Fresh interim results from Serviced Office Group (SVO) are almost meaningless, argues Chairman Daniel Taylor, as the company has since made a transformational acquisition since the period end.
Indeed, turnover up 6% to £7.7m in the first six months of the year will be dwarfed by Taylor's pledge of combined revenues close to £60m next year from SVO and July addition Avanta.
Taylor and Chief Executive Officer Michael Kingshott also have major plans to grow earnings before interest, tax, depreciation and amortisation, which were down 11% to £0.8m in this latest period.
"Our two-to-three-year plan is to grow from the current 37 sites post acquisition to 50 sites. The target is then to try grow current EBITDA of £1m to £10m in three or four years."
This would represent a further transformation for the company, which had wallowed in the doldrums for some years due to its previous balance sheet issues.
Taylor's arrival at the company as non-executive director in 2010, providing a £1m cash injection, lit the fuse that has revitalised SVO.
Last year he marched the company into the offices of its banker RBS and led the refinancing negotiations that ended up with £24m of RBS debts replaced at very favourable terms with a new three-year, £6.5m facility with HSBC.
For a start, this attracted some new institutional investor interest, with the Toscafund hedge fund run by Martin 'Rottweiler' Hughes having built up a stake of around 25%, with another hedge fund Gems Advisors having 6.4% and small cap funds of JP Morgan and Cazenove with stakes too.
Moreover it has enabled the company to walk tall into meetings with landlords.
"We have increasing credibility in London, with landlords and with potential serviced office clients," says Taylor. "So we can flex our new balance sheet power and improve our terms as we have with our Covent Garden building."
With new shiny office blocks rising up around London, including the Shard, the 'Cheesegrater' and the 'Walkie Scorchie', owners of less attractive older buildings are going to need companies like SVO to provide them with solutions for their increasingly empty office spaces.
Moreover, the pull effect of demand for flexible office space continues to burgeon, argues Taylor.
"With London being such an international home for business, flexibility is increasingly key and serviced offices are becoming more acceptable. Signing a five- or 10-year lease is absolutely unthinkable for many companies opening up or expanding an overseas office in London.
"Our buildings are filling up in a matter of months."
And these tenants are paying a premium, which is why SVO and FTSE 100 sector leader Regus can generate the cash that is so beloved by shareholders.
"Clients are paying £130, £150, £180 per square foot, whereas on longer leases they'd be paying £90 or £100 maybe."
The acquisition of Avanta turned the group into the number two in the market by number of workstations, adding 17 centres, predominantly in central London. Taylor says Avanta brings full year revenues of £35.5m and profit before tax of £3.7m and quality management team to bulk out SVO's lean and mean central structure.
For the current year, before Avanta is included, Shore Capital forecasts an 11% rise in £17.8m total revenue mostly as the increased leasehold action gains traction and a £0.5m pre-tax loss, before leaping to a £1.7m profits and 0.29p earnings per share in 2014.
At the current year's high price of 140p, SVO offers investors a different way to ride the recovery and an entrepreneurial growth stock to add to their listed property portfolio.