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Share Price:
Down 313.60p
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Market Cap:

IWG revenue growth driven by strong European performance

By Duncan Ferris

Date: Wednesday 01 May 2019

LONDON (ShareCast) - (Sharecast News) - IWG, formerly known as Regus, on Wednesday reported strong first quarter revenue following double-digit revenue growth in the Americas, Asia Pacific and EMEA, with the company also reporting "strong momentum" in its strategic partnership approach.
The office space provider's revenue increased 10.6% at constant currency over the three months ended 31 March as revenue growth across the business' open centres increased by 15.1%, driven by a "particularly pleasing" performance in large European countries including France, Germany and Spain.

At actual rates, first quarter revenue increased by 12.7%, reflecting currency tailwinds from the US dollar and some currencies in Asia Pacific.

During the quarter, IWG added 55 new locations to its global network, with net growth capital investment of 43.3m, down from the 63.4m net investment for 46 new locations in the same quarter last year, as growth-related partner contributions more-than doubled to 56.7m.

A statement from IWG said: "We want to significantly accelerate this growth by complementing our traditional group-owned growth with an increasing focus on partnering and franchising, as evidenced by the strategic partnership we recently agreed with TKP for our business in Japan, which is expected to complete later this month. This is an important aspect of our strategy to deliver capital efficient growth in our global network."

The partnership agreement, which saw IWG receive a gross consideration of approximately 320m as TKP gained exclusive rights to use IWG's brands in Japan, could be the first of many as the FTSE 250-traded company said it was enjoying "strong momentum" with the strategy with interested candidates keen on bringing the brand to "a wide geographic spectrum".

Finally, IWG added that it had net debt of 534.1m at the end of the quarter, up from 460.8m at 31 December, though the company will receive the gross proceeds of 320m from its Japanese activities later this month.

IWG's shares were down 0.35% at 338.72p at 0804 BST.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


IWG Market Data

Currency UK Pounds
Price 313.60p
Change Today -5.20p
52 Week High 383.60p
52 Week Low 222.60p
Volume 1,222,596
Shares Issued 1,007.37m
Market Cap 3,159.11m

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What The Brokers Say

Strong Buy 5
Buy 1
Neutral 4
Sell 0
Strong Sell 0
Total 10
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IWG Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-19 25-Apr-19
Paid 04-Oct-19 24-May-19
Amount 2.15p 4.35p

Trades for 30-Jul-2021

Time Volume / Share Price
16:35 609,857 @ 313.60p
16:29 323 @ 315.50p
16:29 182 @ 315.50p
16:29 129 @ 315.50p
16:29 425 @ 315.50p

IWG Key Personnel

Chair Douglas Sutherland
CEO Mark Dixon
CFO Glyn Hughes