Regus third quarter revenue rises despite FX headwinds

Workplace provider Regus reported a rise in third-quarter revenue and said it remains confident in the outlook for the business.

For the three months to 30 September, group revenue rose to £478.8m from £413.6m in the same period last year, despite currency headwinds. For the nine months to the end of September, revenue increased to £1.42bn from £1.21bn in 2014.

The company said that during the third quarter it added 110 new locations to its global network, while the pipeline of new openings remains strong and a number of late 2015 openings are now scheduled to open early next year.

The group had net debt of £146.4m, a small increase on the £136.9m at the end of June, reflecting a £10.9m property purchase and additional share purchases.

“We are pleased with the continued strong performance of our business which remains in line with management expectations,” the company said.

“The performance of our mature business remains strong, generating good levels of profitability and cash flow. We have again been able to reinvest in building our business, which, we believe, will deliver further incremental long-term shareholder value.”

At 0820 GMT, shares were down 1.3% at 329.30p.