Regus

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Regus plc
Type Public
Traded as LSERGU
Industry Facility management and business support services
Founded 1989, Brussels, Belgium
Headquarters Saint Helier, Jersey (registered office)
Luxembourg City, Luxembourg (head office)
Key people Mark Dixon, CEO
Dominique Yates, CFO
Douglas Sutherland, Chairman
Products Serviced offices, virtual offices, business lounges, meeting rooms, video communication, workplace recovery
Revenue £1,533.5 million (2013)[1]
Operating income £90.8 million (2013)[1]
Net income £66.9 million (2013)[1]
Employees 8, 375 (2013)
Website www.regus.com

Regus plc is a multinational corporation that provides serviced office accommodation in business centres. As of 4 April 2014, it operated 2000 business centres across 100 countries.[2] The Company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Regus is incorporated in Saint Helier, Jersey, and is headquartered in Luxembourg City, Luxembourg.

History[edit]

In 1989 while on a business trip to Brussels, an English entrepreneur, Mark Dixon, noted the lack of office space available to travelling business people; they were often forced to work from hotels. He identified a need for office space that was maintained, staffed, and available for companies to use on a flexible basis and went on to found his first business centre in Brussels in Belgium.[2]

In 1994 Regus entered Latin America with a center in São Paulo and in 1999 it entered Asia with its first center in Beijing.

The Company completed a successful IPO on the London Stock Exchange in 2000.[3]

In 2001 it acquired Stratis Business Centers, a U.S.-based network of franchised business centers, and expanded into the United States market.[4] Later in 2001 the Regus business center on the 93rd floor of South Tower at the World Trade Center was destroyed during the 9/11 attacks; five employees lost their lives.[5] The company was criticized for a lack of response to the victims' families, though a Regus official said they had made "proactive outreach to each and every family of the team members who are missing."[6]

In 2002 the Company sold a controlling stake (58%) of its cornerstone UK business to Rex 2002 Limited, a company created by the private equity firm Alchemy Partners.[7] This move raised £51 million for the company,[8] which had been facing severe financial difficulties.[7]

In 2003 Regus filed for Chapter 11 bankruptcy protection for its US business, which had been struggling in the wake of the Dot-com bubble.[9] Less than a year later it took its US business out of Chapter 11 after restructuring,[10] financed by its share of the profitable UK business.[9]

The Company acquired HQ Global Workplaces, a global workplace provider based in the U.S. in 2004.[11] The former headquarters of HQ in Addison, Texas became one of Regus' headquarters.

It re-acquired the Regus UK business in 2006 for £88 million, marking the end of a dramatic recovery from the Company's near collapse in 2002.[8] The Company went on to acquire Laptop Lane, a chain of American airport business centers, later that year.[12]

In 2006 the Company entered partnerships with Air France-KLM and American Airlines for preferred access for business travellers and in 2007 it entered a partnership with American Express for preferred access for their Business Platinum cardholders.[13]

In 2007 Regus further expanded its global position, opening business centers in Bulgaria, Jordan, Kenya and Qatar.[14]

In June 2008 Regus introduced Businessworld, a multi-level membership service which allows users flexible access to Regus services in any Regus location worldwide, taking advantage of the Company's international scale. It is aimed at clients who travel frequently.[15]

Effective October 14, 2008, Regus Group plc became Regus plc. Regus plc was created as a holding company for Regus Group plc, in order to establish the Company's headquarters in Luxembourg and its registered office in Jersey.[16] Both Luxembourg and Jersey are business-friendly offshore financial centres. The company had been headquartered in Chertsey, Surrey, England and Addison, Texas, USA.

Regus has maintained a policy of expansion, opening new business centers.[17] The company has also renegotiated some leasing agreements with property owners in the UK to save money, warning owners that the vehicles holding the leases could go into administration; this has angered the British property industry.[18]

On 5 July 2012 UK Prime Minister David Cameron announced that Regus would provide 30,000 young entrepreneurs across England with access to its global network of business lounges and administrative support. Worth £20 million, this support from Regus will give a tangible boost to young entrepreneurs who are starting up a business. It complements the Government’s StartUp Loans scheme managed by James Caan of Dragon's Den fame.[19]

On 19 February 2013 Regus took control of MWB BE, the UK's second largest serviced office provider with a £65.6m cash bid[20] after a battle with Hong Kong billionaire Anson Chan to gain ownership. Regus had tried with a lower bid in June 2011 but failed.

Operations and services[edit]

Regus and its brands (HQ and Regus Express) provide serviced offices, virtual offices, meeting rooms, and videoconferencing to clients on a contract basis. The Company operates in 100 countries with almost 2000 business centers, making it the world's largest provider of flexible workspace.[2] Regus is also one of the sponsors of Fair Spend,[21] and Mars One, a Dutch private spaceflight project.[22] Regus UK also host the hate group Britain First at their Belfast office by hosting Britannia Campaigning, the company behind Britain First and owned by Paul Golding, Britain Firsts racist and Islamaphobic leader.[23]

Senior management[edit]

As the company's CEO, Mark Dixon's total annual compensation amounts to £591,000 of which £522,800 is base salary and £68,200 are benefits.[24] No annual bonuses were awarded to Dixon or Regus employees in 2009 due to 'current market conditions'.[25]

References[edit]

  1. ^ a b c "Preliminary Results 2013" (PDF). Retrieved 23 March 2014. 
  2. ^ a b c Regus: About Us
  3. ^ Shah, Saeed (2000-09-27). "Regus valued at £1.6bn in second attempt at flotation". Independent.co.uk. Retrieved 2012-10-04. 
  4. ^ "Regus buys Stratis in $10m deal". Birmingham.bizjournals.com. 2001-05-09. Retrieved 2012-10-04. 
  5. ^ Staff Writer. "September 11 - A Memorial" (pg.88), CNN.com, August 2004 (Archive date).
  6. ^ Dwyer, Jim, and Henriques, Diana. "A Nation Challenged: Death Benefits; Money for Families Of Attack Victims Could Vary Widely", The New York Times, September 20, 2001.
  7. ^ a b Regus staves off bankruptcy with £57m UK disposal
  8. ^ a b Michael Jivkov (2006-04-20). "The Investment Column". Independent.co.uk. Retrieved 2012-10-04. 
  9. ^ a b "Regus becomes first UK firm to file for Chapter 11". Findarticles.com. Retrieved 2012-10-04. 
  10. ^ Williams, Charles (2003-08-29). "Regus to exit Chapter 11". Propertyweek.com. Retrieved 2012-10-04. 
  11. ^ "Regius will buy HQ Global". New York Times. 2004-07-17. Retrieved 2012-10-04. 
  12. ^ Regus buys Laptop Lane[dead link]
  13. ^ Open from American Express[dead link]
  14. ^ “Regus global locations”
  15. ^ "Regus Responds to Growing Need for Privacy Amongst Business Travelers with the Launch of Businessworld Membership Card Program", Press release, June 16, 2008.
  16. ^ "Admission and Listing of New Regus Ordinary Shares", General notice, October 14, 2008.
  17. ^ Likus, Anita (27 August 2010). "INTERVIEW: Regus Set For Expansion Despite Harsh Conditions". The Wall Street Journal (London). 
  18. ^ Ruddick, Graham (12 March 2010). "Property industry furious at Regus". The Daily Telegraph. 
  19. ^ "StartUp Loans - Regus UK". Regus.co.uk. 2012-07-05. Retrieved 2012-10-04. 
  20. ^ "Regus makes Business Exchange £65.6m bid". ft.com. 2013-02-19. 
  21. ^ New Sponsor Announced
  22. ^ Mars one: contributors
  23. ^ https://www.companiesintheuk.co.uk/ltd/britannia-campaigning
  24. ^ Regus plc consolidated report & accounts - 2009, Annual Report and Accounts, p.39, April, 2010.
  25. ^ Regus plc consolidated report & accounts - 2009, Annual Report and Accounts, p.36, April, 2010.

External links[edit]