- IWG reported group revenue flatlined at $912m in the first three months of 2024
- The company is reportedly considering moving its primary listing to New York
IWG upheld its annual outlook on Tuesday following a robust performance by its managed and franchised business.
The office space provider reported group revenues flatlined at $912million in the first three months of 2024, while system-wide turnover grew by 2 per cent to $1.04billion (£820million).
Its managed and franchised arm saw sales rise by 15 per cent on a constant currency basis to $139million thanks to the opening of 47,000 new rooms over the previous 12 months, compensating for lower revenue per available room.
Work environment: Office space provider IWF upheld its annual outlook on Tuesday
The division opened 19,000 rooms and 124 centres during the opening quarter of 2024 and signed deals for a further 179 centres.
Simultaneously, revenues at IWG’s company-owned and leased operation, its largest segment, dipped slightly to $799million, while its net debt declined by around 8 per cent to $791million
Following the result, the Regus owner continues to expect earnings before nasties and net debt for the full year to align with management forecasts.
IWG’s latest trading update comes amid reports that it could join other British businesses in abandoning its London listing in favour of New York.
The group is switching to reporting in dollars rather than pounds this year, and has also pledged to simplify its financial reporting and reduce its debt.
Mark Dixon, chief executive and co-founder of IWG, said ‘We are delivering on our plan to grow in a capital-light way, and the momentum in signings, and importantly openings, continues to accelerate.’
IWG shares were 0.5 per cent higher at 190.7p on late Tuesday afternoon, meaning they have increased by 14 per cent in the past 12 months.
Could another firm leave London for New York?
Firms often choose to go public on Wall Street, lured by the prospect of higher valuations and deeper capital pools than in the UK.
Paddy Power owner Flutter, mining group AngloGold Ashanti, and building materials supplier CRH all recently switched their primary listing to New York.
And last year, Softbank dealt a considerable blow to the London Stock Exchange by choosing a US listing for semiconductor giant ARM Holdings, whose technology is in almost every smartphone.
Later this month, shareholders at pharmaceutical group Indivior will vote on whether to approve the company changing its primary listing to Wall Street.