Regus sees more firms step into its offices

Regus reported a 72 per cent rise in full-year profit as demand increased for its ready-to-use offices from companies looking to cut costs, sending its shares up as much as 10 per cent.

By The Newsroom

Published 6th Mar 2013, 00:01 BST

Regus, which rents out business lounges and meeting rooms to clients for as short as half a day, has weathered the downturn in UK’s commercial property market by expanding globally.

The company has benefited from strong demand for flexible workspaces in the United States, its largest market.

Regus chief executive Mark Dixon said that its biggest customers were consumer goods and technology companies.

“Companies that are with new technologies want to remain very virtual. They don’t want to pick up heavy overhead.”

Regus, whose customers include Google, GlaxoSmithKline and Nokia, said it expected to add at least 350 centres in 2013.

Pre-tax profit rose to £85.1m in 2012 from £49.4m a year earlier. Revenue increased 7 per cent to £1.24bn.

United States Google