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Global workplace experience and facilities management firm, ISS, reports a robust start to the year with continued business development as expected in its trading update for 1 January – 31 March 2025.
The trading results show organic growth was 4.3% in Q1 2025 (Q1 2024: 6.0%) which ISS says was driven by implementation of price increases, growth from projects and above-base work, and positive volume growth, partly offset by net negative contract wins as expected. ISS also reports that operating margin and free cash flow developed in line with expectations.
Business
Four new contracts with revenue above DKK 100 million (£11.3m) annually were secured within ISS’ prioritised customer segments, as well as several smaller and mid-sized local IFS contracts. ISS said its continued tight focus on extension of customer contracts up for renewal secured a retention rate of 94% (LTM) in the quarter and extension of seven large key account contracts.
At the end of 2024, a strategy refresh with updated strategic priorities was completed by ISS. As a result, the Executive Group Management was aligned and reduced to five members in January 2025, and resulting organisational changes have been implemented across the business during Q1 2025.
Looking ahead, ISS says its outlook for 2025 remains unchanged with organic growth of 4–6%, and operating margin above 5%.
Kasper Fangel Group CEO, ISS A/S, said: “I’m pleased that in the first quarter of 2025, we kept the momentum from last year and continued to see business improvements despite heightened political uncertainty around the world. Since we deliver our services locally rather than export goods, we are less exposed to global events. During the first three months of the year, we maintained a steadfast focus on executing our refreshed strategic priorities across the organisation. The pipeline for integrated facility services remains attractive, particularly driven by local and regional opportunities, and I’m confident that we are well positioned to convert these opportunities into concrete results in 2025. With the development in the first quarter, we are on track to deliver on our full year financial targets.”
Workplace management solutions provider, Matrix Booking, has published a new free guide on how to create workspaces that meet the demands of the current and future workforce.
For those businesses looking to encourage more employees into the office, or wanting to improve their experience overall, ‘How facilities and workplace managers can shape the office of the future’ provides insights and the tools you need to ensure your environment meets the changing nature of employee preferences, employer requests, and evolving styles of work.
To download the guide click here.
