IWG PLC on Tuesday reported ‘record’ interim revenue, helped by progress in its hybrid working platform Worka.

Revenue for the six months ended June 30 increased rose 15% £1.48 billion from £1.29 billion a year earlier. System-wide revenue, which includes franchise, managed centre and joint-venture partners, surged 16% to £1.68 billion.

‘We continue to grow as expected, producing a record period for IWG with our highest ever revenue in our over 30-year history,’ Chief Executive Mark Dixon said.

By division, it was Worka which produced the largest growth. Revenue surged 32% to £153 million, from £115 million the year before.

Earnings before interest, tax, depreciation, and amortization were up 48% to £198 million, from £131 million, which IWG said was driven by revenue momentum and enforced cost discipline.

Its pretax loss was flat at £70 million, however, though operating profit more than doubled to £94 million, from £37 million the year before.

‘During the first half of the year, we have accelerated our capital light growth strategy allowing us to capitalise on the growing pipeline of property investors seeking to maximise their returns by partnering with IWG, in fact we have signed almost as many agreements in the first half of 2023 as we did in the whole of 2022,’ said CEO Dixon.

‘We continue to be well-placed to deliver further revenue, profitable growth and reducing leverage as more companies permanently embrace hybrid working as their preferred model with IWG set to be the biggest beneficiary.’

IWG declared no interim dividend, unchanged year-on-year stating that its focus was on ‘cash flow production to reduce net debt’.

‘Future dividend payments continue to be placed on hold, with the intention to review the return to our progressive dividend policy when appropriate,’ it explained.

IWG said its outlook for the full tear remained ‘cautiously optimistic’, and that it had not changed its expectations for full year adjusted Ebitda, and that net debt continues to fall during the year.

‘We enter the second half of the year with good momentum. The future for IWG and all our stakeholders remains bright as we continue to grow our customer base, our global network and our best-in-class portfolio of locations and brands,’ said CEO Dixon.

In addition, the company has begun a review on its reporting currency, with most of its revenue denominated in or linked to the dollar. It is also reviewing the ‘potential implications of reporting under US GAAP rather than IFRS, irrespective of listing venue’.

Shares in IWG were up 0.5% at 150.75 pence in London on Tuesday morning.

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