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Regus Reports 72% Profit amid Continued Expansion

Regus, the largest supplier of flexible and serviced office space in the UK, has reported a phenomenal 72% rise in full-year profit.

Boosted by accelerating demand for its global range of flexible workspace, which ranges from fully serviced offices and virtual offices to hotdesking and coworking solutions, Regus saw its pre-tax profit rise to £85.1 million in 2012.

This figure is up from £49.4 million a year earlier, and is also above analysts' expectations of £82.9 million. Revenue increased 7% to £1.24 billion.

The FTSE 250 company raised its final dividend to 2.2 pence from 2 pence a year earlier and as of 5th March 2013, shares were up 2.6% at 131.2 pence on the London Stock Exchange.

A widespread trend for companies seeking to cut commercial property expenditure is one of the key drivers behind Regus' recent success rate, as serviced office space is generally more flexible and affordable than the fixed long-term leases of conventional office agreements.

The company has ploughed large-scale investment into its mobile working strategy, and is announcing new locations on a monthly basis as part of its global expansion drive.

Following its soon-to-be-completed acquisition of MWB Business Exchange, for which Regus was forced into a higher settlement of £65.6 million after MWB shareholder Pyrrho Investments placed a counter bid of £65 million, Regus plans to add all 64 of MWB's UK business centres to its portfolio in 2013. This is in addition to other locations and as such, Regus plans to add a total of 350 new locations to its portfolio this year.

By 2014, the company reportedly intends to have a global network of approximately 2,000 workspace locations.

Reuters - Tuesday 5th March 2013


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