New Zealand: Gain-but not without pain

Gain-but not without pain: New Zealand sees revenues increase plus slow pace of recovery

Twice-yearly global survey confirms downturn, with full pace of recovery only under way at end of year

Auckland - April 28th, 2010 –Global economic growth is progressing steadily, but full recovery will not be reliably under way until December 2010, according to the latest edition of the bi-annual Regus BusinessTracker survey. The survey’s 15,000 respondents reported a higher percentage of businesses seeing revenue and profit growth than were experiencing decline. However, respondents, who were asked “When do you expect economic recovery and growth to be advancing strongly and reliably in your country?” have now shifted their expectation of the full momentum of economic recovery back five months, from July to December. In New Zealand specifically net growth companies are at only 3%, but the full momentum of recovery is not expected until the first half of 2011.

The key findings of this worldwide survey emphasize that the business community needs to retain an element of caution in their optimism. The study revealed net growth globally, with 12% more firms reporting a rise in revenues rather than a decline, and 8% more companies experiencing an increase in profits rather than a reduction. However, businesses across the globe need to stay focused on strategies for cost management, streamlining and greater operating flexibility.

The second edition of the Regus BusinessTracker international economic indicator survey was conducted in over 75 countries and canvassed over 15,000 respondents about the financial performance of their companies and their expectations for growth.

In New Zealand, 39% of companies (42% globally) experienced a revenue increase in the last year, as a consequence 81% of businesses are bullish that their revenues will increase in the coming year (70% globally). When asked about the measures they believed would be most effective in aiding the recovery, 63% of businesses advocated additional tax breaks for businesses (64% globally) and 83% of companies emphasised interest rates remaining very low for another 12 months (globally 58%).

Mark Dixon, Chief Executive of workspace solutions provider Regus, comments: “Despite the slippage between expectations and real experience of business growth observed in this latest survey, it is important to emphasize that the experience of growth is overall still positive around the globe, with New Zealand showing tentative growth common to many other world economies.

“An important caveat remains, however; commentators everywhere agree that businesses must take some important lessons away from the downturn. In particular the restructuring of workforces and workplaces should become a continuing process as the flexible working practices which helped weather the recession have yielded a number of positives for employers and employees alike. Anecdotal evidence gathered by Regus from its operations globally indicated that the shift from traditional commercial property leasing to solutions that accommodate more flexible working systems is certainly underway and likely to play a large part in the coming recovery.”

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About Regus

The Regus Group (LSE:RGU) is the world’s leading global provider of innovative workspace solutions, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the world’s largest network of video communication studios. Regus delivers a new way to work, whether it’s from home, on the road or from an office.

Clients such as Google, GlaxoSmithKline, and Nokia join thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to Regus, allowing them to focus on their core business.

Over 500,000 clients a day benefit from Regus facilities spread across a global footprint of 1,000 locations in 450 cities and 80 countries, which allow individuals and companies to work wherever, however and whenever they want to. For more information please visit: www.regus.co.nz

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