Workspace Group PLC has published its Full Year Results for the year ended 31 March 2017 on 7 June 2017, showing strong results.
The Workspace Advantage offers highly designed and super connected space which include cafes, to businesses on flexible terms. It has delivered:
• Strong growth in net rental income up 6.9% to £79.2m, resulting in a 15.5% growth in adjusted trading profit after interest to £50.7m
• Profit before tax of £88.8m, lower than 2016 due to a smaller uplift in the property valuation
• An increase in total rent roll of 14.5% to £89.5m from rental growth at like-for-like properties and a strong letting performance at recently completed projects
• A 13.7% increase in like-for-like rent roll to £59.6m and a 12.9% increase in like-for-like
rent per sq. ft. to £28.17 as core assets continue to perform strongly
• An underlying increase of 2.1% in the property portfolio to £1,844m
Planning consents have been achieved for one mixed-use redevelopment and four refurbishments, including one post the period end.
The Record Hall, a new flagship business centre in Holborn, opened in May 2017.
Finally, a building in Fitzrovia was acquired in April 2017 for £98.5m, and the Uplands industrial estate sold for £50m in May 2017. Workspace currently owns 68 properties across 3.6m sq ft all over London.
CEO Jamie Hopkins said, “This year, more than ever before, we have seen increasing evidence that our strategy is working. Demand, from all types of businesses across London, is firmly moving towards the highly designed and super connected space let on personalised and flexible terms that Workspace offers.
'Our ability to capture the opportunities in this changing marketplace is evidenced by our strong results, with rent roll growing strongly and trading profit increasing by 15% to over £50m. This performance has supported the Board's decision to increase the dividend by 40%.
'Despite the uncertainty in the market following the EU Referendum, we remain confident of our ability to deliver long-term value for shareholders. We have a strong pipeline of refurbishments and redevelopments expected to deliver more than one million sq. ft. of new and upgraded space over the next three years. We continue to see healthy demand for our space and we have the financial resources to take advantage of acquisition opportunities.”
