Servcorp has a relatively straightforward business model. It rents office space on medium-term leases (from one to 10 years), fits it out as serviced offices, and then rents these out monthly. It adds value in the services it can provide – postal addresses, receptionists, meeting rooms and, increasingly, technology.
PBT up 30% over prior year, but only 1% over previous half
Accounting quirk will knock about 5% off PBT this year
Growth is slowing, but shares not overpriced