Workspace group hits first losses in 12 years amid flexible working
Office-space provider Workspace has tumbled into its first annual loss in over a decade today, as its rental income was hammered by work from home measures.
The group posted losses before tax of £235.7m in the year to 31 March, after raking in a profit of £72.5m last year.
Trading profit after interest were also down 52 per cent to £38.7m, from a 33 per cent fall in net rental income, the group said in its yearly results this morning.
Shares slipped further into this afternoon, down 2.9 per cent this morning, taking the group’s share price to 886p per share.
“This has been an incredibly challenging year for the entire country, and we have seen first-hand the impact of Covid-19 on many of our customers,” CEO Graham Clemett said.
“The role of the office in our working lives is being re-examined and all the signs highlight flexibility, quality and wellbeing becoming more important for businesses and their people.”
Like-for-like occupancy shrank to 81.6 per cent, but steadied the fourth quarter of the year as flexible working grew more popular.
Last month the group bagged planning consent for Kennington Park Business Centre, 200,000 square feet of new office space.
The group ended the financial year with a total dividend of 17.5p per share.