Regus Share Discussion Threads

[its the oxman] 25/12/2015 13:48

How much upside do you see Melody?

[melody9999] 24/12/2015 11:36

Nice move this morning - I was in at 326p - no reason we should not see a return to the long term trend now

[mike740] 11/9/2015 17:08

Here.....

Regus is performing as expected. Network growth will again be over 25% this year. The key operating metrics of occupancy and REPOW for the mature estate are trending positively. Overhead efficiency continues to improve from organisational change and operational leverage. Investment costs are constrained contributing to post tax return on capital for locations open since end 2011 rising from 23% and a balance sheet only modestly geared. Despite outperformance, we maintain our view that the share price does not capture nearly the potential for value creation.


Guidance for net expansion investment for the whole of this year was formally increased to approximately £230m at the interims from prior visibility of in the region of £180m. This follows sequential net growth investment from 2012 to 2014 of £147.8m, £260.2m and £206.6m, adding 243, 448 and 452 locations, respectively. This equates to network growth of 17%, 30%, and 24%, taking the number of locations at end 2014 to 2,269 (see Figure 3). Management estimate there will be 600 locations added this year, which will be network growth of c.26%, with the emphasis on broadening regionally beyond major cities. Management express some caution towards lease levels in London, New York and San Francisco, which is not unexpected. This is a positive signal for wider market demand, and reassuring that management is tempering expansion where it sees lease rates as out of
line with its views of fair market value. Overall, markets remain strongly supportive for further multi-year network expansion with management reiterating its vision of 20,000+ Regus locations globally assuming growth is sustained. Secular change in working patterns, corporate efficiency and property rationalisation trends and the potential of brand, technology and network leadership by Regus are all factors contributing to creating this potential.


Growth is creating future value and releasing network value. Return on capital is high and rising. Regus’s key return targets have been applied
consistently over many years, and the processes for evaluation and approval of new location investment – greenfield and acquired – have strengthened with experience. New and development of formats creates a differentiated offering that further enhances potential. The most recent new format is the Spaces brand, Regus’s response to WeWork. It comprises large sites targeted at early stage highly entrepreneurial clients seeking the benefits of collaborative communities. Created in Europe, Regus is now taking this concept to the US. We expect formats and innovation to be key themes of the upcoming capital markets day (6 October).

[mike740] 11/9/2015 14:52

No Stifel note out making the buy case, do you want a copy?.

[abcd1234] 11/9/2015 07:55

P.E. interest ?...

[richard xii] 28/8/2015 17:44

Multi-year closing high.

[ygor706] 25/8/2015 07:56

Strong results from Regus this morning that will probably get lost in market turbulence. Nevertheless, one to keep an eye on once the market casts off its current madness.

[mike740] 03/3/2015 07:59

Peel Hunt recently increased its traget price on workspace provider Regus to 300p from 275p, which it sees as conservative, suggesting it does not require overly heroic assumptions to find fair value of 630p.

[jennam6] 18/2/2015 15:22

Hindsight!!

[bigdazzler] 18/2/2015 10:43

And that's the benefit of stops get stopped out at 214.5 a few days ago and look at it go.

Should have reversed my trade on been stopped out lol.

[asturius101] 05/12/2014 11:01

Almost back to £2...glad I added in the £1.70's

[bigdazzler] 19/11/2014 10:55

I believe short term momentum has now gone in the price increase and I'm looking at a short term fall so gone short.

Have quite a tight stop on this one.

[bigdazzler] 31/10/2014 14:03

Good results agreed but enough % increase for me and sold out this morning. May revisit on a healthy retrace.

[asturius101] 31/10/2014 07:33

Pretty decent results..

[greasynut] 28/8/2014 02:54

If you compare mature H1 2014 with H1 2013 as stated in the RNS's
on each date they are remarkably similar.
However, the H1 2013 results are completely different when
presented in the H1 2014 results this week.
This restatement enormously flatters the running results, but I
have not spotted any acknowledgement or explanation for them.


Can anyone following the company more closely than I am shed light
on this?

[luckymouse] 26/8/2014 13:16

jeffian - hows that short going?

[jeffian] 26/8/2014 10:41

Aye, like any Ponzi scheme they have to keep 'growing'. For all the talk of free cashflow ("underlying" note), there doesn't seem to be much cash about. The "investment" in new centres involves taking on new lease commitments and spending £m's on office equipment that has to be written off if the centres close. The liabilities are real; the 'assets' are second-hand office equipment.



GBPm H1 2014 H1 2013
------------------------------- ------- -------
Mature free cash flow 71.8 53.8
Net investment in new centres (148.5) (167.4)
Closed centres cash flow (0.6) (0.3)
------------------------------- ------- -------
Total net cash flow from
operations (77.3) (113.9)
Dividends (23.7) (20.8)
Corporate financing activities (4.6) (1.3)
------------------------------- ------- -------
Change in net cash (105.6) (136.0)
Opening net cash (57.2) 120.0
Exchange movements 1.5 2.0
------------------------------- ------- -------
Closing net (debt) / cash (161.3) (14.0)

[luckymouse] 26/8/2014 10:26

H1 - Traders over reaction to the negative line about increased costs due to rising business center rollout rate - not put very well by the co I feel - bit too stark - the underlying business is generating cash and growing - growth is slowed by ccy

Ironically RGU are doing the correct thing by expanding - investors dont want them to stand still or shrink so not sure what else RGU are supposed to do?

[jennam6] 26/8/2014 09:14

There's time yet P2.....At least I got the 8 right!

[asturius101] 26/8/2014 09:12

Back to the 1.70s

[its the oxman] 26/8/2014 09:10

Not going anywhere fast with sterling where it is.