Vision, strategy and priorities

Our vision

To be the leading provider of flexible space and services that enable growing businesses to succeed.

Our strategy

We have a four-part strategy for achieving our vision.

Our strategy is to deliver superior returns to all our stakeholders by:

1. Owning the right properties that are tailored to our customers' needs and intensively managing these properties to drive occupancy and rents.

Progress in 2011/12

• Like-for-like properties have seen both occupancy and rents improve over the year.
• Occupancy growth has been particularly strong in the first half of the year.
• The majority of our properties are now at or above 90% occupancy, the level at which we can effectively increase pricing.
• A number of our business centres have achieved their highest rents ever this year.

Performance in 2011/12

• Enquiries up 5% on the prior year.
• Like-for-like occupancy improved in the year by 1.7% to 87.8%.
• Like-for-like rent roll up 5% and rent per sq. ft. up 3% in the year.

Priorities for 2012/13

Owning properties that are tailored to our customers' needs

• Complete refurbishment of Canalot Studios.
• Commence a further six refurbishment schemes.

Key Risks

• Demand for our accommodation declining as a result of social, economic or competitive factors.
• Value of our properties declining as a result of macroeconomic environment, external market, or internal management factors.
• Failure to meet customer space and service expectations.

2. Maximising the value of our London based property portfolio and its wider opportunities for repositioning and redevelopment.

Progress in 2011/12

• Two refurbishment schemes underway in the year, Canalot Studios in Kensington and Whitechapel Technology Centre.
• Chester House refurbishment at Kennington Park completed and is now 70% occupied.
• Six schemes have been progressing through detailed design and are due to commence on site in mid-2012.
• Planning consents granted for refurbishment at 14 properties.
• Mixed use redevelopment schemes underway at Wandsworth and Highbury Grove.
• Two mixed used schemes with planning consent being marketed to redevelopment partners.
• Four mixed use redevelopment schemes being progressed through planning.

Performance in 2011/12

• Property valuation up 5% in the year.
• Total property return 13.4% compared to 6.4% for the IPD Universe.

Priorities for 2012/13

Repositioning and redevelopment

• Appoint developers for the mixed use redevelopment schemes at Grand Union in Kensington and Bow.
• Progress planning consent for mixed use schemes at a further four sites.
• Drive value from continued occupancy and rent roll growth.

Key Risks

• Adverse planning rulings.
• Construction cost and timing overrun.
• Downturn in demand for residential development land.

3. Understanding our customers and enhancing our brand by responding to their needs.

Progress in 2011/12

• Club Workspace business lounges launched at two locations.
• Collaboration agreement signed with Excell Communications to provide IT and comms services to customers.
• Inspiresme.co.uk entrepreneur website launched with support events held at various properties.

Performance in 2011/12

• 250 Club Workspace subscribers with 2 sites opened in year.
• 46 social networking events attended by over 2,000 entrepreneurs.

Priorities for 2012/13

Enhancing our brand (responding to customers' needs)

• Roll out the Club Workspace format at four additional centres.
• Continue the roll out of our 'Digital Programme' meeting the needs of our digital business customers.
• Develop Inspiresme as a valued platform for advice and support to new and growing businesses.

Key Risks

• Changes in the political, infrastructure and environmental dynamics of
• London.
• Failure to meet customer service expectations.

4. Working sustainably as part of everyday business for us, our customers and our partners.

Progress in 2011/12

• Refurbishment completed at Chester House originally built in 1916.
• Refurbishment of Canalot Studios in Kensington underway.
• Progress made on a number of schemes that will result in intensification of use and increased employment.

Performance in 2011/12

• £300,000 of Landfill costs avoided.
• Annual customer satisfaction score 84%.

Priorities for 2012/13

Sustainable Working

• Continue support of charities which promote entrepreneurship.
• Working with customers to lower our carbon footprint.
• Ensure that our development activities conform with the highest environmental and sustainability regulations and best practice.

Key Risks

• Failure to meet regulatory environmental requirements.
• Introduction of new requirements that inhibit our activities.