Regus produces improved first quarter

Office provider Regus has stated it traded in line with management expectations in its first quarter, reporting improved margins, increased revenue and profit growth thanks to cost efficiencies and following the development of 554 locations in 2015.

Regus said its revenue grew to £532.5m for the three months to March 31, compared with £452.3m for the same period a year earlier, as exchange rates provided a “modest tailwind”.

Regus added that cost efficiency continued through the quarter and resulted in a good margin performance, strong profit growth and robust cash generation. Its underlying cash generation during the period was double from a year earlier to £56.4m from £25.2m.

Regus added 42 new locations to its network during the period, and had a total of 2,799 locations as of the end of March.

Regus said its pipeline includes “a number of larger co-working locations in major cities, which have a higher associated net capital investment, excluding these, the average net capital cost per location continues to fall, demonstrating that we are being increasingly successful in achieving partnership deals”.

Regus said it remains confident in delivering a full year result in line with management expectations.​

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