Last checked at 
(Alliance News) - IWG PLC on Wednesday said it expects its anticipated recovery in 2021 to be delayed, despite signs of improved sales activity in the fourth quarter of 2020.
IWG is an operator of service offices and workspaces, with brands including Regus, Spaces and Openoffice.
As a response to the Covid-19 pandemic, IWG said it is implementing actions to reduce costs, including an additional network rationalisation provision of up to GBP160 million, which will be reported in its 2020 results. The annualised cost benefit from this is expected to be in the range of GBP325 million to GBP375 million, and the cumulative benefit in future years is anticipated to be around GBP2.4 billion.
IWG said group revenue for 2020 is anticipated to be approximately GBP2.45 billion as a result of being operationally cash flow positive each month up to the end of the year. Net debt at December 31 is expected to be GBP350 million following the deployment of more than GBP300 million in the fourth quarter to accelerate future organic and inorganic growth.
"Whilst 2020 was the most challenging year ever experienced by the group, and these conditions are likely to persist well into 2021 before we see the environment improving, it has accelerated the shift to a new way of working significantly and we have continued to invest for the future, developing new products and services," IWG said.
"The board remains confident that the group's pivot to a capital-light and more service-orientated business will deliver a stronger, more profitable business capable of delivering increased cashflow," it added.
Shares in IWG were up 0.8% at 337.60 pence in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
