Serviced office provider Regus (RGU) had good news and bad news in its trading update this week. The good news is that the company's well established, or mature, centres are performing solidly with a 4 per cent increase in revenue per occupied workstation. The bad news is that costs will be higher than expected this year because Regus is accelerating its growth plan and now plans to open as many as 440 new centres this year, well up on the previous target of 350.
IC TIP:
Buy
at
199p
Broker Peel Hunt is leaving 2013 and 2014 earnings forecasts unchanged at 8.2p and 12.1p, respectively, as analysts note these numbers are already 6 per cent and 3 per cent below consensus, respectively.
