IWG launches share buyback, ups interim dividend

Co-work and workspace operator IWG launched a share buyback programme and upped its interim dividend on Tuesday as part of an effort to increase its appeal among investors.

IWG saw pre-tax profits rise 2% in the six months ending on 30 June to £55.2m, driven by a 12.3% rise in revenues to £1.3bn.

The FTSE 250-listed group, which was in the process of transforming its entire business to a franchising model, increased its overall number of locations to 3,334 during the half and added six new franchise partners - bringing the total to 24 with commitments to another 300 sites.

As a result of the strong first half, IWG was planning to hike its interim dividend by 10.3% to 2.15p per share and buy back £100m of shares.

Chief executive Mark Dixon said: "Even in this period of global, political and economic uncertainty, we expect the positive momentum to continue in our business and this is reflected in the increased proposed dividend and £100m share repurchase programme."

"With our strategic move towards a franchised business, and with the first material strategic partnership signed in the second quarter, we felt it was important to give clarity on how we think about the use of proceeds from such transactions. We believe excess cash should be returned to shareholders."

As of 0840 BST, IWG share shares inched back 0.39% to 360.50p.