International Workplace Group plc, the world's largest hybrid workspace platform with a network in over 120 countries through flexible workspace brands such as Regus and Spaces issues its results for the six months ended 30th June 2024.

The first half of 2024 has been a strong period for the Group, delivering a record six months of System-revenue, growth in EBITDA, continued cash-flow generation, and a return to positive earnings for the first time in nearly five years. Previous periods have been about setting the foundations for the business across the three platforms and the results of those strategic decisions are now being realised. Combining the Group's unique brand strategy and unrivalled global network with an innovative new route to market has enabled us to grow with far less capital intensity, positioning the business well for the remainder of 2024 and beyond.

Key highlights from the half year’s results:

Group Performance: Solid foundations driving record revenue, cashflow generation and positive earnings

•    Group H1 2024 results:
o    Highest-ever System-wide revenue of $2.1bn (2% constant currency-growth)
o    EBITDA growth of 13% to $274m (H1 2023: $245m)
o    Cashflow generation of $118m from business activities leading to a net debt reduction. Net debt of $(768)m (H1 2023: $(835)m)
o    Return to positive earnings with eps of 1.6¢ underpinning an interim dividend of 0.43¢ per share
o    Managed partnership growth continues with new centre signings of 387 and 247 openings (rooms opened +173% year-on-year)

•    Divisional performance:
o    Managed & Franchised: Growth in new centres with both signings and openings accelerating, fee income evolving as expected
o    Company-Owned & Leased: Margin expansion continuing
o    Worka: Maintained revenue as previously guided

•    Capital structure: Milestone refinancing of debt, extending maturities to 2029 / 2030 with new revolving credit facility, inaugural bond issued backed by a debut investment grade Fitch BBB credit rating

•    Stability: No change to the financial outlook set out in the Q1 Trading Update on 7 May 2024 with expected continued growth and net debt reduction throughout 2024

Mark Dixon, Chief Executive of IWG plc, said:
"The first half of 2024 produced good year-on-year open-centre revenue growth. We are delivering on our capital-light growth plan. Momentum continues in signings, and importantly openings, and we are delighted to return to positive earnings. We remain committed to our strategy of growing our network coverage and giving our customers a great day at work."

 

IWG