Business
Interim Results Announcement
Interim Results Announcement.
About this update from International Workplace Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0759I\n IWG PLC\n 10 August 2021\n \n \n \n \n \n \n \n \n \n 10 August 2021\n \n \n \n \n \n IWG plc - INTERIM RESULTS ANNOUNCEMENT - SIX MONTHS ENDED 30 JUNE 2021\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 2021\n \n \n \n \n Strong occupancy recovery in Q2 in major markets and future top-line recovery supported by the growth of hybrid working and new customer wins. Pace of recovery dependent on continued easing of pandemic restrictions. \n \n \n \n \n \n \n Key Highlights\n \n (1) \n \n \n \n \n Performance improvement evident in Q2\n \n \n • \n Open centre revenue increased from Q1 to Q2 by 3.4%(2); HY down 10.4%(2) year-on-year\n \n \n • \n Pre-2020(3) revenue increased from Q1 to Q2 by 1.5%(2); HY down 15.0%(2) year-on-year to £992.0m (H1 2020: £1,224.7m)\n \n \n • \n Pre-2020(3) occupancy increased from Q1 to Q2 by 120 bps to 69.0%; HY occupancy was 68.4% (H1 2020: 75.3%)\n \n \n • \n Encouraging Group pricing trends at the end of the period, with average new sales price exceeding embedded price in June\n \n \n • \n Enquiries and customer retention are back to pre-COVID-19 levels in Q2\n \n \n • \n Very strong recovery in meeting room and day office usage in Q2 with revenue up 39.9%(2) on Q1 2021 \n \n \n • \n Month-on-month improvement in EBITDA during Q2\n \n \n • \n US showing the strongest recovery; June was a record month for space sold\n \n \n \n Structural tailwinds strengthening \n \n \n • \n Unprecedented demand for hybrid working; record new client wins with over 900 new enterprise customers gained in H1\n \n \n • \n Pre-existing demand strongly supplemented by more enterprises now looking at greater distributed working\n \n \n \n \n \n Strong focus on cost control\n \n \n • \n On track to achieve a run-rate reduction in underlying pre-growth costs of c.£320m(1). Approximately £190m delivered in H1 versus prior year\n \n \n • \n £39.2m COVID-19 related charges(1)(4)\n \n \n \n \n \n Quality network growth\n \n \n • \n 84 new locations opened including the acquisition of four competitor locations with nine more already signed for opening in H2\n \n \n • \n Less capital-intensive growth - net growth invest...