UPDATE 1-Regus cautious on 2010 outlook; shares fall

Thu Nov 19, 2009 3:59am EST

* Says 4-month revenue down 9.5 pct

* Says year-to-date performance broadly in line

* Shares down as much as 7 percent (Adds details)

Nov 19 (Reuters) - Office rental company Regus Plc (RGU.L) said pressures on price and occupancy continued to hurt its results, and it remained cautious in its outlook for 2010, sending its shares down as much as 7 percent.

Regus, which offers ready-to-use offices for rental as short as half a day, said its year-to-date performance continued to reflect the challenging trading environment but remained broadly consistent with its expectations.

The company said its four-month revenue to Oct. 31 fell 9.5 percent to 332 million pounds ($553.6 million).

However, the total number of actual workstations continued to grow over the last four months to 174,487, Regus said, adding it also saw some signs of stabilisation in its leading indicators. The company's net cash at Oct. 31 fell marginally to 229.1 million pounds from 229.5 million pounds at June 30. Regus' clients include American Express Co (AXP.N), Google Inc (GOOG.O), Cisco Systems Inc (CSCO.O) and GlaxoSmithKline Plc (GSK.L). Regus shares were down 6.8 percent at 96.5 pence at 0831 GMT. ($1=.5997 Pound) (Reporting by Kumar Alagappan in Bangalore; Editing by Aradhana Aravindan)

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.