IWG posts record first-quarter revenues

In the three months to the end of March, group revenue rose 25% year-on-year to £760m. IWG said continued pricing strength and a focus on cost and efficiencies largely mitigated inflationary pressure.

System-wide revenue grew 22% to a record £847m in the quarter, driven by continuing global demand for hybrid working solutions, and the acquisition of The Instant Group in March of last year.

"Whilst we continue to see higher demand for hybrid working solutions globally with companies reducing their real estate costs and responding to the needs of their employees, there are also macroeconomic headwinds which can impact demand," IWG said.

"The group continues to see pressure from inflation and interest rates which impact costs and cash flow. In particular, the strengthening in sterling, the group's reporting currency, during Q1 2023 will negatively impact financial performance at the group level."

IWG said it remains "cautiously optimistic" about the outlook for 2023 and is confident that EBITDA will remain in line with management's expectations, with net debt falling during the year.