Workspace warns on profits, shares slide
Office landlord warned on profits on Friday, sending the shares sharply lower, on the back of higher costs and mounting macroeconomic pressures.
Updating investors ahead of publishing full-year results, the flexible workspace provider - which manages around 4.2m sq ft of space in London and the south east - confirmed trading profits for the year to 31 March 2025 would be line with consensus.
But it also flagged a decline in occupancy and a "marginal" fall in valuation, due to reduced estimated rental value per sq ft, and warned of profit headwinds in the current year.
In particular, the real estate investment trust said "several factors" would impact the year to March 2026, including a lower opening rent roll, further large unit vacations and higher costs, including employers' National Insurance contributions and refinancing costs.
As a result, it now expects a £7m hit to profits. Consensus is currently for 2026 trading profits of between £66m and £72m.
As at 0845 BST, the FTSE 250 stock was trading 10% lower at 408.07p.
Workspace said it would now focus on implementing a recently agreed strategic plan, which was intended to "drive a recovery in occupancy and income growth in the medium term.
"We will also demonstrate how we will deliver longer-term shareholder value through a strategy anchored in operational excellence.
"This disciplined approach will drive enhancements to the platform, investment in our product and more targeted marketing initiatives to support customer growth and increase market share."
Further details will be published alongside the results, on 5 June.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.