POST-CLOSE FINANCIAL UPDATE
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE UNITED KINGDOM BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (AS AMENDED). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION WILL BE CONSIDERED TO BE IN THE PUBLIC DOMAIN.
16 May 2025
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post-close financial update
Workspace Group PLC ("Workspace"), London's leading owner and operator of sustainable, flexible work space, provides an unaudited post-close financial update for the financial year ended 31 March 2025 and expectations for the year ending 31 March 2026.
At our Q4 business update issued on 17 April 2025, we highlighted several factors which we expected would impact Workspace's results for the year ending 31 March 2026 - namely a lower opening rent roll, further large unit vacations, additional costs associated with macroeconomic pressures including higher national insurance and higher living wages and additional refinancing costs.
Ahead of our strategy update (alongside our full year results) on 5 June 2025, the Board has now approved the strategic plan and expects the combined impact of these factors on the year ending 31 March 2026 to be a Trading Profit headwind of c.£7m. This is against the current Company-compiled consensus¹ for Trading Profit within a range of £66-72m.
Workspace expects Trading Profit for the year ending 31 March 2025 to be in line with consensus, with a marginal fall in valuation due to a reduction in ERV per sq. ft., alongside a fall in occupancy, as previously outlined.
The strategic update will outline our plan to drive a recovery in occupancy and income growth in the medium term. We will also demonstrate how we will deliver longer-term shareholder value through a strategy anchored in operational excellence. This disciplined approach will drive enhancements to the platform, investment in our product and more targeted marketing initiatives to support customer growth and increase our market share. The Board is confident that Workspace has the right strategy to drive growth in an exciting SME market.
The presentation to analysts and investors on results and strategy will be held at 9:00am on 5 June 2025 at our Eventspace, Salisbury House, 114 London Wall, EC2M 5QD.
The person responsible for arranging the release of this announcement on behalf of the Company is Carmelina Carfora, Company Secretary.
¹Consensus includes forecasts from seven coverage analysts.
- ENDS -
For further information, please contact:
Workspace Group PLC 020 7138 3300
Paul Hewlett, Director of Strategy & Corporate Development
Clare Marland, Head of Corporate Communications
FGS Global 020 7251 3801
Chris Ryall
Guy Lamming
Notes to Editors
About Workspace Group PLC:
Workspace is London's leading owner and operator of flexible workspace, currently managing 4.2 million sq. ft. of sustainable space at 66 locations in London and the South East.
We are home to some 4,000 of London's fastest growing and established brands from a diverse range of sectors. Our purpose, to give businesses the freedom to grow, is based on the belief that in the right space, teams can achieve more. That in environments they tailor themselves, free from constraint and compromise, teams are best able to collaborate, build their culture and realise their potential.
We have a unique combination of a highly effective and scalable operating platform, a portfolio of distinctive properties, and an ownership model that allows us to offer true flexibility. We provide customers with blank canvas space to create a home for their business, alongside leases that give them the freedom to easily scale up and down within our well-connected, extensive portfolio.
We are inherently sustainable - we invest across the capital, breathing new life into old buildings and creating hubs of economic activity that help flatten London's working map. We work closely with our local communities to ensure we make a positive and lasting environmental and social impact, creating value over the long term.
Workspace was established in 1987, has been listed on the London Stock Exchange since 1993, is a FTSE 250 listed Real Estate Investment Trust (REIT) and a member of the European Public Real Estate Association (EPRA).
Workspace® is a registered trademark of Workspace Group PLC, London, UK.
LEI: 2138003GUZRFIN3UT430
For more information on Workspace, visit www.workspace.co.uk
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