Published Monday, March 22nd, 2010, by Mike Sullivan.
Regus today released their financial report for the year 2009. The report shows a steep decline in the office business center giant’s net profit. The company’s profits fell a drastic 41 percent, revealing that they had been affected by the economic recession, which has halted or ended the growth of many small businesses. The year 2009 saw many small businesses close or cut back heavily on company expenses – making for many less Regus clients and much higher vacancy rates at their locations in 78 countries. Regus introduced reduced prices and even offered contests for free office space in rigorous attempts to revitalize occupancy rates.
Despite the economy and this recent report, Regus Chief Executive Mark Dixon remains optimistic: "In a challenging economic environment, Regus has proven resilient and flexible, delivering a sound performance and ending the year with a very healthy net cash position of £237 million. Despite pressure on our price and occupancy, our strategy of creating a long-term balanced business mix has proven successful over the past year as we increased global brand awareness, further diversified our product mix, and achieved controlled, geographic growth including the opening of 45 new centres.
"While the outlook remains unclear, particularly for the UK, we are cautiously optimistic across our other three geographies. We remain focused on increasing revenues, flexing our cost base and further improving efficiency in order to restore our margin. We are experiencing an increased level of growth opportunities as the trend toward flexible working accelerates. This, combined with our strong cash position, will allow us to step up our new centre opening programme in 2010."
Read Finance Editor Jonathan Price’s assessment of the financial report here.