Small and medium-sized business owners are turning to virtual offices to cut costs and still present a professional image, according to data released by Regus.

The serviced office provider has seen a significant rise in the number of firms taking up virtual offices, with the Luton branch seeing a 150% rise and Pall Mall in London increasing 90%.

"With the UK now officially out of recession, our figures show that over the last year companies have learnt to work smarter and prioritise cost efficiency. A company's image is crucial to its success, it is all very well having a great product, but if you're trying to launch it from a bedroom, it can seriously affect your efforts," said Mark Dixon, CEO of Regus.

As well as the address virtual office owners benefit from post services, call handling and can hire out meeting rooms and offices on an ad hoc basis when a customer wants to visit.