Capital’s boom economy key to Workspace rise

 
Adam Hignett
PROPERTY rental group Workspace reported expectation-beating growth yesterday as the London’s booming business community sent profits up over 40 per cent.

In addition, the firm announced a new acquisition to its burgeoning portfolio of prime london properties with the purchase of Angel House for £44m.

Workspace recorded growth across the board with total net rental income up 15 per cent for the year ending 31 March as occupancy hit 92 per cent.

The company added an additional five properties to its portfolio during the period, with a further three, including Angel house, since the year end. Overall, revenues increased to £83.6m, up from £73.6m, however, increases in the value of the firm’s real estate translated into a 43 per cent increase in pre-tax profits to £360m.

Sue Munden, analyst at Panmure Gordon described the results as “exceptional” adding the firm was prospering from what has been termed the “golden age for small companies.”

“Combine that with strong economic growth in London and the persistent low interest rate environment and the prospects for Workspace are excellent,” said Munden.

Workspace chief executive Jamie Hopkins said the firm’s focus on providing the latest technology for its clients was giving it the edge: “Part of our brand is to offer good technology. While we have to have the right location, if the tech goes down in one of our assets we have a problem.”

Shares closed up 6.52 per cent.