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18 August 2018
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ISS REPORTS ‘ENCOURAGING’ GROWTH IN Q1 DESPITE FALL IN REVENUE 

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Total revenue decreased by 0.4 per cent © Shutterstock

9  May 2018 | Herpreet Kaur Grewal


Facilities management company ISS has announced that its total revenue decreased by 0.4 per cent in the first three months of Q4 in its interim financial report.

 

ISS states that the first three months of 2018 reflect significant contract phasing.  It also reported organic revenue growth of 3.1 per cent during the period supported by non-portfolio revenue and “better than expected timing in contract transitions”.

 

There was an operating margin of 4.0 per cent in the first three months (Q1 2017: 4.5 per cent) reflecting mainly the impact of contracts phasing in and out.

 

The 2018 outlook for organic revenue growth, operating margin and cash conversion remains unchanged.

 

Jeff Gravenhorst, group CEO, ISS A/S, 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.”