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19 Nov 2008 07:00
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19Β NovemberΒ 2008 Β
REGUSΒ PLCΒ -Β INTERIM MANAGEMENT STATEMENT
Regus' financial performance in the year to dateΒ continuesΒ to beΒ in line with the Board's expectations.Β Β
Revenues for theΒ fourΒ months toΒ 31stΒ OctoberΒ 2008Β (at actual exchange rates) wereΒ Β£367.0m, an increase ofΒ 24.7% over the Β£294.3m achieved for the same period last year.Β
Total capacity, including workstations in non-consolidated businessesΒ (being joint ventures, management contracts and franchises)Β has increasedΒ overΒ theΒ lastΒ 4 monthsΒ byΒ 2.3% toΒ 168,908. Of theseΒ 157,965Β workstations were fully consolidated (an increase ofΒ 2.1%Β over the lastΒ 4Β months).
Over the same periodΒ 26Β centres have been opened (includingΒ Kiev,Β Jakarta,Β Sao Paulo,Β Taipei,Β Shanghai, andΒ Singapore) andΒ 8 centres closed.Β This brings our total number of centres to 968Β and the countries in which we operate toΒ 72.Β
Cash generation has remained strong with our net cash balance increasingΒ in theΒ 4 monthsΒ to 31stΒ October byΒ 14.1%Β to Β£159.9m.Β Β Given the strength of this position, expected futureΒ netΒ cashΒ inflows and the adverse spread between the interest we earn on ourΒ grossΒ cashΒ balances of Β£190.2mΒ compared to the interest we pay on ourΒ outstandingΒ banks loans the Board has decided to repayΒ at the end of NovemberΒ our remaining Β£24m of bank debtΒ taken outΒ under ourΒ facility agreement.Β Β
FollowingΒ shareholderΒ andΒ Court approval,Β on the 14thΒ October the scheme ofΒ arrangement became effectiveΒ whereby Regus plc, a company incorporated inΒ JerseyΒ with its place of central administration (Head Office) inΒ Luxembourg, became the holding company ofΒ theΒ RegusΒ group.Β At the same timeΒ the composition of the Board has beenΒ changedΒ toΒ reflect the growing breadth and diversity of the Regus Group's operations.Β Β Β Β
Given the increasing pressure we are currently seeing on revenues,Β driven by theΒ impact of the credit crunch, and with market predictions of a worsening macro-economic climate to come, the Board believes thatΒ 2009Β is likely to be aΒ challenging year.Β HoweverΒ our business model with its broad range of customers and geographies and the flexibility in its cost base and lease portfolioΒ should help us meet these challenges. Additionally our strong balance sheet and ongoing cash generation ensures that we are well positioned to exploit opportunities to drive continued growth.
For further information, please contact:
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Regus plc Tel:Β +35 222 9999 5160 Mark Dixon, Chief Executive Officer Stephen Gleadle, Chief Financial Officer |
BrunswickΒ Tel: + 44 (0) 20 7404 5959 Simon Sporborg / Catherine CollomsΒ |
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ThisΒ interim management statementΒ 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. |
Β Β About Regus
The Regus Group is the world's leading provider of pioneering workplace solutions, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the largest network of videoconference studios. The Regus Group delivers a new way to work whether it's from home, on the road or from an office.Β
Clients such as Google, GlaxoSmithKline,Β IBM, Nokia and Accenture join thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to The Regus Group and allowing them to focus on their core business.Β
Over 400,000 clients a day benefit from Regus Group facilities spread across a global footprint of 968Β locations, in 400 cities and 72Β countries which allows individuals and companies to work wherever, however and whenever they want to.
For more information, visitΒ www.regus.com.
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