Strong buying today has attracted me to this stock.

Workspace: Seymour Pierce lifts target from 270p to 330p, buy rating kept.

Interims Nov 13 which should impress due to rising occupancy levels and strong development gains. Workspace should make £23 million through land sales

RNS Number : 8886Q
Workspace Group PLC
13 November 2012

















Workspace MOMENTUM maintained



Workspace Group PLC ("Workspace"), London's leading provider of space to new and growing companies, announces its results for the six months ended 30 September 2012.



Highlights

Strong Financial Performance

· Trading profit after interest (adjusted) up 13% to £8.8m (September 2011: £7.8m)

· Profit before tax up 46% at £24.6m for the half year (September 2011: £16.9m)

· EPRA earnings per share stable at 5.9p (September 2011: 5.9p)

· Interim dividend per share increased by 10% to 3.22p (September 2011 2.93p)



Robust Demand

· Enquiries for space averaged 1,038 per month in the first half (September 2011: 955 per month)

· Like-for-like occupancy improved to 88.8% (March 2012: 87.7%)

· Like-for-like rent roll up 3.1% to £43.6m and rent per sq. ft up 1.7% to £12.99 since March 2012



Property Portfolio

· Underlying property valuation up 2.2% (£17m) to £781m since March 2012

· EPRA net asset value per share up by 3.6% to £3.19 since March 2012

· £9m of property disposals, realising a £0.5m surplus to March 2012 valuation



Good progress on Refurbishment and Redevelopment Pipeline

· Two refurbishments completed in the period to October 2012 with a further six underway

· Agreements exchanged in October 2012 for mixed use redevelopments at Grand Union, W10 and Bow Enterprise, E3



Sound Financial Base

· Average debt maturity 2.7 years with no debt falling due in next 2 years

· Loan to value steady at 41% (March 2012: 41%)

· Average cost of debt of 5.0% down from 5.2% in previous financial year

· £74m of undrawn facilities and cash

· Seven year unsecured 6.0% Retail Bond successfully completed in October 2012 raising £57.5m (gross), extending overall debt maturity profile by eight months



Acquisition Activity

· Five properties acquired for £29m in BlackRock joint venture in period to October 2012

· BlackRock joint venture investment of £100m now complete



Commenting on the results, Jamie Hopkins, Chief Executive said:



"Workspace has had an active and productive first half of the year reflected by the growth of both our core operational income as well as the capital value of our assets. During the period our marketing efforts have continued to drive occupancy and rent roll and we have pushed forward with various repositioning, refurbishment and redevelopment initiatives. Our property valuation has increased without any material benefit from yield movement, which I believe endorses how focused asset management and a clear understanding of our customers can deliver real value to shareholders"



-ends-

Good set of results

Workspace boosts divi after profit jump
By Michael Millar

Tue 13 Nov 2012



LONDON (SHARECAST) - Office provider Workspace Group said increasing demand had pushed up rents and occupancy, in turn boosting profits.

Profit before tax was up 46% at £24.6m for the first half of the year, with earnings per share flat at 5.9p.

The firm boosted its interim dividend per share by 10% to 3.22p.

Its like-for-like rent roll was up by £1.3m - 3.1% - in the six months to September 2012.

Around 40% of this increase in rent came from higher occupancy, with 60% from the rise coming from higher rent per square foot.

The firm said rental growth would increasingly be driven by improvements in pricing as it reached high levels of occupancy and demand, particularly at the company's business centres.

Overall occupancy at September 2012 was 84.6%, down 0.7% since March.

This was due to a drop in occupancy at properties being refurbished (down 9.6%) and redeveloped (down 7.6%), as well as two property disposals.

However, it was up on the like-for-like measure, reaching 88.8%, the group added.

Workspace's underlying property valuation was up 2.2% to £781m since March.

"Workspace has had an active and productive first half of the year reflected by the growth of both our core operational income as well as the capital value of our assets," said Chief Executive Jamie Hopkins.

"During the period our marketing efforts have continued to drive occupancy and rent roll and we have pushed forward with various repositioning, refurbishment and redevelopment initiatives."

Going well