Good afternoon. I'm Alcon Lafarge, Surfcorp's Chief Executive. Welcome. So are you going to share 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've got it, dollars 49,900,000 Somebody could have chucked in an extra $100,000 But I guess hopefully, we'll do that next year. Cash balance, well, the balance is at £97,000,000 if you in constant currency terms, they're up a little. So it's not too bad.
Cash balance is currently in excess of £110,000,000 that's about right. Keep on going, guys. Underlying net profit, up 2 19%. Well, keep going. Balance sheet.
Well, the balance sheet has been adversely affected by the strong Aussie dollar. So it doesn't make any difference anyway to our operations. Keep going. Underlying performance, all pretty clear. Revenues dropped.
It's pretty interesting when you look at the revenue drop because we also dropped our revenue dropped in constant currency terms about 10%, and our number of locations also went backwards about 10%. Keep going. And mainly, the operations that we closed were underperforming, often in not great positions. This is our global footprint. I think we've had 120 locations, roughly, maybe 125, keep rolling.
Coworking. Well, I keep hearing all the good things about Coworking. I'll talk about that in a minute. And it definitely will come back, but it just depends where you are. 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 should throw in a profit of $12,000,000 but it should realistically, it will comfortably throw about $9,000,000 this year. So with a bit of luck, we'll start pranking again. And my view is Australia is our home base. It's always stayed at our home base.
We should be paying more tax in Australia than anywhere else. And so that if we make the profit target of the mid-30s, then we should have some franking credits. And you did also ask a question about WeWork, whether they were favorably sold. I think their business model has always been pretty ordinary. And they have no technology, or they often pretend to have, and they've just signed a deal with Saks Fifth Avenue, which I think is just another dog.
But 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 US100 $1,000,000,000 And so WeWork's almost just a rounding error, just a bit of an embarrassment for NASA. Keep on going. No, got it? Keep going. Dividend, dollars 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 because 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.
So if you have a future vision and you have a look at the shape of the recovery, exciting new markets, the sea change, the way corporate clients are engaging, best corporate trials in our history, growth moving space almost at the speed of light. And the likelihood recovery showed should be clearly visible and the inflection point should be 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.
We'll 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. It doesn't matter whether it's Bloomberg, BBC, Guardian, The Economist. Hybrid work is what all senior employers are saying.
There was a report by Ernst and Young on it, there will be favorable cloud wins 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. Stock press, unprecedented surge in new membership deals, more than 500,000 new members added to the network. It was too hard to write a talk today when you look at how the market is changing. So I stole that from February's one of our competitors, the only other publicly listed company that listed on the UK Stock Exchange.
That went pretty well too. I think they're losing about £1,000,000 a day. And they are still building and closing new operations, which puts a lot of pressure on the CIRCORP and its team members. So that if you look around the world with Regis losing supposedly £1,000,000 a day, and WeWork, I guess, will lose £2,000,000,000 this year, I guess. We've made free cash of around £50,000,000 dollars So I guess compared to other people in the industry, we look okay.
I think that a lot of what Reid just says about hybrid work coming and being finally a boom could be absolutely true. But it's too early. So I try to look back at Servcorp and I look back at all of our competitors, not because of any other reason, as I want to try and understand what pressure my team members are under in the marketplace. And they're under extreme pressure. I'll give you one very small example.
In the United States, which we don't do so well at, JLL stole 7 of our or 2Q or 7 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 Certcorp was paying. That's just a small example. WeWork targets our clients and so does regions. I think that there is a massive difference between our business model and theirs, and that is we 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 the $100,000,000 and depreciated it over the last 20 years. And so that I look at Servcorp and say, we're well positioned for any boom that may follow. And so, if I go to my notes, in the last 5 years, we produced $370,000,000 in cash.
And one would guess the next 5 years, if REITs are right, should be better. So that if we produce $370,000,000 in cash the last 5 years, we should produce $400,000,000 in cash the next 5 years. And our net market cap is about $225,000,000 if you take off the $100,000,000 we've got in cash. And I look at the amount of pressure the CIRCORP team members have worked under in the last year and think that this year was the best year that Cervcorp's had for the past 5 years. Whether it will turn into substantial profits or not, I accept that at times what we'd hoped for hasn't happened.
But 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. So that really means that we're going to open new centers in both Japan, the Middle East. I think if we can get London right in London because a lot of small centers are closing there. So, I sort of 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.
And so that if I try to normalize it in my head to get the accounting, I reckon there was about a 10% difference in the free cash. And that is a pretty good performance when you have a look at the mess Australia is in. And I don't mean a mess from our point commercially because we are still profitable. But we've got a 5 state solution for what is a global pandemic. We're locked down one day, we're not locked down the next day, and everybody thinks that the economy will bounce back every single time.
Well, we catered at 10,000 middle businesses in Australia, And I can tell you this 2nd lockdown has done a hell of a lot more damage than the first. And I look around our world and I look at this performance, and it's the first time I prayed a long time, probably 10 years, 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. And there was a state of emergency in New York, Chicago, Tokyo or Osaka, most of our landlords, some felt, but most of our landlords need to have a gun held to their head before they can 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, which has gone from 100 to 1,000. So that's pretty good. And we're still locked down. Oh, we can go to the park. Year 3.
You get no traffic, no swearing. You get no benefit if you're vaccinated. People aren't allowed to come to work even if they're vaccinated. And when I get depressed, I get 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. Yet the gentlemen 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 850,000. And we reported to the same police station. Trying to find the policemen 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?
I mean, it's not a pro business. You can't run a global head office out of New South Wales without being harassed. So 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. And right now, we should expand it and start building it out from here. So somebody should start saying, if you've had 2 jets, you can leave the bloody country as can your project managers and team managers. And 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 way, but I think that anybody has made as much free cash as we have on a small revenue. And 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 $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. But anyway, the wombat one hertz has already started rolling out and we're pretty happy about it. It is such to help the people that are in shared space. One day, one bet is it might be worth as much as all Servcorp is not worth much, but worth more than Servcorp.
Now if anybody's got any questions, my understanding is you can ask them, have they? Wow. Okay. 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 Q1 this year is going to be fantastic.
Our Q2 is going to be pretty ordinary. And 3rd quarter will be average. 4th quarter should be fantastic. So that's pretty what the last year you're going. Far away.
On a shortfall basis, Well, Stella, to start with, Regis and Servcorp are in the same business, but they don't run it the same way. So the systems in Servcorp are completely different. The number of team members that we run is about 3 per client, it's about 3 times the number of Regis, so that on a floor that had 100 offices, Regis had run 3, we would run 9 to 10. So, we sell a lot more services than Regis. And I think that our co working is a little different to Regis' co working, and hopefully, that adds a little.
I might add to that that it's very difficult if you cannot automate the sale of services. And by automating, I mean help the clients so that they can make a profit because their job is to try and take certain team members, delegate to them so that they can help them make money or free them up so that they can make more cash. And it's easy to promise services if you haven't got a team. But in CIRCORP, there is a team and there are real IT solutions. But I think that's fundamentally the difference.
I don't think we're just making money at the moment. I think that's a problem, a fairly rapid expansion, and they don't run one really upmarket operation. They run 3 or 4 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 and I say, that's because I write ours. And but you know, he's educated the market.
So I like Mark Dixon. No more questions? No more comments. This is your last chance. You got the right questions or you can take questions.
Okay, I'll finish on. I think next year, particularly the last quarter, is going to be great. I think the potential for CIRCORP in the 2023 financial year will surprise even me. Thank you.