7th Mar 2023 10:52
(Alliance News) - IWG PLC on Tuesday reported a narrowed annual loss and a double-digit percentage rise in revenue, thanks to demand for hybrid working and higher pricing.
The workspace provider narrowed its pretax loss from continuing operations to GBP105 million in 2022 from GBP259 million in 2021, while its total loss for the year narrowed to GBP120 million from GBP210 million.
Revenue climbed 24% to GBP2.75 billion from GBP2.23 billion. IWG also noted that system-wide revenue was the highest in its history, with 24% growth to GBP3.09 billion from GBP2.50 billion. System-wide revenue represents the total of all revenue made by both non-consolidated and consolidated locations, the company explained.
"The growth juggernaut in hybrid working continues and 2022 has been a record year for IWG with our highest-ever revenue produced in our 34-year history, up 24% from 2021," said Chief Executive Mark Dixon. "We have delivered this through our multi-brand strategy, primarily Regus and Spaces, and continue to have the largest global network of hybrid workspace by far.
"We have also shown that we can deliver both high levels of growth and profitability alongside EBITDA and cash flow generation. We have done this through a combination of higher demand for flexible work products, higher pricing and continued cost discipline, and I am looking forward to continuing this momentum in 2023."
Zug, Switerzland-based IWG said it is "cautiously optimistic" about 2023, expecting earnings before interest, tax, depreciation and amortization will be in line with management's expectations, with net debt falling during the year.
However, IWG noted that the company is "operationally leveraged", resulting in profitability moving up and down with "relatively small" changes in revenue.
The company explained that, given continuing macroeconomic uncertainties and geopolitical tensions, the dividend will remain on hold in order to allow it to focus on maintaining sufficient funding. IWG added that it has a "clear intention" to return to its dividend policy "at the earliest possible opportunity".
Shares in IWG were up 0.9% at 189.95 pence on Tuesday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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