Office firm IWG holds guidance amid speculation over US listing

The WeWork competitor said on Tuesday that adopting US accounting standards ‘remains under evaluation’.

Henry Saker-Clark
Tuesday 07 May 2024 12:42 BST
Office giant IWG has reported a continued shift towards hybrid working, with many firms moving from city centres (IWG/PA)
Office giant IWG has reported a continued shift towards hybrid working, with many firms moving from city centres (IWG/PA)

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Office and hybrid workspace firm IWG has said it is on track to meet its financial targets amid speculation the company could be mulling a US stock market listing.

The WeWork competitor said on Tuesday that adopting US accounting standards “remains under evaluation” and it will make a decision in the coming months.

It comes on the back of reports the company, which has around 4,000 global office locations, could become the latest UK-listed business to seek a listing in New York.

On Tuesday, IWG told investors that overall revenues grew by 1% to 1.03 billion US dollars (£820 million) for the first quarter of 2024, compared with the same period a year earlier.

The group said this was driven by 12% growth across its managed and franchised business, as it continued to expand.

It said this division signed up 179 new sites over the quarter, accelerating its rate of growth.

Meanwhile, the firm’s company-owned and leased operation, the largest arm of the firm, saw broadly flat quarterly revenues.

IWG said it is confident of meeting its earnings and net debt expectations for 2024 as a result.

Last month, the group has said it was “cautious” in its outlook for the year, having seen core profits jump by over a third in 2023.

Mark Dixon, chief executive of the group, said: “The first quarter of 2024 produced good year-on-year underlying revenue growth showing that the move to hybrid working continues.

“We are delivering on our plan to grow in a capital-light way, and the momentum in signings, and importantly openings, continues to accelerate.

“We remain committed to our strategy of growing our network coverage and giving our customers a great day at work.”

IWG shares were 0.6% higher at 191p in early trading.

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