Workspace Group has recorded a pretax loss for the first half of its financial year, as the government’s Covid-19 restrictions hit customer demand.
It made a £110.4m pretax loss, compared with £99.1m profit during the same half-year period in 2019. This was driven by a 4.9% drop in portfolio value to £2.4bn.
Net rental income fell to £36.5m, down 39% on the previous year. EPRA NTA per share declined by 7.6% to £10.05, from £10.88 in March.
Chief executive Graham Clemett said that the majority of its customers were offered a 50% rent discount in the first quarter.
“We believe our freehold ownership model, our financial strength and our long-established flexible offer will be an attractive option for an increasing number of London businesses as the economy recovers,” said Clemett.
He added that there was an increase in enquiries and lettings from new customers to “near pre-Covid levels” in the second quarter.
Clemett said: “Our immediate priority is to manage our way through the challenges of the second half of the year.
“With government Covid-19 restrictions in place we expect to see further pressure on occupancy and pricing in the near-term, which will impact on our full year performance.”
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