Servcorp downgrades fiscal 2017 profit after challenging second quarter
Servcorp announced on Monday that it was reducing previously provided pre-tax profit guidance of ‘at least $56 million’ for fiscal 2017 to circa $47 million.
Management attributed the downgrade to unfavourable trading conditions in the second quarter, particularly in the US and Southeast Asia regions.
Servcorp is one of the world’s leading providers of executive and serviced offices, virtual offices and IT and business infrastructure solutions, operating 150 floors in 53 cities across 23 countries.
Management said that part of the underperformance from the US business was due to restructuring costs, and in response to more challenging conditions in that region it has relocated chief operating officer, Marcus Moufarrige to New York City.
Notwithstanding the earnings impact of these developments, Servcorp’s cash balances remain robust at $115 million, and the group announced today that the previously forecast fiscal 2017 interim and final dividends of 11 cents each per share will be increased to 13 cents each per share.
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