Hybrid work specialist IWG has said it is on track to meet full-year profit and debt reduction forecasts, after it cautioned over rising costs in March.
The Wework rival posted a record £3.5bn in revenue for 2023 back at the beginning of March as it benefitted from growing hybrid working trends. But shares fell on the announcement as overall losses widened, and it cautioned over debt.
However, in a trading update posted today, IWG said system-wide revenue grew 2 per cent year-on-year to £1.04bn, while group revenue levelled out at £912m. Net debt also shrunk marginally from £862m to £799m.
Growth was propped up by its managed and franchised business, which opened 19,000 new rooms in the period at a growth rate of 265 per cent.
Mark Dixon, chief executive of IWG, said: “The first quarter of 2024 produced good year-on-year underlying revenue growth showing that the move to hybrid working continues.
“We are delivering on our plan to grow in a capital-light way, and the momentum in signings, and importantly openings, continues to accelerate. We remain committed to our strategy of growing our network coverage and giving our customers a great day at work.”
The company added: “We are confident that both 2024 EBITDA and net financial debt will be in-line with management’s expectations which have not changed since the full-year results on 5 March 2024.”
The trading update came following speculation the UK-listed but Swiss-headquartered firm has been weighing up a move to the US. The co-working firm, which owns the Regus and Spaces brands, said it is expected to make a decision in June on whether to switch to the American GAAP accounting standard.
“The final step is to consider moving the listing from [the London Stock Exchange] to one of the US exchanges . . . that is certainly a consideration for the board and our investors at a later stage,” Dixon said in March.
Shares are up over 16 per cent in the last 12 months.