News Column

Regus Revenue Rises, Although Strong Sterling Caps Growth

April 30, 2014

Steve McGrath

LONDON (Alliance News) - Serviced office provider Regus PLC Wednesday reported a strong rise in first quarter revenue, as it continued to open new centres and occupancy rates at its existing locations remained stable.

In a statement, the company said revenue rose 10.1% to GBP393.2 million in the first three months of the year, up from GBP357.0 million a year earlier, although the increase would have been 19.4% at constant currencies. It said the strength of sterling weighed on its earnings revenue, as it had previously flagged.

The company had 1,945 centres on March 31 and the number of workstations had increased to 318,076, from 304,774 at the end of December.

"We continue to grow our network in response to strong customer demand, underpinned by the ongoing move to flexible working," the company said in its statement, adding that it still expects to add at least 300 new business centres and additional Third Place locations in 2014.

"We maintain the flexibility to accelerate growth to take advantage of attractive opportunities or scale back growth based on market conditions and expected returns," it added.

The company also said it expects overheads per available workstation to continue to fall.

Regus shares were down 1% at 208.8299 pence Wednesday.

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Source: Alliance News