IWG Share News (IWG)

(Sharecast News) - Workspace provider IWG said on Tuesday that its trading continued to strengthen in its third quarter, with total group system-wide revenue rising 0.3% at constant currency to £620.7m, although it was down 3.4% year-on-year at actual currency.
The FTSE 250 company said group revenue slipped 0.3% year-on-year in the three months ended 30 September at constant exchange rates to £550.8m, and was 3.7% weaker on an actual basis.

Open centre revenue increased by 5.2% from the second to the third quarter, with the third quarter itself ahead 5.2% year-on-year at £544.6m.

IWG said it was on track to achieve its targeted annualised run rate cost savings of about £320m by year-end, adding that it had accelerated new customer wins, with more than 1,100 new enterprise customers signed in the quarter.

It also reported "good momentum" in franchising, with new growth commitments totalling 102 locations.

"The rapid adoption of hybrid working, both for enterprises and smaller businesses, is increasing the demand for the group's services and improving performance in all major markets," IWG said in its statement.

"This seismic change in how businesses and employees plan their work is, we believe, significant, irreversible and transformational for our business.

"Although we remain suitably cautious during this period of heightened macroeconomic uncertainty, the occupancy and pricing run-rate achieved in the third quarter and in September in particular, underpin our confidence in delivering results for 2021 in line with management's expectations."

IWG said that similarly, the acceleration of trading, together with a growing forward order book and ongoing cost reduction, set the direction for a stronger recovery in 2022.

"The strategic opportunities afforded by the group's market leadership and strengthening performance have never been greater, and the board and management look forward to 2022 with confidence."

At 0947 GMT, shares in IWG were down 0.2% at 306.5p.