(Alliance News) - Office rental firm IWG PLC on Tuesday said its performance for the first three months of the year reflected the difficult business conditions‎ caused by the virus pandemic.
Total revenue for the quarter was down 24% at GBP528.3 million from GBP691.9 million in the prior year. Open centre revenue - meaning excluding any closed office sites - also saw a decline, down 19% to GBP523.1 million from GBP646.3 million.
It said comparisons were difficult, as the start of 2020 represented the strongest quarter in the group's history. "In contrast, Q1 2021 has been the trough of the COVID-19 impacted performance and the most challenging quarter ever for the group," it said.
Despite disappointing trading results, IWG reported a strong financial position, with liquidity of GBP811.6 million at March 31. It also announced early signs of improvement including rising occupancy levels, an increasing pipeline of corporate customers on network-wide deals and an uplift in service revenue. An "unprecedented demand for flexible work products" was also highlighted by IWG as confirmation of the demand for hybrid working post-pandemic.
IWG is an operator of service offices and workspaces, with brands including Regus, Spaces and Openoffice. In January it said it expects its anticipated recovery in 2021 to be delayed, despite signs of improved sales activity in the fourth quarter of 2020.
Shares in IWG fell 1.3% to 358.20 pence in London early on Tuesday morning.
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
IWG (IWG)