Workspace Group (WKP) which lease office space to small to medium sized businesses (SME) released full year results this morning causing a 1.7% increase in the share price this morning despite a fall in the FTSE driven down by miners. Current FTSE price is 4389.32 down -49.82.
Workspace reported a pretax loss of £360.4 million for the year ended March 2009, compared with a loss of £37 million a year earlier.
Panmure Gordon rate this company stock as a “BUY”
Panmure describes Workspace’s results as “encouraging”, saying they met its forecasts, and that it is maintaining its 2010 forecasts for the group. This is promising for a commercial property company during this time, which will give hope for investors.
Workspace are also paying a 0.50p dividend to share holders making this an attractive stock to hold and will make current share holders happy.
The broker says despite the challenging nature of property markets in recent times, the company continues to see resilience in both demand and the cash rent-roll.
“Furthermore, with the business significantly de-risked following the rights issue, debt-restructuring and ongoing disposal programme, we see good potential upside for the business when the London property market turns,” says Panmure
Current Share Price – 14.86p
Broker Rating – “BUY”
NAV – 27P
Final dividend of 0.50p per share proposed
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