08 June 2022
WORKSPACE GROUP PLC
FULL YEAR RESULTS
STRONG TRADING PERFORMANCE DRIVEN BY CUSTOMER DEMAND
Workspace Group PLC (“Workspace”), the leading provider of flexible space, is pleased to announce its Full Year Results for the year ended 31 March 2022. The comments in this announcement refer to the period from 1 April 2021 to 31 March 2022 unless otherwise stated.
Financial highlights: significant increase in trading profit and dividend
- Trading profit after interest†up 21% to £46.9m driven by 6.4% (£5.2m) increase in net rental income to £86.7m
- Total dividend up 21% to 21.5p per share (2021: 17.75p) reflecting the strong financial performance
- Property valuation of £2,402m, an underlying uplift of 3.0% (£69m) from 31 March 2021
- EPRA Net Tangible Assets (NTA) per share up 5.3% to £9.88 with total accounting return of 8.0%†
- Loan to value of 23% (2021: 24%)
- Profit before tax of £124.0m (2021: £235.7m loss), with increases in both trading profit after interest and the property valuation
Customer activity: strong demand
- Customer demand now running at pre-Covid levels
- 1,520 lettings completed in the year with a total rental value of £30m
- Like-for-like occupancy up 7.8% to 89.6%
- Like-for-like rent roll up 8.7% to £92.9m with rent per sq. ft. up 0.4% to £36.39
- Pricing tension increasing with like-for-like rent per sq. ft. up 2.5% in the second half of the year
ESG: a long-term sustainable model
- Focus on future-proofing our properties for long-term climate resilience
- Committed to be a net zero carbon business by 2030
- Extensive project pipeline repurposing, upgrading and breathing new life into buildings
- Generating hubs of economic activity to create a flatter, fairer and more sustainable London
- 20% reduction in Scope 1 and 2 emissions achieved in the year compared to 2019/20
Portfolio activity: active capital recycling and expansion of our footprint
- Acquired The Old Dairy, Shoreditch for £43m in September 2021
- Acquired Busworks, Islington for £45m in November 2021
- Post year-end completed the acquisition of McKay Securities PLC for £258m in May 2022
- Sold 13-17 Fitzroy Street, Fitzrovia for £92m in September 2021
- Sold Highway Business Park, Limehouse for £24m in March 2022
- Completedthe refurbishment of Pall Mall Deposit, Ladbroke Grove in September 2021
- Opened Mirror Works, a new business centre in Stratford in October 2021
- Healthy pipeline of refurbishment and redevelopment activity projected to deliver 1.2m sq. ft. of new and upgraded space over next 5 years
Commenting on the results, Graham Clemett, Chief Executive Officer said:
“Our focus over the past year has been to support our customers' return to the office, rebuild like-for-like occupancy back to 90% and drive trading profit growth. I am delighted that we have been able to deliver on these targets, reflecting the fantastic efforts of the Workspace team, the quality of space and facilities we provide and the attractions of our distinctive flexible offer.
Customers want their office space to be as flexible as their working habits, without compromising on quality, identity and culture, location or sustainability. Our Workspace offer is resonating because of our deep understanding of the flexible market and what our customers want. This gives us a unique advantage in the market and underpins our confidence in our growth ambitions.
Our recent acquisitions and project activity give us the opportunity to grow and spread our footprint more broadly, exploiting the scalability of our operating platform. The attractively priced acquisition of McKay will allow us to accelerate our growth in London and provides the opportunity to extend our reach into the South-East. We continue to be disciplined in our investment activity, recycling assets that don't meet our demanding return requirements.
Looking ahead, the positive momentum of our recovering occupancy, strong customer demand and improving pricing are tempered, near-term, by wider concerns around the economy. We have not yet seen any impact on customer activity, but we are monitoring this closely. We benefit from the diversity of our customers and the proven agility of SMEs to adapt quickly to changing economic environments. We remain confident that we are well positioned for continued sustainable growth and to deliver strong returns over the medium term.”
Summary Results
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March 2022 |
March 2021 |
Change |
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Financial performance |
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Net rental income |
£86.7m |
£81.5m |
+6.4% |
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Trading profit after interest† |
£46.9m |
£38.7m |
+21% |
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Profit / (loss) before tax |
£124.0m |
£(235.7)m |
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Total dividend per share |
21.5p |
17.75p |
+21% |
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Valuation |
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EPRA net tangible assets per share† |
£9.88 |
£9.38 |
+5.3% |
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EPRA net reinstatement value per share† |
£10.78 |
£10.26 |
+5.1% |
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CBRE property valuation† |
£2,402m |
£2,324m |
+3.0%** |
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Financing |
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Loan to value |
23% |
24% |
-1%* |
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Undrawn bank facilities and cash |
£442m |
£434m |
+£8m* |
† Alternative performance measure (APM). The Group uses a number of financial measures to assess and explain its performance. Some of these which are not defined within IFRS are considered APMs. For further details see Notes to the Financial Statements.
* absolute change
** underlying change
For media and investor enquiries, please contact:
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Workspace Group PLC Graham Clemett, Chief Executive Officer Dave Benson, Chief Financial Officer Kate Annakin, Interim Investor Relations Manager Duncan Pelham, Senior Corporate Communications Manager |
020 7138 3300
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Finsbury Glover Hering Chris Ryall Guy Lamming
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020 7251 3801
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Details of results presentation
Workspace will host a results presentation for analysts and investors on Wednesday, 08 June 2022 at 09:30am at The London Stock Exchange, 10 Paternoster Square, EC4M 7LS.
The presentation can also be accessed live via webcast or conference call.
Webcast: The live webcast will be available here:
https://secure.emincote.com/client/workspace/workspace021
Conference call: In order to join via phone at 09.30am, please register at the following link and you will be provided with dial-in details and a unique access code:
https://secure.emincote.com/client/workspace/workspace021/vip_connect
Notes to Editors
About Workspace Group PLC:
Established in 1987, and listed on the London Stock Exchange since 1993. We are home to thousands of businesses, including fast growing and established brands across a wide range of sectors.
Workspace is geared towards helping businesses perform at their very best. We provide inspiring,
flexible work spaces in dynamic London locations.
Workspace (WKP) is a FTSE 250 listed Real Estate Investment Trust (REIT) and a member of
the European Public Real Estate Association (EPRA).
LEI: 2138003GUZRFIN3UT430
For more information on Workspace, visit www.workspace.co.uk