The WeWork competitor said on Tuesday that adopting US accounting standards ‘remains under evaluation’ and it will make a decision in the coming months
Office and hybrid workspace firm IWG has said it is on track to meet its financial targets amid speculation the company could be mulling a US stock market listing.
The firm, which is seen as a rival to WeWork, said on Tuesday that it’s considering adopting US accounting standards, with a decision expected in the near future. This follows reports that IWG, boasting approximately 4,000 office locations worldwide, might be the next UK-listed company eyeing up a New York listing.
IWG shared with its investors that for the first quarter of 2024, total revenues nudged up by 1% to $1.03billion (£820million) compared to the same time last year. The company attributed this increase to a robust 12% increase in its managed and franchised operations, as it pushes forward with expansion plans.
During the quarter, this segment welcomed 179 new locations, picking up the pace of its growth. On the other hand, the company’s directly owned and leased branch, which forms the largest part of the business, reported revenues that were more or less unchanged from the previous quarter.
Nevertheless, IWG remains upbeat about hitting its profit and net debt targets for 2024. Just last month, the group had adopted a “cautious” stance regarding its yearly forecast, even though its core earnings had surged by over one-third in 2023.
Mark Dixon, the chief executive of IWG, commented: “The first quarter of 2024 produced good year-on-year underlying revenue growth showing that the move to hybrid working continues. We are delivering on our plan to grow in a capital-light way, and the momentum in signings, and importantly openings, continues to accelerate.”
“We remain committed to our strategy of growing our network coverage and giving our customers a great day at work.” In early trading, IWG shares increased 0.6%, standing at 191p.
