Regus founder Mark Dixon ramped up his investment in the serviced office group today – just as other investors were selling up.
Shares in Regus slumped 17% after the Chertsey-based firm posted full-year losses of more than £100m this morning.
Revenues did lift during 2001 but only at the expense of margins, while Regus also warned that 2002 would be another challenging year. But chief executive Dixon showed his commitment to the group he founded 13 years ago by splashing out £240,000 on 1m shares. The purchase brought his total holding up to 62.8%.
Dixon said he had acquired the latest tranche of shares because it was a “good investment – simply that”. He added: “I know most about the company and I think there’s a good recovery play in the shares over the long term.”
Regus was rocked in 2001 by the tough global economy, forcing it to cut workstation capacity and axe 800 jobs – 24% of the workforce. The cost-cutting left Regus with total one-off costs of £90.5m as bottom-line pre-tax losses widened from £3.9m to £110.1m.
Turnover for the year to 31 December was up 22% at £512.6m but revenues per available workstation and centre fell, while discounted prices for longer-term contracts also hit margins.
Shares in the group, which does not pay dividends, lost 5.5p at 26.5p at the announcement.
EGi News 27/02/02
