According to Workspace Group, customer inquiries increased sharply in June.
The office space provider has cash and unused credit lines of £161 million.
The British company opened 2 new business centers last month.
Workspace Group (LON: WKP) on Thursday said it was confident that customer inquiries recovered quickly in June as the UK government began to ease restrictions on Coronavirus. However, the office space provider continues to forecast that occupancy rates will remain under pressure in the short term. In the first quarter, which ended on 30 June, Workspace posted a loss of £16 million.
According to CEO Graham Clemett of Workspace Group:
“While our existing customers are reviewing their space requirements, we have seen a 3% to 90% decline in occupancy on a comparable basis during the quarter and we expect occupancy figures to remain under pressure in the short term.
The company’s shares fell by around 2% when the market opened on Thursday, but later recovered the loss. At 628 pence per share, Workspace Group is currently slightly less than 50% down on the previous year’s results. Find out more about why stock market prices rise and fall.
Workspace has cash and undrawn credit facilities of £161 million
Workspace closed the latest quarter with net debt of £546 million and £161 million in cash and undrawn credit facilities. As tenants began to return to their offices, the company stated that activity is now around 15% compared to normal levels.
The nationwide lockdown, which began in March, led companies to resort to home-based work. As a result, office space providers, including the Workspace Group, have struggled with the occupancy rate in recent months. Workspace Group reported a 47% drop in pre-tax profit for the year due to COVID 19 restrictions in the first week of June.
As the London-based company reports, customer inquiries have jumped from 272 in April to 765 in June. Workspace’s customer base currently includes more than 3,000 companies, including prominent names such as Nutmeg, Huge Boss and Bloom & Wild. According to Real Estate Investment Trust, customer inquiries fell by over 50% in the first quarter, while lettings fell by 64%.
Workspace offered a 50% discount on rentals in March
Workspace introduced a 50% discount on rents in March when the government imposed a nationwide ban. The offer, she commented on Thursday, ended in June.
The FTSE-250-listed company is a strong competitor to WeWork of Soho, NY. The group highlighted that it opened two new business centers last month. It also expects to complete three more projects by the end of the current fiscal year.
At the time of writing, Workspace Group has a value of £1.14 billion and a price/performance ratio of £15.81.