Strip-out the impact of growth from having opened new centres in the period and underlying revenues at serviced office group, Regus, fell 3.8 per cent in 2009. That reflected a dip in average occupancy to 77.7 per cent, from 82.9 per cent, while UK revenues slumped 13.3 per cent.
Still, there was promising growth in Asia Pacific, where revenues rose 9.4 per cent, and in the Americas, which saw a 2.1 per cent revenue rise. Expansion, though, did hit the figures after the group opened 45 new centres - that contributed £6.2m of revenues, but also meant a £1.8m earnings hit from start-up losses. Already this year, capacity has increased 5 per cent, with the goal being to add 10-15 per cent by year-end. What's more, costs are being trimmed - the group did take a £2.6m administration restructuring charge in the period, but that should mean £11.3m of costs savings during 2010. And, despite an increase in the dividend and investment in developing workstations, the group's cash pile grew 12 per cent year-on-year - buoyed by a £18.3m one-off payment from settlement of a legal dispute.
KBC Peel Hunt forecasts adjusted pre-tax profit of £40m for 2010 and EPS of 3.2p (2008: £69m/5.5p).
Regus (RGU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 89p | MARKET VALUE: | £845m | |
| TOUCH: | 88-89p | 12-MONTH HIGH: | 121p | LOW: 59p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 53p | NET CASH: | £237m | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 0.46 | 39.0 | 4.50 | nil |
| 2006 | 0.68 | 78.0 | 8.40 | 0.60 |
| 2007 | 0.86 | 119 | 10.5 | 1.00 |
| 2008 | 1.08 | 149 | 12.0 | 1.80 |
| 2009 | 1.06 | 86.9 | 7.10 | 2.40 |
| % change | -2 | -42 | -41 | +33 |
Ex-div: 28 Apr Payment: 28 May *Includes intangible assets of £307m, or 32p a share | ||||
