Regus see rise in profits due to uncertain economy.
Office space providers see improvement in sales over past few months.
Regus, a company that supplies office space solutions, has seen an upturn in sales particularly for temporary office space in large cities such as London. The firm claims that the increase in demand in temporary office space is due to the current uncertainty that the economy is facing.
The company has seen a huge rise in profits, in fact Regus has seen its revenue grow 10 per cent to 565.6 million pounds. The firm’s January to June pre-tax profit before exceptional items was 13 million pounds in 2011. This is a huge increase when compared to the 9.7 million that it stood at last year.
“We expect to see the level of growth increase in the second half as we are still seeing very healthy levels of demand with more companies looking to cut costs and move to flexible working and we will need to open up centres to supply to that demand,” commented Regus chief executive Mark Dixon.
Recently Regus also invested 70 million pounds in order to open 125 new centres. The company also expanded its business into 7 new countries and claimed that it was streamlining its operations to make them more efficient. The current lack of finished office developments in London could also be seen as a factor affecting company decisions to choose temporary office space over long term contracts.