Workspace benefits from demand for a London base

Europe's woes may have cast a shadow over the UK economy but London's entrepreneurs are yet to feel the chill, property firm Workspace said today.

The company offers space to some 4000 small businesses in the capital and saw its 10th-successive quarter of growing occupancy in the three months to September 30.

Chief executive Harry Platt said: "We're still seeing demand continuing in the same way. We've had no serious hiccups since the end of September."

All the numbers are heading in the right direction, with occupancy up to 87.4% and the rent roll rising £1 million to £43.9 million in the six months to September.

Increased occupancy has driven the higher rental takings, but Workspace has also taken advantage of strong demand to push up prices.

The firm raised its interim dividend 10% to 2.93p.

The upbeat news contrasted starkly with Lloyds TSB Commercial's latest London activity index, which signalled manufacturing and services industries slowing to virtual stagnation pace last month.

The index, where a score over 50 shows growth, dropped to 50.4 in October as new orders grew at the slowest pace for 10 months.

Lloyds TSB regional director Neil Mahoney said: "Firms again displayed a reluctance to hire, with job creation only marginal in October."