Workspace Group PLC (LON:WKP), London’s leading owner and operator of sustainable, flexible work space, has provided an unaudited post-close financial update for the financial year ended 31 March 2025 and expectations for the year ending 31 March 2026.
At our Q4 business update issued on 17 April 2025, we highlighted several factors which we expected would impact Workspace’s results for the year ending 31 March 2026 – namely a lower opening rent roll, further large unit vacations, additional costs associated with macroeconomic pressures including higher national insurance and higher living wages and additional refinancing costs.
Ahead of our strategy update (alongside our full year results) on 5 June 2025, the Board has now approved the strategic plan and expects the combined impact of these factors on the year ending 31 March 2026 to be a Trading Profit headwind of c.£7m. This is against the current Company-compiled consensus¹ for Trading Profit within a range of £66-72m.
Workspace expects Trading Profit for the year ending 31 March 2025 to be in line with consensus, with a marginal fall in valuation due to a reduction in ERV per sq. ft., alongside a fall in occupancy, as previously outlined.
The strategic update will outline our plan to drive a recovery in occupancy and income growth in the medium term. We will also demonstrate how we will deliver longer-term shareholder value through a strategy anchored in operational excellence. This disciplined approach will drive enhancements to the platform, investment in our product and more targeted marketing initiatives to support customer growth and increase our market share. The Board is confident that Workspace Group has the right strategy to drive growth in an exciting SME market.
The presentation to analysts and investors on results and strategy will be held at 9:00am on 5 June 2025 at our Eventspace, Salisbury House, 114 London Wall, EC2M 5QD.
¹Consensus includes forecasts from seven coverage analysts.
