REGUS PLC - INTERIM RESULTS ANNOUNCEMENT - SIX MONTHS ENDED 30 JUNE 2012
"Strong performance - strong demand, continued network growth and substantial improvement in profitability"
Regus, the world's largest provider of flexible workplaces, announces today its half year results for the six months ended 30 June 2012.
|
£m |
H1 2012 |
H1 2011 (Restated) |
Change |
|
Group |
|
|
|
|
Revenues |
608.6 |
565.6 |
7.6% |
|
Gross profit |
153.2 |
130.2 |
18% |
|
Gross margin |
25.2% |
23.0% |
|
|
Operating profit |
34.2 |
15.1 |
126% |
|
Operating margin |
5.6% |
2.7% |
|
|
Adjusted operating Profit** |
23.3 |
14.3 |
63% |
|
Profit before tax |
32.2 |
13.8 |
133% |
|
Earnings per share (p) |
2.9 |
2.7 |
7% |
|
Dividend per share (p) |
1.0 |
0.9 |
11% |
|
Revenues |
568.0 |
553.4 |
2.6% |
|
Gross profit |
160.7 |
133.7 |
20% |
|
Gross margin |
28.3% |
24.2% |
|
|
Operating profit |
75.3 |
33.3 |
126% |
|
Operating margin |
13.3% |
6.0% |
|
|
Adjusted operating profit |
68.1 |
33.9 |
101% |
|
Adjusted operating margin |
12.0% |
6.1% |
|
|
Mature EBITDA |
100.9 |
68.9 |
46% |
|
Notional mature basic EPS (p) |
6.2 |
2.7 |
130% |
|
Mature free cash flow |
53.7 |
65.0 |
(17)% |
FINANCIAL HIGHLIGHTS
- Group revenue growth of 7.6%, Mature like-for-like revenue growth of 2.6%
- Adjusted** Group operating profit increased 63% to £23.3m (H1 2011: £14.3m)
- Adjusted** Mature operating profit doubled to £68.1m (H1 2011: £33.9m) with a mature operating margin improvement from 6.1% to 12.0%
- Notional Mature EPS increased from 2.7p (2.8p adjusted**) to 6.2p (5.6p adjusted**)
- Interim dividend increased 11% to 1.0p (H1 2011: 0.9p)
- Strong balance sheet with net cash of £153.3m
- New £200m revolving credit facility offering further flexibility for future growth
STRATEGIC & OPERATIONAL HIGHLIGHTS
- Continued strong performance from the mature business
- Substantial investment of £65.1m in new centres - 2011 new centres progressing as expected, turning contribution positive in Q2; 76 (2011: 48) new centres in H1
- 1,268 centres in 96 countries, offering an extensive global and national network to approximately 1.2 million members
- New Enterprise Programme deals with Adobe, Aviva and Telefonica amongst many others
- Third Place partnerships announced with NS Trains (Netherlands) and Extra Motorway Services (UK). Strong pipeline in place
Mark Dixon, Chief Executive of Regus plc said:
"I am pleased to be reporting another period of profitable growth across our business at a tough time for the global economy.
Our mature business saw strong demand across all geographies and customer types, with profitability more than doubling on the back of improvements in occupancy and yield management.
We continue to invest to satisfy this growth in demand, adding another 76 centres in the period. Our new centres are performing well, endorsing our growth strategy.
At the same time, Regus continues to innovate, developing new products and services. This maximises revenues from our existing centres and gives customers more reasons to come to Regus.
Overall, our business continues to perform well and in line with our expectations."
