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Acquisition costs hurt Regus's first-half profit
August 27, 2013 / 6:53 AM / 4 years ago

Acquisition costs hurt Regus's first-half profit

Aug 27 (Reuters) - Office space supplier Regus Plc’s first-half profit fell 3 percent as restructuring costs related to an acquisition earlier this year hurt margins.

Regus, which offers business lounges, meeting rooms and office space for rent for periods as short as half a day, said pretax profit fell to 31.1 million pounds ($48.45 million) for the six months ended June 30, from 32.2 million pounds a year earlier.

Operating margins for the first half fell to 4.6 percent from 5.6 percent a year earlier.

Regus outbid Hong Kong-based Pyrrho Investments for MWB Business Exchange Plc in February, offering 65.6 million pounds for 64 centres of the serviced office provider.

The Luxembourg-headquartered company, whose customers include GlaxoSmithKline Plc, Google Inc and Nokia Oyj, said revenue rose 22.4 percent to 744.7 million pounds.

Revenue from the company’s mature business - centres opened on or before Dec. 31, 2010 - increased 5.9 percent to 626 million pounds.

Revenue per occupied workstation (RevPOW) -- a key metric in the space rental business -- increased 3.7 percent in constant currency terms to 3913 pounds.

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