Workspace Grp PLC - First Quarter Business Update
FIRST Quarter business update FOR THE
· Customer demand improved through the quarter with enquiries in June at 765, up from 272 in April. This compares to a monthly average of 1,060 enquiries in the first quarter last year
· Cash collection of rent due for the first quarter now at 75%, net of rent reductions and deferrals
· The 50% rent reduction offered to business centre customers ended at end of
· Received 65% of rents due for the second quarter1 to date, this compares to c.80% at the equivalent time last year
· Customers slowly returning to our business centres, with activity now at around 15% of usual levels
· Planning consent granted for major mixed-use redevelopment in Wandsworth, comprising 171,000 sq. ft. of new commercial space and 402 residential units
· Pro forma LTV of 21% at
1 Includes both quarterly rent and monthly rent due for July
"Activity in the first quarter has been significantly impacted by the lockdown. We offered our business centre customers a 50% rent reduction for the first quarter ending in June, which was well received. Our teams have worked hard to ensure our buildings are safe and we have also provided guidance and resources for customers through our Back to Business Hub.
"As our existing customers review their space requirements, we have seen like-for-like occupancy fall by 3% to 90% in the quarter and we expect to see continued pressure on occupancy levels in the short-term. However, we are encouraged by the early signs of a recovery in business confidence, with improving levels of enquiries, viewings and lettings. Our experienced team are focused on maintaining occupancy at our centres through retaining existing customers where possible, alongside capturing the improving demand from new customers.
"We remain confident in the longer-term attractions of our flexible customer offer, despite the near-term challenges. We also continue to create value from our project pipeline and were delighted to receive planning consent for a major scheme in Wandsworth during the quarter."
The Covid-19 lockdown had a significant impact on customer demand in the quarter, although as restrictions eased we saw a strong pick-up in activity. We are encouraged to see that the level of activity continued to increase in early July.
| || |
Overall utilisation of our business centres is increasing slowly, currently running at around 15% of pre-lockdown levels.
We offered customers in our business centres a rent reduction of 50% from the start of the lockdown period in late March to the end of
Overall, we gave rent reductions to around 80% of our customers by rent in the first quarter, which represents a reduction in rent of c.
We have to date collected some 75% of rent due for the first quarter (c.41% of gross rents before rent reductions and deferrals). The general 50% rent reduction offered to all our business centre customers ended at the end of June.
Cash collection in the second quarter, comprising quarterly rents and the monthly rents due for July, is currently at 65% (60% of gross rents before rent reductions and deferrals). This compares to c.80% at the equivalent time last year.
We continue to engage with customers on outstanding rents due, with the risk of bad debts offset by the rent deposits we hold for the majority of our customers.
We expect to complete another three projects during the remainder of the current financial year, providing a further 91,000 sq. ft. of new and upgraded space.
We are continuing to track acquisition opportunities across London but remain disciplined in our returns criteria.
Net debt increased by
The pro forma loan to value ratio at
As previously announced,
- ENDS -
For further information, please contact:
Graham Clemett, Chief Executive Officer
Dave Benson, Chief Financial Officer
Clare Marland, Head of
Edelman 020 3047 2546
Notes to Editors
Established in 1987, and listed on the
Workspace (WKP) is a FTSE 250 listed
Workspace® is a registered trademark of
For more information on Workspace, please visit www.workspace.co.uk
This information is provided by RNS, the news service of the
Quick facts: Workspace Group PLC
Market Cap: -
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE