Workspace, the London‑based flexible‑office landlord, warned shareholders it would take a substantial hit to next‑year profits and slash its dividend. The announcement sent the FTSE 250 stock tumbling over 15 percent, plunging to its lowest price since 2013. Investors reacted as the company cited falling rents and rising inflation‑driven costs as the main drivers of the downturn. The move follows a year‑long decline in shares, which have slipped 17 percent since the start of the fiscal year.

Saba Capital, which holds a 14.3 percent stake, has been pushing for a drastic turnaround, even proposing to wind the business down in January. The activist’s pressure highlights the fragility of Workspace’s valuation amid a market that rewards higher‑yield assets, forcing the board to rethink its strategy.

Charlie Green, the former Office Group co‑founder, took the helm in February and promised to reposition Workspace as the go‑to space for start‑ups and small firms. He said the company will invest heavily in upgrading its portfolio, accepting short‑term losses to capture a larger share of the niche market.

To date, Workspace has sold £125.7mn of its £200mn two‑year target and is in active discussions to dispose of eight additional low‑conviction assets. Analysts at Panmure Liberum see a window for decisive action, noting that the company’s current trajectory could reshape its valuation and investor confidence.