IWG has merged with a digital assets group to create a new workspace platform in a £270m investment, after it more than halved its operating losses last year.
The Instant Group, which provides digital marketing and workspace solutions to nearly half of FTSE 100 firms, will invest a further £50m into the company, IWG announced today.
“Hybrid working is now an established model and businesses of all sizes are planning for a hybrid future. The shift from fixed workspace to flex is now accelerating and irreversible,” chief executive Mark Dixon said in a statement.
Dixson added that the investment “will harness the next generation of digital-native workers and the huge market potential of flexible working, building long-term and future-proof growth as the world’s leading supplier of flexible workspace solutions”.
It comes alongside the announcement that former Yum! chief operations officer for KFC, Tarun Lal, will join the board as a no-executive director in mid-May, who is set to “contribute to the continued strategic development of IWG,” according to chairman Doug Sutherland.
The workspace giant, which released a trio of updates today, also reported a revenue slip.
Revenue dipped from £2.4bn in 2020 to £2.2bn in the year to 31 December. Despite a 4.7 per cent revenue loss, shares jumped more than 11 per cent to 258.2p per share by mid-afternoon.
The group did, however, more than halve its operating losses in the 12-month period, from £350m in 2020 to an £87m loss last year.
Dixon continued: “Looking forward, the strength of our balance sheet, the flexibility of our technology and the reach of our teams give us the ability to build momentum and deliver strong growth, both with enterprises and on-line.
“Our strategy is delivering, and, with a strong start to the year, we look forward to continuing and accelerating the momentum achieved so far in 2022 as businesses of all sizes continue to embrace the hybrid model.”