Business bankruptcies in England and Wales fell to their lowest level in more than 30 years at the start of 2021, with government support helping companies avoid bankruptcy.
With employees and consumers stranded at home by lockdowns, however, companies have been struggling to cut costs and are investing little. Workspace said rents were reduced by weak demand.
“The past year has been one of the most difficult in the history of Workspace; with London effectively closed for the most part, ”said managing director Graham Clemett.
The company’s net rental income fell 33% to £ 81.5million, with £ 20million in rent discounts and deferrals granted to customers.
The 10% drop in the underlying value of his property was more than six times his trading profit of £ 38.7million.
The workspace and the larger IWG, however, both highlighted the positive impact that a shift to more flexible working arrangements is likely to have on their businesses in the future.
“The role of the office in our working life is being re-examined and all signs are showing that flexibility, quality and well-being are becoming more and more important for companies and their employees,” said Clemett, adding that the company would complete two more projects in the second half of the year.
The London-based company reported a pre-tax loss of £ 235.7million for the year ended March 31, down from a profit of £ 72.5million a year earlier.
($ 1 = 0.7067 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich and Patrick Graham)