Regus profit up 7% in first half

Regus, the serviced office group, has reported a 7% increase in pre-tax profit to £84.3m in the six months to the end of June.

However, net profits would have remained flat if it were not for currency shifts, which worked in favour of Regus during the period.

Revenues were up 10.3% to £1.1bn, but chief executive Mark Dixon, said the group was taking action to make the business more efficient in the face of market uncertainty following the Brexit vote.

The group, which operates in 107 countries, will increase its interim dividend by 11% to 1.55p.

Dixon said: “As global macro-economic uncertainty has clearly increased during 2016 and we have seen softening in revenue growth in some markets on the back of that, we have planned prudently for 2016 and taken specific action early in the year to improve efficiencies across the business.”

“We are confident in the long-term structural drivers of the industry and that Regus will continue to strengthen its position through its resilient and cost efficient operating model, strong cash generation and balance sheet.

“We are focussed on delivering key projects and implementing our long-term strategy to create shareholder value, whilst maintaining our disciplined and flexible approach to investment. We remain confident of delivering a full year profit performance in line with management’s expectations.”

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