IWG posted a 3.3% drop in its share price today – one of the most sizeable downswings across the FTSE 350 index – after the serviced office company said a hoped-for recovery in business will take longer than expected.
In a year-end trading update, IWG said the future of flexible and hybrid working “looks very positive” but acknowledged that ongoing restrictions during the coronavirus pandemic mean any turnaround in its fortunes this year will now be delayed.
The company is lining up a fresh cost-cutting drive including office closures as the management team aims to cut expenditure by up to £375m a year.
Its shares ended the day at 324p, their lowest level since last November.
U+I clawed back some ground after a steep fall yesterday. The developer, which has made an interim loss of £50m and unveiled sweeping changes including a new chief executive, was up by about 3.9% to 70p.
The day’s biggest real estate rise was from McKay Securities, up by 7.5% to 215p, its highest level since last summer. The company confirmed today that tenant Domestic & General had re-signed a lease at one of its London properties, albeit for reduced floorspace.
The FTSE 100 finished at 6,740 points, up 0.4%. The FTSE 250 rose by 1.4% to 20,881.
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