Trading on track at Workspace despite slower market

(Sharecast News) - Workspace Group said third-quarter trading had been in line with expectations on Wednesday, despite a slower market weighing on enquiries. The flexible workspace provider said operational improvements had driven occupancy in the three months to December end.

Lettings rose to 322 with a total rental value of £10.2m, up from 273 and £6m in the same period a year previously, while like-for-like occupancy edged up 0.9% to 81.2%.

Workspace acknowledged that enquiries had been lower, due to a "slower market", though enquiry-to-letting conversion improved three percentage points to 19%.

Rent per square foot was also lower, falling 1.4% on an underlying basis to £47.13, driving a 0.1% reduction in the quarter's rent roll to £104.1m.

However, outgoing chief financial officer Dave Benson, said: "We are encouraged by the progress made in the quarter against our 'Fix, Accelerate, Scale' strategy.

"We know we still have a long way to go to fully stabilise and rebuild occupancy, but these signs give us confidence that our strategy is delivering and we are on the right path."

Workspace - which is fighting demands from activist investor Saba Capital for a managed wind-down - announced on Monday that chief executive Lawrence Hutchings would step down after just a year in the role, to be replaced by The Office Group co-founder Charlie Green.

Benson said: "We look forward to welcoming...Green in early February as we accelerate the execution of our strategy."

Tom Edwards-Moss will take over as chief financial officer at the end of February, although Benson will remain with the company until the end of April to enable to smooth handover.

Workspace owns a portfolio of around 59 locations across London and the South East, and lets predominantly to small and mid-sized companies.

Saba owns around 13.5% of Workspace.

Shares in the real estate investment trust were up 2% at 419.98 as at 1030 GMT.