Shares in Regus rose 4% today to 89p after the company announced a 54% rise in pre-tax profits to £120m.
In a confident statement on the back of strong 2007 results, the serviced office provider said that takeup and profits had not been hit by the credit crunch, and had in fact improved as the year wore on.
Revenue rose 27% to £862m. Excluding the impact of new centres, like-for-like revenue growth was 7% and profit growth was 21%.
This was driven by average occupancy increasing to 82.7% from 81.8% in 2006.
Regus increased its dividend by two thirds to 1p a share.
The company saw the number of available workstations rise by 24% to 133,000, as it opened a further 146 centres, and revenue per available workstation increased 2.3% from £6,340 to £6,487.
Dixon said that Regus was well placed to withstand the effects of the credit crunch. ‘The shape of the business was that quarter four saw a steady improvement and continued increase in margins, and that the second half ended better than it began, even in America,’ he said.
‘Customers don’t want to enter into fixed arrangements, and they don’t want to put down capital, so they appreciate the lower costs of flexible space.’