Regus on track for overall full year revenue forecasts (UK)

Regus Group PLC, which provides outsourced offices, said it is on track to meet its revenue forecasts for the full year but added that the weakness of the dollar is hitting revenues from its largest market - the US.

In a trading update ahead of its year end on Dec 31, the company said it saw improved trading across the group during the second half and added that its forward order book is currently at record levels.

'Regus´ performance improved substantially during 2004 and we are on track to meet our revenue targets for the year,' said chief executive Mark Dixon. 'Enquiries remain strong, costs are under control and we enter 2005 off a solid Q4 2004 base.'

The group said its 42 pct-owned UK affiliate Regus UK Ltd will make an underlying pretax loss for the year, with the group´s share totalling about 3-4 mln stg.

But Regus added: 'The UK business has seen an upturn during the second half of 2004 and is currently trading at EBIT breakeven.'

Elsewhere, the group said revenues in EMEA have seen a steady increase but added that overall performance has been hit by more challenging conditions in two of its larger countries, the Netherlands and Germany, which continue to see lower than average occupancy.

In Asia, the group said it continues to perform well and added that new centres are planned in India and Hong Kong.

In the US, Regus said the performance and integration of the acquired HQ Global Workplaces is going well. 'The target of realising 20 mln usd of annualised synergies will be achieved ahead of plan.'

Regus will post its results for the year to Dec 31 in mid to late March next year.
Source: Freeman

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