The leading global provider of facility services, ISS has published its interim report for the period 1 January – 30 June 2019 showing strong organic growth.
Revenue increased by 5% in H1 and 5% 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%.
Organic revenue growth of 6% in H1 and 5.8% in Q2 (Q1 2019: 6.1%), driven by wins and expansions of key account contracts following strong commercial momentum and continued solid non-portfolio demand in the first half of 2019.
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%).
Jeff Gravenhorst, Group CEO, ISS A/S, (pictured) said, “We continued our consistent and strong commercial momentum with the extension of large key account contracts like Danske Bank and an international manufacturing company.
'On 1 July 2019, we launched our Integrated Facility Services partnership with Deutsche Telekom at approximately 9,000 buildings across Germany, making it the largest partnership in the history of ISS.
'Our focus on key accounts is paying off and we are on track to deliver industry leading organic growth of 6.5%-7.5% in 2019.
'As expected, margins were slightly lower in the first half of the year, reflecting the contract start-ups and expansions as well as the launch of the announced transformational investments (2019-2020).
'We are making good progress on our divestment programme, where we expect divestments and proceeds to step up in the second half of 2019.”