Workspace swings to profit, buys Busworks building in Islington
By Michele Maatouk
Date: Wednesday 17 Nov 2021
(Sharecast News) - Office space provider Workspace said on Wednesday that it swung to a profit in the first half amid rising demand, as it announced the acquisition of the Busworks building in Islington for £45m.
The company swung to a pre-tax profit of £3.4m from a loss of £110.4m in the same period a year ago, with net rental income up 12% at £41m. Workspace highlighted "strong" customer demand with enquiries, viewings and lettings now at pre-pandemic levels.
The like-for-like rent roll rose 2.1% to £87.3m in the six months to the end of September, while LFL occupancy was up 3.7% to 85.6%.
Chief executive officer Graham Clemett said: "We have seen a strong recovery in our trading performance in the first half of the year after successfully managing through the challenges of the last year. The speed and strength of that recovery has been fuelled by rising demand for our unique flexible offering, which is proving to be an attractive option for an increasing number of businesses in London as the way people work rapidly evolves.
"Now more than ever, space matters and businesses are making decisions about their offices based on what their people want - great space in interesting, convenient locations with top sustainability credentials.
"All the signs point to strong underlying momentum in our business. Demand metrics continued to improve in the first half across London, utilisation of our centres is increasing, prices have stabilised and rent collection is strong."
The results came alongside news the company has bought the historic Busworks building in Islington.
Workspace said it plans to upgrade the building - a former Victorian bus factory - and "reposition the offering towards its distinctive, flexible model over time".
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