Workspace Group PLC sees ‘strong’ demand but still way off pre-COVID
Like-for-like rent roll was up 2.3% in the quarter, to £89.3mln, with total rent roll increasing £5.1mln to £107.2mln
Workspace Group PLC (LSE:WKP) said customer demand remains solid but fell in the final quarter of last year due to the government’s Plan B guidance, which ends next week.
The London-based provider of flexible offices saw net debt rise, despite insisting cash reserves provide further investment and acquisition opportunities.
The FTSE 250-listed company’s like-for-like enquiries in the third quarter ended 31 December grew circa 24% to 831, while actual lettings rose 8% to 117.
“We are seeing strong demand for our space, with good levels of enquiries, viewings, and lettings despite the renewed work from home guidance issued by the Government in December,” Graham Clemett, chief executive, said.
Its customers’ utilisation of business centres eased on after Downing Street’s ‘plan B’ guidance to work from home and is running at 43% of pre-COVID levels, compared to 55% in November 2021 before the emergence of Omicron.
Like-for-like rent roll was up 2.3% in the quarter, to £89.3mln, with total rent roll increasing £5.1mln to £107.2mln.
The company’s net debt edged 8% higher to £575mln but has £225mln of cash and available facilities to continue investing in the project pipeline and acquisition opportunities, it said.
Its acquisition of The Busworks in Islington for £45mln in November, which has 104,000 square feet of net lettable space has significant potential to be sustainably upgraded and repositioned, it said.
Its shares climbed 2.8% to 886p.
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