Business
2019 Interim Results
2019 Interim Results.
About this update from International Workplace Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 9960U\n IWG PLC\n 04 August 2020\n \n \n \n \n \n \n \n \n \n 4 August 2020\n \n \n \n \n \n IWG plc - INTERIM RESULTS ANNOUNCEMENT - SIX MONTHS ENDED 30 JUNE 2020\n \n \n \n \n \n IWG plc, the global operator of leading workspace brands, today announces its interim results for the six months ended 30 June 2020\n \n \n \n \n \n Resilient underlying performance, actions taken to position group strongly for 2021\n \n \n \n \n \n Key Highlights\n \n (1)\n \n \n \n \n \n \n \n \n \n Good first half performance overall given COVID-19 impact in Q2\n \n \n • \n Open centre revenue up 10.2%(2) to £1,298.2m, up 17.7% in Q1 and up 2.5% in Q2\n \n \n • \n Pre-2019(3) revenue up 0.2%(2) to £1,164.4m, up 7.6% in Q1 and down 7.4% in Q2\n \n \n • \n Pre-2019(3) occupancy up 4.1 percentage points to 75.9% from 71.8% for same period in 2019\n \n \n • \n Strong demand for home working and virtual office products: VO customer growth in June year-on-year c. 15%\n \n \n • \n Positive cash generated every month in first half\n \n \n \n \n \n Comprehensive actions taken to reduce costs, improve cash flow and liquidity\n \n \n • \n £180m cash savings from operations so far; continued focus on achieving further savings\n \n \n • \n Further specific COVID-19 related actions announced today:(4)\n \n \n -\n £29.1m charge for expected credit losses, transaction costs for deferred deals, restructuring costs and goodwill impairment\n \n \n - \n £126.7m provision to provide for network rationalisation\n \n \n \n \n \n Well placed to capture significantly increased growth opportunities\n \n \n • \n Existing strong demand supplemented by more enterprise accounts looking at greater distributed working\n \n \n • \n Greater requirement for more flexible space; Desire for improved cost efficiency\n \n \n • \n Strengthened financial position following £320m equity placing to accelerate future organic and inorganic growth\n \n \n • \n Net debt reduced to £15.9m; £830.3m of available liquidity\n \n \n \n \n \n Continued momentum in franchising strategy\n \n \n • \n Added 6 new franchise partners and an additional 30 committed locations\n \n \n • \n Franchising remains a key focus area for growth; Master franchise discussions ongoing \n \n \n \n \n \n Fo...