10% growth in both top and bottom line

ISS Holding A/S announces its financial results for the first half of 2008

Copenhagen, 29 August 2008 – Today, ISS publishes its financial results for the first half of 2008.

Both revenue and operating profit before other items increased by 10% in the first half of 2008 relative to the same period in 2007. Revenue amounted to DKK 33,734 million and operating profit before other items amounted to DKK 1,860 million.

The operating margin was 5.5% in H1 2008 and the company recorded organic growth of 6%, both figures being at the same level as in H1 2007 and in line with expectations.

Group CEO Jørgen Lindegaard had the following comments on ISS’s performance during the first six months of 2008:

“ISS once again recorded strong and stable financial performance and it is very satisfying that revenue and operating profit continue the double-digit growth rates relative to the same period last year. This is a testimony to the fact that we are successfully developing our business while simultaneously maintaining our operational focus on cash flow, profitability, organic growth and acquisitions. Furthermore, we are very pleased that we can continue to grow as planned, even though there are signs of an economic slowdown in many markets in the world.”

Revenue growth was seen across all regions with the growth economies of Asia, Latin America and Eastern Europe continuing to generate double-digit organic growth rates and Western Europe and the Nordic region delivering stable organic growth. In addition, ISS continued to strengthen the service offering and to build up critical mass in selected countries in order to enable ISS to meet the increasing demand for Integrated Facility Services on a national, regional and international scale.
 

The net result for the period showed an improvement of DKK 36 million from a loss of DKK 102 million in H1 2007 to a loss of DKK 66 million in H1 2008. The result was positively impacted by improved operational performance and lower financial expenses, which were partly offset by an increase in income taxes.

For 2008, ISS expects revenue at constant exchange rates to grow more than 10% for its continuing operations, which do not comprise the divested activities. The operating margin and organic growth rate is expected to be maintained at the same level as in 2007.

Financial highlights and key ratios of ISS Holding A/S for H1 2008:

Amounts in DKK million* Revenue Operating profit** Profit before goodwill impairment/amortisation of brands and customer contracts Net loss for the period Operating margin Organic growth

H1 2008 33,734 1,860 297   (66) 5.5 % 6 %

H1 2007 30,755 1,692 272   (102) 5.5 % 6 %

Change + 10 % + 10 %

* Except percentages
** Before other items

For further information, please contact:

Group CEO Jørgen Lindegaard
Tel. +45 38 17 00 00

Group COO and Group CFO Jeff Gravenhorst
Tel. +45 38 17 62 66  

Forward-looking statements

This press release may contain forward-looking statements. Statements, other than statements of historical fact, regarding future events or prospects are forward-looking statements. The words ‘‘may’’, “will”, “should”, ‘‘expect’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘estimate’’, ‘‘plan’’, "predict," ‘‘intend’ or variations of these words, as well as other statements regarding matters that are not historical fact or regarding future events or prospects, constitute forward-looking statements. ISS has based these forward-looking statements on its current views with respect to future events and financial performance. These views involve a number of risks and uncertainties, which could cause actual results to differ materially from those predicted in the forward-looking statements and from the past performance of ISS. Although ISS believes that the estimates and projections reflected in the forward-looking statements are reasonable, they may prove materially incorrect, and actual results may materially differ as a result of the risks relating to the facility service industry in general or ISS specifically, including the matters described in the annual report or other information published by ISS.

As a result, you should not rely on these forward-looking statements. ISS undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

 

 

About the ISS Group
The ISS Group is one of the world's leading Facility Services Groups, providing integrated service solutions based on the core business areas of Cleaning, Catering, Office Support, Property Service and Security. The ISS Group generated revenue of almost DKK 64 billion in 2007 and employs more than 460,000 people in 50 countries across Europe, Asia, USA, Latin America and Pacific.