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Workspace Group PLC on Wednesday outlined its plan to become an ‘earnings-focused business’ as it cut its payout after swinging to a loss in financial 2026. The London-based flexible workspace provider swung to a pretax loss of £120.5 million in the financial year ended March 31 from profit of £5.4 million the year prior. Revenue decreased by 2.1% to £181.4 million from £185.2 million, as net rental income slipped 7.1% to £113.4 million from £122.1 million, and underlying net rental income fell 2.4% on-year to £109.9 million. The company also booked a £159.2 million loss in fiar value, widened from a £55.9 million loss in financial 2025. Back in April, Workspace had warned of a ‘substantial step down’ in annual trading profit, citing lower starting rents, the impact of disposals, higher debt costs, lower capitalised interest and an increase in operating expenses and investment. Workspace’s total property valuation was £2.13 billion at the end of March, down 7.0% from £2.37 billion a year earlier. On an EPRA basis, net tangible assets per share shrank 11% to £6.87 from £7.74. Workspace has cut its final dividend by 12% to 16.7p per share from 19.0p on-year, which brings the year’s total dividend down 8.1% to 26.1p from 28.4p. Workspace shares fell 3.4% to 322.00 pence on Wednesday morning in London, and are down 22% over the past year. Chief Executive Charlie Green said: ‘The past year has been one of transition, both operationally and in our leadership, and that process continues as we reshape the business. Green stressed that there is ’long-term structural demand‘ for the firm’s London office properties, ’reflected in the resilience of enquiry levels and lettings, despite a muted economic backdrop‘. Going forward, Workspace intends to ’reposition‘ the business around changes in tenant needs, by recycling proceeds ’into low-risk, high-return portfolio improvements including a new managed offer, alongside a space only offer‘. CEO Green added: ’Our focus is on earnings through disciplined execution, driving higher occupancy with pricing growth while controlling costs. We believe this is the best strategy to maximise income and capital returns for shareholders and our ambition is to deliver, organically, trading profit before interest of over £125 million per annum in the medium term.We will also explore further opportunities to better leverage our platform for growth and generate accretive value for shareholders.‘ Workspace said it is in talks for further property sales worth £60.4 million, which supports its £200 million target. More than £100 million in additional disposals are under consideration, it added, whilst improvement work is ongoing at its various properties. Last month, activist investor Saba Capital Management LP, which owns 18% of Workspace, called for the removal of all six of its non-executive directors. In January, Saba proposed a managed wind-down. Workspace said it had ’engaged constructively‘ with Saba, but concluded that the proposal was neither achievable nor likely to maximise value for shareholders. It added in May that it was reviewing Saba’s requisition notice. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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