IWG hails ‘transformational’ year as profit hits record high
Serviced office operator IWG has posted record annual profit after what chief executive Mark Dixon described as a “transformational year” for the business.
The FTSE 250 company’s results for 2019 showed pretax profit of £430.1m under IFRS 16, the new accounting standard for leases. Revenue of £2.6bn was 10.4% ahead of 2018’s total.
Dixon said: “2019 was a transformational year for IWG, with sweeping changes to our competitive landscape, a radical shift in the perspective of corporations and a rapid acceleration of our strategy for growth.
Serviced office operator IWG has posted record annual profit after what chief executive Mark Dixon described as a “transformational year” for the business.
The FTSE 250 company’s results for 2019 showed pretax profit of £430.1m under IFRS 16, the new accounting standard for leases. Revenue of £2.6bn was 10.4% ahead of 2018’s total.
Dixon said: “2019 was a transformational year for IWG, with sweeping changes to our competitive landscape, a radical shift in the perspective of corporations and a rapid acceleration of our strategy for growth.
“Together, these developments have validated our long-held view that we are at the forefront of a revolution in the global corporate real estate market that is radically changing how businesses everywhere think about the places where their people work.”
The record bottom line includes profit from the signing of master franchising agreements during the year in Japan, Taiwan and Switzerland. Although those units are now reported under discontinued operations, Dixon said this was “purely an accounting definition and does not reflect the commercial reality that these operations, now owned and operated by our partners, continue to be an important strategic component of the group’s overall network”.
Excluding those gains, profit from continuing operations was £287.9m, up 8% year-on-year on constant currency terms.
IWG signed further franchising agreements in Gibraltar and Monaco in February this year, and has more than 40 more under discussion.
Dixon noted that the coronavirus outbreak has led to the “brief closures” of IWG’s centres in China.
“While we cannot be certain how long this situation will last, we continue to monitor the situation and will act swiftly where necessary to help ensure the safety and wellbeing of our customers and employees,” Dixon added. “We are extremely grateful for the incredible effort of our teams in dealing with this global health emergency.”
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