Regus profits up as sales grow

 
City A.M. Reporter
Office space supplier Regus expects further improvements in its sales after it posted a 34 per cent rise in first-half adjusted pre-tax profit on a pick up in demand from big businesses for temporary space amid economic uncertainties.

Luxembourg-headquartered Regus, which offers ready-to-use offices for rentals as short as half a day, said on Tuesday it was on track to meet its full-year expectations.

"While we acknowledge the challenging environment, we continue to expect further improvements in revenues and cash from operations, as we continue to invest in growth," Chief Executive Mark Dixon said in a statement.

The company, whose customers include GlaxoSmithKline, Google, and Starbucks, also raised its interim dividend six per cent to 0.9 pence.

January-June pretax profit before exceptional items was £13m, compared with £9.7m last year. Revenue grew 10 per cent to £565.6m.

In March, the company reported a 67 per cent drop in earnings but said expansion and cost-cutting will return it to growth in 2011.