IWG increases its 2016 full year dividend by 13%

DividendMax Ltd.

IWG increases its 2016 full year dividend by 13%

Key highlights:

Improved post-tax cash returns on pre-12 investments to 25.1%(i)

Group revenue up 5.5%(ii) to £2,233.4m and underlying operating profit up 14%(ii) to £186.2m

Overheads reduced 13%(ii); down 300bp as a percentage of revenue to 11.7%

Generated £286.1m or 30.8p per share of cash in 2016 (before net growth capital expenditure, share buybacks, dividends and disposal proceeds), an increase of 33%.

Underlying earnings per share up 34% to 15.0p

Conservative balance sheet maintained with net debt of £151.3m (0.4x underlying net debt:EBITDA)

Key banking facility increased to £550.0m and maturity extended to 2021, with option to extend to 2023

13% increase in full year dividend to 5.1p (2015 : 4.5p)

Current trading in-line with management expectations

Companies mentioned