Record sales at IWG despite global uncertainty

The serviced office provider IWG has reported record sales for March, reaffirming its resilience amidst a backdrop of global economic volatility. The company, which operates under brands such as Regus and Spaces, posted a two per cent revenue increase, reaching $1.05 billion for the first quarter of this year. This robust performance comes as hybrid working continues to grow in popularity among businesses globally.

Mark Dixon, the founder and chief executive of IWG, expressed his pleasure at the strong start to the year, highlighting that the company’s key markets showed remarkable demand despite broader macroeconomic uncertainties. Dixon noted that March was an exceptional sales period, with indicators such as enquiries and office tours in the US hitting all-time highs.

IWG also reported significant growth in its network of serviced office spaces. It currently manages 202,000 available rooms, compared with 141,000 at the same time last year, while an additional 192,000 rooms have been signed and are pending opening. This expansion is indicative of the shifting business landscape, as companies prioritise smaller, flexible workspaces over traditional long-term leases.

The company has reassured investors of its continued profitability, reiterating its adjusted profit guidance of between $580 million and $620 million for the year. Over the medium term, IWG is targeting adjusted earnings of $1 billion. This outlook is supported by the firm’s ability to deliver greater cash flow while requiring less capital investment than before.

Amid the heightened uncertainties surrounding global trade, sparked partly by former US President Donald Trump’s tariff regimes, IWG has so far reported no direct impact on its operations. While management remains cautious, they see no material slowdown in new signings and openings.

IWG’s trajectory reflects its evolution into a solutions provider for landlords seeking to adapt to the changing demands of hybrid working. Rather than owning or leasing offices outright, the company offers a one-stop shop for property owners aiming to capitalise on the flexible workspace trend. Shares of IWG, which are part of the FTSE 250 index, have gained nearly 15 per cent since the start of the year and traded at 184¼p at Tuesday’s close, slightly down by 0.75 per cent.

Dixon founded IWG in 1989 upon noticing business professionals working from coffee shops for meetings. Today, the company continues to thrive by tapping into the ongoing shift towards adaptable working arrangements, securing its position as a leader within the serviced office sector.