IWG swings to loss in 2020 as "challenging" market hurts performance

(Alliance News) - IWG PLC on Tuesday labelled 2020 a "challenging year" as it swung to loss amid ...

Alliance News 9 March, 2021 | 9:38AM
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(Alliance News) - IWG PLC on Tuesday labelled 2020 a "challenging year" as it swung to loss amid an increase in expenses and a decline in revenue.

IWG, which was formerly known as Regus, is a provider of offices. The stock was trading 6.9% lower on Tuesday morning in London at 355.20 pence a share.

The Luxembourg-headquartered company said revenue in 2020 declined to GBP2.48 billion from GBP2.65 billion a year earlier. The company swung to a pretax loss of GBP620.1 million compared to GBP55.0 million profit reported for 2019.

The company recorded a GBP246.0 million loss on impairment of property, plant, equipment and right-of-use assets versus a GBP2.1 million gain the year before. IWG also said losses on trade receivables widened to GBP34.8 million from GBP2.0 million year-on-year.

Total selling, general and administration expenses rose to GBP371.9 million from GBP278.3 million in 2019.

"Certainly, 2020 was very difficult, and I anticipate these challenging market conditions to prevail for a few months to come. Indeed, we made additional provisions for further network rationalisation as the recovery from the pandemic continues to take longer than we anticipated last summer," said Chief Executive Mark Dixon.

Going forward, he added: "In summary, we are progressing well on our plans to strengthen our position as the leading service provider to the global flexible workspace industry and I firmly believe that the years ahead will be tremendously exciting for our business."

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
IWG PLC 181.90 GBX -0.87 -

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