ISS Group’s Interim Report for January-June 2015 highlights 4% organic revenue growth

ISS Group has posted its financial results for the first half of the year

ISS Group has posted its financial results for the first half of the year

ISS Group, one of the world’s leading facility services companies, has just published its interim financial report for the first six months of 2015. The company posts an increased organic revenue growth of 4.0% in H1 and 4.8% in Q2 (Q1 2015: 3.1%) with an improved operating margin of 4.9% in H1 (H1 2014: 4.8%) and 5.3% in Q2 (Q2 2014: 5.2%).

There has been a strong cash conversion over the last twelve months of 99% (Q1 2015: 97%). Revenue generated from integrated facility services (IFS) increased by 10% in local currency in Q2 (Q1 2015: 9%) and represents 33% of overall Group revenue (Q1 2015: 32%).

Income derived from global corporate clients represented 10% of Group revenues in Q2 (Q1 2015: 10%). That’s an increase of 13% in local currencies across Q2 (Q1 2015: 6%).

The company’s strategic initiatives including customer segmentation, organisational structure and excellence projects such as the defined procurement programme are “progressing according to plan” and have been actively supporting margin improvement.

To further facilitate alignment and boost customer focus, in June the business announced a new and strengthened organisational structure which became effective on 1 September.

The outlook for organic revenue growth in 2015 has been changed to 3.5%-4.5% from the previous prediction of 2%-4%.

Expectations for operating margin (which sit above 5.6%) and cash conversion (above 90%) remain unchanged.

Strong second quarter for the business

Jeff Gravenhorst: CEO at the ISS Group

Jeff Gravenhorst: CEO at the ISS Group

Speaking about these financials, Jeff Gravenhorst (Group CEO at ISS) explained: “We delivered a strong second quarter thanks to good growth in IFS, improved performance in some developed markets and progress in our strategic initiatives. In what is presently a volatile macroeconomic environment, we’ve increased our organic growth rate and improved operating margin.”

Gravenhorst continued: “We have also won new integrated facility services contracts and extensions with a number of significant customers. These include Danske Bank in the Nordics and Eastern Europe, Huashan Hospital in China, a hospital re-tender in the UK and a major contract secured with the Danish State Railways. Following significant contract wins and strategic initiatives, we now expect to deliver an organic growth of 3.5%-4.5% for the full year.”

Richard Sykes, CEO for ISS in the UK and Ireland, commented: “We’ve been a public company since the IPO in March 2014 and, during the intervening period between then and now, we’ve been trading well and profitably across the globe. The UK and Ireland continues to be a significant element in this success. I’m delighted that we’ve developed major contracts, partnerships and relationships which have contributed to the ongoing global success of the organisation as a whole.”

Sykes added that the UK and Ireland business’ public sector work is “growing well”, enhanced by successful public sector tenders alongside private sector contracts gained with some leading financial sector organisations.

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

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