Blackstone-Backed The Office Group's Accounts Show You Can Make Money While Expanding In Coworking
There are a lot of different models of how to run a coworking and flexible office business at the moment, and there is no one right answer as to how to make money in a sector which is expanding and evolving rapidly.
WeWork is growing at a frantic pace, increasing revenue and market share, but costs are growing faster and it is suffering big losses. The biggest flexible office company in the world, IWG, makes a profit, but is selling assets to try and improve its stock market valuation after seeing a number of takeover bidders walk away. Its own expansion efforts have seen it cut profit forecasts.
The Office Group is the next tier down in terms of size, and might just be a model for how to expand profitably, if accounts for its holding company are anything to go by. And with the founders having sold the business to Blackstone, the accounts show just how profitable getting coworking right can be.
The most recent accounts available for The Office Group are for 2017, and give an insight into the business during the period in which Blackstone acquired a majority stake. Revenue in 2017 grew by £20M, or 29%, to £90M. The accounts…
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