Regus cheers with strong Q3 performance
Global workplace provider Regus pleased with reports of a strong third quarter performance, although the company said it continued to experience the affects of the strength of sterling.
Regus
242.50p
16:49 16/12/16
During the three-month period, turnover climbed to £413.6m from £386.6m a year earlier, a gain of 13.5% at constant currency and 7% at actual exchange rates.
For the nine months ended 30 September, group turnover increased to £1,218.3m, compared with £1,131.4m for the same period last year, reflecting an improvement of 15.7% at constant currency rates and 7.7% at actual rates.
The group said it had remained very cash generative, delivering £18m of net cash in the quarter, helping its net debt position improve by £18m to £144m.
It currently has visibility of around £60m of net capital expenditure for 2015 in the pipeline and said it remains confident that the business will continue to perform strongly and develop in line with its expectations.
"We are pleased with the continued strong performance of our business," it said.
"The Mature business has delivered a strong underlying performance and continues to generate good profitability and very strong cash conversion. We remain confident that our New business will develop in line with the group’s expectations, and will deliver strong returns over the medium term."
"We continue to find attractive opportunities to invest in growth that generates returns well in excess of our cost of capital. Our growth plans are regularly reappraised and can be quickly adjusted if market conditions dictate that it would be prudent to do so.
"We remain vigilant in our control of overheads, ensuring we continue to benefit from our scale advantages while investing to support the Group’s growth strategy."