Workspace Group PLC, Londons leading flexible workspace provider, reports Q4 2025/26 results with resilient enquiries, stable conversion rates, and increased occupancy. Despite a challenging macro environment, the company focuses on repositioning its offering to cater to start-ups, SMEs, and scale-ups. Key highlights include
* 384 lettings completed with a total rental value of £8.2m
* Stabilised portfolio occupancy increased to 81.6%
* £38.1m of low-conviction asset disposals completed in Q4, totaling £125.7m against a £200m target
* Robust balance sheet with £241m of cash and undrawn facilities
The company expects a step down in profitability in FY 2026/27 due to various factors, including lower occupancy, pricing, and higher interest costs. However, Workspace remains confident in its long-term strategy, aiming to deliver sustainable earnings growth through portfolio investment and repositioning. The dividend policy is revised to 1.2x earnings cover for FY 2025/26 onwards.
| Metric | Q4 2025/26 | Q4 2024/25 | Change |
|---|---|---|---|
| Enquiries | 710 | 796 | -10.8% |
| Viewings | 503 | 585 | -14.0% |
| Lettings | 384 | 390 | -1.5% |
| Total Rental Value (£m) | 8.2 | 10.1 | -18.8% |
| Stabilised Portfolio Occupancy | 81.6% | 81.3% | +0.3pp |
| Stabilised Portfolio Rent per sq. ft. | £46.31 | £46.71 | -0.9% |
| Total Rent Roll (£m) | 127.3 | 129.1 | -1.4% |
| Net Debt (£m) | 759 | 779 | -2.6% |
| Cash and Undrawn Facilities (£m) | 241 | 221 | +9.0% |
| LTV (Proforma) | 35% | 35% | 0% |