Regus struggles despite boom from ash cloud

Regus, the temporary office group, claimed in May that it was enjoying a boom because Iceland's ash cloud left thousands of executives stranded and in need of an office.

Today it became clear that all Eyjafjallajökull's effusions weren't enough to spur significant demand at its centres. Regus said conditions were "extremely challenging" as it swung to a half-year loss of £6.1 million, compared with a profit of £69 million last year.

The UK was one of the worst-performing areas, with revenues down almost 10% to £88.9 million in the six months to July, inspiring a business restructuring that cost Regus £15.8 million.

The office group still raised the interim dividend 6% to 0.85p per share.

Boss Mark Dixon admitted: "The market continues to be very challenging and difficult to predict" but he added that he would still be opening new centres.