Workspace strikes positive note on outlook despite Brexit concerns

(Reuters) - Office space provider Workspace Group Plc (WKP.L) said on Wednesday it was confident about the resilience of its customer base despite the uncertain economic environment following Britain's vote to leave the European Union.

Workspace, which primarily provides office space in London to small businesses, said like-for-like rent roll rose 5.5 percent to 51.5 million pounds in the six months ended Sept. 30, while like-for-like occupancy rose to 90.3 percent from 90 percent.

Adjusted underlying earnings per share rose 15.2 percent to 14.4 pence, although EPRA (European Public Real Estate Association) net asset value (NAV) - a key metric for the industry that reflects the value of a company's buildings - fell 0.9 percent to 915 pence per share.

The UK property market was one of the most prominent casualties of Britain's vote to leave the European Union, as investors worried that finance firms would move jobs to Europe, hurting rental demand for office property in the capital.

However, investor appetite has returned since, with several commercial property funds reopening, and data indicated capital values are no longer slipping and deal levels are back up to numbers where valuers have dropped Brexit uncertainty clauses.

Some analysts expect Workspace to weather Brexit uncertainty better than rival office space owners such as Land Securities (LAND.L) and British Land (BLND.L) as its growth is expected to be aided by an increasing desire among new and smaller firms, especially tech names, to seek out the sort of flexible rent leases it provides.

This "community-oriented" approach to work space has already championed results of landlords such as WeWorks and Regus Plc (RGU.L) amid a growing belief that shared spaces deliver greater synergies by driving up innovation and productivity.

"As London continues to change and more traditional businesses are embracing new ways of working, Workspace's high-quality office space in well-connected locations, flexible terms and facilities to support business growth have never been more relevant," Workspace Chief Executive Jamie Hopkins said in a statement.

Enquiry levels have averaged 1,025 per month in the six months to Sept. 30, Workspace said, adding that it had seen good levels of demand through the second quarter of the year and continued "strong" letting activity.

(Reporting by Esha Vaish in Bangalore; Editing by Sunil Nair)