Regus shares slump due to reduced profits

NEARLY £165million was wiped off the value of Regus yesterday after the office provider warned its profits would be hit as it stepped up expansion.

regus, regus shares, regus shares slump, office provider regus,Regus is a provider of large office space [MOMENT/GETTY]

It topped the list of fallers in the FTSE 250 as its shares tumbled 17½p to 179p. 

Regus runs so-called serviced offi ces at 2,000 sites in 750 cities around the world, ranging from large corporate centres to meeting rooms and business lounges at airports. 

After previously saying the group would open at least 300 new sites this year founding chief executive Mark Dixon said it planned to step up growth with 450 openings.

Results for the first half of the year showed pre-tax profits flat at £31million on revenues up 8 per cent at £804million

Growth is being driven by increased demand, particularly from technology firms, and about a tenth of the new locations will be in Africa.

Dixon said the rapid pace of change in the world of work presented opportunities for growth though opening costs and initial losses from new centres would drag on annual profits. 

Results for the first half of the year showed pre-tax profits flat at £31million on revenues up 8 per cent at £804million. 

The figures would have been higher but for the effect of the strong pound.

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