Insider Buying

Insider Buying Report: Workspace PLC (WKP:LN)

Workspace PLC
(WKP:LN)
12 months:
-26.98%
Activity:
Bullish
Pattern:
Purchase from Chairman and two Non-Executive Directors
News:
Full-year results
Workspace PLC
(WKP:LN)
12 months:
-26.98%
Activity:
Bullish
Pattern:
Purchase from Chairman and two Non-Executive Directors
News:
Full-year results

If multiple insiders are buying company stock simultaneously, it’s often worth taking a closer look. This buying pattern – which is known as ‘cluster buying’ – is a particularly strong insider trading signal.

Here, we are going to look at recent cluster buying at Workspace PLC (WKP:LN). Workspace is a London-focused Real Estate Investment Trust that provides flexible workspace options to small and medium-sized businesses. Its portfolio has 58 London properties, with over 3,000 clients utilizing the industrial and office space that the company provides. It’s traded on the London Stock Exchange and currently has a market capitalization of £1.24 billion.

Workspace PLC: Insider Buying

Our insider transaction data shows on June 13, three insiders at Workspace bought stock. Those who bought shares were:

  • Chairman of the Board Stephen Hubbard (17,860 shares @ £6.49 per share)
  • Non-Executive Director Nick MacKenzie (12,400 shares @ £6.36 per share)
  • Non-Executive Director Duncan Owen (3,850 shares @ £6.49 per share)

In total, the three insiders spent around £220,000 (approx. $270,000) on Workspace stock.

Industry Experience

This insider buying looks interesting for a couple of reasons.

Firstly, all of the insiders have experience within the property industry or with firms that have large property portfolios. Mr. Hubbard was previously head of EMEA and UK Capital Markets at Richard Ellis and was more recently Chairman of CBRE until stepping down in 2019. Mr. Mackenzie is currently CEO of Greene King PLC and started his career at pub company, Bass. Mr. Owen has worked in the real estate industry for 30 years, having been Global Head of Real Estate at Schroders PLC before then becoming CEO of Invista Real Estate Investment Management PLC. This means that all of the insiders are very capable of assessing Workspace’s future prospects.

Secondly, our data shows this is the first insider buying at Workspace for close to a year, and the data also shows us there has been no cluster buying at the company for a long period of time. It is noteworthy therefore that three insiders have spent around £220,000 on stock at the same time.

Impressive Recovery

Workspace recently posted a solid set of full-year results that showed that customer demand had returned to pre-Covid levels by the end of the year.

For the year ended March 31, 2022, trading profit after interest was £46.9 million, an increase of 21% on the year before, helped by a £5.2 million or 6.4% increase in net rental income. Meanwhile, the property valuation of £2.40 billion as of the end of March was an underlying uplift of 3% on the figure taken at the end of March 2021. Like-for-like occupancy was up 7.8% and was very close to the desired figure of 90%. At the end of the year, Workspace had £442 million of undrawn bank facilities and cash.

The strong financial performance allowed the company to raise the dividend by 21% to 21.5p per share.

“We benefit from the diversity of our customers and the proven agility of SMEs to adapt quickly to changing economic environments. We remain confident that we are well positioned for continued sustainable growth and to deliver strong returns over the medium term,” commented CEO Graham Clemett.

In light of these results, we see the recent cluster buying here as a bullish indicator.

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