IWG plc: THE hybrid work model stock

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IWG PLC: THE hybrid work model stock

16 June 2021

What readers said about this report

The pandemic has made one thing clear: the future of work will be hybrid.

Most employees no longer want the daily commute and a strict 9-5 job. They don't oppose working in an office per se, but it has to be a flexible arrangement (and a nice space!).

At the same time, most companies can't operate without some degree of physical togetherness in an office. You can't build a corporate culture entirely via Zoom.

Enter – flexible office solutions!

By 2030, the market for flexible office space is expected to grow by about 500% (!). The pandemic is only going to accelerate growth for the major players in this industry - such as IWG plc, the company featured in my latest research report.

IWG has a 32-year track record as the pioneer for hybrid work models (and made its founder a billionaire along the way). Its particular service used to attract mostly start-ups and smaller companies, but is now being sought after by large companies. One of the world's largest corporations with 300,000 employees just bought into its solution – a massive leap forward compared to IWG's existing 2.5m users.

Add the possibility of a large, tax-free capital return, which could lead to shareholders getting their entire initial investment back (and maybe even more than that). You get your money back, but remain invested in a profitable growth business.

It's a very unusual situation. The market hasn't recognised it yet, because IWG and the entire investment case don't fit into any boxes.

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|  What readers said about this report

Steve P.
June 2021

Just dropping you a quick note to say I'm impressed by your report and new find with IWG. When I saw the headline and the nature of the business, I was very skeptical and thought to myself 'this will be one of Swen's picks I pass on' as its too risky, people may want to continue working from home indefinitely if permitted etc.

Low and behold, you've done it again. Not only did you change my perspective on the potential of this industry, you've also managed to find a vehicle that has so many avenues to grow and succeed; growing industry (regardless of the player), expansion in existing locations, whilst the industries biggest - still so many global markets to expand into, new partnerships not yet tried but make a lot of sense when thought through (eg. hotel chains), sale of franchise rights to recoup capital (and potentially free ride), ongoing royalty income as well as a business that offers benefits to all stakeholders employees (flexibility), landlords (no empty buildings), and businesses (flexibility and reduced capital outlays and ongoing expense).

Whilst I think one of your risks could very well come into play - a global recession - I believe there are too many factors in IWG's favour for it not to be a good long term play.

Thank you, I'm in!

l  Report updates

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15 August 2022

Report Update (PDF - 0.3MB)

16 March 2022

Report Update (PDF - 2.7MB)

30 August 2021

Report Update (PDF - 0.1MB)

20 July 2021

Report Update (PDF - 0.1MB)

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