Adam Neumann has changed the fundamental rules of the flexible office market, according to Servcorp’s founder and CEO Alf Moufarrige. He will be replaced by Mark Vaile. While WeWork’s business model does not work, Neumann educated us about a market we didn’t know existed, Moufarrige said. The company is now in talks with several large companies that want to use its software for their workplaces. The company has struggled to break into the US market, and turnover of its client base means about 60% of office space needs to be resold each year, but it seems to have turned a corner. Last month it reported net profit before tax of $18.4m, beating its H2 guidance of $14m to $18m; it believes it is now poised to benefit from stronger occupancy rates. Servcorp was recently approached by a potential buyer, but the company is not for sale, Moufarrige said.
Adam Neumann has changed the fundamental rules of the flexible office market, according to Servcorp’s founder and CEO Alf Moufarrige. While WeWork’s business model does not work, Neumann educated us about a market we didn’t know existed, Moufarrige said. The company is now in talks with several large companies that want to use its software for their workplaces. The company has struggled to break into the US market, and turnover of its client base means about 60% of office space needs to be resold each year, but it seems to have turned a corner. Last month it reported net profit before tax of $18.4m, beating its H2 guidance of $14m to $18m; it believes it is now poised to benefit from stronger occupancy rates. Servcorp was recently approached by a potential buyer, but the company is not for sale, Moufarrige said.