FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For May 9, 2002
Regus plc
(Translation of registrant's name into English)
3000 Hillswood Drive
Chertsey, KT16 0RS
England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
Regus plc
INDEX TO EXHIBITS
Item
- ----
1. Press Release dated May 7, 2002 with First Quarter Results for the quarter
ended March 31, 2002.
2. Press Release dated May 7, 2002 'Office outsourcing gains momentum as
Regus signs global deals worth (pound)35 million'.
3. Press Release dated May 7, 2002 'Developing trend as governments outsource
to Regus - Estimated (pound)12 million annual spend to gain improved
flexibility'.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Regus plc
Date: May 9, 2002 By: /s/ Stephen Stamp
-----------------------------
Name: Stephen Stamp
Title: Group Finance Director
Item 1
PRESS RELEASE
Embargoed until 12:00 noon BST, 7:00 am EST Tuesday 7 May 2002
FIRST QUARTER RESULTS
TO END MARCH 2002
Chertsey, UK, 7 May 2002, Regus plc, the global serviced office provider
(LSE:RGU.L, NASDAQ:REGS), announces its preliminary results for the three months
ended 31 March 2002.
Announcing the results, Chairman George Gray commented: "During the quarter, we
intensified our focus on pricing, occupancy and cost and the fundamentals of our
business. Recently, we have begun to see some modest stabilisation in price,
especially in the US. Despite this, we remain committed to further reducing our
cost base. We continue to cut overheads and fixed costs are being re-negotiated.
"We have a record number of customers in our centres. We remain cash positive at
the operating level. Our strategy of growth through franchising and management
contracts has led to new business in Europe and the US. In Scotland, we signed a
milestone management contract agreement with the UK's top property owner Land
Securities.
"The impact of the economic downturn is driving more and more organisations,
corporates and governments, to use Regus for the cost-effective outsourcing of
their office requirements. This has been demonstrated by the landmark (pound)100
million global outsourcing deal with Nokia as well as more than (pound)35
million of other outsourcing business booked during this quarter.
"In line with Regus' policy of discounting price for term, many of these deals
are for longer periods of time and will therefore add even more strength to our
contracted forward order book rather than have an immediate impact on revenues.
"As expected, 2002 is proving to be a challenging year for the global economy.
Regus is prepared to meet the challenges head-on".
Key financials:
3 months ended
31 March 31 March
2002 2001
(pound)m (pound)m
Turnover 110.7 137.9 -20%
Operating (loss)/profit (9.9) 7.6 -17.5m
EPS (basic & diluted)(p) (2.7) 0.8 -3.5p
EPADS (basic & diluted)(c)+ (19.0) 5.8 -24.8c
Average (pound):$ 1.42 1.44
+ based on UK GAAP
Operational
o During the quarter, Regus signed its largest ever outsourcing deal -- for
(pound)100 million with Nokia. Nokia is part of an accelerating trend
towards outsourcing of office requirements by corporates and governments
around the world. An additional (pound)35 million of outsourcing business
was booked during the quarter.
o Regus now serves more than 6,300 customers across 50 countries. A record
number of people, almost 55,000, work in Regus centres on a daily basis.
o The number of new workstations coming on stream slowed to a growth rate of
1% per quarter. This brought the total at 31 March 2002 to 95,420
workstations across 414 centres in 50 countries (including joint ventures
and franchises).
Financial
o Turnover at (pound)110.7 million for the quarter was down 20% on the first
quarter of 2001 and down 7% on the fourth quarter.
o There was a record contracted forward order book of (pound)295 million at
31 March 2002 (based on workstation revenue but excluding service revenue).
o The success of our strategy of discounting price for longer-term contracts
led to average contract length stabilising at 10.8 months in the first
quarter. Revenue per available workstation (REVPAW) from established
centres was (pound)1,438 (2001: (pound)2,393), reflecting the impact of
economic downturn.
o Overheads were down on the previous quarter by a further 29%, in line with
expectations.
o Regus was cash positive at the operating level for the quarter. Net cash
inflow from operating activities was (pound)2.9 million in the first
quarter, up (pound)2.6 million on the previous quarter. Cash at bank
totalled (pound)104.6 million at 31 March 2002 (which includes (pound)36
million from the issue of a convertible bond at 28 December 2001).
o Capital expenditure in the first quarter was stable at (pound)4.6 million,
in line with expectations.
Enquiries:
Regus
Mark Dixon, Chief Executive Today: +44 1932 895138
Stephen Stamp, Group Finance Director
Stephen Jolly, Group Communications Adviser
Financial Dynamics
David Yates/Richard Mountain Tel: +44 20 7269 7116
THE "SAFE HARBOR" STATEMENT UNDER THE US PRIVATE SECURITIES REFORM ACT OF 1995
The statements in this press release that are not historical facts are
forward-looking statements that involve risks and uncertainties, including but
not limited to risks associated with the serviced office market, the long-term
nature of the company's lease commitments, its growth ambitions, foreign
exchange and other risks and uncertainties, including those detailed in the
Annual Report Form 20-F filed with the Securities and Exchange Commission.
Results of operations
Review of first quarter 2002
The following table sets forth the Group's revenue, centre contribution and
workstations (i.e. weighted average number of available workstations) by
geographic region and by established centres compared with new centres:
(in (pound)millions, except workstations)
2001 2002
------------------------------------- -------------------------------------
Centre Workstations Centre
Revenue Contribution (re-based)* Revenue Contribution Workstations
UK & Ireland 59.2 21.6 23,299 44.1 7.9 26,600
Rest of Europe 39.5 10.7 22,258 33.7 2.3 30,217
Americas 30.7 5.4 16,632 25.4 (4.7) 23,979
Rest of World 8.5 0.6 5,038 7.5 0.2 5,960
------- ------- ------- ------- ------- -------
137.9 38.3 67,227 110.7 5.7 86,756
------- ------- ------- ------- ------- -------
Established
centres** 88.7 31.9 37,064 83.4 14.0 58,017
New centres 49.2 6.4 30,163 27.3 (8.3) 28,739
------- ------- ------- ------- ------- -------
137.9 38.3 67,227 110.7 5.7 86,756
------- ------- ------- ------- ------- -------
* At 1 January 2002 a complete review of workstation capacity was carried out.
The number of workstations in our centres increased by 2,212 and the 2001
comparatives have been updated from those previously reported to reflect the
re-basing exercise.
** Established centres are those open for 18 months or more at the period end,
new centres are those open for less than 18 months at the period end.
Revenue
Regus' revenue on a global basis was (pound)110.7 million in the first quarter
2002 ((pound)137.9 million in the first quarter 2001). The weighted average
number of available workstations increased 29% to 86,756 from 67,227 (re-based)
over the same period. In the first quarter 2002, Regus opened 5 new centres
including one joint venture centre. Two centres were closed.
Revenue from established centres was (pound)83.4 million in the first quarter
2002 (2001: (pound)88.7 million). Revenue per workstation in Regus' established
centres was (pound)1,438 (2001: (pound)2,393) reflecting lower occupancy rates
and the impact of the new pricing model. Revenue from new centres was
(pound)27.3 million (2001: (pound)49.2 million). Revenue per workstation in
Regus' new centres was (pound)950 (2001: (pound)1,631).
Revenue in the UK and Ireland was (pound)44.1 million (2001: (pound)59.2
million). Revenue per workstation was (pound)1,658 (2000: (pound)2,541). In the
first quarter 2002 one centre was closed in the UK.
Revenue in the Rest of Europe was (pound)33.7 million (2001: (pound)39.5
million). Revenue per workstation was (pound)1,115 (2001: (pound)1,775). In the
first quarter 2002, three new centres were added and one closed in the Rest of
Europe.
Revenue in the Americas was (pound)25.4 million (2001: (pound)30.7 million).
Revenue per workstation was (pound)1,059 (2001: (pound)1,846). Regus opened one
new joint venture centre in the US in the quarter.
Revenue in the Rest of the World was (pound)7.5 million (2001: (pound)8.5
million). Revenue per workstation was (pound)1,258 (2000: (pound)1,687). One new
centre was opened in the quarter in South Africa.
Centre contribution
Centre contribution on a global basis was (pound)5.7 million in the first
quarter 2002 (2001: (pound)38.3 million). Approximately 40% of the fall in
centre contribution was attributable to the UK & Ireland with the balance split
between the Americas and Europe. Centre contribution from established centres
was (pound)14.0 million (2001: (pound)31.9 million) with a centre contribution
margin in established centres of 17% (2001: 36%). Centre contribution from new
centres was a negative (pound)8.3 million (2001: positive (pound)6.4 million).
Centre contribution in the UK and Ireland was (pound)7.9 million (2001:
(pound)21.6 million). Centre contribution margin was 18% in the first quarter
(2001: 36%).
In the Rest of Europe, centre contribution was (pound)2.3 million (2001:
(pound)10.7 million). Centre contribution margin in the Rest of Europe was 7% in
the first quarter (2001: 27%).
Centre contribution from the Americas was a negative (pound)4.7 million compared
with a positive (pound)5.4 million in 2001.
Centre contribution in the Rest of the World was (pound)0.2 million (2001:
(pound)0.6 million) Centre contribution margin in the Rest of the World was 3%
in the first quarter (2001: 7%).
Administrative expenses
Administrative expenses including goodwill amortisation decreased 54% to
(pound)13.8 million (2001: (pound)29.8 million) due to the effects of the cost
reduction programme. Overall, administrative expenses fell to 12% as a
percentage of revenues compared to 21% in the first quarter of 2001. Sales and
marketing costs decreased 43% to (pound)8.2 million (2001: (pound)14.4 million)
and fell as a percentage of revenue to 7% (2001: 10%). Regional and central
overheads decreased 63% to (pound)5.6 million (2001: (pound)15.4 million) and
fell as a percentage of revenue to 5% (2000: 11%).
Liquidity and capital resources
Cash at bank and in hand at 31 March 2002 was (pound)104.6 million. Total
indebtedness at 31 March 2002 was (pound)41.9 million, which included
(pound)36.0 million on the convertible debentures issued in December 2001. The
Group also had outstanding finance lease obligations of (pound)34.3 million.
Cash inflow from operating activities in the three months ended 31 March 2002
was (pound)2.9 million. Net cash outflow before financing was (pound)4.3 million
after paying tax of (pound)1.4 million, interest (net) of (pound)0.5 million and
capital expenditure of (pound)4.6 million in the quarter. A further (pound)0.7
million was invested in joint ventures.
In March the Group made the first of ten equal monthly repayments of (pound)4
million against the 5 per cent unsecured, senior convertible debentures issued
in December 2001. At the Company's option, the debentures may be either redeemed
for cash or converted at 95 per cent of the average share price subject to any
floor price the Company may specify. Since the quarter end further repayments of
(pound)4 million each have been made in April and May.
Regus plc
Consolidated profit and loss account
For the 3 months ended 31 March 2002 and 31 March 2001
3 months 3 months
ended ended
31 Mar 2002 31 Mar 2001
(unaudited) (unaudited)
(pound)'000 (pound)'000
Turnover (including share of joint ventures) 113,199 141,183
Less: Share of turnover of joint ventures (2,473) (3,264)
--------- ---------
Turnover 110,726 137,919
--------- ---------
Cost of sales (centre costs) (104,979) (99,599)
--------- ---------
Gross profit (centre contribution) 5,747 38,320
Administration expenses (13,787) (29,759)
--------- ---------
Group operating (loss)/profit (8,040) 8,561
Share of operating loss in joint ventures (1,902) (959)
--------- ---------
Total operating (loss)/profit: Group and
share of joint ventures (9,942) 7,602
Net interest (payable)/receivable
- - Group (1,655) 908
- - Joint ventures (87) (61)
--------- ---------
(Loss)/profit on ordinary activities before tax (11,684) 8,449
Tax on (loss)/profit on ordinary activities (3,750) (3,979)
--------- ---------
(Loss)/profit on ordinary activities after tax (15,434) 4,470
Minority interests (equity) 366 155
--------- ---------
Retained (loss)/profit for the period (15,068) 4,625
========= =========
(Loss) / earnings per ordinary share:
Basic (p) (2.7) 0.8
Diluted (p) (2.7) 0.8
All results arose from continuing operations
Regus plc
Consolidated balance sheets
As at 31 March 2002 and 31 December 2001
As at As at
31 Mar 2002 31 Dec 2001
(unaudited) (audited)
(pound)'000 (pound)'000
Fixed assets
Intangible assets 4,264 4,307
Tangible assets 232,274 242,299
Investments
Investments in own shares 3,805 3,805
Other investments 33 33
Interest in joint ventures:
Share of gross assets - 15,656
Share of gross liabilities - (14,562)
- 1,094
--------- ---------
Total investments 3,838 4,932
--------- ---------
240,376 251,538
--------- ---------
Current assets
Stock 392 392
Debtors: amounts falling due within one year 112,674 114,288
Debtors: amounts falling due after one year 3,000 3,000
--------- ---------
Cash at bank and in hand 104,577 117,074
220,643 234,754
Creditors: amounts falling due within one year
(including convertible debt) (338,530) (344,392)
Provision for deficit on joint ventures
Share of gross assets 15,646 -
Share of gross liabilities (15,750) -
--------- ---------
(104) -
Provisions for liabilities and charges due
within one year (18,431) (19,953)
Net current liabilities (136,422) (129,591)
--------- ---------
Total assets less current liabilities 103,954 121,947
--------- ---------
Creditors: amounts falling due after more
than one year (22,893) (24,806)
Provisions for liabilities and charges due
after more than one year (4,941) (8,349)
--------- ---------
Net assets 76,120 88,792
========= =========
Capital and reserves
Called up share capital 29,106 29,106
Share premium account 279,763 279,765
Other reserves 6,471 4,056
Profit and loss account (239,806) (224,482)
--------- ---------
Equity shareholders' funds 75,534 88,445
Equity minority interests 586 347
--------- ---------
76,120 88,792
========= =========
Regus plc
Consolidated cash flow statement
For the three months ended 31 March 2002 and 31 March 2001
3 months 3 months
ended ended
31 Mar 02 31 Mar 01
(unaudited) (unaudited)
(pound)'000 (pound)'000
Cash inflow from continuing operating activities
Net cash inflow 2,869 3,722
--------- ---------
Returns on investments and servicing of finance
Interest received 720 1,723
Interest paid (450) (883)
Interest paid on finance leases (752) (789)
--------- ---------
(482) 51
--------- ---------
Taxation
Tax paid (1,352) (590)
--------- ---------
(1,352) (590)
--------- ---------
Capital expenditure and financial investment
Purchase of tangible fixed assets (4,592) (26,472)
Sale of tangible fixed assets 1 100
--------- ---------
(4,591) (26,372)
--------- ---------
Acquisitions and disposals
Investments in joint ventures (745) (529)
--------- ---------
(745) (529)
--------- ---------
Cash outflow before management of liquid
resources and financing (4,301) (23,718)
Management of liquid resources 44,993 35,264
Financing (6,899) (3,986)
--------- ---------
Increase in cash in the period 33,793 7,560
========= =========
Regus plc
Statement of total recognised gains and losses
For the three months ended 31 March 2002 and twelve months
ended 31 December 2001
3 months 12 months
ended ended
31 Mar 2002 31 Dec 2001
(unaudited) (audited)
(pound)'000 (pound)'000
Retained loss for the financial period (15,068) (118,238)
Currency translation differences (293) 197
--------- ---------
Total recognised losses for the period (15,361) (118,041)
========= =========
Reconciliation of movements in consolidated shareholders' funds
3 months 12 months
ended ended
31 Mar 2002 31 Dec 2001
(unaudited) (audited)
(pound)'000 (pound)'000
Retained loss for the financial period (15,068) (118,238)
Ordinary shares issued net of issue costs - 3,396
Currency translation differences (293) 197
Reclassification of fair value of warrants
to non-distributable reserves 2,450 -
--------- ---------
Decrease in shareholders' funds (12,911) (114,645)
Shareholders' funds at 1 January 88,445 203,090
--------- ---------
Shareholders' funds at period end 75,534 88,445
========= =========
Notes
1. Segmental reporting
Turnover:
3 months ended
31 March
2002 2001
(unaudited) (unaudited)
(pound)'000 (pound)'000
UK & Ireland 45,029 59,424
Rest of Europe 33,685 39,480
Americas 27,015 33,791
Rest of World 7,470 8,488
--------- ---------
113,199 141,183
--------- ---------
Total Group 110,726 137,919
Total joint ventures 2,473 3,264
(Loss)/profit before interest and tax:
3 months ended
31 March
2002 2001
(unaudited) (unaudited)
(pound)'000 (pound)'000
UK & Ireland 4,583 14,662
Rest of Europe 672 1,550
Americas (9,720) (5,092)
Rest of World (589) (2,090)
Other office costs (4,888) (1,428)
--------- ---------
(9,942) 7,602
--------- ---------
Total Group (8,040) 8,561
Total joint ventures (1,902) (959)
2. (Loss)/profit per share
(Loss)/profit per share is based on losses for the three months ended 31 March
2002 of (pound)(15,068,000) and profits for the three months ended 31 March 2001
of (pound)4,625,000 using the following weighted average numbers of shares:
3 months ended
31 March
2002 2001
(pound)'000 (pound)'000
Ordinary shares - basic 563,998 562,556
Ordinary shares - fully diluted 563,998 576,131
3.(a) Reconciliation of operating profit to net cash inflow from operating
activities
3 months ended
31 March 02 31 Mar 01
(unaudited) (unaudited)
(pound)'000 (pound)'000
Continuing operations
Operating (loss)/profit (8,040) 8,561
Depreciation charge 15,231 13,939
Goodwill amortisation 60 -
Loss/(profit) on disposal of fixed assets 314 (2)
(Decrease) in provisions (5,109) -
Decrease/(increase) in stocks 1 (17)
Decrease/(increase) in debtors 1,430 (20,333)
(Decrease)/increase in creditors (1,018) 1,574
--------- ---------
Net cash inflow from continuing operations 2,869 3,722
========= =========
The cash inflow for 2002 includes a (pound)6.0 million outflow relating to the
exceptional item charged during the previous year.
3.(b) Financing and management of liquid resources
3 months ended
31 March 02 31 Mar 01
(unaudited) (unaudited)
(pound)'000 (pound)'000
Management of liquid resources
New cash deposits (9,518) (2,805)
Repayment of cash deposits 54,511 38,069
--------- ---------
44,993 35,264
========= =========
Financing
New loans 836 1,541
Repayment of loans (4,309) (1,184)
Payment of principal under finance leases (4,038) (4,274)
Funding from minority interest 612 -
Issue costs - (69)
--------- ---------
(6,899) (3,986)
========= =========
3.(c) Reconciliation of net cash flow to movement in net funds
3 months 3 months
ended ended
31 March 02 31 Mar 01
(unaudited) (unaudited)
(pound)'000 (pound)'000
Increase in cash in the period 33,793 7,560
Cash outflow from change in borrowings
and finance leases 7,511 3,917
Cash (inflow) from change in liquid
resources (44,993) (35,264)
--------- ---------
Change in net funds/borrowings from cash flows (3,689) (23,787)
Other non-cash items:
New finance leases (93) (12,567)
Un-amortised warrants reserve 1,357 -
Translation difference (207) (1,462)
--------- ---------
Movement in net funds/borrowings in the period (2,632) (37,816)
Net funds at 1 January 31,029 130,013
--------- ---------
Net funds at 31 March 28,397 92,197
========= =========
3.(d) Analysis of changes in net funds
At 1 At 31
Jan Non-cash Exchange March
2002 Cashflow changes movement 2002
(pound)'000 (pound)'000 (pound)'000 (pound)'000 (pound)'000
Cash at the bank and in hand 24,247 32,365 - 150 56,762
Overdrafts (2,781) 1,428 - (32) (1,385)
-------- -------- -------- -------- --------
21,466 33,793 - 118 55,377
Debt due after 1 year (1,330) (811) 3 11 (2,127)
Debt due within 1 year (43,961) 4,284 1,354 (26) (38,348)
Finance leases due after 1 year (23,064) 2,872 9 (195) (20,378)
Finance leases due within 1 year (14,909) 1,166 (102) (97) (13,942)
-------- -------- -------- -------- --------
(83,264) 7,511 1,264 (307) (74,795)
Liquid resources 92,827 (44,993) - (18) 47,815
-------- -------- -------- -------- --------
31,029 (3,689) 1,264 (207) 28,397
======== ======== ======== ======== ========
Liquid Resources at 31 March 2002 include cash held on deposit of which
(pound)2.9 million (December 2001: (pound)3.2 million) relates to collateral
against bank loans and (pound)33.9 million (December 2001: (pound)28.4 million)
relates to deposits which are held by banks as security for the issuance of bank
guarantees to support lease commitments by Regus operating companies. These
amounts are blocked and are not available for use by the business.
Non-cash changes comprise new finance leases, reclassifications between
categories and the balance of the warrants reserve after amortisation based on a
constant rate of return on the outstanding balance. At 31 March the warrant
reserve is (pound)2,450,000 of which (pound)1,093,000 has been charged to the
profit and loss account.
4. US GAAP reconciliation
The following is a summary of the adjustments to net (loss)/profit and
shareholders funds in accordance with US GAAP:
Net loss:
3 months
ended
31 March
2002 2001
(unaudited) (unaudited)
(pound)'000 (pound)'000
Net loss reported in accordance with UK GAAP (15,068) 4,625
US GAAP adjustments:
Franchise revenue recognition (153) -
Compensation expense related to other variable
plan options (268) 875
Provision for closure costs (5,110) -
Deferred taxes 46 131
Goodwill amortisation 60 -
--------- --------
Net (loss)/profit in accordance with US GAAP (20,493) 5,631
--------- --------
Shareholders' funds:
As at As at
31 March 31 December
2002 2001
(unaudited) (audited)
(pound)'000 (pound)'000
Shareholders' funds in accordance with UK GAAP 75,534 88,445
US GAAP adjustments
Franchise revenue recognition (835) (682)
Compensation expense related to other variable
plan options 589 595
Provision for closure costs 22,516 27,446
Deferred taxes 7,387 7,341
Employee share trust (investment in own shares) (3,805) (3,805)
Goodwill amortisation 60 -
--------- ---------
Shareholders' funds in accordance with US GAAP 101,446 119,340
--------- ---------
5. Basis of preparation
The financial information set out above does not constitute the Company's
statutory accounts. The financial information for 2001 is derived from the
statutory accounts for the year which have been delivered to the Registrar of
companies. The report of the auditors on those accounts was unqualified and did
not contain a statement under section 237 (2) or (3) of the Companies Act 1985.
Item 2
For immediate release: 12:00 noon BST, 7:00 am EST, Tuesday 7 May 2002
OFFICE OUTSOURCING GAINS MOMENTUM
AS REGUS SIGNS GLOBAL DEALS WORTH (pound)35 MILLION
Regus has today revealed details of a further (pound)20 million worth of new
deals for outsourced global workspace, in the UK, continental Europe and the
Americas. This highlights the continuing trend in global office outsourcing. In
addition, the company has done more than (pound)15 million of business with
existing customers wishing to expand or extend their current Regus workspace.
Notable deals include a (pound)7.5 million contract with oil consortium AGIP/KCO
in the Netherlands; Airbus Industries in Bremen; Sony in Brazil; Scania Finance
at Milton Keynes; the Russian bank Globex in Moscow; and Royal & Sun Alliance in
Chester. Norwich Union has renewed a major contract in Norwich. Separately, we
announced a (pound)100 million global deal with Nokia - our largest ever -
earlier this year.
In line with Regus' policy of discounting price for term, many of these deals
are for longer periods of time and will therefore add significant strength to
the company's record contracted forward order book rather than have an immediate
impact on revenues.
Mark Dixon, chief executive of Regus, comments, "Changes in the global economic
economy are making more and more organisations look at the structured
outsourcing of office space in preference to long term conventional leases. Many
of the deals we are doing now are for five years or longer, as organisations
take advantage of the flexibility and long term cost savings they can make by
outsourcing their workspace requirements to us.
"Serviced offices are now even more cost-effective for longer periods, for
larger numbers of people and over a wider geographic spread, compared with five
years ago, claims a new survey, entitled The True Cost of the Flexible Office,
published by the Chartered Institute of Purchasing & Supply. The report
highlights that serviced offices can provide an average saving of 78% in the UK,
over traditional property acquisition methods". -ends-
Note to editors
Regus is the world's leading operator of business centres, with more than 410
centres in 240 cities in 50 countries. Regus business centres provide
businesses, both large and small, with access to fully equipped office
workspaces on flexible terms. This minimises their start-up costs when
relocating or entering new markets and provides a cost-effective alternative to
conventional property acquisition methods. With more than 90,000 office
workspaces worldwide, Regus is also market leader in providing meeting rooms,
conference and training facilities and public access videoconferencing studios.
For further information, contact Stephen Jolly on 00 44 1932 895138
Item 3
For immediate release: 12:00 noon BST, 7:00 am EST, Tuesday 7 May 2002
DEVELOPING TREND AS GOVERNMENTS
OUTSOURCE TO REGUS
- Estimated (pound)12 million annual spend to gain improved flexibility -
Government agencies around the world are following their counterparts in the
private sector by taking advantage of the flexibility and overall cost savings
provided by office outsourcing solutions from Regus. Regus estimates that such
agencies are now spending more than (pound)12 million a year worldwide with the
company.
In the UK, Regus recently signed deals with the Home Office, the Department for
Transport, Local Government and the Regions (DTLR), the Office of Fair Trading
(OFT) and the British Council in London; with the Highways Agency in Reigate;
with the Audit Commission in Exeter; and with the Environment Agency in Bristol.
OFT's head of facilities, Ken King comments, "The availability of high quality
serviced space on flexible terms meant we could move in easily and we didn't
incur any expensive start-up costs. We value our employees very highly and it
was essential that we provided them with high quality workspace. It was also
essential that we found accommodation which offered a high level of technical
capability to provide us with a secure transfer of data between the two
buildings."
The office outsourcing trend is mirrored across Europe, with the Dutch
Environment Agency and the Ministry of Justice in The Hague; the Austrian
Ministry for Sport and Public Affairs in Vienna; two subsidiaries of the German
Employment Agency in Nuremberg; the Office of the Director of Corporate
Enforcement in Dublin. These are complemented by numerous smaller deals with
embassies, directorates of the European Commission and even police forces.
Outsourcing is also proving extremely popular in North America and across Asia,
with agencies such as the Singapore Economic Development Board; Metropolitan
Manila Association of Mayors and The Japanese Overseas Development Aid Agency in
Vietnam recently taking space at Regus centres in the region.
Continued 2/...
-2-
"Until recently, government agencies were often forced to use existing
buildings, whether they were suitable or not," comments Mark Dixon, Regus' chief
executive. "This often meant that working conditions in, and the technical
capability of, such buildings made for a very unproductive environment. An
increasing number of government departments around the world are now realising
what their private sector colleagues have known for a long while, that serviced
offices are not just for overspill or project teams, but can provide real gains
in cost savings, flexibility and quality of working environment."
-ends-
Note to editors
Regus is the world's leading operator of business centres, with more than 410
centres in 240 cities in 50 countries. Regus business centres provide
businesses, both large and small, with access to fully equipped office
workspaces on flexible terms. This minimises their start-up costs when
relocating or entering new markets and provides a cost-effective alternative to
conventional property acquisition methods.
With more than 90,000 office workspaces worldwide, Regus is also market leader
in providing meeting rooms, conference and training facilities and public access
videoconferencing studios.
For further information, contact Stephen Jolly on 00 44 1932 895021
CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE UNITED
STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. The U.S. Private
Securities Litigation Reform Act of 1995 provides a "safe harbor" for
forward-looking statements. This Form 6-K may contain certain forward-looking
statements. Actual operational and financial results may differ materially from
the Company's expectations contained in the forward-looking statements as a
result of various factors, many of which are beyond the control of the Company.
These factors include: the impact of heightened competition, changes in the
Company's strategic alliances, a decline in the US or world economy, acceptance
of and demand for serviced offices, changes in the structure of the property
industry, changes in work practices, changes in exchange rates, changes in the
political, regulatory or fiscal regime in Regus's area of activity and general
economic conditions in the countries in which Regus operates. For a discussion
of these and other factors which may have a material impact upon Regus's
financial condition, results of operation and liquidity, see "Risk Factors" and
"Operating Results" of the Company's Annual Report on Form 20-F.