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Servcorp expects 8% revenue gain for FY11

Servcorp expects 8% revenue gain for FY11

Serviced and virtual office provider Servcorp (ASX:SRV) expects to post an 8% increase in operating revenue for FY11.

The company, which provides office, IT and business infrastructure solutions, revealed it believes it achieved its target of no less than $30 million in pre-tax profit from its mature office floor operations.

Servcorp also advised in a market update it expects its losses from immature floors will likely be less than the $30 million previously forecast.

The anticipated result compares to mature floor profit before tax of $25.1 million, and immature floor expansion costs of $20.1 million in FY10.

The expected FY11 expansion costs are down to the opening of 40 new floors during the year, bringing the total operated to 116 across 21 countries. Servcorp said it planned to open 15 new floors in FY12.

The company added it had witnessed a continuing strengthening of demand for serviced and virtual offices in the second half of the financial year.

Servcorp did not give guidance on post-tax profit for FY11, but said it would publish its audited results in August. The company made $2 million in profit in FY10.

Servcorp will pay a 10 cent per share dividend for FY11, and said it expects to increase this by 50% in FY12.

SRV shares were lifted 1.05% in Thursday's trading to $2.880.

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