Serviced office provider Regus has reported a significant rise in revenues for the first half of the year, up nearly 10 percent from £508 million to £557 million. The news prompted the company’s share price to jump from 83.5p to around 100p, almost 20 percent. Regus also increased its dividend from 0.6p to 0.8p.
The recession has placed pressure on traditional businesses with fixed offices and high rents, which have increasingly been trying to trim their costs by outsourcing to independent serviced office space providers, thereby minimising waste and overheads.
With strong profits and no debt, Regus appears well-placed to expand into this market. London has been a particular growth area, thanks to the number of people starting their own companies after losing their jobs in the financial services industry. Regus are also looking to expand into the US and, in the future, Asia and India.