IWG saw its share price increase 10.5% to 256.9 in early afternoon trading on Tuesday as it celebrated increases in system-wide revenue on strong demand, hitting its peak in Q4 2021.
The hybrid-working solutions company reported system-wide revenue at £2.4 billion and an adjusted EBITDA of £1 billion.
The Group cited strong momentum from last year set to carry the company into 2022, with IWG reporting its highest ever demand in Q4 2021, surpassing pre-pandemic levels.
IWG did not pay out a dividend for 2021, however, citing the uncertainty of the Covid-19 pandemic and a necessity to protect the company’s liquidity.
The company commented that it intends to restart dividend payments and its share buyback scheme when the Group has reached a point of assured stability.
IWG reported a basic EPS loss of 20.3p against 67.9p in 2020, alongside an EPS loss from continuing operations before adjusting items at 17.2p against 26.4p in 2020.
“2021 has been a year of extraordinary transformation for IWG, for our employees, clients and for the markets we serve,” said IWG CEO Mark Dixon.
“Hybrid working is now an established model and businesses of all sizes are planning for a hybrid future.”
“Our strategy is delivering, and, with a strong start to the year, we look forward to continuing and accelerating the momentum achieved so far in 2022 as businesses of all sizes continue to embrace the hybrid model.”
IWG also reported the merger of its digital and technology assets with The Instant Group.
IWG is set to invest net cash of £270m in order to acquire shares in The Instant Group, and to invest in growth.
The Instant Group management is scheduled to invest an additional £50m into the company.
The new company is anticipated to be spun-out by the close of 2023.
“I am delighted with the merger of IWG’s digital assets with The Instant Group,” said Dixon.
“It’s a fantastic investment behind a world-class management team, positioning IWG to be a market leader in the digital-led future of workplace platforms.”
“This creates a clear path for value creation and will harness the next generation of digital-native workers and the huge market potential of flexible working, building long-term and future-proof growth as the world’s leading supplier of flexible workspace solutions.”