Serviced office provider IWG has warned of a delay to its recovery, saying that underlying earnings for this year will be “well below” the level in 2020.
“The overall improvement in occupancy across the whole group has been lower than previously anticipated as a result of the prolonged impact of Covid-19, including continuing lockdown restrictions and the emergence of new variants of the virus in some markets,” the company said in a statement on Monday.
Despite that, IWG said it expected a “strong recovery” in 2022.
“As lockdown restrictions ease, the significant actions taken to restructure the group’s cost base, together with the unprecedented demand for hybrid working and the group’s unrivalled national and international network coverage, will deliver a strong improvement in profitability and cash generation,” it added.
Shares in the FTSE 250 company were down 14 per cent in early trading on Monday.