IWG swings to £650m loss but sounds optimistic note on future of offices
Office space provider IWG swung to a £650.2m loss last year due to the impact of coronavirus on working habits, it announced this morning.
Revenue fell from £2.65bn to £2.48bn and the company posted a loss of more than half a billion pounds, down from profit after tax of £77.3m in 2019.
It reported a loss per share of 67.9p in the year ended 31 December 2020, compared to earnings per share of 50.5p in the previous year.
The firm’s share price fell 6.4 per cent to 357p following the announcement this morning.
IWG posted specific Covid-19 related adjusting items of £379.5m and said its annualised cost savings were anticipated to be between £325m to £375m.
The work space operator said it is pushing ahead with its strategic shift to a capital light model, with franchising a key focus area for growth.
It is also aiming to capitalise on the shift to flexible and remote working, with increased demand for “hybrid working solutions” and suburban locations, as employees seek to cut their commute.
IWG chief executive Mark Dixon said: “Today, we anticipate a massive surge in growth when we eventually emerge from the unprecedented downturn that the COVID-19 pandemic has created.
“The sheer scale of our global network positions us uniquely well to benefit from this surging demand.
“At the same time, our franchising and management agreement strategies are performing to plan as the spearhead of our capital-light expansion strategy.
“In summary, we are progressing well on our plans to strengthen our position as the leading service provider to the global flexible workspace industry and I firmly believe that the years ahead will be tremendously exciting for our business.”