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ISS produces solid interim results

Global facility services provider, ISS, has got off to an encouraging start reporting solid organic growth for the first three months of 2018.

In its latest financial results, the first quarter of 2018 saw organic revenue grow by 3.1 per cent (Q4 2017: 3.6 per cent) which was supported by non-portfolio revenue and better than expected timing in contract transitions.

Total revenue however, decreased by 0.4 per cent during the three month period (Q4 2017: 1.4 per cent), which according to the financial report was driven by negative currency effects of 5.6 per cent partly offset by organic growth and a positive net impact from acquisitions and divestments of 2.1 per cent.

ISS’ operating margin of of 4.0 per cent in the first three months (Q1 2017: 4.5 per cent) reflected mainly the impact of contracts phasing in and out.

Revenue from Key Account customers corresponded to 52 per cent of Group revenue (Q4 2017: 52 per cent), whilst revenue from Global Key Accounts increased by 4 per cent in constant currency in the first three months and represents 13 per cent of Group revenue (Q4 2017: 12 per cent).

Revenue generated from IFS increased by 11 per cent in constant currency in the first three months leading to a total share of 38 per cent of Group revenue (Q4 2017: 40 per cent).

Commenting on the Group’s latest set of results, Jeff Gravenhorst, Group CEO, ISS A/S, said: “Our results for the first three months of 2018 were encouraging. We delivered solid organic growth, supported by contract launches and demand for non-portfolio services within our strategic customer segments.

“Our margin performance was as expected impacted by acquisitions and divestments and currency effects, as well as phasing in and out of significant contracts.

“We launched a number of major contracts, such as LEGO Group and an international food and beverage company, and we saw several new wins during the quarter, among others Royal Philips, a major international air carrier and a new customer in the pharmaceutical industry.

“We will continue to strengthen our business with the implementation of strategic initiatives and our focus on key accounts.

“We are proud that our efforts were once again recognised on the IAOP Global Outsourcing Top 100 list where we achieved the highest possible rating for the sixth year in a row.”

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