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ISS delivers improved numbers across the business
ISS increases growth and continues improvement in earnings. This appears from ISS’ H1 Financial Statements for 2010 published today.
ISS increases growth and continues improvement in earnings. The company delivered more than 7% growth in revenue compared with Q2 2009, of which 3.8% was organic. Earnings grew by 9% in the quarter, boosting the operating margin to 5.8% and putting the company on a sustainable path to profitable growth, as it benefits from the cost reductions made in 2009 and the company’s implementation of The ISS Way which is the company’s strategy for gaining ground in the global Facility Services market.
This appears from ISS’ H1 Financial Statements for 2010 published today.
In aggregate, ISS’ revenue for H1 2010 increased to DKK 36,200m, up by 6% compared with H1 2009. Within this number was a solid 3% contribution from organic growth, a positive currency impact of 4%, and divestments of -1%. Six of the seven ISS regions delivered positive organic growth, with Asia and Latin America reaching growth rates of 23% and 45%, respectively.
Operating profit before other items of DKK 1,877m in first half of 2010, increased 10% on first half of 2009, improving ISS’ operating margin by 0.2 percentage points to 5.2% for the period.
“I’m pleased with our results. We are achieving growth rates that are among the best in our industry. We have moved quickly into this growth phase, from successfully defending our revenue and earnings during the financial crises. Our strategy The ISS Way is proving its strength, both in times of economic recession and growing optimism in the world economy,” says Jeff Gravenhorst, Group CEO.
“We have seen particularly good growth in our portfolio contracts. This is in line with our strategy and demonstrates that we have the resilience and robustness to move the business forward despite fluctuations in the world economy” he adds.
“The double-digit growth in our operations in Asia and Latin America confirms our strategy of expanding operations in emerging markets. We have recently grown our Indian activities by acquiring 49% of SDB Cisco, the third-largest security company in India. ISS entered the Indian market in 2005 and, measured in staff numbers, India is now our second-largest operation with 45,000 employees.”
By acquiring SDB Cisco, ISS now has 520,000 employees in more than 50 countries.
ISS’ cash flow remains strong and stable. The company has a continued low number of debtor days and a strong cash conversion of 96%.
ISS expects growth to continue for the remainder of 2010, and for its operating margin to improve slightly from the 5.6% achieved in 2009.
ISS initiates strategic review process
In ISS’ H1 2010 Financial Statements, the company announces that it has decided together with its shareholders to initiate a strategic review process which includes considering an initial public offering.
ISS’ shareholders are funds controlled or advised by EQT and Goldman Sachs Capital Partners. Goldman Sachs and Morgan Stanley have been appointed to assist in the review. Rothschild is acting as adviser to ISS and its shareholders.
ISS does not expect to publicly disclose additional information regarding the status of the process, including the options available, their likelihood or possible timing, until the review has been completed. There can be no assurances that any particular course of action will be pursued nor of what the timing will be.
Key figures and ratios for ISS Holding A/S in for H1 2010:
Amounts in DKKm* Revenue Operating income** Operating margin Organic growth |
H1 2010 36,193 1,877 5.2% 3.0% |
H1 2009 34,022 1,699 5.0% 0.7% |
Change 6% 10% |
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* Except percentages
** Before other items Further information: Jeff Gravenhorst
Group CEO
Jakob Stausholm
Group CFO
Tel. +45 38 17 62 39
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 2009 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.
The annual report for 2009 for ISS Holding A/S is available at the group website, www.issworld.com.
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, Support Services, Property Service and Security. The ISS Group generated revenue of DKK 69 billion in 2009 and employs more than 520.000 employees in more than 50 countries across Europe, Asia, North America, Latin America and Pacific.
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