Workspace Group drives 30% dividend increase and capital growth

Workspace Group plc has revealed its full year results for the year ended March 31, 2018.

Workspace’s differentiated business model, which combines property ownership, inspiring spaces and direct customer relationships, has delivered the performance as follows…

The firm’s financial highlights included profit before tax, standing at £170.4m with significant increases in both trading profit and property valuation.

A strong growth in net rental income has gone up by 21 per cent to £95.6m, resulting in 20 per cent growth in adjusted trading profit after interest to £60.7m. Also, an underlying increase of five per cent has increased the property valuation to £2.280m.

The group’s operating performance in the year also increased. The firm’s total rent roll up soared to £112.9m. A robust level of customer demand has averaged queries to around 1,016 per month.

Jamie Hopkins, Workspace Group’s chief executive officer, said: “These strong results are further evidence of management successfully executing the right strategy.

“Flexible working continues to gain significant attention and our well-connected, inspiring spaces are driving strong customer demand. Our continued rental growth over the year reflects the resilient demand for the right type of space in London.

“Adjusted trading profit increased by 20 per cent to over £60m on the back of a similar level of growth in rental income.

“We made a number of strategic acquisitions during the year as well as making excellent progress on our extensive refurbishments and redevelopments pipeline.”

In total, three major acquisitions totalling £382m have been completed in the year, with a further £77m acquisition in April 2018.

Two industrial estates and one small commercial building have been sold for £84m, and four residential redevelopments have been sold for £41m in cash and two new commercial buildings returned in due course.

To conclude, three refurbishment projects have also been completed, including The Record Hall, a new flagship business centre in Holborn.

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