BE Offices Reports on a Year of Expansion and Service Growth
BE Offices have today released its 2017 annual results, revealing a 13% uplift in turnover and expansion in their flexible workspace portfolio to 800,000 sq ft across 19 centres.
Overall the year ending 2017 showed a 13% uplift in turnover to £34.2m, and an EBITDA from continuing operations over £5m.
Simon Rusk, Finance Director at BE Offices, commented: "This has been a year of significant change, positioning the company for accelerated growth in 2019 and onwards, including the rationalisation of non-core centres and the refinancing of our senior debt to stabilise the long-term funding position."
Importantly, the year under review saw BE laying the foundations for its future growth through the acquisition of Headspace, primarily a co-working business complementing the company’s highly successful pro-working division, and the launch of BESpoke, under Jonathan Weinbrenn, aimed at the larger corporate occupier seeking turnkey managed space of more than 5,000 sq ft.
The disposal of two freehold properties (Royal Exchange Avenue and Wembley) also generated more than £50m during the period. At the same time, BE began a multi-million pound programme of investment on improving facilities across a number of existing centres.
Rusk believes BE is laying firm foundations for future growth and the headline numbers for 2017 bode well for the anticipated performance over the medium term.
Already the company is on track to exceed 1m sq ft of floorspace during 2019 as BE's various divisions gain significant traction in the market. Rusk believes this will be a significant milestone for the company as it will be a springboard to accelerate growth over the next five years.
"However," he points out, "the components of the flexible offering important to the end user have become increasingly more acute with service, interior design and community at the forefront. We are focusing on these criteria as part of the refurbishment of our existing portfolio and proposed new centres."
"With almost 25 years’ experience in the sector, BE is well placed to take advantage of the rapidly expanding flexible workspace sector."