Business
Year End Trading Update
Year End Trading Update.
About this update from International Workplace Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2315M\n IWG PLC\n 20 January 2021\n \n \n \n \n \n 20 January 2021\n \n \n \n \n \n Year End Trading Update\n \n \n IWG plc, the leading global operator of workspace brands, today issues a trading update for the year ended 31 December 2020, ahead of the publication of full year results on 9 March 2021.\n \n \n Current trading and further COVID-19 impact and actions\n \n \n The continuation of the coronavirus pandemic, including new or extended preventative measures in most of the Group's markets, is now expected to prolong the impact of the pandemic on our business. Following early signs of recovery during the fourth quarter of 2020 with improved sales activity, we now expect our anticipated recovery in 2021 to be delayed.\n \n \n In response to the prolonged pandemic and to ensure we emerge a stronger business post COVID-19, we have identified, and are implementing, further prudent actions to reduce costs, including additional network rationalisation, similar in magnitude to the previously announced rationalisation programme, and giving more support to our customers. Accordingly, a further provision of up to £1601m for network rationalisation will be taken with the Group's results for the year ended 31 December 2020, in addition to the net charges of £155.8m1 directly related to COVID-19 that were identified with the interim results published on 4 August 2020. Group revenue for the year ended 31 December 2020 is anticipated to be approximately £2.45bn.\n \n \n The anticipated annualised cost benefit arising from these actions, if fully implemented, is expected to be in the range of £325m to £375m. The estimated cumulative benefit of these actions accruing to the Group in future years will be significant and is anticipated to be c. £2.4bn. \n \n \n Strong financial position\n \n \n The Group remains in a strong financial position and has been operationally cash flow positive each month up until the month of December 2020. During December the Group experienced a modest operating cash outflow resulting from the completion of deals with landlords that secure significant long-term positive benefits. As more deals with landlords complete, f...