Flexible office firm sees profits rise despite low occupancy levels

Despite a slight dip in occupancy rates, flexible office provider Workspace has reported an increase in demand for lettings. The company, which oversees millions of square feet of office space throughout London, experienced a 4.3 per cent rise in underlying rental income, totalling £60.2m.

Workspace informed markets this morning that it had finalised 603 lettings worth a total of £15.8m, reflecting "good customer demand". However, while like-for-like numbers per square foot saw a 2.8 per cent increase, like-for-like occupancy fell by 0.7 per cent, as reported by City AM.

Lawrence Hutchings, the CEO, stated: "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,".

Hutchings continued: "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."

He added: "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 announced a 5.1 per cent increase in trading profit after interest, rising to £32.7m this year.

Shares in Workspace have remained largely unchanged this year, but have seen a nearly 50 per cent drop over the past five years. The firm was significantly impacted during the pandemic and continues to feel the effects of companies' return-to-office strategies, as the trend for flexible working diminishes.