RGU.L Regulatory News (RGU)

18 Dec 2007 07:01

Regus Group PLC18 December 2007 18 December 2007 REGUS GROUP PLC ("Regus" or "the Group") FULL YEAR PRE-CLOSE UPDATE Regus Group plc, the world's largest provider of outsourced workplaces, givesthe following pre-close update ahead of its year-end on 31st December 2007.Regus will announce its preliminary results in March 2008. Regus has continued to deliver a strong performance across all four regions inthe second half of 2007, increasing revenues and cash generation. Group revenuesfor the eleven months to 30th November 2007 (at actual exchange rates) haveincreased 27% to £783.1 million compared with £616.5 million for the equivalentperiod last year. At a constant exchange rate the increase is 32%. This improved performance has been driven both by like for like sales increasesand capacity growth. On a like for like basis the revenues from our mature centres for the elevenmonths to 30th November 2007 (at constant exchange rates) have increased 12%driving improved margins. Average available workstations for the 11 months to 30th November have increasedby 24% to 132,059 compared with 106,089 for the same period last year. In the 11months to 30th November, 129 new centres have been added worldwide consistentwith our strategy of controlled growth by expanding into new markets andstrengthening our position in existing markets. New locations in existingcountries of operation include Winnipeg in Canada, Lille in France, Turin inItaly, Valencia in Spain, Kolkutta in India and we have opened our first centresin the following new countries: New Zealand, Bulgaria, Qatar, Jordan and Kenya. With our leading indicators in all regions including the US remainingencouraging the Board expects full year operating profit for the currentfinancial year to be in line with analysts' consensus. Given this and the scopefor further improvement in all areas of operation in 2008 the Board expects torecommend a 67% increase in the final dividend from 0.6 pence to 1 pence pershare for the year ending December 31st, 2007. Commenting on today's announcement, Mark Dixon, Chief Executive, said: "I am delighted that we are set to deliver our fifth successive year offinancial improvement. Our strategy of controlled growth through a combinationof opening new centres and acquiring existing businesses continues to deliveroutstanding results. While we are alive to market conditions our business model remains robust withstrong cash generation, revenue, geographic and sector diversity and positivevisibility on earnings. Looking forward into 2008 we are in a good position to benefit from companiesturning to our lower cost flexible office solutions as an alternative toconventional leasing as they experience increasing levels of uncertainty. Ourfocus will be on maintaining the performance of our like for like businessalongside a measured expansion programme." For further information, please contact: Regus Group plc Tel: +44 (0) 1932 895 135Mark Dixon, Chief Executive OfficerStephen Gleadle, Chief Financial Officer Brunswick Group LLP Tel: +44 (0) 20 7404 5959Simon Sporborg About Regus The Regus Group is the world's leading provider of pioneering workplacesolutions, with products and services ranging from fully equipped offices toprofessional meeting rooms, business lounges and the largest network ofvideoconference studios. The Regus Group delivers a new way to work whether it'sfrom home, on the road or from an office. Clients such as Google, GlaxoSmithKline, IBM, Nokia and Accenture join thousandsof growing small and medium businesses that benefit from outsourcing theiroffice and workplace needs to The Regus Group and allowing them to focus ontheir core business. Over 100,000 clients a day benefit from Regus Group facilities spread across aglobal footprint of 950 locations, in 400 cities and 70 countries which allowsindividuals and companies to work wherever, however and whenever they want to. For more information, visit www.regus.com. This information is provided by RNS The company news service from the London Stock Exchange