The provider of shared office space announced strong results last week, highlighting their ability to earn a profit despite the many factors impacting the office leasing market. Profit was up 17% to $35m, near the top end of guidance despite flat revenue. Servcorp takes on longer leases for large floor space and divides it up into smaller blocks of offices and co-working areas. The trend towards a hybrid working model should benefit demand in the space as employers look to provide more flexible arrangements for staff. They guided to at least 16% profit growth for FY24, currently trading on a single-digit cash adj. PE it appears cheap and is on the radar. Liquidity is low which may keep us at bay.
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