Workspace (LSE:WKP) told investors it expects a "substantial step down" in trading profit for the year to 31 March 2027 as it reinvests in the product and repositions for start-up, SME and scale-up customers.
"Moving forward, it will take time to deliver on our ambitions and, as we deliberately reposition the business, there will be a step down in profitability," Charlie Green, Chief Executive Officer, said.
Trading in Q4 was steady: 384 lettings completed generating £8.2m of total rental value (Q4 24/25: 390 lettings, £10.1m). Stabilised-portfolio occupancy edged up 0.3 percentage points to 81.6%, while stabilised rent per sq ft fell 0.9% to £46.31. Total rent roll fell 1.4% in the quarter to £127.3m.
Workspace has exchanged or completed £125.7m of assets against a £200m two-year disposal target and is in talks on a further eight assets (~£58m). Recent sales include Peer House for £4.8m and Havelock Terrace for £20m (a 16% discount to the Sept 2025 valuation); The Planets sold at a 44% discount.
Net debt fell £20m to £759m; cash and undrawn facilities were £241m and proforma LTV stood at 35% (Sept 2025 valuation). Dividend cover will revert to 1.2x from FY2025/26 onwards.
Full-year results will be published on 10 June.
