Trading Update

RNS Number : 0465U

IWG PLC

19 October 2017

 

TRADING UPDATE - 19 October 2017

IWG plc, the global leader in the fast-growing Workspace-as-a-Service (WaaS) sector, today issues an update on current trading.

The previously anticipated sales improvement in the third quarter from the increase experienced in sales activity was weaker than expected and this has resulted in a pause in the recovery of the Mature business. Consequently, the year to date reduction in mature revenues to 30 September 2017 has remained similar to that of the first half, with a decline of 1.9% at constant currency. This is disappointing, although the very strong uplift in sales activity so far in October, would suggest that this is in part potentially a timing issue. We also remain encouraged by the revenue growth across all our open centres (excluding closed centres) in the third quarter of 4.4% at constant currency and the improving trends in sales activity, most notably in the fourth quarter to date

The Board remain very positive about the opportunity for the WaaS market and our leading position within it. The Board therefore intends to continue to invest further in growing our national networks, especially in relation to leveraging our network to benefit corporate account customers, where we have won further new contracts. We are also investing in our development capabilities to establish a strong pipeline of growth in future years. In the short-term, however, this will lead to additional overhead costs and new centre losses due to the timing of openings. In addition, we have seen some weakness in London and disruption to other parts of our business globally from recent natural disasters. Group operating profit for 2017 is now expected to be materially below market expectations and in a range of £160m to £170m.

Conference call details

IWG plc will be hosting a call for analysts and investors at 09.00 BST this morning. Details are set out below:

Dial in number:              [phone]

Conference ID:               4097459

This announcement contains inside information.

For further information, please contact:

IWG plc Tel: + 41 (0) 41 723 2353 Mark Dixon, Chief Executive Officer Dominik de Daniel, Chief Financial Officer & Chief Operating Officer Wayne Gerry, Group Investor Relations Director

Brunswick Tel: + 44 (0) 20 7404 5959 Nick Cosgrove Simone Selzer

This trading update contains certain forward looking statements with respect to the operations of IWG plc. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this announcement should be construed as a profit forecast.

 

 

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