Servcorp hands down 20% lift in interim net profit over first half of financial year
Serviced office provider Servcorp said it was on track to deliver continued earnings growth in the 2014 financial year after handing down a 20% lift in interim net profit.
Net profit after tax came in at $11.12 million for the six months to 31 December, on revenue growth of 15%.
Like for like occupancy across the group was steady at 78%.
Excluding North Asia and the ANZ/SEA region - which comprises of Perth, Singapore, Kuala Lumpur and Wellington - the remaining international locations achieved their occupancy target of between 82-85%.
Growth in the virtual office business continued in line with management's expectations, delivering growth of 9% to about 37,000 packages.
The company's operating cash flow was strong - up 63% to $18.13 million.
On the outlook, management said that "initial indications are that business conditions are starting to recover around the world".
"Over the last four years we have substantially enhanced our footprint and as the global economy improves we are very well positioned to take advantage of the recovery in global business sentiment.”
Its current vacancy levels, added management, gave the company “significant opportunity to improve our margins and operating results".
It is aiming to grow its footprint in strategic locations and to add 10% to office capacity in FY14.