Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Rise of serviced offices aimed at hybrid working boosts IWG

by March 8, 2023
March 8, 2023
Rise of serviced offices aimed at hybrid working boosts IWG

IWG, the world’s biggest provider of serviced office space, reported record revenue last year after cashing in on the popularity of hybrid working.

Mark Dixon, the property industry veteran and IWG’s founder and chief executive, believes that head offices are becoming “either dead or much smaller” now that working from home has become more popular.

“[Hybrid working] is one of those things where everyone is a winner, unless you’re a real estate investor with offices in downtown areas,” Dixon, 63, said. “It’s a much greener outcome, lower costs for companies and much better for people.”

He said those office owners have turned to IWG, formerly known as Regus, to help ready their buildings for flexible working. IWG has seen “rapid growth” in demand for what it calls capital-light contracts, where landlords hand over their buildings and ask IWG to run them as serviced offices.

“If you’re a landlord, you’re looking at a totally new landscape, where the tenants you used to have aren’t there any more, so you’re looking for new ideas,” Dixon explained. “They realise that [businesses] are moving to hybrid working, so they call us and ask us to put their property on the platform and we fill it up for them and create revenue.”

Last year, IWG signed 462 such contracts and it is on track to sign more this year. Hybrid working has also helped IWG to sign up more occupiers, some of which have begun to ditch their long-term leases of entire floors and buildings and replace them with shorter, more flexible deals instead. Occupancy within IWG’s offices has risen to 73.5 per cent from 68.2 per cent a year ago.

Because of that, in addition to some price increases to cover rising costs, IWG generated record revenues of £3.1 billion in 2022, a 24 per cent increase on the £2.5 billion it turned over in 2021.

The group, which has about 3,400 centres in 120 countries, was founded by Dixon in 1989 when he opened his first office in Brussels. He remains the company’s biggest shareholder, with a 28.6 per cent stake worth about £550 million.

IWG swung to an operating profit of £147 million, versus an operating loss of £87 million in the previous year. However, on a statutory basis, the company fell to a pre-tax loss of £105 million, down from £259 million in 2021.

That partly reflected increased finance costs as interest rates spiralled higher, as well as extra investment into Worka, a new workspace booking app that IWG is building out after having merged its digital assets with the Instant Group this time last year. There was some talk last autumn that private equity firms were eyeing up Worka. IWG confirmed that it was “continuing plans to evaluate reducing its ownership stake”.

Looking ahead, Dixon said that “momentum continues going into 2023”, with revenue, operating profits, occupancy and pricing all picking up towards the end of last year.

IWG shares rose 3¾p, or 2 per cent, to 192p yesterday, valuing the business at close to £2 billion.

Read more:
Rise of serviced offices aimed at hybrid working boosts IWG

0
FacebookTwitterGoogle +Pinterest
previous post
Last chance for businesses to take advantage of Super Deduction Tax Relief
next post
10 Tips for Navigating Candidates Who Are Overqualified

You may also like

Mortgage bills ‘to rise by £5,000 a year’

October 15, 2022

Breaking down stereotypes: Why Apprenticeships are good for...

April 6, 2023

Brexit Border IT Outages Delay Import of Perishable...

May 15, 2024

British steel to cut 2,500 jobs despite £600m...

August 23, 2024

Social media creators to eclipse traditional media in...

June 10, 2025

Getting To Know You: Shereen Daniels, founder and...

July 16, 2024

Top Lab Automation Features Highly Essential In Labs...

December 7, 2024

Next profits top £1bn for the first time,...

March 27, 2025

Festive golden quarter falls short for uk retailers...

January 7, 2025

Sam Altman to return as OpenAI CEO after...

November 22, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Licensing Cartelists Say the Quiet Part Out Loud in Puerto Rico

      July 1, 2025
    • Trump urges House Republicans to ignore ‘grandstanders’ and deliver his ‘big, beautiful bill’ by July 4

      July 1, 2025
    • S&P 500 Earnings for 2025 Q1 — Still Overvalued

      July 1, 2025
    • Schumer forces name change for ‘big, beautiful bill’ moments before it passes

      July 1, 2025
    • ‘Only the beginning’: Trump admin releases data showing federal workforce slashed since January

      July 1, 2025
    • House Republicans call for investigation into Obama-appointed judge in Trump funding case

      July 1, 2025

    Categories

    • Business (8,354)
    • Investing (2,093)
    • Politics (15,905)
    • Stocks (3,182)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved