Servcorp ‘Punished’ Following Poor US Performance

 

A recent Australian Financial Review article reported that Servcorp, a leading serviced office provider, did not meet its revenue and performance goals in the US market.

“Servcorp had expected to make around $2 million in the first half from its US operation, but had instead lost around $2.5 million, as well as incurring one-off restructure costs”, the article reads.

The workspace provider was punished by the market, as they saw more than 19.1% of their stock wiped.

According to the Australian Financial Review, the Australian listed workspace provider can expect its net profit (before tax) this year to be around $47 million, down from their previous forecast of not less than $56 million.

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Chief Executive, Alf Moufarrige, said that “Servecorp’s in reasonable shape. Our future’s still pretty rosy.”

The article also states that the Servcorp’s US General Manager has been replaced by Alf Moufarrige’s son.

Read the Australian Financial Review full article here.