TIDMRGU
FIRST QUARTER TRADING UPDATE - 30 April 2015
Regus plc, the global workplace provider, today announces its
trading update for the three months to 31March 2015.
Continued improvement in Group performance
The Group has enjoyed strong trading in the first three months
to 31 March 2015, in line with management's expectations and
continuing the momentum of 2014.We are particularly pleased to have
delivered our third consecutive quarter of positive cash flow,
after continuing investment in new locations, underlining the
strong cash generation from the underlying business. The business
generated GBP38m net cash flow in the first quarter (historically
our seasonally weakest quarter for cash generation), up from GBP22m
in the equivalent period last year. After investing GBP33m in new
locations, net debt reduced by GBP5m on a pro-forma basis to
GBP50m.
Group revenue in the period increased 14.4% at constant currency
to GBP452.3m compared with GBP393.2m in the corresponding period
last year (an increase of 15.0% at actual rates). This first
quarter performance reflects the continuing growth in customer
demand for our products and services.
To meet this increasing demand, we continue to expand our
network. In the first quarter to 31 March 2015 we invested net
capital expenditure in new locations1 of GBP32.7m, adding 81
locations. As at 31 March 2015, the Group had a total of 2,342
locations, with the total number of workstations (including
non-consolidated) increasing to 368,243 (357,421 workstations as at
31 December 2014)2.
Our focus remains on building long-term shareholder value
through delivering attractive returns from our existing business
and disciplined investment in new locations - both organic and
through acquisitions. As of 20 April 2015, we had visibility on net
capital expenditure in new locations for 2015 that will cost in the
region of GBP180m and represents approximately 500 locations. We
will provide further updates on our pipeline visibility as we
progress through the year.
Strong mature performance
The performance of our mature business, representing
approximately 78% of our global portfolio of centres, remains
strong. Revenues for these centres (which were opened on or before
31 December 2013) were GBP411.4m in the three months to 31 March
2015, an increase of 5.6% at constant currency (up 6.2% at actual
exchange rates).
This strong performance reflects both solid underlying revenue
growth in our more established locations as well as the continued
maturation of the 434 locations from 2013 which joined the mature
portfolio on 1 January 2015, and which now comprises a total of
1,818 locations.
Year-on-year mature occupancy increased 3.6 percentage points on
a like-for-like basis to 81.6%, reflecting the maturation of the
2013 additions where occupancy grew strongly as expected.
Disposal
As previously disclosed, during the first quarter we completed
the sale of various portfolios of property assets acquired during
2014. The disposal raised GBP84m of cash and resulted in an
exceptional profit of approximately GBP22m after expenses, which
will be reported in our 2015 interim results.
Solid financial position
As highlighted above, the underlying business has remained
strongly cash generative and the Group has recorded another quarter
of net cash generation after investment in new locations (and
before taking into account the GBP84m proceeds from the disposal
mentioned above). Net debt at 31 March 2015 was GBP50m,
representing a reduction from our pro-forma opening net debt of
GBP55m. The second quarter of 2015 is expected to see a net cash
outflow after payment of the 2014 final dividend and investment in
new locations.
Summary
Our newer locations continue to progress towards maturity in
line with our expectations. Our older locations also continue to
perform well. Strong discipline on overhead costs has been
maintained during the period and we remain on track to deliver
further substantial scale benefits. These enable us to continue to
drive cash generation to invest in growth and build our business,
as we focus on delivering long-term shareholder value.
Overall, we have made a good start to the year and remain
confident in the outlook for 2015. Our business is performing
strongly and our network investment continues to deliver good
returns and attractive long-term shareholder value.
1 Net capital expenditure in new locations equals gross capital
expenditure less any contributions received towards fit-out
costs
Capital Expenditure (GBPm) Q1 2015 Q1 2015 Q1 2015
New Locations Maintenance Total
Gross Capital Expenditure 48.3 14.9 63.2
Net Capital Expenditure after 32.7 8.2 40.8
partner contributions
2 Consolidated workstations as at 31 March 2015 were 346,668 (31
December 2014: 342,727 workstations)
Conference call details
Regus will be hosting a call for analysts and investors at 08.30
BST this morning. Details are set out below:
Dial in number: +44 (0) 1452 580 733
Conference ID: 28352840
There will also be a replay facility available after the call
(until 11.30am, 7 May):
Dial in number: +44 (0) 1452 550 000
Playback ID: 28352840
For further information, please contact:
Regus plc Tel: + 352 22 9999 5160 Brunswick Tel: + 44
Mark Dixon, Chief Executive Officer (0) 20 7404 5959
Dominique Yates, Chief Nick Cosgrove
Financial Officer Natalia Dyett
Wayne Gerry, Investor
Relations Director
This trading update 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 global workplace provider. Its network of more than
2,300 business centres in 104 countries provides convenient, high
quality, fully serviced spaces for people to work, whether for a
few minutes or a few years. Companies like Google, Toshiba and
GlaxoSmithKline choose Regus so that they can work flexibly and
make their businesses more successful.
The key to flexible working is convenience and so Regus is
opening wherever its 2.1million members want support - city
centres, suburban districts, shopping centres and retail outlets,
railway stations, motorway service stations and even community
centres.
Founded in Brussels, Belgium, in 1989, Regus is based in
Luxembourg and listed on the London Stock Exchange.
For more information, please visit www.regus.com
This information is provided by Business Wire
Regus (LSE:RGU)
Historical Stock Chart
From Jul 2024 to Aug 2024
Regus (LSE:RGU)
Historical Stock Chart
From Aug 2023 to Aug 2024