TIDMWKP
RNS Number : 1935C
Workspace Group PLC
18 January 2018
18 January 2018
Workspace GROUP PLC
Third Quarter business update
WELL POSITIONED FOR CONTINUED GROWTH WITH STRONG DEMAND FOR OUR
FLEXIBLE OFFER
HIGHLIGHTS
-- Continued strong customer demand in October and November with
a seasonal fall in enquiries in December. Enquiries averaged 858
per month in the quarter (Q3 2016/17: 1,009).
-- Lettings in the quarter averaged 86 per month compared to 85
per month in the same quarter last year.
-- We have seen good levels of customer demand in January 2018,
with 489 enquiries in the first two weeks.
-- Continued success in letting up of recently completed
projects. Occupancy at The Record Hall in Holborn, which opened in
May 2017, reached 73% by the end of December 2017.
-- Good progress on our refurbishment and redevelopment projects
underway, with over 483,000 sq. ft. of new and refurbished space
due to complete in 2018, and the integration of The Salisbury,
Finsbury Circus, proceeding to plan.
-- Well positioned with cash and undrawn facilities of GBP269m
as at 31 December 2017. Pro-forma LTV ratio of 19% at 31 December
2017, based on 30 September 2017 valuation.
Jamie Hopkins, Chief Executive Officer, Workspace Group PLC,
commented:
"We've had another good quarter, with completed projects
continuing to let up well and good progress being made on our many
projects underway. As expected, enquiries fell during the
seasonally quieter December and have picked up again in the first
two weeks of 2018. With our marketing expertise, coupled with
ownership of the right real estate, I believe Workspace is well
positioned to take advantage of the growing interest from all kinds
of businesses in our inspiring, well-connected spaces."
Enquiries and Lettings
There were good levels of customer demand in October and
November with enquiries averaging 1,015 per month. The seasonal
downturn in enquiries in December was more marked this year and, as
a result, enquiries averaged 858 per month for the quarter as a
whole, compared to 1,009 per month in the same quarter last year.
Lettings in the quarter averaged 86 per month compared to 85 per
month in the same quarter last year.
Quarter Ended
Average 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec
number 2017 2017 2017 2017 2016
per month
Enquiries 858 1,039 1,055 1,183 1,009
Lettings 86 97 95 101 85
------------ ------- ------- ------- ------- -------
We have seen good levels of demand return in January 2018, with
489 enquiries in the first two weeks.
Refurbishment and Redevelopments
Our completed projects continue to let up well with occupancy at
The Record Hall in Holborn, a new 58,000 sq. ft. business centre
opened in May 2017, reaching 73% by the end of December 2017, up
10% in the quarter.
We continue to make good progress on our extensive refurbishment
project pipeline, with 399,000 sq. ft. of new and upgraded space
due to complete during 2018. We also have four mixed use
redevelopments underway with two new business centres, providing
84,000 sq. ft. of new space due to open in the next six months.
In November 2017, we completed the sales, for residential
redevelopment, of Stratford Office Village and the Arches in
Southall for GBP27m in cash, in line with their 30 September 2017
valuations.
Financing
Net debt reduced by GBP26m in the quarter to GBP396m at 31
December 2017, with cash balances and undrawn facilities of
GBP269m. The pro-forma loan-to-value ratio at 31 December 2017,
based on the 30 September 2017 property valuation is 19% (30
September 2017: 20%).
ENDS
For further information, please contact:
Workspace Group PLC 020 7138 3300
Clare Marland, Head of Corporate Communications
Edelman 020 3047 2546
Mav Wynn
Rob Yates
Notes to Editors
About Workspace Group PLC:
Workspace is geared towards helping businesses perform at their
very best. The Workspace Advantage is our unique customer offer and
is open to organisations of all sizes - we provide inspiring,
flexible work spaces with super-fast technology in dynamic London
locations. Established in 1987, and listed on the London Stock
Exchange since 1993, Workspace owns and manages 3.6 million sq. ft.
of business space across 66 London properties. We are home to some
4,000 businesses including some of the fastest growing and
established brands across a wide range of sectors.
The way businesses work is changing. That's why we continually
invest in providing the technology infrastructure that enables our
customers to think and move fast, and alongside their working
environment, is tailored to each individual business.
Workspace (WKP) is a FTSE 250 listed Real Estate Investment
Trust (REIT) and a member of the European Public Real Estate
Association (EPRA).
For more information on Workspace, visit www.workspace.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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