UK support services - At your service…

Davy Research
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Another high news week in the business services sector. RWS produced strong figures (we upgraded pre-tax and net cash forecasts), but the market was slightly caught out by the change in CEO. IWG’s trading statement, while disappointing in that the recovery is slower than expected, does not change our thesis for a more capital-light, higher potential growth operator dominating the hybrid working space. Elsewhere, staffing data continue to be extremely strong (Manpower Outlook survey; SThree positive warning), and EQT has decided not to go ahead with its IPO of Anticimex – instead selling the business to a new long-term EQT strategy.