DUBAI, UAE, February 25, 2018 /PRNewswire/ --
Combined revenues from Middle East and Europe AUD 38.8 million (USD 30.2 million)
Strategic growth initiatives underway; group operating profit up 7.7% on first half of FY2017
- Group operating cash flow up 13.1% to AUD 19.9 million (USD 15.5 million)
- Strong balance sheet and stable outlook supported by cash balance increase of 5.3%
- Investment in strategic growth already deployed in key Middle East and European markets
- Confirmed interim dividend of AUD 0.13/share (USD 0.10/share)
Servcorp Limited ("Servcorp"), a pioneer and innovator in serviced offices, virtual offices and co-working environments, has announced its interim financial results for the six months ended 31 December 2017. At the end of the last period (1 July 2017 to 31 December 2017), Servcorp's operating cash flows increased by 13.1% over the same period in 2016 to reach AUD 19.9 million (USD 15.5 million), with a strong balance sheet and stable outlook supported by a cash balance increase of 5.3% since 30 June 2017.
Servcorp's operations in the Middle East and Europe delivered combined revenues of AUD 38.8 million (USD 30.2 million), while Servcorp's revenue was AUD 153.3 million (USD 122.2 million), with net profit before tax of AUD 19.2 million (USD 15.0 million). An interim dividend payment of AUD 0.13/share (USD 0.10/share) was also confirmed.
On announcing its interim financial results, Servcorp's management highlighted a set of significant strategic initiatives that are underway, and will be key future growth drivers. Expansion of operations to enable accelerated growth in target markets in Europe, the Middle East and India are already progressing, along with further enhancements to Servcorp's unified global IT platform.
Taine Moufarrige, Executive Director at Servcorp, commented:
"Our objective is to cater to businesses that want to be successful at all stages of growth, providing both an office infrastructure and business community in which they can flourish. Our business model is purpose-built to deliver on this objective, and we are confident that it will continue to perform. With stronger sales in the Middle East and Europe to date in the current quarter, we expect this geography to deliver a strong second half."
The recent rapid growth in the global market for shared office space has seen the Company commit to invest AUD 20 million (USD 15.6 million) in its co-working offering, successfully pivoting both office design and customer experience towards this high-growth segment. This investment has already seen Servcorp open new co-working spaces globally, including in London and in Middle Eastern markets including Abu Dhabi, Beirut and Jeddah, and is expected to be fully deployed with the launch of new workspaces by the end of calendar year 2018.
Servcorp's programme for enhancing floor design and customer experience across its existing office footprint has shown encouraging early results and will continue during the remainder of the 2018 calendar year. In parallel, the company has invested in unlocking more of the value inherent in its technology platform. Servcorp, which is headquartered in Sydney and listed on the Australian Securities Exchange (ASX:SRV), is a global company employing 850 staff and servicing 35,000 members in 53 cities across 23 countries.
The Company reports its financial results in Australian dollars, with US dollar values for the reporting period ended 31 December 2017 converted using average rates for the same period. Rates are as issued by the Reserve Bank of Australia.
Notes to Editors
About Servcorp Group
Founded in Australia in 1978 by Alf Moufarrige, Servcorp has grown from a quarter-floor in Sydney's MLC Centre into a global brand employing 850 staff, servicing 35,000 members in 53 cities across 23 countries. With a 40-year track record, the business is widely regarded as both a pioneer and innovator in serviced offices, shared workspaces and co-working environments.
Servcorp provides members with access to premium addresses in the world's major cities, cutting-edge IT technology solutions and excellent services. The Company's core products are Serviced Offices, Virtual Offices and Co-Working spaces. These products are all supported by a proprietary IT infrastructure that includes global call forwarding, high-speed internet, dedicated receptionist services and 24/7 voicemail to email. Servcorp Membership provides global access to meeting rooms, day offices, co-working lounges, bilingual secretaries and connectivity with 35,000 community members.
The Company is currently focused on growing its co-working offer, with new designs and fit-outs for workspaces supported by sophisticated online and digital services. Listed on the Australian Securities Exchange since 1999 (ASX:SRV), Servcorp continues to give entrepreneurs and larger corporates access to the resources of a big business without the fixed liabilities.
The Servcorp group has been on a strong financial growth trajectory since its foundation and continues to deliver superior returns. Its outstanding intellectual property, developed over four decades, and a diversified income stream has made Servcorp resilient to market fluctuations and well-positioned to leverage the next phase of growth in the shared workspace market.
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SOURCE Servcorp Limited