Regus owner IWG says companies are speeding up investment in new work patterns

The business said it was ‘cautiously optimistic’ about the rest of the financial year.

August Graham
Tuesday 08 August 2023 04:25 EDT
Companies are opting for more hybrid working (Jonathan Brady/PA)
Companies are opting for more hybrid working (Jonathan Brady/PA) (PA Archive)

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The boss of office space provider IWG said companies have speeded up investment in new ways of working even as the pandemic subsided.

Mark Dixon said the first half of 2023, when the business made record revenue, was a “period of strong evolution”.

“In short, it was a continuation of the ‘Big Bang’ we started seeing in 2022, when the continuing impact of the Covid-19 pandemic finally led to the lift-off of the hybrid model that some of us have been anticipating for many years,” he said.

“Now we are seeing fast-growing numbers of businesses across the world adopt and reap the benefits of a model that involves employees working from home for a day or two each week, alongside collaborative time spent at a nearby flexible workspace and the occasional visit to corporate HQ.”

The business said that revenue had increased by 14% to a little under £1.7 billion in the six months to the end of June.

The company revealed on Tuesday it made a pre-tax loss of £70 million, unchanged from the year before. Operating profit grew 154% to £94 million, IWG said.

The business, which is behind brands such as Regus and Signature, said it was “cautiously optimistic” about the rest of the year “given the growing demand for hybrid working solutions” despite foreign exchange movements and challenging competition.

The company said it is reviewing whether IWG should report in dollars, rather than pounds, because most of its revenue is linked to the US dollar.

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