Bizspace, the managed workspace provider, presented solid results at the interim stage.

Turnover improved 59% to £4.6m and pre-tax profits jumped 89% to £1.62m. Core occupancy rates were maintained at above 80%. Bizspace extracts value by acquiring 'nice' buildings and carving up the accommodation to supply to small businesses. This strategy shields it somewhat from rising prices in the commercial sector, as it is not as pressured to hunt out bargains. During the year, the company disposed of two properties in Newport and Tottenham for £1.1m over their purchase prices. This was followed by the sale of its Sheddindean business centre in Burgess Hill for £1.5m, producing an exceptional profit of £366,000. To further expansion, in July, Bizspace raised £7m, net of expenses, via a placing at 35p per share. This diluted NAV slightly to 44p (45p), but it enabled the company to acquire a portfolio of five industrial sites in the north of England for £10.55m. Net debt increased slightly from £17.1m to £21.4m. Bizspace now operates 32 centres, with 1,575 individual units and an annualised turnover of £9.8m. Broker Teather & Greenwood expects pre-tax profits of £2.6m for the year to February, rising to £3m in 2006. The EPS of 2.7p provides an attractive prospective p/e of 15.9. A GCI recommendation in June at 39.25p, the shares are now trading at 43p. Continue to buy.

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