WORKSPACE provider Regus said it anticipates a year of revenue growth and business improvement today.

Reporting its annual results to December 31 the international group said conditions were still tough, but its strategy implemented two years ago at the outset of the recession is delivering results.

Revenues fell from £1.055bn to £1.04bn.

Pre-tax profits came in at £7.8m, after £15.8m of exceptional charges.

That compares with an £86.9m profit in 2009, which included a £15.7m exceptional gain.

But chief executive Mark Dixon said: “Against a tough economic backdrop Regus delivered solid financial results driven almost entirely be execution on a range of key strategic initiatives started two years ago when the recession hit.

“We have seen little benefit from any economic upturn but we have continued to invest in growth, mature margins have held up well and cash flow continued to be strong, reflecting the underlying health of the business.”

He added: “In terms of outlook we remain cautious on the economy, however, we have been encouraged by recent positive trends that reflect the continued strategic delivery of our initiatives.

“In 2011 we are well positioned for a year of solid revenue growth and business improvement with continuing strong underlying cash flow generation.”

During the year Regus increased its workstations by 13%, mainly on acquisitions worth £69.7m in markets including Brazil, China, the UK and USA.

Regus operates a suite of workstations at Liverpool’s Exchange Flags office complex.

Revenues in its UK market fell 6.5% to £178.9m during 2010, but a restructuring in the second quarter should result in annual savings of £15m and hopefully return the division to operating profit.

Mr Dixon added: “Arguably, the recession of the last two years has been good for our business; it made us take a long hard look at everything we did, improve it and, in doing so, we have been transformed.”