Workspace: London flexible office firm’s profit up despite low occupancy rates

Flexible office provider Workspace has continued to see an uptick in demand for lettings despite a slight downturn in occupancy rates.

The business, which manages millions of square feet of office space across London, saw a 4.3 per cent boost in underlying rental income, bringing it to a total of £60.2m.

In line with “good customer demand,” Workspace told markets this morning that it completed 603 lettings with a total of £15.8m.

However, despite a 2.8 per cent rise in like-for-like numbers per square foot, like-for-like occupancy was down 0.7 per cent.

“With over 35 years of experience and a unique, scalable business model, Workspace is well positioned for further success as we continue to capture demand and, over the medium term, look to increase our share of London’s growing SME market,” Lawrence Hutchings, chief executive officer, said.

Hutchings added: “This is an exciting time for the business, and I am delighted to be here as Workspace’s new CEO to build on the great legacy left by my predecessor Graham and drive the continued evolution of the business.

“Over the coming weeks and months, I am looking forward to spending more time in Workspace’s centres across London, meeting our diverse range of customers and getting to know the teams responsible for making Workspace the unique place it is.”

Workspace also reported an 5.1 per cent uptick in trading profit after interest, up to £32.7m this year.

Workspace’s shares have stayed broadly flat this year, but are down almost 50 per cent over the last five years. The company suffered heavily during the pandemic, and has continued to be hit by firms’ back-to-the-office policies, as the decline of flexible working continues.