Fintech PR
Buckley Capital Management Sends Letter to International Workplace Group plc Board and Outlines Recommended Actions to Unlock Shareholder Value
MIAMI, Sept. 10, 2024 /PRNewswire/ — Buckley Capital Management, LLC, together with its affiliates (collectively, “we” or “Buckley”), a top 15 shareholder of International Workplace Group plc (LSE: IWG) (“IWG” or the “Company”), today issued an open letter to IWG’s Board of Directors and management team regarding opportunities to maximize value for all shareholders.
A full copy of the letter is below:
Dear Members of the Board of Directors and Management:
Buckley Capital Management, LLC, together with its affiliates (collectively, “we” or “Buckley”), is a long-term shareholder of International Workplace plc (“IWG” or the “Company”).
As you know, Buckley Capital Management is a Miami-based investment firm specializing primarily in North American small and mid-cap value stocks. Our focus is on identifying and investing in high-quality companies with strong growth potential trading at an attractive value multiple. This typically means businesses that are trading below 10x earnings that are growing earnings more than 10% per year. The average PE multiple in our portfolio today is 9x with a 17% average earnings growth rate. We collaborate closely with boards and management teams to unlock value and drive sustainable long-term growth, benefiting all shareholders. We are trusted to manage capital on behalf of family offices, foundations, ultra-high net worth and high net worth individuals. In addition, with 95%+ of our Partners’ investable net worth committed to our funds, we ensure a strong alignment of interests with our investors and the companies in which we invest.
Over the past few months, we have greatly appreciated your constructive engagement as we’ve shared our detailed perspectives and concerns regarding the Company, along with our recommendations for enhancing long-term value. We have been particularly impressed by the recent changes that have been implemented regarding investor relations and management guidance. We believe that IWG is misperceived by the investment community as lacking sufficient credibility, which is a primary reason for the mispricing of the Company’s shares. However, the Company’s new CFO and head of investor relations have taken the thoughtful approach of under promising and over delivering. Accordingly, the Company has started to beat consensus estimates since they joined, after a long history of past disappointments. We view the Company’s mid-term targets as highly conservative and believe that as the market begins to recognize this in the coming year the valuation will adjust to reflect its attractive growth and business transformation. We have enjoyed our dialogues with Charlie Steel and Richard Manning. In our most recent meeting on August 29th, we discussed in detail why we believe the Company should embark on a share buyback program when the company reaches 1x net debt/EBITDA and commit to the market that the Company will pursue a US listing in short order. We outline these recommendations further in this letter.
We have chosen to issue this letter publicly to encourage an open and transparent discussion around our recommendations. By engaging all shareholders in this important dialogue, we can ensure that all parties have the opportunity to consider our perspectives and contribute to the conversation on enhancing long-term value. Based on our prior conversations with other shareholders, we believe the ideas outlined in this letter would be strongly supported by your investor base and we encourage you to speak with them.
IWG is an Exceptional Company with Solid Fundamentals, Positioned to Lead in the New Era of Work
We were initially compelled to invest in IWG in February 2023 due to our confidence in the business’ ability to grow FCF/share at over 25% per year and our belief that with the success of the managed and franchised model that the Company would eventually trade at 9-11x EBITDA. We thought there was 300-600% upside in IWG’s shares over a multi-year time frame as management executes a strategy we believe has a high probability of succeeding.
Over the last 35 years, IWG has executed to become the undisputed leader in the coworking office market. The Company is now best positioned to benefit from the secular trend towards flexible leases and is in the process of transforming its business to a managed and franchised model with significantly lower capital requirements, higher cash conversion and greater stability. The Company has increased its group revenue from approximately £2.65 billion in 2019 to an expected £3.44 billion in 2024.1 This growth has come despite facing two major headwinds in the past decade that are now behind: (1) COVID, and (2) a well-funded competitor (WeWork) who incinerated enormous amounts of capital attempting to grow, thereby suppressing industry returns. More importantly, IWG’s growth profile is now set to materially inflect while its net growth capital expenditure should significantly decline, from £142.5 million in 2021 to £40 million in 2024. Based on the Company’s market dominance, accelerating growth, lower capital requirements, higher FCF conversion, and greater stability, we believe that IWG’s shares should be trading at a higher valuation multiple today than in the past.
Undervalued and Misunderstood, Despite its Outstanding Position
Despite these factors, and the fact that the Company’s adjusted EBITDA is on track to reach a record high this year, the Company’s share price continues to languish and is currently down approximately 50% over the last five years. It is clear to us that there exists a significant dislocation between the current share price and the intrinsic value of the Company, despite management’s efforts to improve communications and financial disclosures to the investor community. This growth in EBITDA, combined with a decline in its share price, has caused the Company’s valuation to compress from 7.2x EBITDA in 2019 to 5.1x consensus 2024E EV/EBITDA today.2 Now trading at less than 10x 2025 FCF, with FCF/share expected to grow at a 25%+ rate, we believe the shares are dramatically undervalued given the quality and predictability of the Company’s future growth, prospects for margin expansion, and stronger free cash flow generation.
We agree with the Company’s assessment that IWG’s capital-light platform model aligns more closely with comparable platform businesses, rather than traditional brick-and-mortar serviced office companies it tends to be likened to. Companies operating in this way typically command significantly higher valuation multiples. While there are no exact comparables for IWG, the comp table in the Appendix to this letter shows the disconnect between IWG’s valuation and the valuation of Managed and Franchised and Worka Segment Comparables. Our analysis indicates a notable share price discrepancy relative to these comparables, suggesting a Fair Value closer to GBP 3.92, reflecting a significant gap between the Company’s robust fundamentals and its current market valuation.
We are concerned that efforts by IWG’s management to articulate the investment merits of the Company have fallen on deaf ears, and further action needs to be taken to unlock the Company’s intrinsic value. Therefore, we believe the Board should initiate a major share buyback as soon as the Company reaches its 1x net debt/EBITDA target. Simultaneously, we believe that the Board should expedite the re-listing of IWG’s shares onto a US stock exchange.
We urge the Board to Execute a Share Buyback Program
The transition to a capital-light model has produced a significant boost to IWG’s free cash flow conversion. We hope that 1x net debt/EBITDA is not the intended capital allocation policy long term. We believe a higher net debt to EBITDA – between 1.5-2.0x – makes sense longer term allowing IWG to be more aggressive with buybacks. Our analysis demonstrates that IWG could return over £2bn to shareholders through free cash flow and capital structure optimization between now and 2028, which would total more than the market cap today. While we understand it makes sense to be at 1x net debt/EBITDA in the short term, we would like to see the longer-term leverage levels higher given the shift to a higher quality revenue stream in the managed and franchised business.
As the Company’s capital-light model begins to generate significant fee income in the next 12-24 months, the valuation multiple of IWG should rise significantly. We are very encouraged by the strength of the early cohorts in the Managed and Franchised segment and believe that will be a significant driver of value going forward, with a positive inflection in 2025. Therefore, it is imperative for the Company to start buying back shares as soon as the 1x net debt/EBITDA target is reached to take advantage of the significantly discounted prices that exist today. Our analysis shows that IWG shares can generate a 30% IRR or better from today’s prices, which can be improved by an accelerated share repurchase.
IWG Belongs on a US Exchange
We believe that moving IWG’s listing to the US presents a strategic opportunity to enhance shareholder value and we support the Company’s efforts to explore this option.
The Company already has a meaningful presence in the US, despite trading in the UK: 50% of its revenues and more than 50% of profits are generated in North America. It is for this reason that the Company has already taken steps to adopt the American GAAP accounting standard and switch its reporting currency to USD.
In addition to this, trading on the London Stock Exchange is not rewarding IWG with the valuation multiple we believe it deserves. In contrast, we believe that a US listing would expose IWG to a new and more liquid market with investors who have greater appreciation of its leverage levels and business model. Additional positive share price impact can be expected from more passive buying from US indices than passive selling from UK indices. The more efficient capital market in the US can help the Company realize intrinsic value in a timelier manner, which the UK market has failed to do over the last five years.
As an example, CRH plc, a leading provider of building materials based in Ireland, is a successful case of a European company benefiting from a US listing. Since moving its primary listing to the US on September 25th, 2023, CRH’s stock price has increased 51.4%. We believe IWG choosing to re-list in the US would allow the Company to garner a higher multiple and potentially use its stock as a currency for acquisitions.
The management’s decision to switch its reporting currency and adopt the American GAAP accounting standard is a step in the right direction. However, we urge management to accelerate its efforts and commit to a US listing immediately. Expediting these steps will allow IWG to fully capitalize on its North American business, enhance public-market multiples, and unlock significant shareholder value.
Sale to Private Investors
If a US listing and share buybacks do not cause a significant rerating in IWG’s shares, we are convinced that management should explore a sale of the business in the private markets to realize the Company’s intrinsic value.
There has been rumored interest in 2018 from financial buyers at prices much higher than current levels, between 9-10x EBITDA. Firms such as Terra Firma, TDR Capital, Starwood, and Lone Star were rumored to have expressed interest back in 2018. Today, IWG is in much better shape, with a higher quality revenue mix, greater profitability, significantly improved competitive position, and clearer growth prospects. Yet it is trading at a significantly lower multiple. Given the significant interest in the past, if the public market fails to recognize IWG’s value, we strongly recommend that management consider selling the Company.
There are a litany of public-company comparables that point to significant upside in IWG. The average of public-company comparables for the Worka and Managed & Franchised segment trades at an average NTM EBITDA multiple of 12.5x and 15.6x respectively. IWG’s Owned & Operated segment has historically traded at ~7.5x over the past 20 years. These valuations would lead to significantly more than 100% upside for IWG shareholders from today’s levels.
Conclusions
While we have been encouraged by our discussions with the Company thus far, the Board and management must take more immediate action to fully unlock the true value of the Company. As such, we strongly encourage the Board to embark on a meaningful share buyback program and to immediately appoint advisors to proceed with a relisting in the US.
The time for action is now—these steps are crucial to ensuring that the Company realizes its full potential and delivers the value that shareholders deserve.
We aim to work collaboratively and constructively with the Board and management to maximize shareholder value and look forward to continuing a positive dialogue.
Sincerely,
Zack Buckley
Buckley Capital Partners LP
About Buckley Capital:
Miami-based investment firm specializing primarily in North American small and mid-cap value stocks.
Appendix
Below is a list of Public Comps for IWG:
Worka Segment Comparables:
|
Public Company |
Market Cap |
Avg. 3 Yr |
Forward 3 Yr |
NTM |
|
Booking |
126,041 |
31.30 % |
16.09 % |
15.6x |
|
Airbnb, Inc. |
88, 598 |
18.47 % |
51.38 % |
15.8x |
|
Expedia Group, |
16,912 |
12.8 % |
28.44 % |
6.1x |
|
Group Average |
20.86 % |
31.97 % |
12.5x |
Managed/Franchised Segment Comparables:
|
Public Company |
Market Cap ($M) |
Avg. 3 Yr |
Forward 3 Yr |
NTM |
|
Marriott |
63,990 |
64.87 % |
10.40 % |
15.1 x |
|
Hilton Worldwide |
53,677 |
55.40 % |
18.38 % |
17.9x |
|
InterContinental |
16,134 |
27.47 % |
9.51 % |
15.0x |
|
Hyatt Hotels |
14,907 |
10.90 % |
25.18 % |
14.3x |
|
Group Average |
39.66 % |
15.87 % |
15.6x |
Private Market Bid for IWG:
|
Private Equity Bidders |
Post Valuation |
Valuation/EBITDA |
Date Canceled |
|
Starwood Capital Group, Terra |
4,200 |
9.2 x |
August 2018 |
|
Onex and Brookfield Asset |
3,740 |
7.8 x |
February 2018 |
Sum of the Parts Valuation:
|
Segment Enterprise |
2025E |
25E |
|
|
Worka |
1,560 |
130 |
12.0 x |
|
Managed & |
758 |
513 |
15.0 x |
|
Owned & |
2,573 |
343 |
7.5 x |
|
IWG Enterprise Value |
4,891 |
|
Net Debt |
608 |
|
IWG Equity Value |
4,283 |
|
S/O |
1,092 |
|
Fair Value(GBP) |
3.92 |
|
Implied Multiple |
9.3 x |
*Refers to Contribution margin as opposed to EBITDA
Contacts
For Investors:
Buckley Capital Partners LP
Zack Buckley
[email protected]
For Media:
Greenbrook Advisory
Rob White / Teresa Berezowski
[email protected]
1 NTD –Bloomberg data
2 NTD – Bloomberg data
3 – Refers to Contribution Margin as opposed to EBITDA
A strategic partnership between two of the largest Qatari companies to add value to the local and regional market, enhancing food security and innovation in several key sectors.
DOHA, Qatar, Nov. 16, 2024 /PRNewswire/ — Senyar Trading & Distribution Company and Al Baladi Holding have announced the launch of their strategic partnership under the name of ‘Al Faisal Al Baladi Holding’. The launch ceremony was attended by Sheikh Faisal bin Qassim Al Thani, Chairman of Al Faisal Holding, and Mr. Mohammed Abdullah Al Attiyah, Chairman of Al Baladi Holding. This partnership aims to provide added value to the Qatari and regional markets, and to enhance the role of Qatari companies in supporting and developing the local economy in line with Qatar National Vision 2030.
Within this partnership, a strong economic icon was established under the name ‘Al Faisal Al Baladi Holding Group’, capable of implementing huge projects across the MENA region in a number of different vital sectors, especially livestock and agricultural production projects, which contributes to supporting food security and enhancing livestock in a sustainable manner. In addition, the retail sector constitutes a significant part of the Company’s activities.
Al Faisal Al Baladi Holding Group Holding includes Al Faisal Al Baladi Holding LLC, based in Qatar, Al Faisal Al Baladi Group for Malls Management and Operations, based in Egypt, and Al Faisal Al Baladi Holding, based in the Sultanate of Oman. As well as livestock and agricultural production, these companies will operate in several diverse sectors including distribution and wholesale, manufacturing, hospitality and hotels, restaurants, food and beverages, with the retail sector also constituting a significant area of focus. Through these activities, they will seek to meet the growing demand for innovative products and solutions, while supporting sustainable economic development in Qatar and the region.
Commenting on this announcement, Sheikh Faisal Bin Qassim Al Thani, Chairman of Al Faisal Holding, stated: “I am pleased to witness the formation of this strategic partnership that represents the development of the private sector in Qatar and enhances its ability to compete through cooperations built on solid foundations. This partnership is a realization of Qatar Vision 2030 of empowering the private sector and enhancing its contribution to the local economy. I wish both parties success in this promising partnership.”
Mr Mohammed Abdullah Al Attiyah, Chairman of Al Baladi Holding and Chairman of Al Faisal Al Baladi, said: “We are delighted with this cooperation which opens new horizons for growth and expansion. Al Baladi Holding has achieved remarkable successes in recent years, and this partnership comes to underpin our position in the market and expand the scope of our activities. We hope that Al Faisal Al Baladi Holding will contribute to the development of successful and innovative projects that will be a source of pride for everyone.”
Sheikh Mohammed bin Faisal Al Thani, Vice Chairman of Al Faisal Al Baladi Holding, added: “We share common goals, integrated resources, and expertise with Al Baladi Holding. Through this partnership, we will achieve integration and synergy in diverse businesses to maximize value for all parties, including consumers and investors, which will benefit all stakeholders and contribute to achieving a positive impact across every level.”
Mr. Abdullah Mohammed Al Attiyah, Vice Chairman of Al Baladi Holding, said: “Undoubtedly, the stability of the Qatari economy, the diversity of investment opportunities, and the positive business environment, have all contributed to Al Baladi Holding’s market leading position. We look forward to this partnership with confidence in its promise to help build a bright future”
Mr. Tarek Mahmoud Al Sayed, Board Member of Al Faisal Al Baladi Holding, added: “Food security projects hold special importance, especially in their comprehensive and sustainable concept, which constitute an essential part of our future strategy. We seek to play a pivotal role in the region through livestock and agricultural production projects, as we currently own a number of livestock and agricultural production companies in Qatar and Oman, and we plan to expand and launch new projects in a number of countries in the region and North Africa. This will support Al Faisal Al Baladi in becoming a leading company in achieving food security at the regional level.”
Mr Hany Al Sayyadi, CEO and Board Member of Al Faisal Al Baladi Holding, concluded by saying: “This partnership strengthens our diversified investment portfolio and facilitates the expansions of our presence in regional and global markets. Our vision is to achieve a strong presence in the Middle East region, by focusing on innovation and quality in all our sectors. This partnership is a natural extension of the vision of both companies to enhance economic integration and contribute to driving development in Qatar and the region.”
Al Faisal Al Baladi plans to expand its business activities in regional and global markets, by utilizing the diverse investment opportunities represented by the manufacturing, hospitality and retail sectors. The Group’s current portfolio includes more than 30 leading companies in their fields, including Al Baladi and Al Baladi Express Markets, Al Wajba Dairy and Juice Factory, City Limousine Company, in addition to a number of restaurants and companies in the food sector, and many others.
Photo: https://mma.prnewswire.com/media/2558072/Al_Baladi_Holding_Group.jpg
Photo: https://mma.prnewswire.com/media/2558073/Al_Baladi_Holding_Group_1.jpg
View original content:https://www.prnewswire.co.uk/news-releases/launch-of-al-faisal-al-baladi-holding-302305819.html
Fintech PR
Sustainable Infrastructure Holding Company (“SISCO”) Q3FY24 revenue (excluding accounting construction revenue) increases by 23.8% to 341.8 million
- Revenue grew by 23.8% compared to previous year
- Gross profit of SAR 179.8 million, a 21.7% increase compared to Q3FY23
- Adjusted EBITDA rose 29.5% to SAR 210.2 million
JEDDAH, Saudi Arabia, Nov. 16, 2024 /PRNewswire/ — Sustainable Infrastructure Holding Company (“SISCO”, “TADAWUL: 2190”), Saudi Arabia’s leading strategic investor in Ports & Logistics and Water Solutions has announced its financial results for the quarter ended 30 September 2024.
Revenues for the third quarter of 2024, excluding accounting construction revenue, grew by 23.8% compared to Q3FY23 to reach SAR 341.8 million. On a quarter-to-quarter basis, revenues grew by 13.0% compared to Q2FY24.
The third-quarter gross profit of SAR 179.8 million represents 14.7% quarter-on-quarter growth and 21.7% growth compared to Q3FY23. The gross profit margin for Q3FY24 was down 0.9% year-on-year, due to increased depreciation and direct costs, but was up 0.8% quarter-on-quarter, in line with expectations. Year-to-date saw gross profits increase by 13.8% to SAR 469.5 million.
Adjusted EBITDA growth rose 29.5% to SAR 210.2 million compared to Q3FY23, aligning SISCO with strategic goals. Quarter-on-quarter growth was 20.8%, with a year-to-date increase of 17.7% to SAR 543.8 million.
SISCO reports a strong recovery in the Red Sea Gateway Terminal from subdued Q3FY23 Port segment results due to the Red Sea situation. Port volume reached 828,868 TEUs in Q3FY24, returning to levels similar to Q4FY23.
Commenting on the results: Eng. Khalid Suleimani, Group CEO, SISCO said:
“I am pleased to report that SISCO has continued to demonstrate strong growth and operational performance in Q3FY24, with revenues improving by 23.8% compared to Q3FY23. Our Ports segment, which remains a key growth driver, saw a significant increase, leading to robust results despite the Red Sea challenges.
Net income remains strong, despite the one-off payment of SAR 25 million to Zakat. Another highlight of the quarter is the impressive recovery in the Red Sea Gateway Terminal, highlighting it’s resilience.
We are also excited to announce the Multi-Purpose Terminals (MPT) concession, which will allow us to expand operations across all non-containerised port facilities in the Red Sea Gateway Terminal. This strategic initiative positions SISCO to capture further growth opportunities domestically and internationally.
Looking ahead, we remain committed to executing our five-year strategy to double revenues by 2026 and continue delivering long-term value to our shareholders.”
View original content:https://www.prnewswire.co.uk/news-releases/sustainable-infrastructure-holding-company-sisco-q3fy24-revenue-excluding-accounting-construction-revenue-increases-by-23-8-to-341-8-million-302307352.html
DUBAI, UAE, Nov. 15, 2024 /PRNewswire/ — Bybit, the world’s second-largest cryptocurrency exchange by trading volume, opens up the November arena for the Bybit Crypto Titans trading competition. Available for users in select regions, a prize pool of 55,000 USDT will be available for a limited time only.
From now to Nov. 30, eligible traders can level up their trading strategies and amplify their winning chances by inviting friends to share two prize pools in two simple steps: register for the event at the Grand Arena, and invite friends and trade.
Battlefields: Once in the Arena, users can pick their battlefields. Up to 30,000 USDT are up for grabs in the Team Battlefield ranked by total trading volume, while another 15,000 USDT is reserved for traders in the Solo Battlefield competing by PnL(%).
More perks: Additionally, top traders and leaders will receive extra perks. Participants will receive a bonus 5 USDT for every new qualified referee, and the first 50 Team Leaders whose team exceeds a threshold amount in trading volume will be entitled to a 100 USDT bonus.
“As trading volumes overall are climbing, we are seeing so many talented traders in our community with a knack for navigating fast-moving markets. This event gives some of them an incentive to share their passion with their friends, and there is room for rewards for the solo trading pros to shine as well,” said Joan Han, Sales and Marketing Director of Bybit.
Market sentiment and activities have been trending up in recent weeks globally, and the enthusiasm is shared among users in niche markets. While traders rush to capture opportunities in a heated market, the Crypto Titans competition encourages users to bring out the best trading game and hone their trading skills for healthier returns.
Find out more about Bybit’s Crypto Titans: November Showdown, terms and conditions apply.
#Bybit / #TheCryptoArk
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving over 50 million users. Established in 2018, Bybit provides a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions: the Oracle Red Bull Racing team.
For more details about Bybit, please visit Bybit Press
For media inquiries, please contact: [email protected]
For more information, please visit: https://www.bybit.com
For updates, please follow: Bybit’s Communities and Social Media
Discord | Facebook | Instagram | LinkedIn | Reddit | Telegram | TikTok | X | Youtube
Photo – https://mma.prnewswire.com/media/2559070/Image.jpg
Logo – https://mma.prnewswire.com/media/2267288/5029737/Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/bybit-crypto-titans-november-arena-boasts-55-000-usdt-in-rewards-302307028.html
-
Fintech5 days agoFintech Pulse: Industry Innovations and Partnerships Drive Global Fintech Forward
-
Fintech4 days agoFintech Pulse: Evolving Fintech Investments and Partnerships Signal Industry Transformation
-
Fintech PR2 days agoUniversal Consulting Opportunities (UCO), a Stellar MLS Subsidiary, Signs Agreement with NAR India As Advisor to Develop a National MLS
-
Fintech PR3 days agoCayman Enterprise City Receives Two Prestigious Awards from the Financial Times’ fDi Intelligence Global Free Zones of the Year 2024
-
Fintech PR2 days agoNoble Corporation plc announces submission of request for removal from trading and official listing on Nasdaq Copenhagen
-
Fintech PR2 days agoDC to VC – NatWest Cushon and Future Planet Capital Lead the Charge in UK Pension Access to British Innovation
-
Fintech PR2 days agoBlockchain for Good Alliance Hosts Web3 Oscar, Celebrating Innovators Advancing UN’s Sustainable Development Goals
-
Fintech PR3 days agoThink You’ve Been Harmed By Products Containing Talc? You May Have The Right To Vote On The Plans Of Reorganization Filed By Imerys Talc And/Or Cyprus Mines That Determine How Talc Personal Injury Claims Against These Debtors Are Treated