Yes. Right. So I'm through the script, Jason. Next slide. So first half performance, pretty good, I think, given the context of the pandemic we're in.
Unlike free cash down 14%, dollars 30,000,000 which again pretty strong during the environment. Revenue and other income down 22%, like for like revenue down 14%. We've seen definitely we've seen some FX headwinds. So on a constant currency basis, revenue like for like revenue is down 11%. Underlying net profit down 10%.
And I think supporting the strong cash flow generation, we're still paying dividends of $0.09 for the interim. Strong balance sheet, still $90,000,000 at the half, 31 December, over $100,000,000 in cash currently. So I think that's again reflective of our tight cost control, which we've been very proactive since the start of COVID in March, April last year. Underlying free cash, 155 percent of underlying net profit. That's going to support maintenance capital programs, which was quite small, I think, in the first half.
I think we're going to spend about $18,000 in maintenance CapEx and then dividends providing the same. Next slide, please. So there's the underlying results. So as Harry moves out a little bit. We have stripped out as underlying the well, excluded from underlying excluded from revenue, the JobKeeper.
I think that's all set up there. I don't know if there are any questions on that. That's the end of the stand out. Next slide. Balance sheet.
Again, strong cash flow. The underlying free cash rec, 29,400,000,000 Next slide. Next slide. There's the cash flow bridge. Not too much orange there.
Next slide. Our capacity, we I'm sure Al can talk to this, but we closed quite a few floors in the last financial year. This financial year, we've only got 2 floors that have opened. Well, we'll open. We eventually managed to open the floor in Manila, had quite some serious lockdowns here, so we opened that floor last month.
And then we expect to open a new floor in Parramatta. It's really a switchover floor, so the netfare is 0. We closed a floor in New York and 1 in Alkaba in Saudi. Next slide. Next slide.
Our global overview. The standouts, definitely North Asia and to a lesser degree, the pretty reasonable result is the Middle East. USA, certainly on a cash earnings basis, we've been breakeven. So I think that's the first time we've done that in a while. So I think that's a reasonable result, certainly demonstrating the decision to close some of those floors at the end of last financial year.
Disappointing results, though, from ANZ Southeast Asia, still cash positive, but on a profit basis, dismal. Next slide. We needed the segments. I won't go through each one. I'll leave that for us.
Next slide. Next slide. Again, again. Dividend again. And I guess our outlook, still focusing on the controls and measures.
So certainly cost control, maintaining strong liquidity, making our clients safe and our teams, preparing for a recovery in some of the markets. We've perhaps seen some slow recoveries, but I think it really depends on the uncertainty of the timing of when the vaccines roll out and how that time line will end up looking and certainly looking for opportunities for growth in markets where we have proven management. I think there's real opportunity on the other side of this for us. The flexible workspace industry is certainly not bad. I think it's going to come back and inbound once this COVID to a certain degree, normalizes, I think.
Next slide. So I think all things being equal, we certainly still expect to produce cash and be profitable. But I think we do envisage that the rest of this calendar year will be quite challenging. Well, that's the past. I've got no idea what's going to happen.
So I haven't I'm just talking about if I can come down, I've lost the network. It's been a pretty interesting 6 months. And I had a look at what I said last time, and it sort of rings a little true in that there's no hurry. This pandemic's got a pretty long tail. And I don't think that anybody has felt the real commercial and financial impact.
And in fact, from a P and L and a performance perspective, the places that have got the higher amount of assistance from government seem to be the worst performance as all of it were. I can't talk on the future. I thought I'd talk on the past. I'm just the dream that this chief executive has as he sort of reflects on what happened. The time is coming when we are going to expand.
But if I look at the past, we can look at today, we've got a market cap of $300,000,000 We've got $100,000,000 in cash. So we've got a market cap in effect of $200,000,000 We produced $25,000,000 in free cash in the first half, so in real terms. And so I reckon you get pretty close to that next half, so you're close to $50,000,000 on $200,000,000 So that's 25%. That's 4x free cash is what our market cap is. And at the same time, I sort of reflected on Regis.
They sort of roll along losing about £1,000,000 a day, and they've got a market cap of £3,500,000,000 that got $7,000,000,000 borrowed and they're probably our main competitor. And then we pay a dividend of 6%, which is about the yield at $0.09 We have 120 floors, which if you try to replace them, would cost in excess of $500,000,000 would be my estimate before they start to fill them. And we're running at 70% occupied. So I'd recommend each one of those 120 floors would have to lose a couple of million before it got full. So that's another $240,000,000 which is why everybody seems to raise $1,000,000,000 to go into this business.
We paid dividends in 21 years. And today, for those of you who don't know, the lady that started the business with this lady called Joan Solfo, and she died 21 years ago at 4 o'clock on this day. So this is the anniversary. And she'd say, normally, I don't have it on the 24th. And she spent a lot of time working on Servcorp, and we really only had a bit of cash because I had a reasonably small real estate business.
But it was organic growth in real terms. Anyway, we've raised $140,000,000 We paid $310,000,000 in dividends. And if you take that over the 21 years to this day, it's been about a 7% per annum return to our investors, which is one of the reasons I'm a pretty happy shareholder. Everybody says, man, you continue to buy shares. Well, it's not a bad return, 7% 21 years, and we've still got $100,000,000 of the $140,000,000 that we invested that we raised in cash in the bank, plus we've got the business, which is paying 6%.
So I sort of look at it and think, well, that's not too bad. But then I went one step further as I look back because as I said, it's impossible to look forward. And our balance sheet has got $200,000,000 in net assets. And of that $200,000,000 $100,000,000 is in cash. We're going to produce cash of no less than $50,000,000 I guess is this you get, yes, Chief Executive's dream.
I'm not going to do any projections. That's 50% we're going to have 50% free cash on the amount of our balance sheet, net assets that we've got equity, I'm sorry, that we've got invested, which is not bad actually, particularly we're in the middle of a pandemic guys. Well, not any, none of you have seen us to have noticed because they're all in Australia. So I look at it and I get all the questions and we get first strike against us because we paid some of our international executives bonuses. Well, as a matter of interest, guys, we made no dough in Australia, very, very little.
90% of our money is made offshore and 60% of our tax is paid in Australia. Why would you stay here? You got ASIC, PFAC, A, C, they're all like tits on the ball. They are bodies that inhibit our ability to grow and compete globally, yet we do grow and compete globally. But they attack the people that have their head offices in Australia and deep fat snow globe overseas, for that to know the story.
So I think that in the past, we haven't run Australia, New Zealand, the U. S. Or Southeast Asia the way it should run. And so for us to be producing the profits and free cash that we're producing with half the business working the way I would expect it to is, I think, quite admirable. And so a lot of the team members work pretty hard.
We've dropped the lot with cost. It's been a pretty tough year. And the competitors we're competing actively with have raised close to $40,000,000,000 And my current view, I don't know, Regis and numbers come out, I think, normally about March 3rd or 4th, is that we are about the only ones that are producing free cash, and that means that at the end of this pandemic, we should be in pretty good shape, about 50% of our net equity balance sheet money in cash to start to expand. My view is the incentives will be around 30% to 50% across the globe. And so and we've got systems that work.
We just need to train a bit of our management, and we should be able to get close to doubling our size. We do have a lot of trouble in traveling because in Australia, we are one country where 5 states that we work in, you can't travel in and out of them with confidence because they can close their borders at any time. There's no international travel. We can't travel to manage our team members and our people. And so we're finding that the culture is being eroded at a now at quite a rapid rate.
1st 6 months, it wasn't too bad, but now you can feel it, you can see it. I've been overseas three times this year. But it's very difficult to go anywhere past Japan, then you've got to isolate in Japan for 2 weeks, isolate in Australia when you come back for 2 weeks. And even if you're an old guy and you make an application to have a vaccine so that you can travel and support your business so that you can keep all your employees employed and keep your head office here, it falls on their peers. So I'm not that wrapped in Australia at the moment.
Comparative landscape, man, Argyle in the UK has 36 centers in London and they were insolvent and just been rescued by a fund. They're a pretty good operator. Nottel had 100 in New York. They've gone bankrupt owing $2,600,000,000 Victory World, my view is that they're only surviving on JobKeeper and the revenue is between $20,000,000 $30,000,000 And so their revenue pardon me per location is well under half Servcorp's revenue per location even if they're the same size simply because they don't have the occupancy. And everybody thinks there's no barrier to entry, but they don't have the IT solutions that enable the phone systems to be set up, etcetera.
So I look at all of this and think it should be a time of great opportunity because we will survive and we will stay liquid and we will stay profitable. It is uncertain, but the only certainty that I can see out there is that the competitive landscape will weaken and the opportunity to sign new deals will work in our favor. And because we have paid all of our rent to 90% of our landlords on time, we will have a reputation and a covenant that building owners will value because it has been shown that having people that run shared accommodation taking large suites of space in your building lowers the cap rate. So that it means that the value of the building, if they ever want to sell it, drops. Our covenant is so good that if we become a client, it doesn't lower, it increases it.
And people across the world that are in this business they call it rationalizing. That just means they're closing centers that don't work. The only place we really had to close centers that didn't work was the United States. We still haven't worked out how to make it work, but we should. And I did touch on Australia and Southeast Asia, and that's just management.
They will come good. It's just a matter of how we run them. That's it. Anybody have any questions? Goodbye.
Anybody wants to sell their shares at $3 I'm available. I'm serious. I'm still a buyer. I'm not allowed to buy yet. I've got to wait a day.
Alpha, can't let you go without any questions. Obviously, massive change in the way people are working. That's going to have a big impact on shared workspace, flexible workspace offices, all that sort of stuff. What do you see apart from the better environment for leasing and so on? What do you see as the opportunities coming out of this?
Is there perhaps opportunities to have some centers in more suburban locations? So you have a bit more of a mix of centers in different cities. What are your thoughts on the What I think is that the center of the cities should still be a vibrant place to work. I do believe that people will have an office, so whether they're serviced office or but mainly a serviced office. So what was our bread and butter when we first started this business?
We'll want to have remote workers. And to do that, you're going to need to have the IT solutions that allow you to do that. So we're the only guys where you can have 10 remote workers to 1 office. We're just releasing this product now. It's just going up on our global workspace sorry, on our global platform.
But so what happens is that you have one lead telephone number. Each one of your workers can take his business number on his mobile phone, work from home or work from anywhere, can use 3 hours a day in the co working space within the environment and so that the guy that's running a service office can have up to 10 remote workers per office. The suburbs I know it sounds great that you can just ride your bike to the office, once my bike is in there. But I'm not sure when you think that we're not geographically tied that I would go to the suburbs. I mean, rather than being in Camare, I'd rather be in Riyadh because it's a major city and we can run a business hub and remote workers out of that location.
And we're already the biggest in Saudi. So I look at that. I look at where we've got management. I look at the City of London, and I think the city is going to remain the city. So we'll probably be city dwellers more than suburban dwellers.
Massive impairment. Having your head office in Australia is becoming a greater impediment as time goes on. And I don't know how we are talking to government, whether we make any headway, I don't know. But I believe that with the vaccine, things will almost get back to normal. And so once we can travel our executives again, it'd be great.
But right now, we're putting I'm putting more infrastructure in Japan and in the Middle East than what I'm increasing in Australia. So I'm dropping the amount of people we run-in Australia and increasing it in those diverse locations because if you look at well, take Singapore. They're giving a jab to the bankers and business people that need to travel, whereas we're not even on the list, except I'm old. It sort of helps. But that's what I held what a stupid excuse to be able to get the 1 year vaccine.
The old guys are going to fall off the first anyway. So, and when I look at where we're going to expand it, we'll be where we've got the management that can can handle the expansion because we've got a management team around them. So at the moment, I would think, Lylem, Tokyo, Riyadh, and the young lady that runs Damian who runs Qatar, I'm just trying to work out how to put some strength around her because she's pretty close to Europe and she can travel and help us and she's a great general manager too. Results in each location. And what we're seeing over the years is that good locations stay good.
And bad locations so far have stayed bad. Not without much effort, I'm sure. Because I'm quick to work with them. So funnily enough, the I said, what I'm like seeing you guys today, you've been going to be doing this because it's fun or it's profitable. And if it's not profitable, you serve corporate, it's not fun because you don't live with me.
And so I think that in some cases, in America, that's true. In Australia, that's not true. Australia has been at the time of the global financial crisis, Australia was making $1,300,000 a month and Japan was making $500,000 or $600,000 So there was a real difference. Australia was a powerhouse that pulled the whole thing. And Southeast Asia built the whole of the North Asia operation out of its profit.
So it was highly profitable. And it is management. And because the business we run is very similar. But the management comes in, it's got to learn the Servcorp system and the way we make our margins, and that's based upon quality, IT and all the subscription income that we have the ability to earn with all the products that we have. So it's a training problem and it's a chief executive problem in many ways because the chief executive doesn't have that much patience with the training regime.
But at least you recognize it. And so we're slowly getting a team together. I think in the Middle East, we're showing that you can train your management team to create profits and the profits there are just moving pretty rapidly. And the interesting thing is that if you're in Dubai and Saudi is saying that you've got to if you want to deal with Saudi, you've got to have your office in Saudi who's helping us. But if you're in Dubai and you're in business, you need to travel for business, you're number 1 on the jab list.
And so all my buddy executives have all had the vaccine, but I can't get it in Australia. I mean, so you're going to use aborted bloody political favors to try and get a vaccine? That's ridiculous. It seems to be not in control. Competition in terms of the different types of services, so the co working vessels and political offices.
Have you noticed any competitive changes in Lithuania and are they pulling back on their contribution in both of these? WeWork I meant to say that WeWork can't make a profit unless they change the way they do it. And it's almost impossible. Unless you can make some subscription income, which means you've got to have IT solutions, you've got to have phone systems, you've got to have exceptions, you've got to have all those things that could be the underlying infrastructure. And if I looked at, we were just put waste comms systems in, we've got them between $300,000 to $400,000 without cable, and that's going to cost another $100,000 for that.
So, say, half a1000000 dollars a set up got whatever they've got, call it $2,000,000 of $500,000,000 There's another $1,000,000,000 So they've got a pretty big problem. And then they've got to sell their clients on it and then they've got to put in all the accounting systems to make it work. I think that we just got that copied Circle almost for the letter has got a reasonable underlying business model as has Executive Center. But I don't think the rest of them have got it. I mean, they just decided that if they cut space up, they could let it at twice the price they were paying the landlord.
And so they were just making an arbitrage on the space rather than giving a service that would assist a small business to grow big because I mean all big business starts small. Now all these guys are going for enterprise. Well, enterprise businesses, I mean, they've got to come in, they've been their own switchboards, their own team. I think there will be a lot of room for guys and markets who work with us is out there in that business that can provide the underlying infrastructure for businesses that want to outsource the control of their space and their communications. And we'll then have a security problem there.
But I don't see WeWork as a major barrier because I don't think that WeWork ever looked at it as anything other than another trash place. So I think you got a point. Regis form, I hear whether it's fact or fiction, you'll know on the 3rd March, I think that's when the figures come out round about then anyway, 9th March. Well, if what I hear is correct, they're losing £1,000,000 a day and I think that they can correct it. 1, they've got the depth and 2, they have a lot of systems.
One of the problems they have is that they put up different systems into different locations. And so it's very difficult to get a centralized system and it's impossible to run the one office, 10 remote workers, which we don't know whether it works yet. But one of the problems with running remote workers is they have to work on a mobile. We've got a thing that we call 1 phone, forget what it's called. It means that you can take your business telephone number, it can be answered by the receptionist here and put through to the relevant team member.
And when the team member leaves you, he doesn't take all your clients because they've all got your mobile number because they've only got the business phone number. And so to me, once again, that's a way to get subscription income that relies on your IP solutions rather than the way people want to work, where they have to do it all. All you do is provide them with a bit of a spare space. You have not a tissue? We do have a question from online.
The question is, can I ask regarding the pricing pressure, please? Are the landlords supportive in negotiating better rent so that CIRCORP can maintain margin as value as a service provider? Well, I was just talking about the chief executive's dream. That's another one of my dreams. I'd love the landlords to be cooperative.
I think that the only time a landlord some of our landlords have been cooperative, not a lot, but some. But normally, what they want you to do is lengthen your lease term or they just want to give you a period of time where you don't have to pay the rent. But we now have a guy that like us and there is always a quick profile. And I think that at the end of our lease terms and the one thing that people have never really looked at Servcorp and said, well, real value is actually when the lease expires if you're coming into a market like this, where you get a 30%, 40% incentive to go ahead. And in the next 3 years, more than 30% of our leases come up.
In 5 years, it's more than 50%. So we're talking 50%. That's 10 a year. Now IFRS makes us move it, we don't care about cash. So the fact is that it's another part of that opportunity is that we've got clients and if we get the space and we'll get the incentive or a lower end, then of course, the margin will go up.
Now, none of that is certain, but there are very few people that have that advantage. Am I worried about Circle? No. Am I pissed off with Circle because the way we run it? Yes.
Can we do it better? Yes. Is it tough? I don't think I've ever seen it this tough. I mean, this is real.
You've got all these guys going broke, so they're slicing their prices. Everybody's scared. The team's under pressure. Nobody gets salary increases. And when you look at the business that we're in, you would think that we are just in the wrong business, like being in a bloody airline business.
But I did complain. Some of the audience will know Luke Mangan. So I said to Luke, she's bloody tough out there and he said, yes, you want to be in a restaurant, but also shut up. So shut up. Just had another drink.
That's it. Thank you for being shareholders.