Workspace FY trading profits grow amid strong demand

Workspace stated its "strong trading performance" was driven by customer demand throughout returning to pre-Covid levels by the end of the period and had resulted in a pre-tax profit of £124.0m, a marked improvement when compared to the prior year's loss of £235.7m.

The FTSE 250-listed group also highlighted that it had delivered increases in both trading profit after interest and its property valuation, the latter of which was up 3.0% at £2.40bn.

EPRA net tangible assets per share were up 5.3% at £9.88, with a total accounting return of 8.0%, while Workspace's loan to value was 23%.

Total dividends were up 21% at 21.5p per share, again reflecting the company's "strong financial performance".

Chief executive Graham Clemett said: "Our focus over the past year has been to support our customers' return to the office, rebuild like-for-like occupancy back to 90% and drive trading profit growth. I am delighted that we have been able to deliver on these targets, reflecting the fantastic efforts of the Workspace team, the quality of space and facilities we provide and the attractions of our distinctive flexible offer.

"Looking ahead, the positive momentum of our recovering occupancy, strong customer demand, and improving pricing are tempered, near-term, by wider concerns around the economy. We have not yet seen any impact on customer activity, but we are monitoring this closely. We benefit from the diversity of our customers and the proven agility of SMEs to adapt quickly to changing economic environments. We remain confident that we are well-positioned for continued sustainable growth and to deliver strong returns over the medium term."

Reporting by Iain Gilbert at Sharecast.com