Regus boosts office opening programme

Office space firm Regus said it plans to open more offices this year than originally expected in order to meet growing demand for flexible and mobile working.

The company had anticipated adding 200 new centre during 2012, but now plans to open 230 - 250 new centres.

It said these additions would have a small impact on this year's group profitability as it absorbed incremental opening costs and some initial start-up losses.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

However, it added they would contribute to cash flows and profitability in future years.

The plans came with a caveat that unpredictable economic conditions could put the brakes on the firm's plans.

"We are ready to scale back our growth plans if macro-economic conditions dictate that it would be prudent to do so," Regus said in a statement.

The company said its financial performance in the third quarter of 2012 was in line with management expectations.

Group turnover in the third quarter increased by 7.6% at constant currency to £307.3m compared with £293.5m in the same period last year.

Turnover for the nine months to the end of September increased by 8.4% at constant currency to £916m.

The firm's mature business, which covers offices opened before the end of 2010 and makes up over 80% of its centres worldwide, posted revenues to £277.1m in the third quarter.

This marked an increase of 1.1% at constant currency, but was down 1.6% at actual exchange rates.