By Jonathan Buck
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Workspace solutions provider Regus PLC (RGU.LN) Tuesday reported first-half net profit was almost flat year-on-year as revenue excluding currency swings fell, and the company maintained a cautious short-term outlook.
However, it added that free cash flow climbed and it boosted its dividend payment by one-third.
Regus posted net profit in the six-month period ended June 30 of GBP54.4 million compared with GBP54 million in the same period a year earlier. Revenue rose 9.8% to GBP557.4 million from GBP507.5 million largely due to a fall in the value of sterling against the dollar and euro. Without the currency impact, revenue fell 6.8%.
Free cash flow increased by GBP58.9 million compared with GBP97.3 million a year ago, and its net cash balance jumped to GBP229.5 million from GBP211.2 million, a record high. It proposed an interim dividend of 0.8 pence per share, up from 0.6 pence.
"With continuing uncertainty around future economic activity - a position which is projected to continue over the short to medium term - we remain cautious about the group's short-term outlook," Regus said in a statement. "Challenges remain and further decisive management action will be required to protect and develop shareholder value."
Regus' products and services range from fully equipped offices to professional meeting rooms, business lounges and videoconference studios. Its clients include multinationals like Google Inc. (GOOG), GlaxoSmithKline PLC (GSK), International Business Machines Corp. (IBM), Nokia Inc. (NOK) and Accenture Ltd. (ACN). It has about 1,000 centers in more than 70 countries.
The company's shares Monday closed at 83 pence. They have gained 24% in value in the past 12 months as companies have sought flexibility as a means of cutting costs amid the downturn.
Company Web site: www.regus.com
-By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 8237; jonathan.buck@dowjones.com