UK's Workspace Warns of 'Substantial' Profit Drop for FY27
April 18: Total rent roll fell 1.4% to £127.3 million in the three months to March 31, while stabilised portfolio rent per square foot dipped 0.9% to £46.31.
Key Figures
| Metric | Value |
|---|---|
| Share decline | Nearly 15% (to 320.6 pence) |
| Rent roll (Q1) | £127.3 million (down 1.4%) |
| Rent per sq ft | £46.31 (down 0.9%) |
| Property portfolio valuation | Expected negative impact in H2 FY27 |
CEO Statement
Charlie Green, who took the helm in February amid pressure to improve performance and calls from activist investor Saba Capital to wind down the business, said: "As we deliberately reposition the business, there will be a step down in profitability."
Market Context
The company has been under pressure in recent years as businesses delayed leasing decisions or curtailed office-space budgets amid rising hybrid working. However, with companies now increasingly asking employees to return to offices, demand for flexible and permanent spaces is likely to pick up.
A Savills survey showed 85% of global flex operators expect to expand in 2026.