IWG PLC (LON:IWG) said trading had started to improve after the toughest three months in its history and it was considering putting up prices again.
Revenues fell 23.6% to £528.3mln in the quarter to end March 2021, while occupancy dropped to 66.4% from 74.6%.
The numbers looked even worse because the same period a year ago was its best three months to date, said the serviced offices provider.
“In contrast, Q1 2021 has been the trough of the [Coronavirus] COVID-19 impacted performance and the most challenging quarter ever for the group,” though it added there were indications activity was picking up.
The monthly sequential decline in occupancy, experienced throughout the global pandemic abated in February 2021 with occupancy stabilising and then improving modestly in March, IWG said.
“So far in April, this positive momentum has continued, indicating signs that the Group has reached an inflexion point.
“Whilst trading conditions remain challenging with lockdown restrictions continuing in many parts of the world, other markets have recently begun to open up and we are beginning to see some positive underlying trends.”
“With both occupancy and retention improving, and service revenues slowly returning, we are now focused on moving price ahead gradually wherever possible.”
IWG added demand for flexible work products was unprecedented, confirming the continued demand for hybrid working.
The speed of recovery has varied across the regions, it noted, with those areas first affected, notably South-East Asia, coming out of the crisis faster.
China is also now ahead of pre-COVID-19 activity levels, while the US is seeing growth in areas such as Texas and Florida.
Recovery elsewhere has been slower, especially where restrictions remain in place the statement said.
Liquidity at the end of March totalled £812mln with net debt at £294mln.