REG - Workspace Grp PLC - POST-CLOSE FINANCIAL UPDATE

WorkspaceAnnouncement

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RNS Number : 9215I  Workspace Group PLC  16 May 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
EU REGULATION 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE UNITED KINGDOM
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (AS AMENDED). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INSIDE INFORMATION WILL BE CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

16 May 2025

 

 

 A18/11

 

Workspace GROUP PLC

 

post-close financial update

 

Workspace Group PLC ("Workspace"), London's leading owner and operator of
sustainable, flexible work space, provides an unaudited post-close financial
update for the financial year ended 31 March 2025 and expectations for the
year ending 31 March 2026.

 

At our Q4 business update issued on 17 April 2025, we highlighted several
factors which we expected would impact Workspace's results for the year ending
31 March 2026 - namely a lower opening rent roll, further large unit
vacations, additional costs associated with macroeconomic pressures including
higher national insurance and higher living wages and additional refinancing
costs.

 

Ahead of our strategy update (alongside our full year results) on 5 June 2025,
the Board has now approved the strategic plan and expects the combined impact
of these factors on the year ending 31 March 2026 to be a Trading Profit
headwind of c.£7m. This is against the current Company-compiled consensus¹
for Trading Profit within a range of £66-72m.

 

Workspace expects Trading Profit for the year ending 31 March 2025 to be in
line with consensus, with a marginal fall in valuation due to a reduction in
ERV per sq. ft., alongside a fall in occupancy, as previously outlined.

 

The strategic update will outline our plan 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 our market share. The
Board is confident that Workspace has the right strategy to drive growth in an
exciting SME market.

 

The presentation to analysts and investors on results and strategy will be
held at 9:00am on 5 June 2025 at our Eventspace, Salisbury House, 114 London
Wall, EC2M 5QD.

 

The person responsible for arranging the release of this announcement on
behalf of the Company is Carmelina Carfora, Company Secretary.

 

¹Consensus includes forecasts from seven coverage analysts.

 

- ENDS -

 

 

For further information, please contact:

 

Workspace Group PLC
 
020 7138 3300

Paul Hewlett, Director of Strategy & Corporate Development

Clare Marland, Head of Corporate Communications

 

FGS Global
 
                        020 7251 3801

Chris Ryall

Guy Lamming

 

 

 

Notes to Editors

 

About Workspace Group PLC:

 

Workspace is London's leading owner and operator of flexible workspace,
currently managing 4.2 million sq. ft. of sustainable space at 66 locations in
London and the South East.

 

We are home to some 4,000 of London's fastest growing and established brands
from a diverse range of sectors. Our purpose, to give businesses the freedom
to grow, is based on the belief that in the right space, teams can achieve
more. That in environments they tailor themselves, free from constraint and
compromise, teams are best able to collaborate, build their culture and
realise their potential.

 

We have a unique combination of a highly effective and scalable operating
platform, a portfolio of distinctive properties, and an ownership model that
allows us to offer true flexibility. We provide customers with blank canvas
space to create a home for their business, alongside leases that give them the
freedom to easily scale up and down within our well-connected, extensive
portfolio.

 

We are inherently sustainable - we invest across the capital, breathing new
life into old buildings and creating hubs of economic activity that help
flatten London's working map. We work closely with our local communities to
ensure we make a positive and lasting environmental and social impact,
creating value over the long term.

 

Workspace was established in 1987, has been listed on the London Stock
Exchange since 1993, is a FTSE 250 listed Real Estate Investment Trust (REIT)
and a member of the European Public Real Estate Association (EPRA).

 

Workspace® is a registered trademark of Workspace Group PLC, London, UK.

LEI: 2138003GUZRFIN3UT430

For more information on Workspace, visit www.workspace.co.uk
(http://www.workspace.co.uk)

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