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We operate in more than 50 countries around the world. If your country is not on the list, please refer to our global contacts.

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Global contacts

We operate in more than 50 countries around the world. If your country is not on the list, please refer to our global contacts.

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Global contacts

We operate in more than 50 countries around the world. If your country is not on the list, please refer to our global contacts.

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Global contacts

We operate in more than 50 countries around the world. If your country is not on the list, please refer to our global contacts.

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News
Q2-Key-Accounts-464

Solid organic growth and continued impact from contract phasing in H1 2018

ISS (ISS.CO, ISS DC, ISSDY), a leading global provider of facility services, announces its interim financial report for the first six months of 2018:
Highlights
  • Organic revenue growth of 3.2% in H1 and Q2 (Q1 2018: 3.1%), supported by contract launches and expansion of Global Key Account contracts as well as continued demand for non-portfolio services
  • Total revenue decreased by 1.0% in H1 and 1.6% in Q2 (Q1 2018: 0.4%). The decrease in H1 was driven by negative currency effects of 5.0% partly offset by organic growth and a positive net impact from acquisitions and divestments of 0.8%
  • Operating margin of 4.4% in H1 (H1 2017: 5.0%) and 4.8% in Q2 (Q2 2017: 5.4%) reflecting mainly the impact of contracts phasing in and out, which peaked in H1. The net impact of acquisitions and divestments as well as currency translation effects was negative by 6 bps for H1 and 5 bps for Q2
  • Operating profit before other items amounted to DKK 1,712 million in H1 (H1 2017: DKK 1,954 million), including negative currency translation effects of DKK 107 million, and DKK 949 million in Q2 (Q2 2017: DKK 1,079 million)
  • Net profit (adjusted) decreased to DKK 703 million in H1 (H1 2017: DKK 1,056 million), mainly due to lower operating profit before other items, higher financial income and expenses, net, and higher other income and expenses, net
  • Net profit was a loss of DKK 130 million in H1 (H1 2017: positive DKK 839 million) mainly as a consequence of goodwill impairment due to remeasurement of businesses classified as held for sale in the Netherlands, Argentina and Uruguay as well as France
  • Cash conversion over the last twelve months of 97% (Q1 2018: 102%)
  • Free cash flow was an outflow of DKK 1,401 million for H1 (H1 2017: an outflow of DKK 865 million), mainly driven by lower cash flow from operating activities
  • Net debt decreased to DKK 14,258 million at 30 June 2018 (30 June 2017: DKK 14,717 million). Leverage at 30 June 2018 was 2.9x (30 June 2017: 2.8x), impacted by lower operating profit before other items mainly driven by negative currency translation effects. Our capital allocation and leverage objectives remain unchanged
  • Revenue from Key Account customers corresponded to 53% of Group revenue in H1 (Q1 2018: 52%)
  • Revenue from Global Key Accounts increased by 1% in constant currency in H1 and represents 12% of Group revenue (Q1 2018: 13%)
  • Revenue generated from IFS increased by 9% in constant currency in H1 leading to a total share of 39% of Group revenue (Q1 2018: 38%)
  • Sharpening our focus on Key Account customers led to non-core activities in the Netherlands being classified as held for sale at 30 June 2018. In France, we continued the implementation of GREAT and on 30 July 2018, we announced that we entered into exclusive discussions with a view to divest the non-core route-based Hygiene and Prevention business. Further, the transition and mobilisation of the Deutsche Telekom contract remains on track
  • The Group is committed to maintain a nominal ordinary dividend paid in 2019 at least equal to 2018
  • The 2018 outlook for organic revenue growth, operating margin and cash conversion remains unchanged 
Jeff Gravenhorst, Group CEO, ISS A/S, said:
“ISS’s steady performance continued, delivering solid organic growth, driven by contract start-ups and expansions of Integrated Facility Service contracts with both local and international Key Account customers – among others LEGO Group and ABB. As expected, our margin remained impacted by short term headwinds, including contract phasing. We also continued to refine our business platform through commercial focus and divestments in line with our strategy to focus on key accounts. Based on our performance in H1 and our expectations for the rest of the year, we maintain our full-year outlook for organic growth, operating margin and cash conversion.”
 

Matt Brabin, CEO ISS UK & Ireland
 stated:
“ISS UK & Ireland continues to make a positive contribution to our Group results, especially in the growth and retention of our key accounts in the financial services sector. I’m incredibly proud of the efforts by all of our people across our organisation who help to make this possible.

We have around 40,000 people from over 166 different countries working in the UK & Ireland which is why inclusion is an integral pillar to our business success and that of our clients. I am absolutely delighted that our commitment to inclusion was recognised in gaining two awards from the Employers Network for Equality & Inclusion (enei). This is one of the areas which will help ISS secure partnerships with prestigious organisations such as Heathrow and further drive our goal to become the world’s greatest service organisation.”

Talk to us

Envelopes_Contact Us for Saffi

If you have a question about ISS UK & Ireland, please contact:

Rebecca Jennings
UK Marketing and Communication Manager - ISS UK

Velocity 1
Brooklands Drive
Brooklands
Weybridge
Surrey
KT13 0SL
United Kingdom

Tel: +44 (0)7974 100017

Email: rebecca.jennings@uk.issworld.com

About ISS in the UK & Ireland

ISS is a leading global provider of facility services for public agencies and private sector companies, employing approximately 480,000* people worldwide.

For six consecutive years, we have achieved the highest possible rating given by the International Association of Outsourcing Professionals® (IAOP®) in their annual assessment of outsourcing organisations worldwide.

In the UK & Ireland alone, we employ approximately 40,000* employees who are dedicated to delivering high quality support services. ISS provide organisations with every facility solution they might require to support their own core activities. Our services include facilities management, engineering, energy management, catering, cleaning, food and hospitality, front of house, security and consultancy.

In the 2017 i-FM/ Magenta FM industry brand survey, ISS UK was named ‘top service provider’, ‘best value for money’, ‘most customer focused’, ‘most admired’ and ‘FM company people would most like to work for’. You can read the report here.

ISS is committed to doing business the right way and we are actively involved in corporate responsibility and sustainability initiatives.

*as at June 30, 2018