IWG to close and refurbish sites
Office space provider IWG, whose brands include Regus and Spaces, has said it will close and refurbish some sites, after its profit fell during 2018.
Its operating profit was £154.1m during the 12 months in the year to 31 December, down by 6% on an actual currency basis on the previous year. Its profit before tax reduced by 7% to £138.7m; profit after tax was also down by 7%, to £105.7m.
Overheads deepened by 7% to -£253.7m.
Office space provider IWG, whose brands include Regus and Spaces, has said it will close and refurbish some sites, after its profit fell during 2018.
Its operating profit was £154.1m during the 12 months in the year to 31 December, down by 6% on an actual currency basis on the previous year. Its profit before tax reduced by 7% to £138.7m; profit after tax was also down by 7%, to £105.7m.
Overheads deepened by 7% to -£253.7m.
Mark Dixon, chief executive of IWG, said: “In markets where we have faced challenges, we have taken decisive action to bring our performance back on track with selective closures, refurbishing locations we wish to retain, adding exciting new locations to the network and investing in the customer service skills of our people.
“We are starting to see the benefits of these initiatives. There are however global macro-economic and geo-political uncertainties in various parts of the world, which makes it sensible to develop the business with some caution. We continue to invest in and develop our partnering activities which will allow us to deliver more growth with less capital intensity on our balance sheet.
“We remain very confident in our industry and its structural growth drivers and the strength of our position in the industry with a growing, profitable and cash generative proven business model. The board remains confident in our prospects for the year ahead and the trading outlook for 2019 remains in line with management’s expectations.”
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