well. They fit the lifestyle of many younger workers better than conventional office space does.
An office cubicle is a small space that is divided with partitions to give privacy to the employee without having to spend a lot of money on adding walls for an office. The space is generally very small with little room to spare for anything extra. The partitions serve to allow the employee the privacy they crave without being face to face with everyone else in the office throughout the day. Cubicles are very effective in helping the employee feel as though they have their own space. It is like having a mini-office with no door.
Office cubicles are effective because the employee is given what they need and the employer doesn’t have to spend unnecessary funds to build walls that would only make the office space seem even smaller than it already is. Office space can be hard to come by when a business begins to grow. More and more employees are hired and the available office space has already been filled.
Cubicle space has been effective because it makes the office area look more professional than a lot of desks sitting in the middle of the floor. The design of the overall office looks more organized and “together” when cubicles are added. This is just one of the important ways in which office cubicles are effective.
Employees like the idea of having their own space as well. When someone works in an office, they want to know that they are able to have some sense of privacy. The privacy afforded by the use of cubicles may not be premium, but it is far better than the alternative. There are no doors on the cubicle to keep people from entering, but if someone enters the space, everyone else will know whether or not they are supposed to be there. That makes cubicles important simply because they keep the belongings of the person who works in it a little safer from theft and other possible issues that might occur.
Cubicles allow each person to have their own locker and filing cabinets as well. This is an effective way to store paperwork that doesn’t go in the main files. Without cubicles, the employees desk becomes overwhelmed with paperwork that can’t be thrown away but must be kept. Cubicles are effective in keeping the office as a whole organized. Organization is one of the most important things in an office and cubicles are effective in keeping the office space neat and clean.
People often complain about cubicles being too small or too confining. The truth is, office cubicles make a big difference in how these same people feel when they come to work in the morning. It makes them feel as though they have their own place in the office. The worker’s that complain about their cubicles would be flabbergasted if their cubicle was taken away and they were thrown into the middle of the office with a bunch of other desks with no privacy or storage space. Be thankful for the effective cubicle you work in each day.
Feel free to add this video to your website. Code:<object width="640" height="385"><param name="movie" value="http://www.youtube.com/v/FA6C5KWJXkI&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/FA6C5KWJXkI&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="640" height="385"></embed></object>