IWG’s profit has increased by 48% as revenue rose by 14% in the first half of the year.
The hybrid workspace provider said EBITDA was up 48% to £198m, while revenue had risen to £1.68bn. Operating profit rose by 154% from £37m in H1 2022 to £94m.
Chief executive Mark Dixon said: “We continue to grow as expected, producing a record period for IWG with our highest ever revenue in our over 30-year history, up 14% from the first half of 2022.”
The Regus owner said the boost had come largely from the expansion of its capital-light model. An additional 400 new locations were signed in H1 2023, of which only 5% are company-owned.
This had allowed net growth capex to fall to £34m, down from £57m for H1 2022, in line with expectations.
Fee income from the capital-light strategy was up 40% to £21m. IWG said this would “grow meaningfully as signings progress to openings over an average 18-month time frame”.
Dixon said: “During the first half of the year, we have accelerated our capital-light growth strategy, allowing us to capitalise on the growing pipeline of property investors seeking to maximise their returns by partnering with IWG.”
He added: “In fact, we have signed almost as many agreements in the first half of 2023 as we did in the whole of 2022.”
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