Proactiveinvestors United Kingdom IWG PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom IWG PLC RSS feed en Sat, 25 May 2019 07:49:21 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190514121739_14073460/ Tue, 14 May 2019 12:17:39 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190514121739_14073460/ <![CDATA[RNS press release - Total Voting Rights: Month End Disclosure ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190501070501_14058519/ Wed, 01 May 2019 07:05:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190501070501_14058519/ <![CDATA[RNS press release - Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190501070003_14058358/ Wed, 01 May 2019 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190501070003_14058358/ <![CDATA[RNS press release - Notification of 2019 Q1 Trading Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190424090002_14049785/ Wed, 24 Apr 2019 09:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190424090002_14049785/ <![CDATA[News - Credit Suisse double-upgrades IWG to ‘outperform’ from ‘underperform’ on Japan strategic partnership news ]]> https://www.proactiveinvestors.co.uk/companies/news/218599/credit-suisse-double-upgrades-iwg-to-outperform-from-underperform-on-japan-strategic-partnership-news-218599.html Credit Suisse has double-upgraded its stance for IWG PLC (LON:IWG) to ‘outperform’ from ‘underperform’ following news the firm has inked a strategic partnership in Japan which it thinks is the key change in a strategic pivot for the serviced offices group towards a franchise business.

The Swiss bank raised its price target for the FTSE 250-listed firm to 328p from 200p, with the shares having jumped nearly 24% on Monday to 341.50p.

READ: Office giant IWG sells off Japanese business for £320mln

In a note to clients, the Credit Suisse analysts said the upgrades come as IWG “begins the evolution towards a franchise model with consequent benefits to financial leverage, return on capital, volatility and, in our view multiples.”

They added: “It is early in the process with limited tangible progress but management is clear that it has received significant interest at attractive prices for certain IWG assets.”

The analysts pointed out that selling mature centres will negatively impact IWG’s pre-tax profit (PTP) but reduce debt, raise ROIC (return on invested capital) and improve the quality of earnings.

They said: “We estimate that the sale of 500 mature centres in 2020E would reduce PTP by 12% but cut debt by c90% and raise ROIC from c.10% to c15% (all pre-IFRS 16), which we expect to drive positive valuation re-rating.”

The analysts concluded that, assuming constant relationship between ROIC and the group’s EV/EBITDA multiple, this would boost IWG’s share price by 37%.

They added the key catalyst will be the announcement of centre sales to franchise operators and the terms of that deal.

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Mon, 15 Apr 2019 13:52:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218599/credit-suisse-double-upgrades-iwg-to-outperform-from-underperform-on-japan-strategic-partnership-news-218599.html
<![CDATA[News - Office giant IWG sells off Japanese business for £320mln ]]> https://www.proactiveinvestors.co.uk/companies/news/218561/office-giant-iwg-sells-off-japanese-business-for-320mln-218561.html Serviced offices giant IWG PLC (LON:IWG) has sold off its Japanese business for £320mln as part of a strategic collaboration with TKP, the country’s largest provider of banquet halls and conference rooms.

City broker Peel Hunt said the fee was "extraordinary" and more than double even its best-case outcome.

Investors reacted in kind, with shares up 15% to 318.3p in early trading.

READ: IWG’s franchising strategy could see share price ‘more than double’

As part of the deal, IWG and TKP have entered into a master franchise agreement which will give TKP the exclusive right to use the Regus, Spaces and OpenOffice brands in Japan.

TKP will continue to operate IWG’s 130 offices in the country, while it has also committed to adding “significantly” to that figure over the coming years.

FTSE 250-listed IWG will provide on-going services and support to its Japanese partner, including access to its sales and marketing platform and operational infrastructure and technology.

In return for those services, TKP will pay a platform fee linked to system-wide revenues in Japan.

In 2018, IWG’s Japanese business generated underlying earnings (EBITDA) of £20.6mln on revenue of £94.4mln.

Move to partnership model

“Partnering and franchising are increasingly important elements of our growth strategy and TKP is an outstanding partner for IWG in Japan, with strong local expertise and leadership in adjacent markets and a complementary network of operations,” said chief executive Mark Dixon, who will take a seat on the TKP board as part of the deal.

“The transaction realises an attractive valuation for IWG's shareholders and re-affirms our strategy of capital efficient growth in IWG's global network with an increased emphasis on partnerships.”

The transaction is expected to close later this month, subject to clearance from Japanese competition regulators.

Proceeds from the sale will be used for general corporate purposes, IWG said.

Pleasant surprise for investors

“IWG has sold its first franchise for more than double our best-case estimate,” said Peel Hunt, which repeated its ‘buy’ recommendation in a note to clients.

“Japan only contributed 4% of group EBITDA (net of an estimate for its continuing contribution) yet has been sold for £320mln cash, more than 11% of group enterprise value.

“More sales will follow, which should further validate the new strategy, release substantial value and lead to a complete re-appraisal of the company. Special dividends or cash returns seem likely.

“Because this is only one transaction, we limit ourselves to increasing  our target price from 351p to 400p.”

--Adds share price and analyst comment--

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Mon, 15 Apr 2019 08:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218561/office-giant-iwg-sells-off-japanese-business-for-320mln-218561.html
<![CDATA[RNS press release - Strategic Partnership Transaction in Japan ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190415070007_14040313/ Mon, 15 Apr 2019 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190415070007_14040313/ <![CDATA[RNS press release - Annual Report & Accounts, & Annual General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190411170531_14038348/ Thu, 11 Apr 2019 17:05:31 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190411170531_14038348/ <![CDATA[News - IWG’s franchising strategy could see share price “more than double”, says Peel Hunt ]]> https://www.proactiveinvestors.co.uk/companies/news/218415/iwgs-franchising-strategy-could-see-share-price-more-than-double-says-peel-hunt-218415.html IWG PLC (LON:IWG) shares were lifted in late-morning on Thursday after a bullish note from Peel Hunt said the office space firm could see its share price “more than double” if its franchising strategy paid off.

The broker upgraded FTSE 250 company to ‘buy’ from ‘hold’ and lifted its target price to 351p from 190p, saying the move to potentially franchise out whole parts of the business “could release a lot of value”.

READ: IWG upgraded by RBC on in-line full-year results and positive outlook

“[IWG] would obtain cash upfront, build a faster growing business and allow the deconsolidation of leases … return to franchisees on cash invested in growth could, on a levered basis, rise to high-teen percentages, which is attractive.”

While the company had talked about moving to a franchise model for over a decade, analysts said this time it looked “more serious”.

Last August, IWG walked away from takeover talks with private equity firms Starwood Capital, TDR Capital and Terra Firma because they were not going to make a high enough bid, with chief executive Mark Dixon complaining that the market was not valuing the business properly.

With this in mind, analysts said Dixon’s new strategy “makes sense” for the firm.

While Peel Hunt said the strategy was still in early days, they saw momentum building for the company once the first franchise deals had been announced.

The broker even said that IWG’s shares could reach as high as 701p, although this was “heavily caveated” by the lack of any current deals and the valuations of parts of the business.

Peel Hunt isn’t the only broker to have given a vote of confidence in IWG’s new strategy, with RBC upgrading the firm to ‘sector perform’ from ‘underperform’ and lifting its target price to 260p from 200p in a March note.

The Canadian bank said that if the firm could successfully pull off a franchise model there would be “significant potential” for returns of cash to shareholders.

Shares in IWG were up 4.5% at 274.4p.

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Thu, 11 Apr 2019 11:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218415/iwgs-franchising-strategy-could-see-share-price-more-than-double-says-peel-hunt-218415.html
<![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190401110446_14023501/ Mon, 01 Apr 2019 11:04:46 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190401110446_14023501/ <![CDATA[News - IWG upgraded by RBC on in-line full-year results and positive outlook ]]> https://www.proactiveinvestors.co.uk/companies/news/216638/iwg-upgraded-by-rbc-on-in-line-full-year-results-and-positive-outlook-216638.html Office space provider IWG PLC (LON:IWG) is in a much better position to hit numbers this year, RBC Capital Market said after the company reported its full-year results.

Earlier this month, IWG – which was formerly known as Regus – posted a 7% drop in 2018 pre-tax profit to £138.7mln, reflecting the impact of store closures and openings.

However, revenue increased 9.7% to £2.5mln and the company said it has seen a strong start to 2019 as it takes action to deal with underperforming parts of the business. 

RBC raised its recommendation on the stock to ‘sector perform’ from ‘underperform’ and lifted its price target to 260p from 200p, saying the 2018 results were in line with its forecasts and the outlook was positive.

READ: IWG shares jump as serviced offices group posts strong growth in revenues, driven by overseas operations

“A strong acceleration in mature like-for-like growth in the fourth quarter and positive mature gross margin momentum were the key positives,” the broker said.

“As has become the norm, new centre openings were higher than expected at 299, with growth capital expenditure also higher.”

The broker raised its 2019 revenue assumptions to reflect higher opening and quicker ramp-up of new spaces but it has left its earnings per share (EPS) forecasts unchanged.

Tough for investors to give benefit of the doubt on IWG's long-term potential, RBC says

IWG chief executive Mark Dixon has said he believes that the market is not valuing the business properly.

“However, whilst we respect his view, any business that has delivered three years EBITA of £186mln, £164mln and £156mln whilst debt has risen from £151mln to £461mln AND has shown negative EPS momentum AND has had several prospective private equity bidders walk away, is unlikely to be given the benefit of the doubt by the market, ”RBC said.

“With aggressive opening continuing, which dampens profits and cash flow, we think it is going to be tough for investors to give the benefit of the doubt on the long-term potential - especially at a time when cyclical concerns are apparent.”

Last August IWG walked away from takeover talks private equity firms Starwood Capital, TDR Capital and Terra Firma because they were not going to make a bid that valued the company highly enough.

'Significant potential' for shareholder returns through franchise model

RBC said: “We think IWG is in a much better position to hit numbers this year, which will be a good starting point to rebuilding confidence.

“In addition, if the group can demonstrate potential value from going down the franchise route, then this could be a further catalyst.”

The broker said there were “clearly lots of uncertainties” but if IWG was successful in pursuing a franchise model the return on capital employed and risk profile of the group could “change dramatically” and there would be “significant potential” for returns of cash to shareholders.

“With numbers intact and the potential for value demonstration from franchising, we now see risk-reward more evenly balanced and upgrade to sector perform (from underperform).”

Shares were little changed in late-morning trading to 260.8p.

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Mon, 18 Mar 2019 11:07:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216638/iwg-upgraded-by-rbc-on-in-line-full-year-results-and-positive-outlook-216638.html
<![CDATA[RNS press release - Director/PDMR Transaction ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190308100002_13995534/ Fri, 08 Mar 2019 10:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190308100002_13995534/ <![CDATA[RNS press release - Annual Financial Report Announcement ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190306070005_13991469/ Wed, 06 Mar 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190306070005_13991469/ <![CDATA[RNS press release - Total Voting Rights: Month End Disclosure ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190301070003_13986293/ Fri, 01 Mar 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190301070003_13986293/ <![CDATA[RNS press release - Directorate Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190228103604_13985322/ Thu, 28 Feb 2019 10:36:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190228103604_13985322/ <![CDATA[RNS press release - Total Voting Rights: Month End Disclosure ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190201120615_13955638/ Fri, 01 Feb 2019 12:06:15 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190201120615_13955638/ <![CDATA[RNS press release - Standard form for notification of major holdings ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190109070002_13928161/ Wed, 09 Jan 2019 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190109070002_13928161/ <![CDATA[RNS press release - Total Voting Rights: Month End Disclosure ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190102070005_13920034/ Wed, 02 Jan 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20190102070005_13920034/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181228073001_13917569/ Fri, 28 Dec 2018 07:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181228073001_13917569/ <![CDATA[RNS press release - Appointment of Chief Financial Officer ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181224100001_13914851/ Mon, 24 Dec 2018 10:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181224100001_13914851/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181220073001_13911002/ Thu, 20 Dec 2018 07:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181220073001_13911002/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181219073004_13909257/ Wed, 19 Dec 2018 07:30:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181219073004_13909257/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181218073002_13907491/ Tue, 18 Dec 2018 07:30:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181218073002_13907491/ <![CDATA[RNS press release - Director/PDMR Transaction ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181218070008_13907084/ Tue, 18 Dec 2018 07:00:08 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181218070008_13907084/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181217073002_13905736/ Mon, 17 Dec 2018 07:30:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181217073002_13905736/ <![CDATA[RNS press release - Director/PDMR Transaction ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181217070006_13905322/ Mon, 17 Dec 2018 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181217070006_13905322/ <![CDATA[RNS press release - Director/PDMR Transaction ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181214095726_13904246/ Fri, 14 Dec 2018 09:57:26 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181214095726_13904246/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181214073001_13904006/ Fri, 14 Dec 2018 07:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181214073001_13904006/ <![CDATA[RNS press release - Director/PDMR Transaction ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181213081501_13902347/ Thu, 13 Dec 2018 08:15:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181213081501_13902347/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181213073001_13902286/ Thu, 13 Dec 2018 07:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181213073001_13902286/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181212073002_13900625/ Wed, 12 Dec 2018 07:30:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181212073002_13900625/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181211073002_13898875/ Tue, 11 Dec 2018 07:30:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181211073002_13898875/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181210073002_13897164/ Mon, 10 Dec 2018 07:30:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181210073002_13897164/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181207073004_13895482/ Fri, 07 Dec 2018 07:30:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181207073004_13895482/ <![CDATA[RNS press release - Total Voting Rights: Month End Disclosure ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181203095937_13888737/ Mon, 03 Dec 2018 09:59:37 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181203095937_13888737/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181130073001_13886550/ Fri, 30 Nov 2018 07:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181130073001_13886550/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181129073002_13884851/ Thu, 29 Nov 2018 07:30:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181129073002_13884851/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181128073003_13883160/ Wed, 28 Nov 2018 07:30:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181128073003_13883160/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181127073002_13881479/ Tue, 27 Nov 2018 07:30:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181127073002_13881479/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181123073001_13878306/ Fri, 23 Nov 2018 07:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181123073001_13878306/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181122072918_13876725/ Thu, 22 Nov 2018 07:29:18 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181122072918_13876725/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181121073001_13875022/ Wed, 21 Nov 2018 07:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181121073001_13875022/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181120073004_13873147/ Tue, 20 Nov 2018 07:30:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181120073004_13873147/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181119073003_13871451/ Mon, 19 Nov 2018 07:30:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181119073003_13871451/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181116073003_13869769/ Fri, 16 Nov 2018 07:30:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181116073003_13869769/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181115073001_13868028/ Thu, 15 Nov 2018 07:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181115073001_13868028/ <![CDATA[RNS press release - Transaction in Own Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181107103036_13858402/ Wed, 07 Nov 2018 10:30:36 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181107103036_13858402/ <![CDATA[News - IWG shares jump as serviced offices group posts strong growth in revenues, driven by overseas operations ]]> https://www.proactiveinvestors.co.uk/companies/news/208610/iwg-shares-jump-as-serviced-offices-group-posts-strong-growth-in-revenues-driven-by-overseas-operations-208610.html IWG PLC (LON:IWG) saw its shares jump 8% higher on Tuesday after the serviced offices group reported strong growth in third quarter revenues, driven by overseas operations.

For the three months to the end of September, FTSE 250-listed group saw its revenue increase by 10% at constant currency rates to £637.9mln, up from £585.7mln a year earlier, driven by strong open centre revenue growth of 13.2%.

READ: IWG CFO Dominik de Daniel steps down in wake of profit warning

The firm – which was formerly known as Regus – highlighted good performances in the US, EMEA and Asia-Pacific regions, which more than offset disappointment from the UK.

For the nine months period to the end of September, IWG’s group revenue rose by 8.1% to £1.84bn, up from £1.76bn a year earlier.

The company said mature occupancy for the three month period rose by 0.7 percentage points on a like-for-like basis to 74.3%.

New locations boost

During the third quarter, IWG added 72 new locations to its global network, bringing the total amount of locations added for the year to date to 204 new locations.

In addition, during the quarter, the firm agreed to cover the development of 25 locations over the near-term, taking the total for the group to 115.

IWG said it remains confident that it will deliver a full year result in line with management's expectations.

In reaction to the upbeat trading statement, IWG shares were 8.1% higher at 256.10p in mid-morning trading.

Strategic opportunities

IWG shares took a tumble in early August after the group announced that it had terminated takeover talks with three remaining three bidders - Starwood Capital European Operations Ltd, Terra Firma Investments Ltd and TDR Capital LLP - saying none were capable of delivering an executable transaction at a recommendable price.

At the weekend, Sky News reported that IWG was looking at proposals to spin off its property estate, leaving the group with a "global franchising model".

In today’s statement, IWG said it “continues to explore a range of potential strategic opportunities to deliver increased value and returns for shareholders.”

The group added; “We will continue to take a targeted approach to grow our business, ensuring we commit resources which will deliver attractive returns.

“We expect increased franchising activity and our current pipeline of franchise opportunities is strong across both existing and new geographies.

“We are also in discussions with a number of interested parties who wish to partner with us across entire countries.”

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Tue, 06 Nov 2018 10:28:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208610/iwg-shares-jump-as-serviced-offices-group-posts-strong-growth-in-revenues-driven-by-overseas-operations-208610.html
<![CDATA[RNS press release - Third Quarter Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181106070009_13855922/ Tue, 06 Nov 2018 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181106070009_13855922/ <![CDATA[RNS press release - Total Voting Rights: Month End Disclosure ]]> https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181101092139_13851083/ Thu, 01 Nov 2018 09:21:39 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3305/LSE20181101092139_13851083/