6th Aug 2024 12:25
(Alliance News) - International Workplace Group PLC on Tuesday announced its first interim dividend in five years as it reported a half-year profit, noting it was delivering on its "capital-light growth plan".
The Zug, Switzerland-based company provides flexible workspaces for companies and individuals under brands including Regus.
It swung to a pretax profit of USD44 million in the first half of 2024 from a loss of USD87 million a year ago.
The company declared an interim dividend of 0.43 US cents per share, the first half-year payout since 2019. It had paid a final dividend of 1.00 pence for 2023 in May this year.
International Workplace changed its reporting currency to the dollar from sterling in 2024.
Chief Executive Officer Mark Dixon said: "The first half of 2024 produced good year-on-year open-centre revenue growth. We are delivering on our capital-light growth plan. Momentum continues in signings, and importantly openings, and we are delighted to return to positive earnings. We remain committed to our strategy of growing our network coverage and giving our customers a great day at work."
Revenue was flat at USD1.84 billion.
International Workplace reported a gain from rationalisation items of USD45 million, swung from a loss of USD15 million.
Looking ahead, the company said it was confident that earnings before interest, tax, depreciation and amortisation and net financial debt will be in line with its own expectations. It said: "We remain focused on improving the margin in Company-Owned & Leased, growing fees in the Managed & Franchised business and controlling overheads across the group. This is expected to be achieved by increasing both coverage and System-wide revenue in a capital-light manner."
Chief Financial Officer Charlie Steel said: "The directors consider that the group is well placed to successfully manage the actual and potential risks faced by the organisation including risks related to inflationary pressures and geopolitical tensions."
CEO Dixon said the company was uniquely positioned to serve a structural demand shift: "Demand for our platform is accelerating from both corporates trying to reduce their real estate costs while creating more flexible working environments, and their employees."
International Workplace shares were up 6.3% to 169.70 pence each early Tuesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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