FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
In its latest trading update for the period 1 January – 30 September 2022, ISS has reported “strong growth momentum” as it enters the next phase of its OneISS strategy.
Organic growth was 8.1% in Q3 2022 (Q3 2021: 2.8%), and 7.2% in the first nine months of 2022. The strong organic growth in Q3 2022 was driven by price and scope increases as well as solid project revenue. In Q3 2022, portfolio revenue grew organically by around 10% and projects and above-base revenue remained flat. The total revenue in Q3 2022 amounted to DKK 19.3 billion.
ISS has also seen a continued improvement in its commercial momentum. ISS won a key account contract with a US-based pharmaceutical company and extended and expanded the key account contract with a manufacturing customer in Denmark. In addition, a number of other key account contracts were extended in the quarter.
At the end of last month, ISS completed its acquisition of the Swiss facility management provider, Livit FM, which it says will increase Group revenue with around 0.5%. The integration of the acquired company is expected to be completed in Q1 2023.
The workplace experience and facility management company is now entering the next phase of the OneISS strategy. ISS reports that the financial turnaround targets announced in 2020 have been achieved, and it has structurally improved the operating model for sustainable long-term performance.
On the back of the performance in Q3 2022, ISS has updated its outlook for the full year. Organic growth is now expected to be around 6.5% (previously above 5%), and operating margin is expected to be around 3.8% (previously above 3.75%).
Jacob Aarup-Andersen Group CEO, ISS A/S, commented: “Q3 2022 marks the point where we formally have reached our financial turnaround targets. The organic growth accelerated compared to the first half and ISS continues to gain strength operationally and financially, making us poised to set new ambitions and targets.
“At our Capital Markets Day, we will announce our future journey in an unpredictable macroeconomic environment and with risk of an imminent recession in key markets. I have confidence that we will continue our positive development as we build on the inherent resilient and stable characteristics of our business model.”
According to Pitney Bowes Parcel Shipping Index, worldwide parcel volume is likely to double in the next five years, with the UK showing the highest increase in carrier revenue of all 13 countries in the Index.
Alongside a huge uptake in the volume of parcel volume and spend, post pandemic, the adoption of hybrid working patterns means that FMs need to find ways to enable staff to book / host collaborative meetings in available workspaces and to find desk, office and parking spaces by utilising automation and data capture to enable site governance.
Yet a recent survey by FMJ in partnership with Pitney Bowes found that 20 per cent of recipients are still using manual paper-based visitor systems, which doesn’t fit with their top priority – to maintain a safe and operational environment.
This overwhelming reliance on paper-based systems is causing many respondents bottlenecks, resulting in a lack of efficiently in logging and tracking packages and people coming into the organisation.
In this webinar, Gary Abbott Director of Business Development and Stuart Bushaway, Head of Dealers Operations and FM Relationships at Pitney Bowes will outline the main findings of the two surveys and what this could mean for FMs, followed by a discussion, chaired by FMJ Editor Sara Bean with a panel of thought leaders into the solutions available to meet these challenges.
Register for the webinar here.
