Service office space provider IWG posted a 7% drop in profits over higher costs, in order for the property company to support expansion plans, they invested in revamping some sites and closed others.
IWG posted pre-tax profits of £138.7m for 2018 compared to £149.4m the previous year. Overheads climbed 7% to £253.7m while revenue soared 7.8% to £2.5bn.
IWG who were previously Regus added over 6.8m square feet of new space in 2018 along with 200 new locations, making a total of 3,306 locations.
Mark Dixon, chief executive said, “In markets where we have faced challenges, we have taken decisive action to bring our performance back on track with selective closures, refurbishing locations we wish to retain, adding exciting new locations to the network and investing in the customer service skills of our people.
“We are starting to see the benefits of these initiatives.”
However, Dixon also warned about “global macro-economic and geo-political uncertainties in various parts of the world, which makes it sensible to develop the business with some caution.
“We continue to invest in and develop our partnering activities which will allow us to deliver more growth with less capital intensity on our balance sheet.”