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Jefferies has reiterated its 'buy' rating and 130p target price for office space group Regus following Friday's 40m-pound cash offer for smaller peer MWB Business Exchange (MBE). "We view this as a strategically sensible transaction for Regus, cementing its leading market position in the UK serviced office market, with considerable potential cross-selling synergies," Jefferies said.
Tricky one to call.. The core business model is good. Business needs a global presence and they need flexibility. Regus is well positioned in this sense. When you consider that 80% of Regus´s income is from developed markets, that mean that there is huge potential for growth. Thye have a good Emerging markets place. Take their recent expansion into Saudi and the UAE. http://bit.ly/Z2tHCI. ..Though with PE ratio of 24.5% this is priced in. If this share falls towards the 80p range then I´ll definitely be in.
Regus: Jefferies keeps buy rating and 130p target
Investors could be forgiven for being slightly concerned when Regus, Europe’s leading operator of serviced offices, starts talking about ramping up its expansion plans. In the 20 years since it was founded, Regus, which provides “flexible space” that can be hired for as little time as an hour, has been a rollercoaster of a business. Mr Dixon, who learnt his lesson about expanding at the top of the market “the painful way”, believes that growing the business now in a recessionary environment is the right way to go. There are also big growth opportunities abroad. Some 80% of Regus’s business is in mature markets, such as the UK and the US, but it is expanding in emerging markets such as China and India and last week opened in Sri Lanka. With its strong cash flow, which allowed it to invest a further £30m in expansion in the third quarter, Regus is looking a solid hold, Tempus writes.
Office space firm Regus said it plans to open more offices this year than originally expected in order to meet growing demand for flexible and mobile working. The company had anticipated adding 200 new centre during 2012, but now plans to open 230 - 250 new centres. It said these additions would have a small impact on this year's group profitability as it absorbed incremental opening costs and some initial start-up losses. However, it added they would contribute to cash flows and profitability in future years. The plans came with a caveat that unpredictable economic conditions could put the brakes on the firm's plans. "We are ready to scale back our growth plans if macro-economic conditions dictate that it would be prudent to do so," Regus said in a statement. The company said its financial performance in the third quarter of 2012 was in line with management expectations. Group turnover in the third quarter increased by 7.6% at constant currency to £307.3m compared with £293.5m in the same period last year. Turnover for the nine months to the end of September increased by 8.4% at constant currency to £916m. The firm's mature business, which covers offices opened before the end of 2010 and makes up over 80% of its centres worldwide, posted revenues to £277.1m in the third quarter. This marked an increase of 1.1% at constant currency, but was down 1.6% at actual exchange rates.
Regus: Jefferies keeps buy rating and 130p target.
Regus: Panmure Gordon keeps buy rating and 140p target.
RBC CAPITAL GIVES OUTPERFORM RATING TO REGUS (RGU) RBC Capital Markets reaffirmed their Outperform rating on shares of Regus (LON: RGU) in a report issued on Thursday. They currently have a 130p target price on the stock. Regus has been the subject of a number of other recent research reports. Analysts at Oriel Securities Ltd reiterated a BUY rating on shares of Regus in a research note to investors on Wednesday, September 12th. They now have a 160p price target on the stock. Separately, analysts at Jefferies Group reiterated a BUY rating on shares of Regus in a research note to investors on Wednesday, August 29th. They now have a 130p price target on the stock. Finally, analysts at Investec reiterated a BUY rating on shares of Regus in a research note to investors on Tuesday, August 28th. They now have a 150p price target on the stock. ABOUT REGUS Regus is the world’s largest provider of flexible workplaces, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the world’s largest network of video communication studios. Regus enables people to work their way, whether it’s from home, on the road or from an office. Customers such as Google, GlaxoSmithKline, and Nokia join hundreds of thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to Regus, allowing them to focus on their core activities. Over 1,000,000 customers a day benefit from Regus facilities spread across a global footprint of 1,300 locations in 550 cities and 97 countries, which allow individuals and companies to work wherever, however and whenever they want to. Regus was founded in Brussels, Belgium in 1989, is headquartered in Luxembourg and listed on the London Stock Exchange. For more information please visit: www.regus.com Source: http://www.jagsreport.com/2012/10/rbc-capital-gives-outperform-rating-to-regus-rgu/ P.S. Here's some links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?iid=2467508&threadid=256596&mode=2 http://www.euroinvestor.com/community/discussionthread.aspx?iid=2467508&threadid=255276&mode=2 http://www.euroinvestor.com/community/discussionthread.aspx?iid=2467508&threadid=257550&mode=2
Office space provider Regus has formed a new partnership with Swiss train operator SBB, which will open temporary-use workspaces, offices and meeting rooms - called SBB Businesspoints - at Berne and Geneva stations. The Berne SBB Businesspoint will open in spring 2013, and the Geneva Businesspoint about one year later. The centres will offer a variety of meeting rooms, offices and workspace, all of which can be booked at short notice, and on a flexible basis. The meeting rooms are equipped with state-of-the-art technology and seat up to 36 people. The idea behind the concept is that it will allow business people to work more effectively on the move, and reflects the predicted rise in the number of mobile workers to 1.2bn globally by the end of 2013. Christophe Rechsteiner, Regus Country Manager for Switzerland, said: "People are increasingly working flexibly and on the go, but they still need professional workspaces where they can focus, meet, use wi-fi, print and prepare for meetings. "By joining with SBB, as we have done with other leading European rail operators such as SNCF and NS Trains, we're offering workers the option to do all those things at Switzerland's busiest train stations. This is a practical contribution to both individuals and businesses, enabling them to gain time, work better and work more productively."
rns out
Workspace provider Regus is to open a business centre in Kigali City, Rwanda, as it expands its footprint in East Africa. Regus has seen a 47% surge in demand for its services in the region and 40% year-on-year growth in enquiries across the continent. Regus already has representation in six other East African nations: Tanzania, Uganda, Kenya, Zambia, Mauritius and Madagascar. The group intends to double its network size in East Africa by 2014
Mark Dixon, CEO of Regus, said: “We are launching a new centre in Rwanda to provide businesses with smarter, flexible ways to grow and explore the opportunities created by economic growth in East Africa. We help them to do so at minimal upfront cost, without committing themselves to long-term premises. These advantages have fuelled demand for our services across Africa and especially East Africa where we intend to double the size of our network by 2014.” The Rwanda opening continues the rapid expansion of Regus’ network in Africa and worldwide. The company recently reiterated its plan to open 200 new centres worldwide by the end of 2012. The growth of the Regus network is helping more and more companies to open up new revenue streams in Africa’s emerging and frontier markets, without the high upfront costs of taking on long-term space abroad. These markets offer huge opportunities to businesses in all sectors, with The Economist predicting that seven of the world’s top ten fastest-growing economies in 2011-15 will be in Africa, including Rwanda. At the same time the International Monetary Fund predicts Rwanda’s GDP will reach 7% in 2013. Business centres like Regus’ new location in Kigali offer companies of all sizes and in all sectors a low-cost, flexible base to explore these high growth markets – to network, find partners or suppliers and recruit staff.
Regus to open new centre in Rwanda to capture r... Surge in flexible workspace demand sparks investment in 97th country Regus to open new centre in Rwanda to capture rapid East African growth REGUS PLC Regus, the world’s largest provider of flexible workplaces, is opening its first business centre in Rwanda, in Kigali City, to keep pace with rising demand for flexible workspaces in East Africa. Regus has seen a 47% surge in demand for its services in the region and 40% year-on-year growth in enquiries across the continent. With the latest launch in Rwanda, Regus now has locations in seven countries in East Africa, including: Tanzania, Uganda, Kenya, Zambia, Mauritius and Madagascar, and a global presence in 97 countries.
http://www.investegate.co.uk/Article.aspx?id=20120906070000Z2300
In the Times the Tempus column is impressed with office space provider Regus. Its north American division is doing well in the recession as corporates look to extract themselves from long leases and enter into temporary arrangements. Occupancy rates at mature offices have risen to 85.9% while revenues “per desk” have gained 2.4%. So far so good. The problem is the UK where costs and taxes are expensive. Nevertheless, yielding 3% and trading at just 12 times earnings Regus is a buy, if you “buy into the basic premise”.
27 June 2012 Credit Suisse retain their Outperform rating for Regus with a price target of 135.00. Panmure Gordon reiterates its Buy recommendation with a price target of 140.00 Source: http://sharedealing.nandp.co.uk/broker-views/RGU/Regus P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
Regus: UBS reduces target from 100p to 95p, keeps sell recommendation.
The Times’s Tempus column ponders whether to move in on office space provider Regus. Pre-tax profits were up 93% in 2011 as the company looks to build more space overseas. Occupancy in the UK is a problem, down at just 81% versus the 86.1% for the group as a whole. The stock dropped yesterday by 7.8%, Tempus thinks it has further to go. Buy.
Regus's profit may have doubled in 2011, but they still weren't enough to meet Peel Hunt's forecast, with the broker maintaining its hold rating on the office space provider on Tuesday morning. "We believe that Regus is bumping along sideways, which would be consistent with the peer group (employment agencies, Adecco in particular). This may hold back sentiment," Peel Hunt said. While the broker reiterates its hold rating and maintains its forecasts, the target price is hiked from 75p to 110p to reflect a more "risk-preferring market".
Some mighty fine figures
Outlook Regus has delivered a strong set of results. After executing various strategic initiatives over the last two years, Regus is now a more resilient business and our strong growth reflects this. The current trend toward flexible working means that we anticipate continued strong momentum in 2012 and current trading reflects this. As such, despite an uncertain economic backdrop we are cautiously optimistic. · Our Mature Centres have significant and fundamental strengths; strong cash generation, solid like-for-like revenue growth and improving margins, performances which we are focussed on maintaining. · Our New Centres are performing well, and the locations we have opened are expected to reach our target return on investment hurdle in the expected timeframe. We anticipate margins in these locations will continue to improve. · Whilst the overall Group performance will always be impacted by the pace of openings within our New Centres business, the Board is comfortable with the progress being made and expects that the strong momentum in our Mature Centres business will continue into 2012. · Regus' unique, market leading position provides us with excellent potential to grow further through our Third Place business due to the burgeoning flexible work market and we look forward to this delivering additional returns over the medium to long term. Whilst we foresee the general business environment remaining challenging at a macro level in the near term, we remain optimistic about the long-term growth prospects and strategy of the business. As such, we are ready and capable to invest further to accelerate growth but scale back if macro-economic conditions deteriorate. Fundamentally, the achievement of our goals rests on our energetic, passionate and dedicated team members providing our rapidly growing number of customers and partners with absolutely the best possible service. It is a pleasure to lead such a team and it is only right that I end by thanking them for their efforts in 2011 and look forward to sharing further success with them in 2012. Mark Dixon Chief Executive Officer 20 March 2012
Mark Dixon, Chief Executive of Regus plc said: "Regus has delivered a strong set of results with sales up more than 11% to £1,162.6m and operating profit up 112% to £50.6m. The continuing strength of our mature business is especially pleasing, with operating profit up 66% to £107.7m, and significant free cash flow generation of £117.1m, up 53%. I am also heartened with the positive EBIT contribution made by our 2010 openings in the second half of the year. The Group continues to see significant opportunities in the structural move toward flexible work and as such we remain committed to building a network of 2,000 locations by 2014, of which we anticipate 200 will open in 2012. We entered into several new partnership arrangements as we established our Third Place business as a new avenue for growth and since year end signed up our one millionth member. Whilst in the near term we foresee the general business environment remaining challenging at a macro level, we remain optimistic about the long term growth prospects and strategy of the business. As such, we are ready and capable to invest further to accelerate growth but if macro-economic conditions deteriorate scale back accordingly. Current trading remains in line with the Board's expectations."
HIGHLIGHTS · Group revenues up 11.8% to £1,162.6m · Operating profit up 112% to £50.6m · Net cash at £188.3m · Solid returns to shareholders with final dividend up 14% to 2.0p, making a full year dividend of 2.9p · Strong mature performance - operating profit up 65.7% to £107.7m and significant free cash flow of £117.1m (free cash flow margin of 11.3%) · Mature occupancy increased to 86.1% (2010: 78.0%) · Mature financial performance strengthened in the second half · New centres progressing well - 2010 openings made a positive EBIT contribution in H2 · Invested £86.4m in new, high quality assets and in supporting growth · Global footprint extends to more than 1,200 locations and 94 countries. Specifically:- o 139 new locations opened (91 in H2) and nine new countries o More than a million members o Consolidated workstations at year end increased by 8.2% to 204,043 o New partner deals signed with SNCF and Shell, and since year end, NS Trains (Dutch rail operator)
http://www.investegate.co.uk/Article.aspx?id=201203200700236526Z
Mark Dixon, CEO of Regus, comments: “Any business that wants to grow needs to find new markets, and Africa is an important development market for companies of all sizes. To help our customers grow, we have invested significantly in new centres in Africa opening the way for businesses to explore these emerging and frontier markets. Our network of high-quality, flexible accommodation is enabling companies in all sectors to find new markets and better ways to work.”