Regus rising 3rd March 2016

Regus, the global workspace provider, said revenues were up 15.9% to £1,927m and underlying operating profit was up 37% to £144.8n this morning in full year results thanks its said to “powerful structural growth drivers” in its market as occupiers review their attitudes to their space requirements. Underlying profits lifted despite substantial investment in new locations.

Regus said the period saw a 22% increase in the network with 554 new locations in 2015, with a net capital investment of £284.9m. The business generated £215.7 or 23.1p per share of cash in 2015 (before net growth capital expenditure, share buybacks, dividends and disposal proceeds) while underlying earnings per share were up 51% to 11.2p. Regus said a conservative balance sheet had been maintained with net debt of £190.6m (0.66x underlying net debt:EBITDA). There was a 13% increase in dividend to 4.5p (2014 : 4.0p). Current trading is in line with management expectations. Overheads as a percentage of revenues declined 2ppt to 14.7%. The global giant in service offices is now in 2,768 locations, across 977 towns and cities and 106 countries.

Mark Dixon, Chief Executive of Regus, said: "We remain confident in our business model and the long-term structural drivers of our industry. We will continue to invest to increase our levels of customer service, make our business relevant to a wider market, drive greater operational efficiency and deliver long-term shareholder value. We will continue to adhere to our strict financial criteria in executing our growth plans and remain suitably vigilant given the current global macroeconomic uncertainty, with flexibility in both our expansion plans and our cost base. Current trading is in line with management's expectations and we remain confident in our prospects for 2016 -