IWG pays down debt in strong first half

8th Aug 2023 08:09

(Sharecast News) - Workspace provider IWG reported a strong performance across key financial metrics in its first half results on Tuesday.

The FTSE 250 operator of brands including Regus posted a record six-month system-wide revenue total of £1.679bn, marking 14% growth in constant currency year-on-year.

Group revenue for the period stood at £1.484bn. Core earnings surged 48% to £198m, up from £131m in the first half of 2022.

The company reported positive cash flow from business activities, amounting to £162m, swinging from the £4m negative flow in the first six months of 2022.

IWG said it had also successfully reduced its net financial debt by £54m, bringing it down to £658m.

Contracts for an additional 400 new locations were signed in the first half.

Worka, IWG's hybrid-working focused platform, reported a revenue increase of 32% to £153m and a 35% growth in EBITDA to £62m.

"We continue to grow as expected, producing a record period for IWG with our highest ever revenue in our over 30-year history, up 14% from the first half of 2022," said chief executive Mark Dixon.

"We have done this through a combination of higher demand for flexible work products, improved pricing and cost discipline and I am looking forward to continuing this momentum into the second half of 2023 and into 2024. We have signed almost as many agreements in the first half of 2023 as we did in the whole of 2022."

At 0847 BST, shares in IWG were up 0.47% at 150.7p.

Reporting by Josh White for Sharecast.com.