ISS continues the growth in both top and bottom line

Today, ISS Holding A/S published its financial results for the first nine months of 2008.

Revenue increased by 11% in the first nine months of 2008 adjusted for exchange rate fluctuations, compared with the same period in 2007.  The organic growth was 5.5%, a contributor to the growth was a large global integrated facility services contract, covering 45 countries, which was signed in March, 2008. Revenue amounted to DKK 51,074 million and operating profit before other items amounted to DKK 2,989 million, which led to an unchanged operating margin of 5.9% compared with the same period in 2007.

Group CEO Jørgen Lindegaard had the following comments on ISS’s performance during the first nine months of 2008:
“ISS once again delivered solid financial results and we are pleased to continue the growth and progress. We have achieved healthy organic growth and acquisitive growth in line with our expectations. Our operating margin is also in line with the company’s expectations and at the same time we are improving the bottom line significantly, so, all in all, I am very pleased with the results we are announcing today.”

He continues: “Even though the current slow-down in the economies across the world has some effect on ISS it also leads to new opportunities for ISS: our services can help customers, and especially potential customers who have not outsourced a number of activities yet, to achieve higher efficiency and thereby flexible and competitive costs. Furthermore, we are increasingly getting global customers, which is one of the reasons why we have launched ISS operations in Japan.

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 is expected to remain within the same range as realised in the first nine months of 2008. The organic growth rate is expected to continue at a slightly lower rate compared with the first nine months of 2008.
 
Financial highlights and key ratios of ISS Holding A/S for the first nine months of 2008: 

Amounts in DKK million* Revenue** Operating profit*** Net profit/(loss) for the period Operating margin Organic growth

Q1-Q3 2008 51,074 2,989 54 5.9 % 5.5 %

Q1-Q3 2007 46,991 2,796 (368) 5.9 % 6.3 %

Change + 9 % + 7 %

* Except percentages
** Adjusted for exchange rate fluctuations the change is +11%
*** Before other items

For further information, please contact:

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

Group CFO Jakob Stausholm
Tel. +45 38 17 00 00

 

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 for 2007 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.