IWG’s chief executive Mark Dixon has said the company remains “cautiously optimistic”, despite H1 results showing widening losses.
Revenue at the serviced-office provider slumped 14.6% to £1.06bn in H1, resulting in a £80m operating loss. Adjusted losses stood at £30m, down from H1 2020’s profits of £43m.
However, Dixon said he remains positive: “The month-on-month improvements in our key operating metrics as we came into the summer months are encouraging and we anticipate this momentum continuing into the second half of 2021.”
Dixon added that “the significant move to hybrid working has created unprecedented demand for our flexible work products”.
“This fundamental shift in the way people work is clearly a positive tailwind for IWG over the medium to longer term,” said Dixon. “We are seeing increasing levels of interest from enterprises wishing to transform their working practices.”
The company’s revenue in the Americas was hardest hit, with a fall of 25% to £415.7m. The UK also slumped by 13.7% to £163m. EMEA and Asia Pacific fared better, but still saw revenues slide by 2.5% and 5.9% respectively.
Despite the fall, IWG still plans to grow its estate, having added 84 locations during H1 through capital light investments and partnerships.
That model will continue, Dixon said. “Franchising and partnering agreements… are central to our capital-light expansion strategy. We have also seen significant progress in the acquisition of competitor centres with minimal required investment.
“We look forward to the second half with cautious optimism, having implemented the necessary changes to our network and cost base. Looking further ahead, with the improvements we are observing in our operating environment, we remain confident of a stronger recovery in 2022.”
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