ISS Profits Rise on the Back of Falling Revenue
ISS has reported a 3.6 per cent increase in profits in the final quarter of 2017, following an earlier-than-expected contribution to its balance sheet from new contracts and a rise in non-portfolio related revenue.
The group's board also reported that net gains of 2.1 per cent from an ongoing programme of acquisitions and divestments partially offset a 0.4 per cent drop in revenue caused by exchange rate fluctuations.
Total operating profits for the period were DKK 763 million (compared to DKK 875 million for the first quarter of 2017).
Commenting on the results, Jeff Gravenhorst, ISS Group CEO, said:
“Our results for the first three months of 2018 were encouraging. We delivered solid organic growth, supported by contract launches and demand for non-portfolio services within our strategic customer segments. Our margin performance was as expected impacted by acquisitions and divestments and currency effects, as well as phasing in and out of significant contracts. We launched a number of major contracts, such as LEGO Group and an international food and beverage company, and we saw several new wins during the quarter, among others Royal Philips, a major international air carrier and a new customer in the pharmaceutical industry. We will continue to strengthen our business with the implementation of strategic initiatives and our focus on key accounts. We are proud that our efforts were once again recognised on the IAOP Global Outsourcing Top 100 list where we achieved the highest possible rating for the sixth year in a row.”