Workspace posts £102.5m FY pre-tax loss as net rental income falls

(Sharecast News) - Flexible office space business Workspace posted a softer set of full‑year numbers on Wednesday, with earnings hit by lower rental income and a further drop in property valuations. Workspace said net rental income fell 7.1% to £113.4m following disposals, while trading profit after interest declined 9.4% to £60.5m in the year ended 31 March. As a result, Workspace reported a £120.5m pre‑tax loss, driven largely by valuation movements across its portfolio, and the group cut its full-year dividend to 26.1p per share from 28.4p a year earlier.

The FTSE 250-listed firm completed 1,310 lettings and 558 renewals for a total rental value of £50.4m during the year, while 77% of enquiries were converted to viewings and 17% of enquiries were converted to lettings, up from 72% and 15% a year earlier, respectively.

Workspace said it had completed £125.7m of disposals during the year and had a further £60.4m of assets under offer or in active discussions, as it continued to recycle capital and reshape the estate.

Looking ahead, Workspace reiterated its shift toward becoming a more earnings‑focused business, targeting over £125m of pre-interest trading profits in the medium term. offer.

Chief executive Charlie Green said: "Our focus is on earnings through disciplined execution, driving higher occupancy with pricing growth while controlling costs. We believe this is the best strategy to maximise income and capital returns for shareholders and our ambition is to deliver, organically, trading profit before interest of over £125m per annum in the medium term.

"We will also explore further opportunities to better leverage our platform for growth and generate accretive value for shareholders. We have a focused plan, a scalable platform and a clear strategic direction. I am confident in our strategy and excited for the future of Workspace."

As of 0810 BST, Workspace shares were down 2.88% at 323.60p.





Reporting by Iain Gilbert at Sharecast.com

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