Key financial highlights:
Continued strong post-tax cash returns. Return on pre-2013 investment of 23.3%
Net growth capital investment more than doubled to £179.7m, including approximately £110m on property
Group revenue was stable at £1,169.7m with revenue momentum improving through the period as IWG returned to growth in Q2
Sequential quarterly recovery in mature revenue performance with positive growth anticipated for the second half
Gross profit before growth and closures increased £7.1m. Including growth and closures gross profit declined £13.9m to £211.3m
Overheads reduced 14%; down 210bp as a percentage of revenue to 10.6%
Operating profit down 13% to £87.0m (down 2% at actual rates) after additional growth investment
Cash generation (before net growth capital expenditure, share buybacks, and dividends) of £87.4m
Prudent financial position maintained with net debt of £306.5m (0.8x net debt:LTM EBITDA)
13% increase in interim dividend to 1.75p (H1 2016: 1.55p), reflecting confidence in long-term outlook
We anticipate strong cash generation in the second half of the year
