Business
H1 RESULTS ANNOUNCEMENT
H1 RESULTS ANNOUNCEMENT.
About this update from International Workplace Group Plc
[{"type":"text","content":"\n\n \n \n \n \n \n \n \n \n \n8 August 2023\n\n\nH1 RESULTS ANNOUNCEMENT\n \nIWG plc, the largest provider of hybrid workspace globally including its Regus and Spaces brands with an unrivalled network of 3,398 locations across 120 countries, issues its results for the six months ended 30th June 2023\n\n\nRECORD REVENUE DELIVERY COMBINED WITH STRONG CASH FLOW PRODUCTION\n\n• Record six-month system-wide revenue of £1,679m, constant currency growth of 14% year-on-year, and group revenue of £1,484m\n• EBITDA1 increase of 48% to £198m (H1 2022: £131m) driven by revenue momentum and cost discipline\n• Cash flow from business activities2 of £162m (H1 2022: £(4)m)\n• Net financial debt reduced by £54m over the last 6 months to £658m\n\n \nCapital light growth continues, centre growth capex falls\n• Additional 400 new locations signed in H1 2023 - of which only 5% are company-owned3\n• Net growth capex has fallen to £34m H1 2023 vs £57m H1 2022, in line with management expectations\n• Fee income from capital light strategy up 40% to £21m (H1 2022: £15m) and will grow meaningfully as signings progress to openings over an average 18-month timeframe\n\n \nWorka progression\n• Worka, the industry platform enabling hybrid working, saw revenues increase 32% to £153m (H1 2022: £115m) and\n35% EBITDA growth to £62m (H1 2022: £43m)\n• Continued investment in the platform for further Q4 product launches expected to be a catalyst for revenue and EBITDA generation\n\n \nBalance sheet continues to strengthen from cash flow generation\n• Successfully refinanced debt facilities until Q4 2025 as previously announced\n• Strong cash generation - £68m cash generation used directly to reduce gross debt\n\n \nScale and network sets us apart from competition\n• Our scale and network of market-leading brands makes us a partner of choice for corporates and building owners exploring and changing their global real estate strategy\n• ...