IWG to Resume Regular Dividend Payments, Aims for $1 Billion Earnings
London-listed office-space provider IWG has announced its plans to resume regular dividend payments and achieve a target of $1 billion in earnings in the medium term.
Restarting Dividend Policy
IWG intends to restart its progressive dividend policy with a final payout, expected to be 1 pence (1.3 cents) per share along with the release of its 2023 results. This marks the first dividend payment since October 2019 when an interim dividend of 2.15 pence was paid.
Embracing New Business Models
At its recent investor-day event, IWG unveiled its strategic focus on three distinct but complementary business models, each with their own key performance indicators. By prioritizing growth through a capital-light approach, the company aims to significantly reduce future capital expenditure requirements and generate more free cash flow for shareholders.
Medium-Term Ambition
IWG has set a medium-term target for earnings before interest, taxes, depreciation, and amortization (EBITDA) at $1 billion. This ambitious goal further reinforces the company's commitment to delivering strong financial performance.
Positive Outlook
Founder and Chief Executive Mark Dixon expressed his delight in announcing the intention to resume dividend payments, highlighting it as a testament to the company's success. Dixon stated, "We are delivering on our strategy of capital-light growth, backed up by having a strong balance sheet." IWG also affirmed its positive outlook for 2023.
As of 1208 GMT, IWG shares demonstrated a 2.1% increase or an equivalent of 3.2 pence, reaching a value of 153.1 pence.
All Rights Reserved © 2024
Post a comment