Ann: Half Yearly Report and Accounts, page-2

'Alf Moufarrige, you've done it again' if I may say as a recent 'arrival' among SRV holders.

Many in the community would consider a worldwide serviced office business would incur huge losses during COVID-19, an unprecedented situation for the company and its subsector.

Never before has SRV's operations been so subject in Australia to the whims of Premiers like Andrews (Victoria), Palaszczuk (Queensland) and McGowan (Western Australia) who close down State borders after a small number of COVID-19 cases, or introduce severe 14 day quarantine restrictions. Gutwein (Tasmania) and Marshall (South Australia) haven't been a lot better. NSW Gladys Berejiklian is the only Premier who's competently handled coronavirus and not shut down her capital (Sydney) or the state of NSW on some whim. She's also handled far more overseas arrivals than any other state: Victoria hasn't pulled its weight yet today has had another ratings agency downfrade its credit rating.

With floor occupancy at 69 per cent on 31 January 2021, SRV remains profitable and is still going to pay holders a nine cent interim dividend.

Cash earnings were down 46.7 per cent in 1H 21 but surprisingly even with all the lockdowns (and at one stage a five kilometre travel curb in Victoria), Australian operations remained in the black, with cash earnings of $4.9 million against $9.2 million in the previous corresponding earnings.

I'd have thought the UK would be singled out as a drag, but no, in the European/Middle Eastern/African region, France got that missive. Overall earnings in that large area were $9.6 million, a 21.3 per cent decrease from $12.2m in the pcp.

North Asia was another pleasing surprise, with cash earnings up from $12.4 million (pcp) to $15 million in 1H 21.

Few would disagree with SRV's suggestion that 'trading conditions will remain difficult' with 'coworking' seen to be the slowest to recover. However while it is no cure all, vaccines are gradually being given to millions around the world so that should reduce by one the reasons that many politicians and bureaucrats have to panic.

SRV says given the ending of JobKeeper in March 2021, there will 'be a review of Australia's cost base'. I'd expect some redundancies, sadly, unless our pollies can be shown to no longer pull the trigger with snap lockdowns such as the unnecessary, costly one in Victoria that ran for five days until last Wednesday.

Given the headwinds, SRV's small Board, the founder Alf and staff deserve shareholders' congratulations in my book. They're operating or working for a long established profitable company that hasn't gone broke during coronavirus, a matter almost completely out of any company's control, especially for ones like SRV that exist to facilitate face-to-face and office-based communication.

I remain of the view that as a few companies in CBDs discontinue office leases and more reduce floor footprints, SRV will possess attractive floorspace for meetings that for whatever reason can't be fitted into reduced other company premises.

There hasn't been a single case of 'the virus' emanate from an SRV office worldwide to my knowledge. Well done.

We don't need to fawn, but credit where credit's due. I contend this is a good result in extremely difficult times.