ISS, a leading global provider of facility services, has announced its interim financial report for the first nine months of 2018.
Organic grew to 3.2% in the first nine months and 3.4% in Q3 (Q2 2018: 3.2%), supported by contract launches and expansion of global key account contracts as well as continued demand for non-portfolio services.
Total revenue decreased by 0.9% in the first nine months and 0.7% in Q3 (Q2 2018: 1.6%). The decrease in the first nine months was driven by negative currency effects of 4.1% partly offset by organic growth while effects from acquisitions and divestments were flat for the first nine months.
Operating margin stood at 4.9% in the first nine months (2017: 5.4%) and 6.1% in Q3 (Q3 2017: 6.3%) reflecting contracts phasing in and out albeit less than previous quarters.
Operating profit before other items amounted to £338.4m in the first nine months (2017: £373.7m).
Jeff Gravenhorst, Group CEO, ISS A/S, (pictured) said, “We continued to deliver solid organic growth, supported by contract launches and expansions within our strategic segments. In Q3, we extended our contract with Nordea for five years. In addition, we won TSB Bank in the UK and successfully expanded the Post Nord contract across the Nordics.
'Our margins are in line with expectations, slightly lower compared to last year, due to contract rotation. We continue to increase our focus on key accounts and refine our portfolio in line with the strategy. Our pipeline is good which, together with the launch of Deutsche Telekom, will support our organic growth going into 2019.”