Regus says full-year results to be hurt by expansion plans


(Reuters) - Office space supplier Regus Plc (LSE:RGU) reported a 26 percent rise in third-quarter revenue, but said full-year results would be hurt by the additional investments it was making to open new centres.

The company, which provides meeting rooms, business lounges and office spaces for rent, said it now planned to open between 420 and 440 new centres, up from its previous estimate of 350 centres.

Analysts on average expect full-year revenue of 1.55 billion pounds and pretax profit of 99.2 million pounds, according to Thomson Reuters I/B/E/S.

Shares in the Luxembourg-headquartered company fell more than 4 percent in early trade, making them the biggest percentage losers on the FTSE-250 Midcap Index (.FTMC). The stock was trading down about 2.6 percent at 199.4 pence at 8:40 a.m.

Regus said group turnover in the third quarter ended September 30 rose to 386.6 million pounds from 307.3 million pounds last year.

Regus, whose customers include GlaxoSmithKline Plc (GSK.L), Google Inc (GOOG.O) and Toshiba , said revenue per occupied workstation (RevPOW) -- a key metric in the space rental business -- increased 4.3 percent to 1,920 pounds.

The company's first-half profit had dropped 3 percent due to restructuring costs related to the acquisition of MWB Business Exchange Plc in February.

(Reporting by Tasim Zahid in Bangalore; Editing by Akshay Lodaya)

View Comments (0)