Regus Posts Flat 1st Half Net Profit; Outlook Cautious
25 Août 2009 - 9:05AM
Dow Jones News
Workspace solutions provider Regus PLC (RGU.LN) Tuesday reported
first-half net profit was almost flat year-on-year as revenue
excluding currency swings fell, and the company maintained a
cautious short-term outlook.
However, it added that free cash flow climbed and it boosted its
dividend payment by one-third.
Regus posted net profit in the six-month period ended June 30 of
GBP54.4 million compared with GBP54 million in the same period a
year earlier. Revenue rose 9.8% to GBP557.4 million from GBP507.5
million largely due to a fall in the value of sterling against the
dollar and euro. Without the currency impact, revenue fell
6.8%.
Free cash flow increased by GBP58.9 million compared with
GBP97.3 million a year ago, and its net cash balance jumped to
GBP229.5 million from GBP211.2 million, a record high. It proposed
an interim dividend of 0.8 pence per share, up from 0.6 pence.
"With continuing uncertainty around future economic activity - a
position which is projected to continue over the short to medium
term - we remain cautious about the group's short-term outlook,"
Regus said in a statement. "Challenges remain and further decisive
management action will be required to protect and develop
shareholder value."
Regus' products and services range from fully equipped offices
to professional meeting rooms, business lounges and videoconference
studios. Its clients include multinationals like Google Inc.
(GOOG), GlaxoSmithKline PLC (GSK), International Business Machines
Corp. (IBM), Nokia Inc. (NOK) and Accenture Ltd. (ACN). It has
about 1,000 centers in more than 70 countries.
The company's shares Monday closed at 83 pence. They have gained
24% in value in the past 12 months as companies have sought
flexibility as a means of cutting costs amid the downturn.
Company Web site: www.regus.com
-By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 8237;
jonathan.buck@dowjones.com