IWG maintains FY guidance, mulls US listing
By Iain Gilbert
Date: Tuesday 07 May 2024
(Sharecast News) - Flexible workspace provider IWG maintained its full-year guidance on Tuesday as it considers a US listing amid continuing margin growth and network expansion during Q1.
IWG said underlying quarterly system-wide revenues grew 1% year-on-year to $1.03bn, with managed and franchised revenues up 12% to $139.0m. Group revenues were 4% stronger at $97.0m.
The London-listed group also managed to lower its net debt position from $863.0m to $791.0m, with net debt reduction expected to continue during 2024.
Looking forward, IWG stated it was focused on improving margins in its owned and leased unit, growing fees in its managed and franchised business, and controlling overheads across the group. T
"This is expected to be achieved by increasing both coverage and system-wide revenue in a capital-light manner. As a result, we are confident that both 2024 EBITDA and net financial debt will be in line with management's expectations which have not changed since the full-year results on 5 March," said IWG.
IWG also said it was continuing to monitor market conditions for opportunities to manage the maturity profile of its capital structure and said adopting US GAAP "remains under evaluation", with a decision to be taken in the coming months.
As of 1015 BST, IWG shares were down 0.16% at 189.50p.
Reporting by Iain Gilbert at Sharecast.com
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