IWG to rationalise 4% of its network
IWG Group is to further rationalise its network, with 4% of the portfolio at risk, to recoup cash post-Covid-19.
In an H1 trading update for the period ended 31 June, IWG reported a pretax loss of £235.4m on its continuing operations, compared to a £35.5m profit a year earlier.
The co-working provider reported revenue of £1.3bn, up 3.6% on last year.
IWG Group is to further rationalise its network, with 4% of the portfolio at risk, to recoup cash post-Covid-19.
In an H1 trading update for the period ended 31 June, IWG reported a pretax loss of £235.4m on its continuing operations, compared to a £35.5m profit a year earlier.
The co-working provider reported revenue of £1.3bn, up 3.6% on last year.
IWG has identified £155.8m of charges as a direct result of the pandemic – including impairments of goodwill and property, plant and equipment, provision for credit losses and transaction costs for deferred deals and other one-off costs, including restructuring.
During the six months to 30 June, approximately 1.5% of the network was rationalised with a further 1% planned, due to Covid-19. It said the pandemic had accelerated the need for further changes, with 4% committed for rationalisation in the second half of the year.
IWG said it expected a rapid payback from these actions.
Chief executive Mark Dixon said: The new world of working is changing dramatically and the long-term structural drivers for our industry are strengthening, which is very encouraging. However, whilst the Covid-19 pandemic continues, we expect our third quarter to be particularly challenging.
“We therefore remain sharply focused on maximising further cost savings in the coming months to build on the £180m of cash savings achieved through the extensive actions already taken.”
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