Strong financial performance at Group level
Revenue grew 9.2% at constant currency to £1,244.1m (2011: £1,162.6m)
Operating profit rose by 66% to £90.2m (2011: £54.5m)
Total overheads up only 4.1% at constant currency (up 2.5% at actual rates to £230.2m). With an 11% increase in average consolidated workstations to 204,459 average cost per available workstation reduced by 8%
EPS up to 7.5p, representing a 74% increase from last year (2011: 4.3p)
Proposed 10% increase in full year dividend to 3.2p (2011: 2.9p)
£175.3m invested into growth and quality assets during 2012
Strong year end net cash position of £120m which, together with credit facility of £200m, provides additional scope for growth
37% increase in membership to over 1.3m members with access to the network (2011: 983k)
Increase in period end consolidated workstations of 18% to 229,615
Mature Centre performance continued to improve
Mature revenue growth of 2.9% at constant currency to £1,124.1m (2011: £1,114.3m)
Gross margin improves to 29.0% (2011: 25.9%) with progress made in all regions. Underpinned by:
o Strong occupancy of 85.8% (2011: 85.6%)
o REVPOW increase to £7,565, an improvement of 2.4% or £183 at constant currency
o Strong returns from addition of centres opened in 2010 into Mature business
Adjusted mature operating profit up 51% to £158.5m. Economies of scale and overhead efficiencies driving an increase in adjusted mature margin to 14.1% (2011: 9.4%)
67% increase in notional mature EPS to 14.0p (2011: 8.4p)
Mature centres characterised by strong cash generation - free cash flow up 7% to £144.3m (2011: £135.1m), representing 15.3p per share or 12.8% of revenue
Continued investment in strengthening and growing the network
243 new centres and five new countries which expands network to 1,411 and 99 respectively
New 2011 and 2012 centres performing well; 2011s close to operating profit breakeven in Q4
Third place partnerships in place with seven organisations across five countries - including Staples, Extra Motorway Services and SBB (Swiss Railways) signed in the period
Offer for MWB Business Exchange became unconditional post-period end on 21 February 2012
Expect to open at least 350 centres (including MWB Business Exchange); anticipate ending year with a modest net cash position
Mark Dixon, Chief Executive of Regus plc, said:
"Regus has delivered another strong set of results in 2012; revenue up 9%*, operating profit up 66% to over £90m and EPS increased by 74% to 7.5p.
Our strategy of pursuing targeted revenue and margin growth to achieve mature profitability, strong cash generation and long-term earnings per share growth has again delivered. We continue to see a strong and accelerating momentum towards flexible working and our results today reflect this global shift.
We continue to focus on improving margins in our Mature business and investing in new locations. We remain on track to achieve a global network of at least 2,000 locations by the end of 2014, and our recent acquisition of a majority interest in MWB Business Exchange further supports this goal.
Current trading since the year end has been good and in line with our expectations. As such, we look to the year ahead with confidence."
