Good afternoon. I'm Alf Moufarrige, Servcorp's Chief Executive. Welcome. Are you going to show the financial results, or we've all seen the full year 2021 financial presentation. I'll quickly run through it, and then we'll give you a report on where we think it's all going. The disclaimer. Underlying free cash, you got it. AUD 49.9 million. Somebody could have chucked in an extra AUD 100,000, but I guess hopefully we'll do that next year. Cash balance. Well, the balance is at AUD 97 million. In constant currency terms, they're up a little. It's not too bad. Cash balance is currently in excess of AUD 110 million. That's about right. Keep on going, guys. Underlying net profit, up 219%. Well, keep going. Balance sheet. Well, the balance sheet's been adversely affected by the strong Australian dollar. It doesn't make any difference anyway to our operations. Keep going.
Underlying performance, all pretty clear. Revenue's dropped. It's pretty interesting when you look at the revenue drop because our revenue dropped in constant currency terms about 10%, and our number of locations also went backwards about 10%. Keep going. Mainly, the operations that we closed were underperforming, often in not great positions. This is our global footprint. I think we've got 120 locations, roughly maybe 125 locations. Keep rolling. Co-working. Well, I keep hearing a lot of good things about Coworking. I'll talk about that in a minute. It definitely will come back, but it just depends where you are. Keep going. Global overview. U.S.A., what a dog. North Asia, it's running okay. Keep going. Southeast Asia is a nightmare and Australia is underperforming. In fact, I got a question from Peter Bell.
Peter, if Australia starts to perform, my view is we should be franking in the next 12 months, 30%, because Australia should throw in a profit of AUD 12 million, but realistically, it'll comfortably throw about AUD 9 this year. With a bit of luck, we'll start franking again. My view is Australia is our home base. It's always stayed our home base. We should be paying more tax in Australia than anywhere else. If we make the profit target of the mid-30%s, then we should have some franking credits. You did also ask a question about WeWork, whether they were fatally flawed. Well, I think their business model has always been pretty ordinary, and they have no technology although they often pretend to have, and they've just signed a deal with Saks Fifth Avenue, which I think is just another dog.
When you look at it, and you look at the profits that are made out of SoftBank, and now I'm guessing somebody can go and have a look, but one thinks that this year they'll turn in close to $100 billion. WeWork's almost just a rounding error, just a bit of an embarrassment for Masa. Keep on going. No, got it? Keep going. We're at a dividend of AUD 0.09. Keep going. Outlook and guidance. Well, you can all read that. That's been written by the board. It's a little more conservative than me, not the numbers, just the excuses for not making it. Don't go to questions and answers yet. I've done a lot of work on this.
If you look at next year, everybody seems to think that next year and the year after are probably the years to be in this business. If you have a future vision and you have a look at the shape of the recovery, the exciting new markets, the sea change, the way corporate clients are engaging. Best corporate clients in our history. Growth moving space almost at the speed of light. The likelihood of recovery should be clearly visible, and the inflection point should have been in February or March of this year. Real improvements expected in Q3 and Q4. hybrid work is becoming the norm. You've got to remember that we are right in the middle of the hybrid revolution, will permanently shift our direction. Workplace is anywhere business workers want to be, and we will be a leading enabler in the flex industry space.
Everyone's talking about hybrid work. Doesn't matter whether it's Bloomberg, BBC, Guardian, The Economist. Hybrid work is what all senior employers are saying. There was a report out by Ernst & Young on it. There will be favorable tailwinds for people that are in this business. Better for employees, better for companies, good for the environment, better for people. New enterprise, the way we are, wins. Stop press. Unprecedented surge in new membership deals. More than 500,000 new members added to the network. It's too hard to write a talk today when you look at how the market's changing. I stole that from Regus, one of our competitors, the only other publicly listed company. They're listed on the London Stock Exchange. They went pretty well, too.
I think they're losing about GBP 1 million a day, and they are still building and closing new operations, which puts a lot of pressure on Servcorp and its team members, so that if you look around the world with Regus losing supposedly GBP 1 million a day, and WeWork, I guess, will lose $2 billion this year. Guess. We've made free cash of around AUD 50 million. I guess compared to other people in the industry, we look okay. I think that a lot of what Regus says about hybrid work coming and being finally a boom could be absolutely true. It's too early. I try to look back at Servcorp, and I look back at all of our competitors, and not because of any other reason as I want to try and understand what pressure my team members are under in the marketplace.
They're under extreme pressure. I'll give you one very small example. In the U.S., which we don't do so well at, JLL stole seven of our people went to work for them, and then they targeted our clients at half the rate if they provided the invoice to about what Servcorp was paying. That's just a small example. WeWork targets our clients, so does Regus. I think that there is a massive difference between our business model and theirs, that is we've spent the money on the underlying infrastructure. We've got all of the IT solutions in the cloud. We can take 200,000 extensions in one spot in the cloud. We can connect to them. We spent AUD 100 million and depreciated it over the last 20 years.
That I look at Servcorp and say we're well-positioned for any boom that may follow. If I go to my notes, in the last five years, we produced AUD 370 million in cash. One would guess the next five years, if Regus is right, should be better, so that if we produce AUD 370 million in cash the last five years, we should produce AUD 400 million in cash the next five years. Our net market cap's about AUD 225 million, if you take off the AUD 100 million we've got in cash. I look at the amount of pressure the Servcorp team members have worked under in the last year and think that this year was the best year that Servcorp's had for the past five years.
Whether it will turn into substantial profits or not, I accept that at times what we'd hoped for hasn't happened. If I look at the teams, I look at our position, I look at rentals dropping around the globe, I look at our cash, and I look at some of the management team, and in particular in the Middle East and in Japan, I believe that we'll be able to expand carefully, but we'll be able to open centers that inevitably will be well managed and will make profits. That really means that we're going to open new centers in both Japan and the Middle East. I think if we can get London right, because a lot of small centers are closing there. I look at our free cash in 2020 against 2021 and go, well, there was a currency difference.
There was a bit of a free kick. If I try to normalize it in my head, forget the accounting, I reckon there was about a 10% difference in the free cash. That is a pretty good performance when you have a look at the mess Australia is in. I mean a mess from our point commercially because we are still profitable. We've got a five-state solution for what is a global pandemic. We lock down one day, we're not locked down the next day. Everybody thinks that the economy will bounce back every single time. Well, we catered at 10,000 little businesses in Australia. I can tell you this second lockdown has done a hell of a lot more damage than the first.
I look around our world and I look at this performance, it's the first time I've prayed a long time, probably 10 years, that I've been really happy with the performance because we were locked down in London, Paris, Brussels, Dubai, Abu Dhabi, KL, Singapore, Bangkok, the whole of China. There was a state of emergency in New York, Chicago, Tokyo, Osaka. Most of our landlords, some helped, most of our landlords need to have a gun held to their head before they give us any assistance, whereas we've been providing a substantial amount of assistance to many of our clients. Lockdowns commercially don't work. Maybe they stop the virus. They seem to have worked in New South Wales. We've gone from 100 to 1,000. That's pretty good. We're still locked down. "Oh, we can go to the park." Yippee.
You get no fucking, no swearing. You get no benefit if you're vaccinated. People are allowed to come to work even if they're vaccinated. When I get depressed, twice yesterday, the police came in because one person said that we were making our team members come to work. We've got 15 out of 85 here. We wrote to everybody and said if they're worried, they don't need to come to work. The gentleman in blue, turn up in threes, walk around our floor twice yesterday. I might add that a few years ago, you might remember, we lost AUD 850,000, and we reported to the same police station. Trying to find a policeman was almost impossible. Now we don't have to go looking. They come to talk to us. They view the floor and say that they will talk to our team members.
Well, that brings me to the point. Why would you stay in New South Wales? It's not a pro-business. You can't run a global head office out of New South Wales without being harassed. The question is, should our head office be in Australia? Should we sell it? Should we privatize it? The answer is we should stay in New South Wales. We should try and train the politicians. Right now, we should expand it and start building it out from here.
Somebody should start saying, "If you've had two jabs, you can leave the bloody country, as can your project managers and team managers." Sometimes as you look at head office and we haven't traveled, and our performance is average, but if we get people back on the planes so that we can actually manage our global business the way it should be managed by people that are vaccinated, then I think that we will substantially improve our performance. I'll go back just for a second to the outlook. I actually think it's probably a good time for Servcorp. I don't think that anybody, and we've underperformed in some ways, but I don't think that anybody has made as much free cash as we have on a smaller revenue.
Most of ours is because we've maintained all of our IT systems, and we are more a subscription business than anybody else in this industry. That gives us a great base on which to expand because the IT solutions, a lot of them are done. I might add, we're still spending AUD 80,000 a week completing a system, believe it or not, named by the Japanese developers called the Wombat. They didn't even know what a wombat was. When we put a picture up, they thought it was a rat. Anyway, the Wombat 1.0 , it has already started rolling out, and we're pretty happy about it. It is such a help to people that are in shared space. One day, one desk, it might be worth as much as all Servcorp. It's not worth much. I hope it's worth more than Servcorp. That's it.
If anybody's got any questions, from what I understand, is you can ask them. Have they? Wow. No questions? Beer time. Okay. Well, while you're waiting for questions, I will say that if I look at next year, when we weren't locked down in Australia, it was coming back at a very rapid rate, and I would think that our first quarter this year is going to be fantastic. Our second quarter is going to be pretty ordinary. Third quarter will be average. Fourth quarter should be fantastic. That's pretty well the rest of the year going. Fire away.
We have a question. On the short call basis, you seem to be doing better at 73% versus Regus at 58%. The two companies, similar occupancy level for current year 2019. How do you interpret this as part of cutting down on shipping from a seller's end?
Stella, to start with, Regus and Servcorp are in the same business. They don't run it the same way. The systems in Servcorp are completely different. The number of team members that we run per client is about three times the number Regus. That on 100, if you had a floor that had 100 offices, Regus had run three, we would run 9- 10. We sell a lot more services than Regus, and I think that our co-working is a little different to Regus' co-working, and hopefully that adds a little. I might add to that it's very difficult if you cannot automate the sale of services, and by automating, I mean help the client so that they can make a profit.
Their job is to try and take Servcorp team members, delegate to them so that they can help them make money or free them up so that they can make more cash. It's easy to promise services if you haven't got a team. In Servcorp, there is a team and there are real IT solutions, and I think that's fundamentally the difference. I don't think Regus is making money at the moment. I think that's a problem of a fairly rapid expansion, and they don't run one really upmarket operation. They run three or four different operations. It doesn't mean I don't respect them, because when I look at them, their PR is a lot better than ours, I must say, but that's because I write ours. He's educated the market, so I like Mark Dixon. No more questions? No more comments?
This is your last chance. You got write questions or you can speak questions. Okay, well, I'll finish on. I think next year, particularly the last quarter, is going to be great. I think the potential for Servcorp in the 2023 financial year will surprise even me. Thank you