News

WORKSPACE GROUP PLC FINAL RESULTS DELIVERING A STRONG PERFORMANCE AND WELL POSITIONED FOR GROWTH

PRELIMINARY ANNOUNCEMENT
6 June 2011

Workspace Group PLC (“Workspace”), London‟s leading provider of space to small and medium-sized enterprises (SMEs), announces its results for the 12 months ended 31 March 2011.

Highlights
Financial Results
• Trading profit after interest up 31% to £14.1m
• Profit before tax £53m, up from £26m last year
• Total dividend up 10% to 0.825p per share, 1.5 times covered by underlying earnings
• EPRA Net asset value per share 29.5p, up 10% from 26.7p at March 2010

Trading
• Net cash from operations up 45% to £16.1m
• Overall occupancy 84.1%, up 2.2% in the year
• Good levels of enquiries (averaging 960 per month) and lettings (averaging 88 per month) through the year
• Like-for-like occupancy 86.2%, up from 83.6% at March 2010
• Like-for-like cash rent roll up 3.9% in the year to £40.1m

Property Portfolio
• Underlying property valuation up 4.7% (£32m) in the year
• Like-for-like income yield 7.8% (7.9% at March 2010)
• £44m of property disposals completed and a further £13m of conditional disposals contracted for at an overall exit income yield of 5.9%

Regeneration
• Partnership agreed for redevelopment of Wandsworth Business Village
• Mixed use planning consent achieved at Bow Enterprise Park
• Re-designation of 7 acres at Tower Bridge Business Complex for residential use

Financing
• New £125m RBS debt facility signed
• Average maturity of debt now 4 years, with no debt falling due in next 3 years
• Loan to value 50%, down from 53% at March 2010
• Average cost of debt reduced to 5.3% (2010: 6.7%)

BlackRock Joint Venture
• £100m property acquisition fund established with BlackRock UK Property Fund, seeded with £35m of Workspace property


Commenting, Harry Platt, Chief Executive of Workspace said:

“Our results for the year demonstrate our ability to drive occupancy, rental income and regeneration opportunities. Looking to the future, we have a solid platform from which to create further value. London is recovering well and our customers, SMEs across London are contributing to this. As we improve occupancy we are seeing evidence of being able to increase rents. Regeneration is also an important part of our business model but has been a tough market from which to deliver value in recent years. I am, therefore, delighted to report that during the last year we have made significant progress on a number of schemes. I believe that Workspace is strongly positioned in a dynamic and growing market, with excellent customer relationships, attractive assets with redevelopment potential, a sound balance sheet and a valuable brand. We look forward to the future with confidence” .

Workspacegroup polc


You have not added any business centres, partners or brokers to your shortlist, do you want to continue?