IWG PLC (LSE:IWG) saw its shares slip 2% in early trading after it guided profit expectations for the year towards the lower end of current City projections.
EBITDA is forecast at the bottom of the £304mln-£380mln range, the company said with broker Peel Hunt suggesting forecasts for full year 2023 could also come down, possibly to below £400mln from the current consensus of £470mln.
Updating the market on third quarter trading, IWG still reported strong growth in revenues of 25% to £737mln with improved pricing and higher occupancy mitigating ongoing inflationary pressures.
The provider of hybrid workspace, which owns Regus, said this translated into continued improvement in EBITDA performance across all regions.
IWG said: “Monthly profitability is continuing to grow, and we remain cautiously optimistic about the outlook for the full year.”
In a statement, Mark Dixon, the group CEO commented: “The third quarter has shown continuing strong revenue growth, margin improvement and underlying cash generation. We are well placed to deliver the full year results and enter 2023 with a strong foundation for delivering further growth and reducing leverage."