Copenhagen, 29 August 2007 - Earlier today, ISS A/S announced its financial results for the first half of 2007.
Revenue was up 16% on H1 2006 to DKK 30.8 billion. Operating profit before other items increased by 21% to DKK 1.7 billion.
The operating margin was up from 5.3% in H1 2006 to 5.5% in H1 2007, while organic growth rose by two percentage points during the period to 6%.
Group Chief Executive Jørgen Lindegaard added the following comments on the half-year performance:
"ISS is continuing its positive and stable performance with strong growth in revenue, not least organically, and an even more satisfactory increase in operating profit. We improved profitability in our operations and are growing faster organically in nearly all our markets," said Jørgen Lindegaard.
Organic growth rates were especially strong in the high growth markets of Central and Eastern Europe (16%) and in Asia (18%) and the Americas (13%).
Our operating margin was up in all regions except in Asia, where it was on a level (above group average) with H1 2006 (6.2%). In the Nordic region and in Western Europe, the two regions that generate the highest revenue, operating margins rose from 6.3% to 6.7% and from 5.6% to 5.8%, respectively, on the year-earlier period. The operating margin improvement in the Nordic region was driven especially by Sweden and Finland, while the increase in Western Europe was primarily generated in the UK and the Netherlands.
"Having made 53 acquisitions in 2007 to date, the group continues its strong acquisition activities of the past few years. The acquisition of Sanitors, which marked a return to the US market for ISS, was the most important acquisition so far this year. However, we have also bought into the new growth markets such as China and Turkey," Jørgen Lindegaard added.
ISS A/S posted a pre-tax profit of DKK 660 million in H1 2007 against DKK 673 million in the first half of 2006. As expected, the pre-tax profit was affected by factors such as an increase in financial expenses for the funding of acquisitions and a general increase in interest rates. Overall, financial expenses were DKK 164 million higher than in the year-earlier period.
Financial highlights and key ratios of ISS A/S for H1 2007:
Amounts in DKK million* Revenue Operating profit** Pre-tax profit for the period Operating margin Organic growth |
H1 2007 30,755 1,691 660 5.5% 6% |
H1 2006 26,443 1,403 673 5.3% 4% |
Growth + 16 % + 21 %
|
* Except percentages
** Before other items
- Since 1 January 2007, ISS has made 53 acquisitions, adding the USA as the 50th name on the list of ISS countries.
- During 2007 to date, the number of ISS employees rose from 391,000 to more than 415,000 worldwide.
For further information, please contact:
Group Chief Executive Jørgen Lindegaard
Tel. +45 38 17 00 00
CFO Jeff Gravenhorst
Tel. +45 38 17 62 66
About the ISS Group
The ISS Group is one of the world's leading Facility Services Groups. The ISS Group's annual revenues exceeded DKK 55 billion in 2006 and ISS now has more than 415,000 employees in 50 countries across Europe, Asia, North America, South America and Australia.