IWG have proposed a 10.3% increase in its interim dividend, to 2.15p.
Other financial highlights include:
Continued revenue and profit growth
• Open centre revenue up 15.1%(2) to £1,275.0m
• Pre-2018(3) revenue increased 5.2%(2) to £1,154.9m
• Pre-2018(3) EBITDA up 22%(2) to £229.7m
• Profit after tax of £294.9m, including profit on Japan transaction
Franchising momentum and progress
• £320m partnership transaction in Japan completed, long-term master franchise underway
• Franchise agreements signed with multiple partners, commitment of over 300 locations
• Strong interest from third parties wanting to operate IWG brands across a wide range of geographies
Strong growth in enterprise accounts
• Winning many new global clients
• Strong growth momentum with existing enterprise accounts, revenue from top 300 accounts up c.30%
Record cash generation, strong balance sheet and announcement of increased return to shareholders
• Cash flow pre-growth of £385.1m, 43.0p per share
• £100m share repurchase programme announced
Significant capital investment in network and global platform infrastructure
• Net growth capital investment of £185.5m adding 114 new locations (all organic) and 3.0m sq. ft.
• Now in 3,334 locations worldwide, with 58.8m sq. ft. of space
• Expanded the network with 2 new countries and 22 new cities
IFRS 16
• The adoption of IFRS 16 impacts the Group's financial reporting only
• The fundamentals of the business have not changed, with revenue, cash generation and returns unaffected
