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Flexible workspace provider IWG has reported lower annual losses and a strong rise in revenue, lauding hybrid working demand and higher pricing.
The company narrowed pre-tax losses from continuing operations to £105M in 2022 from £259M in 2021, while its total loss for the year fell to £120M from £210M.
In a positive preliminary results announcement, the company claimed that its “capital-light growth strategy” was allowing IWG to capitalise on what it said was a growing pipeline of property investors “seeking to maximise their returns by partnering with IWG”.
The company said that it expects more companies to permanently embrace hybrid working as their preferred model, as revenue climbed 24% to £2.75B from £2.23B.
"The growth juggernaut in hybrid working continues and 2022 has been a record year for IWG with our highest-ever revenue, up 24% from 2021," IWG CEO Mark Dixon said. "We have delivered this through our multibrand 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."
IWG said it was "cautiously optimistic" about 2023, expecting EBITDA to be in line with management expectations, with net debt falling during the year.
High-profile rival WeWork said in February that its London office operations had shown strong signs of recovery over the past year, with occupancy rebounding to 81% at the end of 2022 compared with 63% a year prior.
However, market analysts are clearly divided about the relative performance of the two companies.
At around 195p following its preliminary results announcement, IWG’s stock value is down around 16% over the past 12 months but significantly up on an autumn 2022 low of around 115p.
By contrast, WeWork’s stock value has plummeted by over three-quarters in the same period and is currently only just above its 12-month low of $1.08.
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