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