“Strong organic growth” across first six months of 2019 reported by FM specialist ISS Group in latest set of financial statements
ISS, the global provider of facility services managed by CEO Jeff Gravenhorst (pictured), has published its interim financial report for the first six months of 2019. Revenue increased by 5.0% in H1 and 5.0% in Q2 (Q1 2019: 4.9%) driven by organic growth and positive currency effects, partly offset by negative net impact from acquisitions and divestments of 1.5%.
There has been organic revenue growth of 6.0% in H1 and 5.8% in Q2 (Q1 2019: 6.1%) underpinned by wins and expansions of key account contracts following strong commercial momentum and continued solid non-portfolio demand in the first half of this year.
Revenue from key accounts grew organically by 7.9% in H1 and 7.7% in Q2 and represented 61% of Group revenue (Q1 2019: 60%).
Operating profit before other items amounted to DKK 1,418 million in H1 (H1 2018: DKK 1,395 million).
The operating margin of 3.7% in H1 (H1 2018: 3.9%) directly reflects the launch of the previously announced transformational investments (2019-2020), renewals and start-ups of a number of significant key account contracts as well as operational challenges in certain countries.
Net profit (adjusted) increased to DKK 822 million in H1 (H1 2018: DKK 704 million) due to improved net profit from discontinued operations. Net profit was DKK 402 million in H1 (H1 2018: loss of DKK 130 million), driven for the most part by lower goodwill impairment.
Free cash flow was an outflow of DKK 2,671 million for H1 (H1 2018: an outflow of DKK 1,401 million) driven by the usual seasonality as well as a significant reduction in the use of non-recourse factoring, in turn leading to a higher cash outflow from operating activities.