Workspace Group: Work in progress

Research evidence excerpt

Workspace Group: Work in progress

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Hold Workspace Group 25 June 2026

Forecast Change

Europe

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 23 Jun 2026 (GBP) 327.00

WKP.L WKP LN LSE WKP

Price Target (GBP) 370.00

Real Estate

430.00 -

Real Estate 52-week range (GBP) 319.40

Work in progress

Valuation & Risks

Ashnaa Vyas

While Workspace’s FY26 results were broadly in line with our expectations, the

Research Associate

market was squarely focused on the outlook and further detail on new

+44-20-7545-0244

management’s strategy. It is clear WKP no longer intends to simply lever price to

fill vacancy, but rather invest in the product and better monetise what remains a Jonathan Coubrough

sizeable platform. This includes enhanced customer areas, amenities and the Research Analyst

+44-20-754-54671

rollout of a new “Managed” offer alongside its traditional “Space only” product.

While we can see the logic, and note there is clearly a pricing gap to target versus Chris Millington

higher-end operators, the ‘best value’ segment remains highly competitive and Research Analyst

SME customers are inherently price sensitive - thus we expect it may take some +44-20-7541-1570

time for the strategy to translate into better pricing and occupancy.

While management has set out a medium-term ambition to deliver c.£125m of

trading profit before interest, this feels highly execution dependent at this stage.

Near-term, earnings remain under pressure from further disposals, higher Key changes

refinancing costs and a higher cost base as WKP invests behind the Target Price 400.00 to ↓ -7.5%

transformation. We now forecast earnings to trough in FY28, c.35% below the 370.00