Extended lockdown weighs on IWG but strong recovery predicted
Office space provider IWG today said that occupancy levels are improving but the prolonged impact of Covid-19 has delayed its recovery.
While the company has seen positive occupancy momentum in the US, the improvement across the group has been slower-than-expected.
This is largely down to continuing lockdown restrictions and the emergence of new variants in some markets.
The global workspace operator said that demand for its flexible work products had soared during the first quarter as businesses turned to hybrid working.
IWG’s return to momentum in the US, which has seen enquires reach pre-Covid levels, has boosted the firm’s confidence in a strong recovery.
“These positive trends support the board’s view that the prolonged impact of Covid-19 on the group’s 2021 results is one of timing,” the company said in a trading update.
“The unprecedented demand for hybrid working and the group’s unrivalled national and international network coverage, will deliver a strong improvement in profitability and cash generation.”
IWG swung to a £650.2m loss last year, while revenue fell from £2.65bn to £2.48bn.