Regus increases its 2016 interim dividend by 11%

DividendMax Ltd.

Regus increases its 2016 interim dividend by 11%

Key highlights:

Continued strong post-tax cash returns. Up 180bp on pre-12 investment to 24.8%(i)

Group revenues up 10.3% to £1,077.6m and underlying operating profit up 30%(ii) to £90.0m

Overheads reduced 9% (ii); down 2.8ppt as a percentage of revenues to 12.6%

Strong cash generation (before net growth capital expenditure, share buybacks, dividends and non-recurring items) of £142.6m or 15.3p per share

Underlying earnings per share up 36% (ii) to 7.3p

Prudent financial position maintained with net debt of £173.8m (0.5x net debt:LTM underlying EBITDA) 

Strong banking support: Key banking facility increased to £550m and maturity extended to 2021, with option to extend to 2023

11% increase in interim dividend to 1.55p (H1 2015 : 1.4p)

Full year profit expected to be in line with management expectations

Companies mentioned