Workspace company IWG (LON:IWG) saw shares plummeted over 30 percent on Thursday morning, after saying profit for 2017 would come in “materially below market expectations”.

Trading in London was hit by “weakness”, with the firm, formerly known as Regus, struggling to beat off competition from newer co-working spaces such as WeWork.

The company is now predicting full-year operating profits of between £160 million and £170 million, saying that spending plans may impact on the company’s short term growth.

In a trading update, IWG said sales had not been as high as expected over the quarter and that “the year to date reduction in mature revenues to 30 September 2017 has remained similar to that of the first half, with a decline of 1.9 per cent at constant currency.”

“This is disappointing, although the very strong uplift in sales activity so far in October, would suggest that this is in part potentially a timing issue”.