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IMG International Workplace Group TRADING UPDATE Released : 07 Jun 2021 RNS Number : 9525A IWG PLC 07 June 2021 UPDATE ON TRADING AND THE PROLONGED IMPACT OF COVID - 19 IN SOME MARKETS - 7 June 2021 IWG plc , the leading global operator of workspace brands , today issues an update on trading and the prolonged impact of the COVID - 19 pandemic in some of the Group's markets . Whilst we have continued to see strong recovery in some of our markets since our first quarter trading update , including positive occupancy momentum in the US , 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 . Accordingly , this will delay the anticipated recovery in our business and , given the operational gearing of the Group , is expected to have a significant impact on the Group's results for 2021 , with underlying Group EBITDA for 2021 now expected to be well below the level in 2020 . Since our first quarter trading update , we have continued to see unprecedented demand for our flexible work products as many more enterprises adopt hybrid working . Interest in partnering with IWG continues to strengthen significantly and we have a very strong pipeline of potential partners wanting to work with us to grow the platform . As previously indicated , good progress is being made in relation to larger master franchise agreements , with several in the final stages of discussions , and we anticipate making further announcements in this regard in due course . In markets where COVID - 19 related restrictions are easing such as the US , we have seen positive momentum . Occupancy is improving , enquiries have reached pre - Covid - 19 levels , we have an increasing pipeline of corporate customers on network - wide deals and service revenues are starting to improve . These positive trends support the Board's view that the prolonged impact of COVID - 19 on the Group's 2021 results is one of timing and that , 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 . Accordingly , the Board's expectations for a strong recovery in 2022 are broadly unchanged . The Group continues to maintain a strong financial position with significant liquidity . Conference call details IWG plc will be hosting a call for analysts and investors at 08.30 BST this morning . Please register for the call via the following link to gain your unique access code : https://www.speakservecloud.com/register-for-call/beb1ad48-f3d8-4285-ad08-45d0a2f4d53e A replay facility will be available for 7 days following the call : Replay dial - in number : +44 ( 0 ) 33 0606 1118 Access PIN : 454360 This announcement contains inside information For further information , please contact : IWG plc Tel : +41 ( 0 ) 41 723 2353 Mark Dixon , Chief Executive Officer Glyn Hughes , Chief Financial Officer Wayne Gerry , Group Investor Relations Director Brunswick Tel : +44 ( 0 ) 20 7404 5959 Nick Cosgrove Oli Sherwood