A calculation based on the reported returns of the mature centres eventually applying to the entire estate, even allowing for an overall future modest decline in returns, points towards a target sp of at least 350p even before factoring in growth in the estate in 2015 and beyond.
RE: REGUS, Beats Forecast Broker Fi..
Peel Hunt recently increased its traget price on workspace provider Regus to 300p from 275p, which it sees as conservative, suggesting it does not require overly heroic assumptions to find fair value of 630p.
RE: REGUS, Beats Forecast Broker Fi..
BRIEF – Regus full – year revenue rises 03 Mar 2015 - 07:30 March 3 (Reuters) – Regus Plc : FY revenue 1.68 billion stg versus 1.53 billion stg year ago Final dividend up 10 percent to 2.75 pence per share Strong underlying performance, with operating profit up 27 pct at constant currency Good cash performance, with 176 million stg (18.6 pence per share) of cash generated before net growth capital expenditure and dividends Group revenue increased by 15.8 percent at constant currency to 1.676 billion stg Current trading is in line with management's expectations and we remain confident in our business model and prospects for 2015 – Chief Executive Expect to reduce costs further as a percentage of sales FY group gross profit improved 9 pct at constant currency rates to 383.1 million stg Source text for Eikon: ... Further company coverage: RGU.L (Bengaluru Newsroom) ((+ 91 80 6749 1136)
REGUS, Beats Forecast Broker Figure
RGU......... RESULTS BEAT CONCENSOUS BROKER FIGURES which were, INVESTMENT RATIOS 2013 (A) 2014 (E) 2015 (E) EBITDA £135.00m *£221.69m £291.09m 3 March 2015 REGUS PLC - ANNUAL FINANCIAL REPORT ANNOUNCEMENT YEAR ENDED 31 DECEMBER 2014 A transformational year: Good cash generation; strong growth; attractive returns Regus, the global workplace provider, today announces its annual results for the year ended 31 December 2014. Key highlights: · Strong underlying performance, with operating profit up 27% at constant currency · Good cash performance, with £176m (18.6p per share) of cash generated before net growth capital expenditure and dividends · Grew the network by 24% at a significantly lower average net cost of investment · Pro-forma net debt of £55m (0.3x net debt: EBITDA). Adjusting for £84m post year end property disposals, we self-funded growth in 2014 · Achieving attractive returns on investment - 20.9% 2014 post-tax cash return on all net investment made up to 2011 · 11% increase in dividend to 4.0p £m 2014 2013 % change actual currency % change constant currency Revenues 1,676.1 1,533.5 9.3% 15.8% Gross profit 383.1 373.8 2% 9% Overheads (279.6) (283.1) 1% (4%) Operating profit (Inc. JV) 104.3 90.8 15% 27% Profit before tax 87.1 81.5 7% 19% Earnings per share (p) 7.4 7.1 4% 17% Dividend per share (p) 4.0 3.6 11% EBITDA *224.8 188.3 19% 29% Return on Investment* 20.9%** 17.8%*** Cash flow before net growth capex and dividends 175.6 115.4 Pro-forma net debt 55.0 57.2 Pro-forma net : EBITDA (x) 0.3 0.3 * Calculated as: EBITDA less amortisation of partner contributions, less tax based on EBIT, less net maintenance capital expenditure / growth capital less partner contribution. ** estate up to 31 Dec 2011 *** estate up to 31 Dec 2010 Financial highlights · Group revenue increased by 15.8% at constant currency to £1,676.1m (2013: £1,533.5m), (9.3% at actual rates) · Overheads increased only 4% at constant currency, with a 24% increase in network · 10% increase in final dividend to 2.75p (2013: 2.5p), a full year increase of 11% Strong growth will enhance long-term shareholder value creation · 166 new towns and cities added in year, increasing depth and breadth of national networks · Now in 850 towns and cities · 452 new locations added · Increased network to 2,269 locations · Across 104 countries · £207m of net capital invested in growth · Achieving significantly lower average cost of investment per location due to geographic and size mix and new formats
My prediction, profit and EPS will slightly underperform broker forecasts. SP will fall to £2 at which point I will close my short and buy as I expect next year to be slightly ahead of forecasts.
My prediction: The results on 3 March will produce a number of increases in broker targets.
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