Workspace Group PLC on Friday lifted its half-year dividend and reported a swing to profit, hailing ‘good customer demand and continued pricing growth’.
The London-based flexible workspace provider reported pretax profit of £10.2 million for the six months to September 30, swinging from a loss of £147.9 million a year prior.
This was primarily due to Workspace reporting only a £20.3 million loss on change in fair value of investment properties, narrowing markedly from £177.4 million.
Net rental income declined 0.8% on-year to £60.5 million from £61.0 million, though underlying net rental income rose 4.3% to £60.2 million from £57.7 million. The underlying sum strips out disposals.
EPRA net tangible assets per share weakened to £7.85 at the half-year end from £8.00 in March.
Occupancy as at September 30 fell to 87.5% from 88.4% a year ago.
Chief Executive Officer Lawrence Hutchings said: ‘Workspace is a leader in the London flex market, with a deep understanding of what our customers want from their work space and a focus on championing the needs of the Capital’s fastest growing businesses. Today’s results, reflecting good customer demand and continued pricing growth, demonstrate the enduring appeal of the Workspace offer for these businesses.’
Workspace said the direct impact of tax increases and regulatory changes in the UK government budget is likely to be limited, but it may take time for broader market sentiment to adjust.
Workspace upped its interim dividend by 4.4% to 9.4 pence per share from 9.0p.
Looking ahead, the company said: ‘The high levels of inflation we have seen over recent years have been reducing, albeit wage inflation is expected to remain above historic norms following increases to the living wage and national insurance announced in the budget. We continue to invest in our platform to drive productivity and efficiency to mitigate inflationary pressures and enhance profitability.’
It added that it anticipates to deliver significant earnings and dividend growth over the longer-term.
Workspace shares were 0.2% higher at 540.00 pence each on Friday morning in London.
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