This was a year of good progress for Workspace Group across a number of fronts. We delivered a strong operational performance, added value to the estate through active asset management, built on our brand strength, refinanced much of our debt and created a new joint venture with BlackRock to add further growth potential. This success was reflected in the reported growth in profit and net asset value per share and lower gearing.
Workspace has great assets, comprehensive systems, outstanding customer relationships and a valuable brand. We have also shown that our business model positions us well, benefiting us during upturns in the London market and proving resilient operationally when market conditions are difficult. Operational cash flow has been remarkably consistent, ensuring dividends have been maintained throughout the recent downturn.
I will be retiring as Chairman at the next Annual General Meeting, after more than eight years in the role. Strong governance is a guiding principle at Workspace and the recruitment of my successor was conducted by Bernard Cragg, our Senior Independent Director. I am delighted to be handing over a Group in robust shape to my very capable and experienced successor, Daniel Kitchen. Danny has had extensive experience in the property industry and is currently Non-Executive Chairman of Irish Nationwide Building Society and a Non-Executive Director of Minerva PLC, LXB Retail Properties PLC and Kingspan Group PLC. During the year the Board also welcomed Jamie Hopkins, who joined on 7 June 2010 as a Non-Executive Director, replacing Rupert Dickinson who retired at the conclusion of the last AGM.
Harry Platt, our Chief Executive, will be 60 in September and has indicated that he would like to retire in 2012. Harry has been an excellent leader of Workspace for 15 years and will continue to be so until he hands over to his successor. I have personally enjoyed and admired his strong personal values and commitment to building Workspace. The Board will now manage an orderly transition of Chief Executive. Harry leads an executive team which has been strengthened over the last 4 years, giving the Board considerable confidence in its ability to drive forward the future strategy. Our management team has both breadth and depth not just at Board and Executive Committee level but deep into operations and functions, and has the skills and collective spirit and enthusiasm to lead the Group forward to create further value for shareholders.
Workspace is a sustainable business, in the broadest sense of the word. We help new businesses succeed, creating employment and regenerating communities. The UK depends for its future on the small business sector to promote economic growth and we at Workspace have an important part to play in promoting that growth, while delivering good returns to our shareholders. London is undoubtedly one of the world’s great cities and its economic prospects remain stronger than for most of the UK and indeed Europe. This is our market and our focus on London has been and will continue to be a distinguishing feature of your Group.
Given the Group’s performance and prospects the Board is recommending a final dividend of 0.55p (a total of 0.825p for the year) per share, an increase of 10% on the prior year. This resumes the progressive dividend policy that the Group previously delivered.
I want to take this opportunity to thank everyone at Workspace for their contribution to a successful year and to wish them, our customers and shareholders every success in the future.
Tony Hales CBE
Non-Executive Chairman
The Group resumed its outperformance of the IPD universe in 2011, after two years of underperformance, and prior to this a long period of outperformance.