Flexible office space provider Workspace has insisted it is “well-placed” for an eventual market recovery from the Covid-19 pandemic, as it revealed that it has received only half of the rent due this quarter.
Graham Clemett, whose position as interim chief executive was made permanent last September, said the company was taking “prudent steps” to cut costs and spending in an attempt to offset rent deferrals from tenants.
The company has £70m in cash and £96m in undrawn credit lines. Its two new centres, in Hackney and Bow, have both been postponed.
“We have a strong balance sheet, good access to liquidity and significant headroom against our debt covenants,” said Clemett. “Our model of freehold ownership of our properties gives us the flexibility and control to respond quickly to developments in the current uncertain environment… The swift actions we have taken will ensure that we are well-positioned for the eventual market recovery.”
The company has received roughly 50% of rents that fell due at the end of March, and it said it had seen a “material slowdown” in activity since restrictions in movement were put in place by the government.
A decision on whether the company will pay a final dividend has yet to be taken.
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