Knowing the Market

The commercial rental company, Regus, has recently reported a rise in profits of 24% over its last year as more firms are preferring to take out leases on properties rather than the costs involved in buying new ones instead. The profits of the company before tax have reached over £150m increasing from last year’s profits of £120m. In addition, their revenues have risen to a total of slightly over £1bn.

During hard financial times, companies have taken more and more to renting their premises due to it being better for their cash flow. Many companies have even decided to sell their old premises and take out leases on new ones instead. If your company is looking to relocate, the services of a company offering a complete and customised commercial and office relocation service can be invaluable.

Although Regus has been criticised in the past for its renting business manner of renting out some of its property on long term leases and then subletting them on shorter term contracts to other companies, this has become increasingly popular in recent times of economic downturn.

In addition to the company’s success in the UK, growth in Asia has increased enormously with 112 new premises opening last year and an expansion into Pakistan and Taiwan and an increase in workspace to over 150,000. Asian revenues have risen by fifty-five percent over last year.

The chief executive of the Regus firm has called 2008 another very successful year of business, the fifth in a row of record performance. In addition to this, the company’s share prices have also risen from 1p to 1.8p per share dividend.