Workspace Group Plc · LSE:WKP
Workspace — Investor Presentation (June 2007)
32 slides from Workspace's investor presentation, Jun 7, 2007
Slide 1: Small Business & Customer Research Update
SMALL BUSINESS & CUSTOMER RESEARCH UPDATE Matthew James Research Manager Thursday, 7th June 2007
Slide 2: Overview
OVERVIEW • SME Update • Customer Survey • Exit Survey • Churn indicators • Key relationships
Slide 3: Small Business Trends
SMALL BUSINESS TRENDS
Slide 4: London's Contribution
LONDON’S CONTRIBUTION 37% OF TOTAL GVA “London and the South East make a disproportionately heavy contribution to economic activity. In 2005, these two regions accounted for 37% of the goods and services (measured by GVA) produced in the country, even though only 30% of the working age population li
Slide 5: VAT Registrations
VAT REGISTRATIONS VAT Registrations per 10,000 of the population 70 60 59 56 60 50 40 179,000 N 30 20 10 0 2003 2004 2005 United Kingdom South East London Source: Regional Competitiveness and State of the Regions, DTI, May 2007 NB: Great Britain & Northern Ireland SMALL BUSINESS TRENDS
Slide 6: Business Starts
BUSINESS STARTS Expecting to start a business in the next 3 years 18 16 16 15 14 12 11 10 % 8 6 4 2 0 2004 2005 2006 United Kingdom South East London Source: Global Entrepreneurship Monitor, 2006 NB: Great Britain & Northern Ireland SMALL BUSINESS TRENDS
Slide 7: Registrations & De-registrations
REGISTRATIONS & DE-REGISTRATIONS London: Registrations & De-registrations 20,000 25,000 30,000 35,000 40,000 33,400 2001 30,825 32,955 2002 32,625 35,750 2003 31,760 % 35,320 2004 32,145 33,915 2005 30,230 Registrations De-registrations Source: Regional Competitiveness and State of the Regions, DTI,
Slide 8: Business Survival Rates
BUSINESS SURVIVAL RATES 3 Year Survival Rates 75 70 66.9 64 65 62.6 % 60 55 50 1995 1999 2002 Year of business start UK England London Source: Regional Competitiveness and State of the Regions, DTI, May 2007 NB: Great Britain & Northern Ireland SMALL BUSINESS TRENDS
Slide 9: Effect on UK Business Stock
EFFECT ON UK BUSINESS STOCK At end of 2005 – 4.342m 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 1980 1983 1986 1988 1990 1992 1994 1996 1998 2000 2002 2003 2004 2005 Business Population (m) Source: Small Business Service, 2006 NB: Great Britain & Northern Ireland SMALL BUSINESS TRENDS
Slide 10: Regional Split
REGIONAL SPLIT Business Population: Regional Split 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 North East North West Yorkshire and the Humber East Midlands West Midlands East of England London 675,795 South East South West Source: Small Business Service, 2006 NB: England ONLY S
Slide 11: London Businesses
LONDON BUSINESSES London Businesses By Employees - ALL EMPLOYERS ONLY 20 plus 7% 10-19 9% 5-9 18% 1-4 66% 1-4 5-9 10-19 20 plus Source: Small Business Service, SME Statistics, 2006 NB: ALL EMPLOYERS IN LONDON=164,555 SMALL BUSINESS TRENDS
Slide 12: Annual Customer Satisfaction Survey
ANNUAL CUSTOMER SATISFACTION SURVEY
Slide 13: Considerations
CONSIDERATIONS • What are the key issues & areas for improvement? • What are the actions? • What are the key relationships? • What do customers expect of Workspace? Do we deliver? • Is there anything we don’t know but should? CUSTOMER SURVEY
Slide 14: Customer Survey: Aims
CUSTOMER SURVEY: AIMS 1. Demographics 2. About business premises 3. Contact & communications 4. Assessment of brand values 5. Business performance CUSTOMER SURVEY
Slide 15: Respondent Demographics
RESPONDENT DEMOGRAPHICS • 551 Response rate (390 paper, 161 online) – down on 677 in 2006 • 50% operate in creative industries or professional services • More than 60% have occupied their current unit for less than 2 years • More than 80% employ less than 10 people • More than 50% have been trading
Slide 16: Respondents by Business Type
10 15 % 20 25 30 35 40 0 5 3.6 Manufacturing 9.6 CUSTOMER SURVEY 2 Transport, Travel & Storage 3.3 8.3 Wholesale & Retail 9.4 5.4 Construction 3.8 BUSINESS TYPE 32.5 Creative Industries 34.1 Bus. & 17.1 Professional Services 18.8 18.1 Respondents By Business Type Other Services 7 2007 4 Community, H
Slide 17: About Your Premises
ABOUT YOUR PREMISES • Cost & location remain most important factors in taking space • 87% are satisfied with local service • “It feels like a personal service - very good & friendly” • “This is not a criticism of the staff (who are very good) but the standard of lift maintenance is appalling and nee
Slide 18: Local Contact with WSG
LOCAL CONTACT WITH WSG Contact with Local Management Team 0% 20% 40% 60% 80% 100% 2007 61 29 10 2006 73 21 7 2005 65 26 10 Happy with the contact I have Contact is sufficient Would welcome more Consistently high year-on-year and consistent across the portfolio CUSTOMER SURVEY
Slide 19: Service Issues
SERVICE ISSUES 45% had experienced service issues over the last 12 months, but... 0% 20% 40% 60% 80% 100% I was able to speak to someone at Workspace 94 6 regarding my issue Any service issues have been resolved quickly 50 50 Any service issues have been resolved satisfactorily 57 43 The reasons for
Slide 20: Workspace Values
WORKSPACE VALUES To what extent do you agree with the following... 100 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % Workspace provides good value for money 86 14 Workspace is committed to high standards of service 82 18 Workspace builds relationships with its customers 74 26 Workspace delivers all I exp
Slide 21: Responsible Company
RESPONSIBLE COMPANY Workspace as a sustainable & responsible company 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% It is important to me and my business that my landlord 99 behaves in a responsible manner I am aware of the action 55 45 Workspace is taking Workspace recognises its 82 18 responsibility
Slide 22: Satisfaction With…
SATISFACTION WITH… SERVICE 87% are satisfied with the service they receive from Workspace • “Very quick & efficient – always a friendly voice at the other end of the phone ” COMMUNICATIONS 93% are satisfied with communications from Workspace • “Newsletter is good - nice to know what's going on. Idea
Slide 23: Customer Business Outlook
CUSTOMER BUSINESS OUTLOOK
Slide 24: Customer Performance
CUSTOMER PERFORMANCE Performance over LAST 12 months (SERT Benchmark) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% WSG +52 Turnover SERT +20 +32 Employment WSG Average SERT +4 WSG +35 Investment SERT +12 Up Same Down Source: NatWest/SERT Quarterly Survey of Small Business in Britain, Q4 2006 N=538 CU
Slide 25: Customer Prospects
CUSTOMER PROSPECTS Performance over NEXT 12 months (SERT Benchmark) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% WSG 70 2 +68 Turnover SERT 39 27 +12 +50 Employment WSG 52 2 Average SERT 10 14 -4 WSG 51 5 +46 Investment SERT 14 15 -1 Up Same Down Source: NatWest/SERT Quarterly Survey of Small Busines
Slide 26: Business Outlook
BUSINESS OUTLOOK • Increasing competition (26%) and increasing business costs (20%) are seen as the biggest challenges facing customers • Access to customers, location in relation to key contacts and ‘kudos’ of London address cited as most popular reasons for being in London • 21% think they will be
Slide 27: Exit Research
EXIT RESEARCH
Slide 28: Aims
AIMS AIMS: 1. What proportion leave the portfolio & what proportion move within it 2. What types of businesses are leaving the portfolio 3. Why businesses leave the portfolio 4. Levels of satisfaction with Workspace 5. What tenants think of Workspace 60 interviews completed each quarter EXIT RESEARC
Slide 29: Summary of Findings
SUMMARY OF FINDINGS • Over the last five surveys, on average 20% move to other WSG properties each quarter • The number of tenants moving to another estate or business premises with a different landlord is about 50% • No pattern by industry type, but the smallest at most risk • 50% had been in their
Slide 30: Summary of Findings
SUMMARY OF FINDINGS • Main reasons for leaving is COST - average is 38% • On average 25% have experienced a service issue, but less than 10% said it contributed “a lot” to their decision to leave • 95% believe experience has lived up to expectations… BUT, seemingly low expectations. • What makes a g
Slide 31: Key Relationships
KEY RELATIONSHIPS > Those most likely to recommend are those who: 1. Agree that Workspace provides good value for money 2. Are satisfied with the contact at local level 3. Agree that Workspace delivers a competitive package 4. Are satisfied with Workspace Group as a landlord 5. Agree that any servic
Slide 32: Considerations
CONSIDERATIONS • What are the key issues & areas for improvement? • What are the actions? • What are the key relationships? • What do customers expect of Workspace? Do we deliver? • Is there anything we don’t know but should? SUMMARY