Despite market losses and difficult trading conditions, office provider Regus, a dominant figure in the London commercial property market, remains optimistic and prepares for further expansion. A number of previous expenses have been weighing down the company and have not proven beneficial.
The largest provider of outsourced offices in the world, Regus has expansion of opening a new unit every day for the rest of the year with a firm belief that an increased flexibility is key to future company success.
Chief executive of Regus, Mark Dixon, has downplayed possible concerns for the firm, believing that although the current economy is tough and treacherous, it is likely that things will improve.
In an interview with Dow Jones Newswires he said, “The economy is challenging but we are doing quite well. More people will move to flexible working and the economy will improve.”
He added, “We had hoped that first-half profit would mark the low, but this looks now unlikely. Conditions are described as challenging in the first half, with no published outlook.”
The company recently reported its first-half results for 2010 with a net loss £7.8 million, in stark comparison to a £54.4 million profit for the same period in 2009. The aforementioned previous expenses will be re-geared in a scheme that will cost £15.8; however this will allow more financial stability and help to save a great deal of money in the future.
Andrew Shepherd-Barron, KBC Peel Hunt analyst, said, “We had hoped that first-half profit would mark the low, but this looks now unlikely. Conditions are described as challenging in the first half, with no published outlook.”
He added, “Perhaps the strongest indicator of the environment is that Regus has moved back to being more aggressive on price, understandably given that no region has mature occupancy in the first half better than 78%.”
In spite of the reported losses, the UK market still represents a great deal of potential for growth and Regus, with their current reputation as commercial property titans, look set to regain market stability and renewed confidence.