Embattled Regus in Compaq coup

REGUS, the serviced offices provider, has given its long-suffering shareholders a boost, unveiling a near-£24m deal with US computer giant Compaq, its largest contract to date.

The firm, which last year cut jobs and mothballed plants, is to provide serviced office space for 450 Compaq staff around Britain. Regus earlier this month unveiled deals worth £26m, which boosted its flagging share price.

'This trend in office outsourcing is set to increase worldwide, as more and more companies examine their cost base and look for more cost-effective solutions to their office accommodation requirements,' said chief executive Mark Dixon.

The stock climbed nearly 11% to 34p in early trade. It floated in October 2000 at 260p and hit a 400p high last February.