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Regus Shows Good Growth for Half Year 2012 Results

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Regus, The largest operator of executive suite and flexible workspaces, showed solid reuslts for the first half of 2012 despite a lackluster world economy. They added 76 centers during the period.

FINANCIAL HIGHLIGHTS

  • Group revenue growth of 7.6%, Mature like-for-like revenue growth of 2.6%     
  • Adjusted** Group operating profit increased 63% to £23.3m (H1 2011: £14.3m)  
  • Adjusted** Mature operating profit doubled to £68.1m (H1 2011: £33.9m) with a mature operating margin improvement from 6.1% to 12.0%
  • Notional Mature EPS increased from 2.7p (2.8p adjusted**) to 6.2p (5.6p adjusted**)
  • Interim dividend increased 11% to 1.0p (H1 2011: 0.9p)
  • Strong balance sheet with net cash of £153.3m
  • New £200m revolving credit facility offering further flexibility for future growth

STRATEGIC & OPERATIONAL HIGHLIGHTS

  • Continued strong performance from the mature business
  • Substantial investment of £65.1m in new centres - 2011 new centres progressing as expected, turning contribution positive in Q2; 76 (2011: 48) new centres in H1 
  • 1,268 centres in 96 countries, offering an extensive global and national network to approximately 1.2 million members
  • New Enterprise Programme deals with Adobe, Aviva and Telefonica amongst many others
  • Third Place partnerships announced with NS Trains (Netherlands) and Extra Motorway Services (UK). Strong pipeline in place
"The structural shift to flexible working continues to drive our strategic growth plans and organisation.  To satisfy demand we continue to invest, adding a further 76 centres in the period and signing additional Third Place agreements. New centre openings continue to perform well, a strong endorsement of our expansion strategy."


Executive Suites , Flexible Workspace , Office Rental

1 response to “Regus Shows Good Growth for Half Year 2012 Results”

  1. James Osgood Says:
    Citigroup downgrades Regus from neutral to sell, target price unchanged at 95p ow.ly/dFpqw Sept 12, 2012