Copenhagen, 2015-08-27 08:02 CEST (GLOBE NEWSWIRE) --
No. 14/2015
ISS (ISS.CO, ISS DC), one of the world’s leading facility services companies, announces its interim financial report for the first six months of 2015:
Highlights
- Increased organic revenue growth of 4.0% in H1 and 4.8% in Q2 (Q1 2015: 3.1%).
- Improved operating margin of 4.9% in H1 (H1 2014: 4.8%) and 5.3% in Q2 (Q2 2014: 5.2%).
- Strong cash conversion over the last twelve months of 99% (Q1 2015: 97%).
- Profit before goodwill impairment and amortisation/impairment of brands and customer contracts increased to DKK 1,027 million in H1 (H1 2014: DKK 559 million).
- Net profit increased to DKK 776 million in H1 (H1 2014: DKK 345 million).
- Revenue generated from IFS increased 10% in local currency in Q2 (Q1 2015: 9%), and represented 33% of Group revenue (Q1 2015: 32%).
- Revenue from Global Corporate Clients represented 10% of Group revenue in Q2 (Q1 2015: 10%), an increase of 13% in local currencies in Q2 (Q1 2015: 6%).
- The strategic initiatives including customer segmentation, organisational structure and excellence projects such as our procurement programme are progressing according to plans and support margin improvement.
- To further facilitate alignment and boost our customer focus, in June 2015, we announced a new and strengthened organisational structure, which will become effective as of 1 September 2015.
- Henrik Andersen, COO EMEA, will be leaving ISS for an external opportunity.
- The outlook for organic revenue growth in 2015 is changed to 3.5%-4.5% (from 2%-4% previously). Our expectations for operating margin (above 5.6%) and cash conversion (above 90%) are unchanged.
Jeff Gravenhorst, Group CEO, ISS A/S, said:
“We delivered a strong second quarter thanks to good growth in IFS, improved performance in some developed markets and progress in our strategic initiatives. In a volatile macroeconomic environment, we have increased our
organic growth rate and improved our operating margin. We have landed new integrated facility services contracts and extensions with a number of significant customers including Danske Bank in the Nordics and Eastern Europe, Huashan Hospital in China, a hospital retender in the UK, and a major contract with the Danish State Railways. Following significant contract wins and our strategic initiatives, we now expect to deliver an organic growth of 3.5%-4.5% for the full year.”
Lord Allen of Kensington Kt CBE Jeff Gravenhorst
Chairman Group CEO
Conference call details
A conference call will be held on 27 August 2015 at 10:00 CET. Presentation material will be available online prior to the conference call.
Dial-in details:
Denmark: +45 354 455 80
UK: +44 203 364 53 74
USA: +1 855 753 22 30
Link: http://edge.media-server.com/m/p/r5f7ofpc
For media enquiries
Manuel Vigilius, Global Media Relations Manager, +45 3817 6404
For investor enquiries
Nicholas Ward, Head of Group Investor Relations, +45 3817 6251
Martin Kjær Hansen, Investor Relations Manager, +45 3817 6431
ISS A/S, ISIN DK 0060542181,
ISS Global A/S, ISIN XS1145526585, XS1145526825
