IWG, a flexible office company operating brands like Spaces and Regus, experienced a significant 17% decline in its share price recently. The company attributed this drop to a reaction it deemed “not rational,” emphasizing that global economic uncertainty is, in fact, driving demand for hybrid workspaces. Despite the share price decline, IWG reported a 6% increase in adjusted profit, reaching $262 million (£194 million) for the first half of the year. However, investors reacted negatively to the company’s forecast for adjusted profit in 2025, predicting it would be at the lower end of the previous guidance range of $525 million to $565 million.
Mark Dixon, the chief executive of IWG, who owns 25% of the company valued at £1.9 billion, noted that the fall in his personal stake represents a loss of £96 million. He commented on the volatility of the current global economy, highlighting that businesses are seeking greater flexibility to avoid capital expenditures amid uncertainty.
Despite these challenges, IWG continues to expand, increasing its available office space by 43% year-on-year, bringing the total to 220,000 rooms. The company also announced a new share buyback target of at least $130 million for 2025, exceeding its prior goal of $100 million.
Prior to the recent drop, IWG shares had risen more than 40% since the beginning of the year and remain up 19% year-to-date. The company, headquartered in Switzerland, had previously faced pressure from a major shareholder to move its stock listing from London to the U.S., though Dixon indicated this is not currently a priority. IWG is recognized as one of the largest office space providers globally, and Mark Dixon has led the company since its inception in 1989.
Source: https://www.theguardian.com/business/2025/aug/19/iwg-boss-dismisses-fall-share-price-machine-selling