REG - IWG Plc Regus PLC - Investor Day

IwgAnnouncement

05/12/2023 12:00

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RNS Number : 7205V  IWG PLC  05 December 2023

 

 

5 December 2023

 

IWG ANNOUNCES RESUMPTION OF DIVIDEND AT ITS INVESTOR DAY FOLLOWING STRONG
PERFORMANCE

 

 

IWG plc, the largest provider of hybrid workspace globally including its Regus
and Spaces brands with an unrivalled network of 3,455 locations across more
than 120 countries, hosts an Investor event for institutional investors and
analysts today in New York City.

 

The presentations from IWG's management team will outline strategic priorities
and prospects for the medium term; in addition to how we will deliver
sustainable growth, cashflow, and maximize long-term shareholder returns.

 

This includes:

·      Resumption of regular dividend payments

·      A medium-term ambition of $1bn run-rate EBITDA(1)

·      Committing to additional capital returns to shareholders once our
net financial debt / EBITDA(1) falls below 1x

·      Presenting our business as three divisions - Managed and
franchised, Company-owned, Worka

 

Mark Dixon, Chief Executive Officer and Charlie Steel, Chief Financial
Officer, will be joined by members of the IWG Senior Leadership Team to
present the business.

 

As part of this event, IWG will be outlining reporting going forward by
focusing on three distinct, but complementary business models and presenting
associated KPIs.

 

Focusing on growth through the capital-light business means that growth capex
requirements will be dramatically lower in the future, generating more free
cash flow for shareholders.

 

IWG is planning to restart its progressive dividend policy with a final
dividend, expected to be 1p per share to be announced alongside 2023 FY
results,

 

The Group is also announcing a medium-term EBITDA 1  ambition of $1bn
EBITDA(1) and that when 1x Net Debt / EBITDA(1) is reached, IWG will share
future cash flow between debt and equity holders. Until that point, the focus
will remain on reducing net financial debt.

 

Mark Dixon, Founder and Chief Executive Officer, said: "I am delighted to be
announcing the intention to resume the dividend which is a signal of how well
the business is doing. We are delivering on our strategy of capital-light
growth, backed up by having a strong balance sheet. We expect to continue to
deliver both cashflow and growth, and I look forward to discussing the
business's operations and financial targets further at our Investor event
today in New York City."

 

As previously announced, IWG will be moving its functional currency to US
dollars as of 1 January 2024 and the Board will finalise its review regarding
a change of accounting standards to US GAAP in H1 2024.

 

IWG's outlook for full-year 2023 is reaffirmed from the Q3 trading update on 7
November 2023.

 1  Before the application of IFRS 16

 

Financial Calendar

5 March 2024 - 2023 FY Results (London, UK)

7 May 2024 - Q1 2024 Trading Update (Remote)

 

Further information

 IWG plc                                       Brunswick Tel: + 44 (0) 20 7404 5959

 Mark Dixon, Chief Executive Officer           Nick Cosgrove

 Charlie Steel, Chief Financial Officer        Peter Hesse

 Richard Manning, Head of Investor Relations

 

This 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.

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