Workspace Climbs as Demand for Offices Increases in London AreaPatrick Gower
Workspace Group Plc rose the most in 11 months in London trading after the provider of office space reported full-year profit that beat analyst estimates.
The shares climbed as much as 6 percent to 619 pence, on track for the highest closing price since 2008. Net income rose to 241 million pounds ($403 million) in the 12 months through March from 76 million pounds a year earlier, Workspace said in a statement today. The average of four analyst estimates was for earnings of 158 million pounds, according to data compiled by Bloomberg.
Workspace has gained from refurbishing offices to suit growing companies on the fringes of London’s main financial district and the West End. The company’s portfolio generated a total property return, which combines rental income and changes in property valuations, of 34.7 percent during fiscal 2014. That compares with 13.4 percent for the Investment Property Databank’s U.K. Property Index.
“We see further valuation growth driven by a core portfolio supported by the strong fundamentals of the London property market,” Oriel Securities analysts John Cahill and Miranda Cockburn said in a note today.
The London-based company was up 5.3 percent at 615 pence at 9:20 a.m. in London. Workspace has a market value of 896 million pounds.