Workspace Group Plc · LSE:WKP
Workspace — FY2024/25 Earnings Presentation
30 slides from Workspace's earnings presentation, June 2025
Slide 1: From Legacy Player to Market Leader
Full Year Results 2024/25 FROM LEGACY STRATEGY PLAYER TO FIX ACCELERATE SCALE MARKET LEADER EMBEDDING OPERATIONAL EXCELLENCE TO DELIVER AN INCOME-LED DIVIDEND GROWTH BUSINESS
Slide 2: Fundamental Questions on the Market and How We Operate
Full Year Results 2024/25 FUNDAMENTAL QUESTIONS ON THE MARKET AND HOW WE OPERATE
Slide 3: London's SME Market – Consistently Stronger Growth
Full Year Results 2024/25 LONDON’S SME MARKET – CONSISTENTLY STRONGER GROWTH 0.7 (m) 0.6 0.5 0.4 0.3 0.2 0.1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: ONS, OC&C analysis 1. 2014-2024 (#m); 0-250 full time employee SMEs
Slide 4: Growing Number of Our Target Size SMEs
Full Year Results 2024/25 GROWING NUMBER OF OUR TARGET SIZE SMES 4.5% • 4.0% 50-99 3.5% employees 20-49 3.0% employees 2.5% 2.0% 1.5% 10-19 employees • 1-9 1.0% employees(3) 0.5% 0.0% -0.5% • -1.0% -1.5% -2.0% -2.5% -3.0% -3.5% -4.0% -4.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3
Slide 5: Creator and Innovator SMEs Are Higher Growth
Full Year Results 2024/25 CREATOR AND INNOVATOR SMES ARE HIGHER GROWTH Source: OC&C and The Data City 1. Includes SMEs with at least 3 years’ headcount data
Slide 6: Growth in Supply Focused on Office Space in Central Locations
Full Year Results 2024/25 GROWTH IN SUPPLY FOCUSED ON OFFICE SPACE IN CENTRAL LOCATIONS No. of sites 2500 2000 1500 1000 500 0 2015 2019 2021 2025 Pre-Covid: Covid: Post-Covid: • Competition for SMEs has intensified within an increasingly fragmented market • Our largest, best-capitalised competitors
Slide 7: Significant Headroom in Our Target Market
Full Year Results 2024/25 SIGNIFICANT HEADROOM IN OUR TARGET MARKET Creators Other & Innovators Sweet Spot Target market London-based SMEs, 2-100 FTE 2-100 FTE 2-100 FTE 1-250 FTEs SMEs SMEs in same postcode district Creative and innovative SMEs, 4+ as a Workspace Location years old, in the same pos
Slide 8: Our Unique Business Model Creates Compelling Synergies and Benefits
Full Year Results 2024/25 OUR UNIQUE BUSINESS MODEL CREATES COMPELLING SYNERGIES AND BENEFITS Building Our leading climate customer resilience proposition Delivering Income and Delivered capital by our great growth people Supported Creating by our smart a unique operating portfolio platform
Slide 9: A Strategy to Deliver Income-Led Shareholder Value
Full Year Results 2024/25 A STRATEGY TO DELIVER INCOME-LED SHAREHOLDER VALUE FIX ACCELERATE SCALE Deliver step change in Aligning portfolio to market Leverage unique attributes of operational business opportunities our business model (operations and investment) Stabilise and rebuild occupancy Convic
Slide 10: Doubling Down on Operational Excellence
Full Year Results 2024/25 WE’RE DOUBLING DOWN ON OPERATIONAL EXCELLENCE REFLECTING AN INCREASINGLY COMPETITIVE MARKET Agile, responsive and efficient Relevant and differentiated Seamless and consistent
Slide 11: Enhancing Structure, Systems and Culture While Streamlining Our Cost Base
Full Year Results 2024/25 ENHANCING STRUCTURE, SYSTEMS AND CULTURE WHILE STREAMLINING OUR COST BASE Flat matrix-style organisation. Greater empowerment at customer interface. Built on greater market awareness, accountability and pace Better data providing real-time insights, which drive faster actio
Slide 12: What Operational Excellence Looks Like for Our Customers
Full Year Results 2024/25 WHAT OPERATIONAL EXCELLENCE LOOKS LIKE FOR OUR CUSTOMERS
Slide 13: Focus on Customer Retention, Targeted Marketing, Product Investment
Full Year Results 2024/25 ACCELERATE SCALE Focus on customer retention More targeted marketing to attract new customers in our core growth segments Invest in our product and experience
Slide 14: Focus on Customer Retention
Full Year Results 2024/25 FOCUS ON CUSTOMER RETENTION Proactive approach • Improving our product • Leveraging our centre teams • Enhancing customer experience • Building an ecosystem of value- add services
Slide 15: Customer Acquisition and Leasing
Full Year Results 2024/25 CUSTOMER ACQUISITION AND LEASING Full-funnel marketing strategy – from driving demand to cost-effectively converting to deals First-ever TV ad campaign – initial 12- week period to bring to life our offer and creative customer base Optimising sales performance with enhanced
Slide 16: Improving Our Product: Pilot Projects Vox Studios & Leather Market
Full Year Results 2024/25 IMPROVING OUR PRODUCT PILOT PROJECTS: VOX STUDIOS & LEATHER MARKET Location Vauxhall Lettable area (sq. ft.)* 106,000 Occupancy* 75.4% Rent Roll* £3.7m # of Customers* 85 # of Units* 144 Location London Bridge Lettable area (sq. ft.)* 144,000 Occupancy* 86.3% Rent Roll* £6.
Slide 17: Strategy in Action
Full Year Results 2024/25 STRATEGY IN ACTION Bactobio at Vox Studios John Doe Communications at VIDEO Leather Market Vox Studios after Leather Market after
Slide 18: Enhancing Customer Experience
Full Year Results 2024/25 ENHANCING CUSTOMER EXPERIENCE We know what our Community is We’re putting more customers want all important people on the Centre staffing levels from their space ground to foster that community Noticeboard / community news of our customers agree being with Workspace helps t
Slide 19: Creating an Ecosystem of Value-Add Services
Full Year Results 2024/25 CREATING AN ECOSYSTEM OF VALUE-ADD SERVICES SERVICES AND ADVICE ENABLING OUR CUSTOMERS TO SCALE FASTER Driven by customer insights – we interviewed 30+ customers to understand their needs and challenges “Connecting with other customers who can provide the services we need,
Slide 20: Multiple Strategic Levers to Stabilise and Rebuild Occupancy
Full Year Results 2024/25 MULTIPLE STRATEGIC LEVERS TO STABILISE AND REBUILD OCCUPANCY
Slide 21: Operational Excellence Drives Income and Dividend Growth
Full Year Results 2024/25 OPERATIONAL EXCELLENCE DRIVES INCOME AND DIVIDEND GROWTH c.£10 million Annual fixed increases (c.5%) 2-yr lease expiry (mark to mkt) Subdividing larger spaces Increased capital recycling
Slide 22: Portfolio Lifecycle: Accelerate Capital Recycling
Full Year Results 2024/25 FIX SCALE Portfolio Lifecycle Accelerate capital recycling based on conviction approach Roll out enhancements to our assets and operating platform
Slide 23: Portfolio Lifecycle
Full Year Results 2024/25 PORTFOLIO LIFECYCLE • Growing sustainable recurring • Increasing occupancy, growing income rent, creating more small and • Maintaining customer proposition. micro unit space • Delivering income returns that • Investing in customer proposition comfortably exceed our weighted
Slide 24: A Conviction Approach to Portfolio Management and Capital Allocation
Full Year Results 2024/25 A CONVICTION APPROACH TO PORTFOLIO MANAGEMENT AND CAPITAL ALLOCATION AS AT 31 MARCH 2025 High conviction Conviction Low conviction Excluding non-core properties
Slide 25: Assets with Best Strategic Fit Outperform on Occupancy and Income Growth
Full Year Results 2024/25 OUR ASSETS WITH THE BEST STRATEGIC FIT OUTPERFORM ON OCCUPANCY AND INCOME GROWTH The top performers all benefit from coverage of many or all our brilliant basics standards ¹ Metal Box Factory Floorplate Local amenities & flexibility infrastructure Record Hall The Frames Vox
Slide 26: Conviction Approach to Capital Recycling
Full Year Results 2024/25 CONVICTION APPROACH TO CAPITAL RECYCLING Proceeds will fund: • Capex in conviction and high conviction buildings • Reduce leverage • Establish presence in emerging London SME markets
Slide 27: Portfolio Repositioning Drives Income and Capital Growth
Full Year Results 2024/25 PORTFOLIO REPOSITIONING DRIVES INCOME AND CAPITAL GROWTH Subdivision Invest Enhance amenity CONVICTION CAPITAL Presentation & ALLOCATION experience ¹ Recycle assets Mature SME market (lower growth /yield ) Fund capex, selective investment and lower leverage Not aligned with
Slide 28: Targeting Emerging SME Locations
Full Year Results 2024/25 FIX ACCELERATE Targeting emerging SME locations, driven by market research Generating more income from existing assets Operational excellence provides the headroom to leverage the platform
Slide 29: Identifying Emerging SME Adjacent Locations
Full Year Results 2024/25 IDENTIFYING EMERGING SME ADJACENT LOCATIONS
Slide 30: Summary
Full Year Results 2024/25 SUMMARY Our strategy is underpinned by data and insight and will be delivered through operational excellence • Focus on customer retention • More targeted marketing to attract new customers • Invest in our product and experience • Portfolio Lifecycle approach • Accelerate c