IWG PLC Trading Update (0465U)
October 19 2017 - 1:00AM
UK Regulatory
TIDMIWG TIDMTTM
RNS Number : 0465U
IWG PLC
19 October 2017
TRADING UPDATE - 19 October 2017
IWG plc, the global leader in the fast-growing
Workspace-as-a-Service (WaaS) sector, today issues an update on
current trading.
The previously anticipated sales improvement in the third
quarter from the increase experienced in sales activity was weaker
than expected and this has resulted in a pause in the recovery of
the Mature business. Consequently, 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% 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. We also remain encouraged by the
revenue growth across all our open centres (excluding closed
centres) in the third quarter of 4.4% at constant currency and the
improving trends in sales activity, most notably in the fourth
quarter to date
The Board remain very positive about the opportunity for the
WaaS market and our leading position within it. The Board therefore
intends to continue to invest further in growing our national
networks, especially in relation to leveraging our network to
benefit corporate account customers, where we have won further new
contracts. We are also investing in our development capabilities to
establish a strong pipeline of growth in future years. In the
short-term, however, this will lead to additional overhead costs
and new centre losses due to the timing of openings. In addition,
we have seen some weakness in London and disruption to other parts
of our business globally from recent natural disasters. Group
operating profit for 2017 is now expected to be materially below
market expectations and in a range of GBP160m to GBP170m.
Conference call details
IWG plc will be hosting a call for analysts and investors at
09.00 BST this morning. Details are set out below:
Dial in number: +44 (0) 20 3009 5710
Conference ID: 4097459
This announcement contains inside information.
For further information, please contact:
IWG plc Tel: + 41 (0) 41 Brunswick Tel: +
723 2353 44 (0) 20 7404 5959
Mark Dixon, Chief Executive Nick Cosgrove
Officer Simone Selzer
Dominik de Daniel, Chief
Financial Officer & Chief
Operating Officer
Wayne Gerry, Group Investor
Relations Director
This trading update contains certain forward
looking statements with respect to the operations
of IWG plc. These statements and forecasts involve
risk and uncertainty because they relate to events
and depend upon circumstances that may or may
not occur in the future. There are a number of
factors that could cause actual results or developments
to differ materially from those expressed or
implied by these forward-looking statements and
forecasts. Nothing in this announcement should
be construed as a profit forecast.
---------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTUKVVRBWARARA
(END) Dow Jones Newswires
October 19, 2017 02:00 ET (06:00 GMT)
Iwg (LSE:IWG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Iwg (LSE:IWG)
Historical Stock Chart
From Apr 2023 to Apr 2024