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Servcorp profit up 24%, outlook positive

Servcorp profit up 24%, outlook positive

Managed and virtual office provider Servcorp (ASX:SRV) reported healthy profit growth in FY11, and said it is “cautiously optimistic” of more growth in FY12

Serviced and virtual office company Servcorp (ASX:SRV) grew its FY11 profit 24 per cent, and has forecast further growth in the year ahead.

The company, which also provides IT business infrastructure solutions, reported a profit for the year of $2.49 million.

Pre-tax profit from leasing out mature floors grew 24 per cent to $31.19 million, while losses from the 46 floors being built out or developed were a lower-than-expected $27.9 million.

But Servcorp said growth at its mature floor operations was constrained by the natural disasters in Australia and Japan and the recent financial market turmoil.

Immature floors in Europe and USA were also adversely affected by a slower than anticipated economic recovery in the regions.

In a market update, Servcorp said it had a “cautiously optimistic” outlook for FY12. It is currently targeting a pre-tax profit from mature floors of $37 million, and losses from immature floors of $20 million.

The company declared a final dividend of 5 cents per share, to be paid out in October.

SRV shares grew 6.52 per cent in Wednesday's trading to $2.940.

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