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11-04-2007

Copenhagen, 11 April 2007 –Today, ISS A/S is releasing its annual report for 2006.

Continued growth and expansion were key words for the ISS Group in 2006.

Revenue was DKK 55.8 billion, a 20% increase on the year before. Operating profit before tax and other items increased by 22% to DKK 3.2 billion.

The operating margin and organic growth both improved for the third straight year. The operating margin was up from 5.7% in 2005 to 5.8% in 2006, while organic growth rose from 3% to 5.5% during the period. All regions contributed to the organic growth, with Asia and Latin America reporting particularly strong performances.

“We are very pleased about the results achieved by ISS last year. The business grew by 20%, producing revenue of more than DKK 50 billion, and for the first time ever, we surpassed the DKK 5 billion mark for a single month’s revenue. In addition, we generated the highest rate of organic growth since 2000 and lifted our operating margin slightly,” comments Group Chief Executive Officer Jørgen Lindegaard.

“Also, we continued our aggressive acquisition strategy, making a total of 104 acquisitions including the second-largest in company history. During the year, we welcomed about 80,000 new employees in Australia and in the new ISS countries, Mexico and the Philippines,” says Jørgen Lindegaard.

The net profit for the year was DKK 911 million against DKK 948 million in 2005. The operating profit before other items rose by DKK 594 million, but the improvement was more than offset by the DKK 658 million increase in net finance costs, which was due to the higher net debt recorded in the second half of 2005 and in 2006.

Financial highlights and key ratios of ISS A/S:

Amounts in DKK millions*

Revenue

Operating profit**

Profit for the year

Operating margin

Organic growth

 2006

55,772

3,244

911

5.8%

5.5%

2005

46,440

2,650

948

5.7%

3%

Change

+ 20%

+ 22%

 

 

 

* Apart from percentages

** Before other items

  • At 31 December 2006, ISS had more than 391,000 employees worldwide, an increase of just over 80,000 from a year earlier.
       
  • ISS established operations in new countries such as Mexico and the Philippines in 2006, expanded operations strongly in several other countries, including Turkey, Israel and Australia, where ISS made its second-largest acquisition ever, taking over the outstanding 51% of the shares in Tempo Services Ltd.

  • After 31 December 2006, ISS has also set up operations in Taiwan and in Bosnia and Herzegovina.     

Download Annual Report 2006 (PDF)

For further information, please contact:

Jørgen Lindegaard, Group CEO

Tel.+45 38 17 00 00

Jeff Gravenhorst, Group CFO

Tel.+45 38 17 62 66

Anders Krogenberg, Head of Group Communications

Tel.+45 38 17 62 41/ +45 20 79 62 41



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