ISS continues the growth in revenue despite the economic slow down
Copenhagen, 27 May 2009 – Today, ISS Holding A/S published its financial results for the first three months of 2009. ISS showed solid results in the first quarter with continued organic growth and a stable profit despite the economic slowdown.
Revenue for the first three months of 2009 amounted to DKK 16,674 million representing a revenue growth of 7% excluding foreign exchange adjustments compared with the first three months of 2008. The organic growth was 1.5%.
ISS generates stable earnings. Operating profit before other items amounted to DKK 715 million compared to DKK 772 million in the same period of 2008. The slightly lower level is primarily due to fluctuations in among other the British, Norwegian and Swedish currency. Moreover, many customers in the industry segments in France, Germany and Belgium are impacted by the economic crisis, leading to reductions in ISS’s contracts.
Group CEO Jørgen Lindegaard had the following comments on ISS’s financial results for the first three months of 2009:
“ISS delivered satisfactory financial results and organic growth despite the economic slowdown. This proves that our business model is solid and fairly resilient to the current slow down in global economies. It continues to offer attractive new opportunities for global contracts covering all of our services, as more companies during the recession decide to benefit from the advantages of outsourcing their internal services.”
He continues: “While focusing on organic growth we are in the process of balancing our portfolio geographically. In the first three months of 2009 we have acquired 14 companies in among other countries India and Indonesia, which are among ISS’s key growth markets.”
Except for Europe, all regions contribute to the organic growth, with Asia and Latin American delivering double-digit growth rates.
At the prevailing currency rates ISS expects revenue to continue to grow organically in 2009 for its continuing operations, which do not comprise potential future acquisitions or divestments, however, at lower levels than in 2008. The operating margin for 2009 is expected to be slightly below the level realised in 2008.
Financial highlights and key ratios of ISS Holding A/S for the first three months 2009:
Amounts in DKK million* Revenue** Operating profit*** Net profit/(loss) for the period Operating margin Organic growth |
Q1 2009 16,674 715 (175)
4.3 %
1.5 % |
Q1 2008 16,367 772 (163)
4.7 %
6.0 % |
Change + 2 % - 7 % |
* Except percentages
** Adjusted for exchange rate fluctuations the change is +7%
*** Before other items. Adjusted for exchange rate fluctuations the change is – 1 %
For further information, please contact:
Jørgen Lindegaard
Group CEO
ISS A/S
Tel. +45 38 17 00 00
Jakob Stausholm
Group CFO
ISS A/S
Tel. +45 38 17 00 00
Forward-looking statements
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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 69 billion in 2008 and employs more than 470,000 people in more than 50 countries across Europe, Asia, North America, Latin America and Pacific.