Workspace warns on profits, shares slide
By Abigail Townsend
Date: Friday 16 May 2025
(Sharecast News) - Office landlord Workspace Group warned on profits on Friday, sending the shares sharply lower, on the back of higher costs and mounting macroeconomic pressures.
Updating investors ahead of publishing full-year results, the flexible workspace provider - which manages around 4.2m sq ft of space in London and the south east - confirmed trading profits for the year to 31 March 2025 would be line with consensus.
But it also flagged a decline in occupancy and a "marginal" fall in valuation, due to reduced estimated rental value per sq ft, and warned of profit headwinds in the current year.
In particular, the real estate investment trust said "several factors" would impact the year to March 2026, including a lower opening rent roll, further large unit vacations and higher costs, including employers' National Insurance contributions and refinancing costs.
As a result, it now expects a £7m hit to profits. Consensus is currently for 2026 trading profits of between £66m and £72m.
As at 0845 BST, the FTSE 250 stock was trading 10% lower at 408.07p.
Workspace said it would now focus on implementing a recently agreed strategic plan, which was intended to "drive a recovery in occupancy and income growth in the medium term.
"We will also demonstrate how we will deliver longer-term shareholder value through a strategy anchored in operational excellence.
"This disciplined approach will drive enhancements to the platform, investment in our product and more targeted marketing initiatives to support customer growth and increase market share."
Further details will be published alongside the results, on 5 June.
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