An early market snapshot from Charlie Menegatos, Senior Trader at Accendo Markets

Charlie Menegatos, Senior Trader at Accendo Markets believes it could be time for investors and traders to buy back into Regus (RGU). The annual results announcement from the office rental group illustrates a sound performance over an immensely challenging period, ending the year with a very healthy net cash position of GBP237m. Overall revenues fell slightly to GBP1.055bn from GBP1.077bn in 2008, and operating profits came in at GBP86m down from GBP147m. Regus opened a further 45 new centres during the year, produced cost savings ahead of plan of GBP54.6m, and increased the dividend by 33 percent to 2.4p, which it said reflected the strong cash generation and growth prospects.

CEO Mark Dixon said, "While the outlook remains unclear, particularly for the UK, we are cautiously optimistic across our other three geographies". He added "We are experiencing an increased level of growth opportunities as the trend towards flexible working accelerates. This, combined with our strong cash position, will allow us to step up our new centre opening programme in 2010."

Regus took a veritable battering in the depths of the credit crunch, but as the group has extended its global coverage, the poor domestic performance has become further offset by strong performances from other territories thanks to the increased global footprint, now in 78 countries. Regus management should take all the plaudits for steering the group through the crisis, and as the pace of growth is stepped up in 2010, we believe the group will deliver rapid improvements in the net cash position, operating profits and other metrics. Shares have drifted down to 88p since November last year, after peaking at 120p after our August 2009 buy note, but in our view the time is right to buy back into the 2010 growth story, a view emphatically underlined by the hefty 33 percent dividend increase.