Bad day at the office for IWG founder after profit alert issued

IWG founder Mark Dixon was £250 million poorer on Thursday as a savage profit warning knocked £1 billion off the value of the serviced offices group.

The shock warning came after a dire September for the former Regus business he set up nearly 30 years ago.

The multi-millionaire, who has a 25% stake, saw the shares tumble 108p to 210.4p as traders made a stampede for the exit.

Dixon said the fall was an “extreme reaction” but blamed a combination of factors, including weaker trading in London.

IWG is upgrading several of its hubs in the capital, while demand among international companies for space in London, “our bread and butter”, is weakening, he added.

“There is clear weakness in London. Quite frankly the effect of Brexit is that there are fewer foreign companies coming, fewer people coming into London.”

IWG, which faces pressure from rivals like WeWork, is stepping up investment in new centres, raising costs.

Profits will be £160 million to £170 million, “materially below market expectations”.