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Business & education services

IWG confirms review for potential separation but no decision made yet

The office space group is also looking at how it could more broadly leverage its intellectual property, alongside the ownership structure of the property portfolio

IWG PLC (LSE:IWG) has confirmed it is mulling over the separation of its digital and technology assets into a separate business.

The office space group is also looking at how it could more broadly leverage its intellectual property, alongside the ownership structure of the property portfolio.

READ: IWG working on potential break-up - report

The FTSE 250 company will update on a final decision in the first half of 2022.

As for current trading, the adoption of hybrid working has boosted performance across IWG’s major markets.

Even though it remains cautious amid widespread uncertainty, the occupancy and pricing run-rate achieved in the third quarter and in September in particular support final results in line with expectations, while 2022 is forecast to see a “strong recovery”.

In the quarter ended 30 September, system-wide revenue dipped 3% to £620mln, with occupancy sitting at 71.2% of pre-pandemic levels. Some 1,100 new clients were signed during the three months.

Net debt at the end of the period was £412mln.

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