Workspace Group reports a pre-tax loss of £110.4 million for the first half of the financial year.
The office space provider expects its annual performance to remain under pressure.
The UK company reports that rental income rose to 95% in the first half.
In an announcement on Wednesday, Workspace Group plc (LON: WKP) announced that it had closed the first half of the financial year with a loss and postponed its decision to pay a dividend for the full year. The office space provider has been severely affected this year as the coronavirus pandemic has forced its customers to cut jobs or evict employees in recent months.
The company’s shares rose by 2% in pre-trade trading on Wednesday, but lost all intraday profit when the market opened. Workspace Group is now trading at 732 pence per share, a drop of more than 35% in the stock market so far this year. Are you confused about choosing a reliable stockbroker for online trading? Here is a comparison of the few top brokers to help you make your choice.
Workspace Group’s annual performance will remain under pressure
The COVID 19 crisis has so far infected more than 1.2 million people in the UK and caused over 49 thousand deaths. As a result, companies have turned to working from home and customers have struggled to make timely rent payments due to the economic setback of the COVID 19 crisis.
said the Workspace Group in a statement on Wednesday:
“There is no doubt that people’s expectations of the office are changing. Although we have been aware of this trend for several years, the pandemic has accelerated fundamental changes in the role and demands on the office for a growing number of companies and their employees”.
CEO Graham Clemett also said on Wednesday that higher costs and lower occupancy rates are likely to keep the company’s annual financial performance under pressure. U.S. Peer WeWork said in late October that it was considering another attempt at an initial public offering (IPO).
The Workspace Group says it received 935 requests in September.
In the first quarter of the fiscal year, Workspace had offered a 50% rental discount to the majority of its customers. The London-based company reported a pre-tax loss of £110.4 million in the six months ended September 30. This compares with a smaller loss of £99.1 million in the same period last year.
Nevertheless, the Real Estate Investment Trust received 935 requests for workspace in September compared to 765 in June. Rental income also jumped to 95% in the first half of the year.
Workspace Group performed quite well on the stock market last year with an annual profit of almost 50%. At the time of writing this article it is estimated at £1.34 billion and has a price-earnings ratio of 18.57.