"I do wish politicians would stop trying to change the rules of democracy just because they don't like the poll results. I've said this before but, again, just get on with it.The first electoral anomaly that gave birth to the vile nomenclature ..."
<b><u>Workspace Group share price information</b></u>
Name Workspace Group Epic WKP
Sector Real Estate Investment Trusts ISIN GB00B67G5X01
Activities Workspace Group plc is a leading provider of space to new and growing companies. It has a strong 25 year track record in providing tailored business premises to growing companies in London. It owns and manages c.100 properties in London providing 5.1 million square feet of space and is home to c. 4,000 businesses employing over 30,000 people.
Latest share price (p) 734.5 Market cap (£m) 1,198.68
Shares in issue (m) 163.20 P/E ratio 3.06
Divs per share (p) 15.05 Dividend cover 4.00
Earning per share (p) 240.30 52-week high / low (p) 989.50 / 569.00
<b><u>Workspace Group broker view.</b></u>
Date Broker Recommendation Price Old target price New target price Notes
23 Nov 16 JP Morgan Cazenove Overweight 734.50 950.00 900.00 Reiterates
Nice, and nearly 1% yield on the interim divi alone I think.
Companies are not going to relocate their businesses to Germany and France, once their law dept explains the employment laws to them. London will be the place to be in the new upside down Brexitrump world. Friends with America, but not actually in it.
You are probably right on what is holding it back, but note the experts are wrong on negative effects of Brexit.
Post Brexit trade is going fine in the real world. Bright young software writers are significantly cheaper than their silicon valley counterparts due to exchange rate. They can fill up wkp offices and do their stuff.
It's not so much the BoE decision so much as the post brexit business scene that affects the outlook for WKP, IMO.
There are many higher yielding stocks out there without less uncertainty about the negative effects that the brexit decision introduced. Not much point in holding for a 2. something yield if the capital value is sinking fast. Until we see the shape of the UK forming and its effects on office space demand in London there will be a question mark over WKP valuation.
For much of 2015 the SP was flat following 3 years of steady growth. It was knocked back by the early 2016 market jitters, and again by the brexit result. Confidence is weak, though if you consider that normal service will be resumed then the present SP still presents a good buying opportunity, but for growth rather than yield, IMO, DYOR etc.
I agree and they have more cash on balance sheet than previously having sold a number of non core assets and Blackrock JV. They were in the process of reinvesting by buying Hammersmith Embankment as confirmed by recent RNS at c.£120m....imagine this will be dropped or renegotiated.
If the big freeze really does come to UK, WKP clientele will probably be quite resilient. Young startup entrepreneurs suddenly find themselves massively competitive in a global market due to lowly exchange rate and need office space.
Of course we will have to weather the write-downs along with all property co's, but I think WKP are in a decent financial state going into this one and we can concentrate on the trading position, rather than the property valuation.
Watching those prices and waiting to dump a load more in. Be nice to see a big director buy at this level.
Liberum note out on Research Tree this morning: "Workspace's opportunity to sustain sector leading returns remains well supported by rising rents still at a low base, prospective gains on a significant project pipeline and a service offering positioned for changing trends towards flexible office occupation. While we downgrade earnings by 13% to reflect asset disposals, we upgrade underlying rental growth and NAV by 2%."
Liberum's note out this morning: https://www.research-tree.com/company/GB00B67G5X01
"Stellar rental growth drives another year of outperformance. NAV +31% is 4% ahead of our forecast and EPS +56% is 6% ahead. LFL rental growth of +15% is enhanced by strong lettings on completed projects and operational gearing. While disposals will limit earnings growth through FY17, 3% quarterly rental growth momentum should underpin another year of underlying double digit gain, at the top end of the sector..."
Can't find any news to directly support the continued sell off, although Jefferies hold rating on 25th January dropped its target price to 804.
Indeed it is worrying to see a whole year's profit disappear, but this seems to be a correction of sorts, although looking overdone relative to the general market falls, IMO.
Still holding, and looking to add once there is evidence of an upturn, but not grabbing this falling knife just yet.
I think that I was wrong to suggest there is nothing to worry about. The fall continues and looking at the trades to-day, there is a bizarre pattern. There is a steady flow of tiny trades, sometime several seemingly at the same time. Does anyone know of anything untoward with the company? I do not think this only down to the market weakness
There is nothing to really worry about I do not think, since when the market falls as it has, there is indiscriminate selling of everything due to fear and maybe excessive borrowing. As far as I know, the company's business is sound as is that of their customers, and London is still the place to be. One can read across into Shaftesbury, a very well positioned company and see the same type of irrational behaviour. These prices will be looked back on as a wonderful buying opportunity.inmho
yes, maybe the sp had got somewhat ahead of itself. The only point of concern to me is that the gain from the annual property valuation is shown as a trading profit whilst the assets themselves are classified as non current assets in the balance sheet.. If an annual valuation showed that property prices had remained unchanged, let alone reduced, the majority of the annual profit would vanish.. In presentational terms, the chickens will come home to roost one day. Still like the company.
"Being in the right place at the right time is helpful in business. It's certainly been a boon for LSE:WKP:Workspace. With London in the midst of a property boom and the new Conservative government pledging support for small and medium sized ..."
"Buy shares of Workspace Group, Midas recommended in the Mail on Sunday. The company provides small firms in London with affordable, modern office space and has many properties in trendy districts like Shoreditch in East London. Chief Executive Jamie Hopkins raised £96m in November to fund more growth. Brokers expect profits to rise by almost a quarter this year. Hopkins is sticking to London for the moment but has his eye on other cities and overseas. The shares offer long-term rewards."
I think that this is a fair enough deal since, although the results were very good and which would have resulted in a large rise in the sp, the placing price of 660 is above the level that the shares have mainly traded at over the last few months and therefore I do not feel that the existing shareholders have been short changed by excluded. The new funds need to be as gainfully employed as the existing capital, or better, to avoid income dilution, but there is no reason to believe that the hype active management cannot achieve this.
WKP are placing new shares which adds up to very nearly 10% of the shares already in issue. When doing things like this the share price 'can' go down by 10%.
In this case I feel the market has scene it as a positive move and rightly so considering what they are going to do with the money so I dont think we will see a drop of 10% but if we do I would not panic.
Proceeds would be used to extend the company's on going refurbishment pipeline, which is expected to enhance rental income and values. It would also be used to progress acquisition opportunities in core London locations where there was an opportunity to apply the Workspace model to drive rents and values. Moreover, Workspace said it intends to increase its debt facilities to provide additional funding, whilst maintaining an appropriate level of gearing.
Is this a good thing for small investors like myself? Can't afford to buy more at the moment but unsure how this will affect the shareprice - particularly with profit increase announcement.
Thanks in advance for any explanations.
I believe WKP has still more potential for growth. I am out, for now, as I believe that there could now be a longer period of 'treading water' and I am interested in redistributing my holding to a variety of different 'baskets' (let me hope not 'basket cases') omho dyor Good fortune to all. ;@)
"Growing demand for business space in London has helped lift sentiment towards LSE:WKP:Workspace Group, a lettings business serving the capital. The share price has tripled in just a couple of years, but the latest in a string of disposals has ..."
D3T seems to have spammed this all over iii on numerous boards I frequent. The shorter remarks are misguided, imo and misunderstand the nature of how efficient markets are supposed to work. A better argument (which might be more widely supported) would be to take issue with market manipulation rather than trying to frame it as being exclusively about shorters..
At present it just reads like someone who has made some poor decisions, lost money and now wants a form of redress which will limit liquidity and investment flexibility just because the market has moved against them.
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