17 May 2011 07:00
17 May 2011
REGUS PLC - INTERIM MANAGEMENT STATEMENT
At its Annual General Meeting which will be held later today, Doug Sutherland, Chairman of Regus, the world's largest provider of flexible workspaces, will give the following update on trading covering the period from 1st January 2011. Unless otherwise stated, figures quoted in this statement are for the four month period ended 30th April 2011 ("the period").
"Regus continues to make progress despite a muted economic backdrop and is trading in line with management expectations.
Revenues for the four months to 30th April 2011 have increased 8.1% at actual exchange rates to £368.4m or 9.9% at constant currency compared to the equivalent period in 2010.
In line with its previously stated strategy Regus has continued to invest in growth. It has both expanded its geographic presence into new countries such as Serbia, Latvia and Uganda and deepened its network within existing cities such as New York, Paris and Shanghai. As a result the total number of workstations increased over the period to 192,128.
The Group continues to make progress with its previously stated strategic initiatives; these include continued investment in sales and marketing to drive enquiries and occupancy, streamlining process and structures, and product and service innovation among others.
Regus continues to show robust underlying cash generation. After investing £21.1m in the period to grow and develop its centres, its net cash position has remained significant at £191.0m at 30th April 2011.
As announced on 22nd March 2010, reflecting the Group's solid trading performance, strong cash position and confidence in the future prospects for the Group, the Board has recommended a 9.4% increase in the final dividend per share from 1.6p per share to 1.75p per share. Subject to shareholder approval at the AGM this will be paid on 27th May 2011 to shareholders who were on the register at the close of business on 26th April 2011.
Regus remains cautious on the economy; we continue to be encouraged by recent positive trends that reflect its continued strategic delivery. The Group is well positioned for a year of solid revenue growth and business improvement with continuing strong underlying cash flow generation.
The business remains strategically well positioned to utilise its strong global network, capabilities and balance sheet to exploit attractive long-term growth opportunities. The rate of capacity expansion and investment in the business continues across all regions."
For further information, please contact:
Regus plc Tel: + 352 22 9999 5160 Mark Dixon, Chief Executive Officer Stephen Gleadle, Chief Financial Officer Andrew Brown, Group Communications Director | Brunswick Tel: + 44 (0) 20 7404 5959 Simon Sporborg Wendel Verbeek |
This interim management statement contains certain forward looking statements with respect to the operations of Regus. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. Nothing in this announcement should be construed as a profit forecast. |
About Regus
Regus is the world's largest provider of flexible workspaces, 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 800,000 customers a day benefit from Regus facilities spread across a global footprint of 1,100 locations in 500 cities and 88 countries, which allow individuals and companies to work wherever, however and whenever they want to. Regus was founded in Brussels, Belgium in 1989; it is headquartered in Luxembourg and listed on the London Stock Exchange. For more information please visit: www.regus.com