Workplace solutions provider Regus plc (RGU.L) reported Thursday a 9.5% decrease in revenues for the four months ended 31st October 2009, amid challenging global trading environment. The company also said that it remains cautious about its outlook for the full year.
For the four-month period, revenues declined 9.5% to GBP 332.0 million from GBP 367.0 million in the previous year.
Regus, however, noted that the results until the first half of fiscal 2009 remained more or less consistent with its expectations. In August, the company announced that the pre-tax profit for the first six months of fiscal 2009 slid to GBP 69.0 million from GBP 74.5 million in the prior year period.
The firm revealed that the total number of actual workstations, inclusive of non-consolidated workstations, went up to 174,487 during the four-month period from 168,908 a year earlier. The firm opened new centers at Port Louis in Mauritius, Tallinn in Estonia and a joint venture in Senegal, thereby increasing its presence worldwide to 78 countries from 72 last year.
At October 31, the group's net cash position was up at GBP 229.1 million compared to GBP 159.9 million, reflecting a steady underlying cash generation, offset by an investment of GBP 7.3 million made towards business development and the payment of the interim dividend of GBP 7.6 million in October.
Looking ahead, the company sees some signs of stabilisation in its leading indicators, although pressures on price and occupancy continue to hurt results. Regus said that it is benefiting from the cost control program which is progressing towards meeting its full year target.
Considering the weak economic situation, the group said that it still is cautious with regard to its outlook for fiscal year 2010.
RGU.L is currently trading at 96.50 pence on the London Stock Exchange, down 7.00 pence or 6.76%.
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