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  1. Regus Plc – Interim Results Announcement – Six Months Ended 30 June 2015

Regus Plc – Interim Results Announcement – Six Months Ended 30 June 2015

Regus, the global workplace provider, today announces its half year results for the six months ended 30 June 2015.

By: | Published: September 16, 2015 8:32 AM

Regus, the global workplace provider, today announces its half year results for the six months ended 30 June 2015.

Key highlights:

•       Improved returns on investment to 23.1%(i)
•       Revenues up 16.4% in H1 and underlying operating profit up 62%(ii)
•       231 new locations added in H1, with a net capital investment of £120m
•       Generated £79.9m or 8.5p per share of cash in H1 (before net growth capital expenditure, share buybacks, dividends and
​ disposal proceeds), representing cash conversion of 123%
•       Underlying earnings per share up 88% to 4.9p
•       Decrease in net debt to £136.9m (0.5x net debt: LTM EBITDA)
•       12% increase in interim dividend to 1.4p (H1 2014 : 1.25p)
•       Current trading in line with management expectations

 
£m

H1 2015

H1 2014
% change actual currency
% change constant currency

Revenues
937.0
804.7
16.4%
16.4%

Gross profit
209.0
178.8
17%
16%

Overheads
(144.4)
(139.3)
(4)%
(3)%

Underlying operating profit (Inc. JV)
65.0
39.9
63%
62%

Exceptional item (iii)
21.3

Reported operating profit (Inc. JV)
86.3
39.9
116%
113%

Underlying profit before tax
57.8
31.0
86%
82%

Reported profit before tax
79.1
31.0
155%
148%

Underlying earnings per share (p)
4.9
2.6
88%
81%

Reported earnings per share (p)
7.2
2.6
177%
161%

Dividend per share (p)
1.4
1.25
12%
EBITDA (Before exceptional item)
136.3
96.4
41%
40%

Return on Investment (i)
23.1%
20.9%

Cash flow before net growth capex and dividends

79.9

45.6

75%
Net debt
136.9
161.3

Net debt : EBITDA – Last 12 months (x)
0.5
0.8

(i)   Calculated as: EBITDA less amortisation of partner contributions, less tax based on EBIT, less net maintenance capital expenditure / growth capital less partner contribution. Returns based on those locations open on or before 31 December 2011. Prepared on a last twelve month (LTM) basis to 30 June for 2015 and for 2014 on the 12 months to 31 December 2014.
(ii)  At constant currency
(iii) Exceptional profit on sale of various portfolios of property assets

Operational highlights
Returns on new investment benefiting from detailed country plans
Now in 2,481 locations, across 896 towns and cities and 106 countries
Increased investment in innovating new products and services such as Global Connect, providing free connectivity to 18 million Wi-Fi hotspots globally, and new location formats, such as Spaces, a dynamic co-working environment
Significant investment in operating platform and process streamlining
Further strengthened central and field management capabilities
Mark Dixon, Chief Executive of Regus, said:

“Regus delivered an excellent first half performance, giving us further confidence for the future. Our investments are delivering attractive returns, with returns on past investments improving and remaining well above our cost of capital and newer investments trading in line with our expectations. Our focus on greater operational rigour and efficiency has continued to drive economies of scale and a further reduction in overheads as a percentage of revenues. We continued to grow our network and remain encouraged by the pipeline for the remainder of the year, with visibility of net investments for the whole of 2015 of approximately £230m, the equivalent of 600 new locations globally.

The flexible work market continues to experience robust growth, and we remain ideally placed to benefit from these trends by providing more customers with the right environment to succeed. Current trading is in line with management expectations and the Board remains confident in our prospects for 2015 and beyond as we continue to enhance shareholder value. Accordingly the Board has increased the 2015 interim dividend by 12% to 1.4p per share.”

To View the PDF Click the Link: Regus’ results information in detail may be obtained from the attached PDF file

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