IWG, the publicly traded flexible offices group that owns the Regus and Spaces brands, has posted the highest revenue in its 35-year history.

In preliminary results for the period through the end of last year, IWG, listed on the London Stock Exchange but considering a New York listing, said revenue had lifted 10% to £3.3 billion.

IWG describes itself as the world's largest hybrid workspace platform, with operations of 895,000 rooms across 3,514 locations in 120 countries. In clear contrast to the difficulties faced by its global coworking peer WeWork, earnings before interest, taxes, depreciation and amortisation) increased 34% to £403 million (2022: £311 million) driven by a combination of higher revenue and "cost focus" at the firm.

IWG said it had been dramatically growing its footprint globally across "diverse locations" with a doubling in its open rate in 2023 from 2022. It says this has been done "almost all with no" capital expenditures. It added a record 867 locations globally in 2023, with 95% in its partnership model.

It had already announced it would resume its dividend payments and is recommending a final dividend of 1p per share.

The business has pivoted in recent times to focusing on "partnerships" or managed and franchised agreements, where it manages spaces for landlords or occupiers for a fee, rather than taking on lease liabilities. Fee income from this part of the business is up 49% to £50 million (2022: £34 million).

IWG also said its signings are now evolving into openings "at pace" with 37,000 rooms opened in 2023, against 15,000 rooms opened in 2022. The revenue per available room was £381 per month in 2023 with an estimated RevPAR of around £250 once all rooms including the signed pipeline have opened and matured.

IWG says "margin expansion" is on track across the other part of its business, company-owned and leased hubs. Gross profit increased by 41% to £528 million (2022: £388 million) and the margin was up from 15.9% in 2022 to 20.4% in 2023.

IWG reported a loss after tax of £216 million (2022: £73 million) from continuing operations in 2023. But it said cashflow before growth capex and corporate activities but after interest and tax was £207 million (2022: £90 million). It ended 2023 reporting a net current liability position of minus £1,685 million (2022: minus £1,868 million), and flagged that a significant proportion of that is due to lease liabilities held in non-recourse special purpose vehicles but with a corresponding right-of-use asset.

But it said there is no liquidity risk as the group has funding available under its revolving credit facility of £219 million (year-end 2022: £173 million).

Investment in new hubs was £55 million during 2023, which it said was a "fraction of previous expenditure" and expected to decline further in 2024.

It also continues its investment in its hybrid working platform Worka. Revenue increased by 18% to £319 million (2022: £271m). It does, though, expect flat revenue during 2024.

Mark Dixon, chief executive of IWG, said in a statement: "While 2023 was a record year for both revenue and network size, we continue to see significant growth potential. With 1.2 billion white-collar workers globally and a potential audience valued at more than $2 trillion, there is substantial room for growth and as a company, we have a laser-like focus on capturing more of this market over the coming months and years."

IWG said it is benefitting from a "rapid uptake of the hybrid model" which it says is the "preferred way of working for millions" everywhere.

It argues the trend is gaining momentum thanks to "societal and behavioural change, supported by ever-advancing technology" and said it is seeing companies across the world reducing their concentration on large sites in the hearts of cities, choosing instead "state-of-the-art accommodation in the suburbs, towns and smaller communities close to where their people live and want to work, combined with smaller, flexible city-based" workspaces.

IWG said it continues to target this particularly via a "capital-light approach" using management agreements, partnering and franchising. Dixon said the "long-term shift" towards the hybrid model is "one of the mega-trends of our time and represents a colossal financial opportunity" for IWG.

He said during the course of 2023, about 80% of IWG's new locations signed for were in the suburbs and smaller towns where "people actually" live. Some of its most recent additions to the network include Springfield, Virginia in the, Chippenham, Wiltshire in the United Kingdom, Serris in France and Hagsatra in Sweden.