IWG PLC (LSE:IWG) (LSE:IWG) said that the pandemic-induced shift in working habits has created “unprecedented demand” for its flexible products but recovery won’t come earlier than 2022.
The office space provider said the recent trends are a positive tailwind over the medium to longer term and it is currently receiving interest from companies looking to change their practices.
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It signed up over 900 new enterprise customers in the first half, a new record for client wins.
However, IWG is keeping “cautious optimism” for the second half of the year as restrictions are eased across its markets, though more lockdowns may be announced if more COVID variants emerge.
The speed of recovery in occupancy levels has been lower than originally anticipated and, given the operational gearing of the business, it is estimated to have a “significant impact” on full-year numbers for 2021.
In the six months to 30 June, revenue tumbled 19% to £1bn but loss before tax shrank to £162mln from £184mln in the same period last year. Occupancy was down to 68.4% from 75.3% in 2020.
Enquiries and customer retention were back to pre-pandemic levels in the second quarter, with the US showing the strongest recovery as June was a record month for space sold in the country.
Shares rose 1% to 323.5p on Tuesday morning.