Wework triples its losses in Europe as London begins to turn a profit

Emily Nicolle
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Operating profit at Moor Place in London jumped 449 per cent from 2016 (Source: Wework)

Co-working property powerhouse Wework tripled its losses in 2017 across Europe, while taking its flagship building in Moor Place, London to a profit.

In accounts published to Companies House today, reports put Wework International's losses at £32.3m for the year ending December 2017 from £11m the year before.

However its revenues, which account for only the UK business, grew to £118.3m overall, up a staggering 97 per cent from last year at £60.9m.

Its UK headcount now sits at 198, rising from 97, with £3.2bn in UK lease commitments for the next two decades.

For Moor Place alone, which has the capacity for 3,000 members, posted a pre-tax profit of £1.6m as revenues increased 21 per cent year-on-year to £25.2m. A spokesperson told City A.M. the business is currently at 90 per cent capacity across the capital.

Read more: Central London take-up jumps as Crossrail and new hotspots fuel demand

Worldwide, the company continues to post a loss overall. Earlier this year, Wework raised an additional $1bn (£764m) of investment from Japanese giant Softbank.

A Wework spokesperson said:

The 2017 Companies House filings show that we continue to invest in the UK and are expanding here. We more than doubled our number of locations and membership year-on-year and are seeing an increasing desire amongst members for longer memberships.

This is reflected in our increasing revenues, and Wework global leadership is encouraged by the vibrant community and demand we see in London.

There are currently 28 Wework locations open across the UK, with another 14 underway.

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