Workspace Group PLC Creative Businesses And Workspace Group Harry Platt Chief Executive 17 November 2005.
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Workspace Group PLC
Creative Businesses
And
Workspace Group
Harry PlattChief Executive17 November 2005
Workspace Group PLC
Workspace Group: Who are we?
Comments on Creative Sector and Property
Role of Public Sector
History: Growth in assets and shareholder value
• Founded in 1987
• Listing on London Stock Exchange 1993
• Last equity issue 1994
• Now: Gross Assets over £850 million
Our Business
“ We provide affordable, flexible space for new and small businesses in London and the South East ”
• c.4,000 customers over 107 estates; nearly 6 million sq .ft
• Over 7,700 enquiries a year; market leading brand in fragmented market
• A simple product offer
• Superior service from in-house management
• Customer focused
Changing Environments
Recent Acquisitions
The Quadrangle, SW6 Chiswick Studios, W4 Southgate Office Village, N14
Southbank House, SE1 Homesdale Business Centre, Bromley
Lombard House, Croydon
Total Percentage of Customers by DTI Categories
DTI Classification of Tenants
12% 1%
2%
1%
6%
18%
45%
10%
5%
Manufacture
Retail
Cons truction
Utilities /Infras tructure
Organisations
Des ign & Creative
Services
Storage & Dis tribution
Unclass ified
Comments on Creative Sector and Property
• Part of SME sector
• Affordability
• Clusters of Buildings
• Communities of customers
• Character and services of buildings
• Incubation
Part of SME Sector
• Stock of businesses
• Starts and exits: scale and churn
• Most exits are successes
• Do not confuse businesses with owners
Affordability: Customer Profile
Median % of median
turnover Year of start 1996 —
Turnover £250,000 —
Overheads £90,000 36
Profits £40,000 16
Rent £12,000 4.8
Typical Workspace tenant:
Rent under 5% of turnover
Source: Kingston University survey of over 200 customers. Spring 2004
Clusters e.g.The Southbank Portfolio
9
1. Kennington Park Studios, SW92. Westminster Business Square, SE113. Southbank House, SE14. Linton House, SE15. Great Guildford Business Centre, SE16. The Leathermarket, SE17. Enterprise Estate, SE18. Hatfield House, SE19. Tower Bridge Business Centre, SE16
Scale = 1:25000
Communities of Customers
• On individual sites
• Between sites
• Tradelink
Homepage
Calendar ofevents from
WSG & beyond
Message boardsfor customerinteraction
Press from andabout tenants(e.g. Awards)
Searchable, up-to-date,
tenant directory
Marketing
Customers and Buildings
Westminster Business Square
The Leathermarket
Faircharm Trading Estate
Customers and Buildings
Pall Mall Deposit Westgate Centre Barley Mow Centre
What do business incubators provide?
- Suitable Space
- Flexibility of tenure
- Low entry costs
- Benevolent operator
- Business support and mentoring systems in place
- Mandatory churn
Incubators
THE LONDON YOUTH SUPPORT THE LONDON YOUTH SUPPORT TRUSTTRUST
Founded in 2001 to work with the Princes Trust because:
- start-ups could not find or afford premises (20% went through process of getting grant funding but could not draw down loan because they could not find premises)
- start-ups needed specialist support over and above the mentor system to increase survival chances
N17 STUDIOSN17 STUDIOS
EUROARTEUROART – an independent multi-disciplinary contemporary arts incubator– started with own funding, no external assistance– specialist, whereas LYST very diverse– focus not on training/teaching residents how to write a business plan,
but how to get their work out for sale/get a market– Partnership broker to make things happen– run on a commercial basis with affordability created by sympathetic
terms from Workspace and subdivision to high value small space– not as much fundamental support in terms of business development but
do provide critique and mentoring for resident artists– supported by the operator not in same way as LYST– operator actively promotes and markets the artists– regular exhibitions of work and invite art consultants to visit– benefits from working in a like minded community
IS WORKSPACE GROUP AN IS WORKSPACE GROUP AN INCUBATORINCUBATOR
WORKSPACE TENANTS – A VERY WORKSPACE TENANTS – A VERY GENERAL PROFILEGENERAL PROFILE
• Eclectic mix of micro businesses in a broad range of sectors• Usually been established in business for a couple of years• High proportion in the creative industry• Unlikely to be concerned with issues affecting companies with 10 or more
employees such as: -– Exit strategies– Venture capital– IPO’s
• They identify with freedom and creativity• Generally anti-corporate• Financially challenged from time to time but have a fair idea of business
demands• Looking for a workplace that reflects what they are trying to achieve• Lives in and out of the workplace not clearly differentiated and time poor• High proportion of women
CONCLUSIONCONCLUSION
Workspace Group IS an incubator, but perhaps for bigger babies.
It still provides most of what an incubator does, apart from the business support and mentoring. It is an ideal next step when time’s up in the incubator
Role of Public Sector
• Complimentary not competitive to private sector
• Targeted incubators - groups
- sectors
• Targeted finance support
• Showcasing
• Talent and Human Resources/Skills
• Business support with growth/added value focus not ‘ancillary’
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