ISS reports Q1 growth despite COVID-19 impact

ISS provides trading update, reporting increasing impact of COVID-19 on operations over the last weeks.

ISS Facilty Services has reported a year-on-year revenue increase of 2.4 per cent for the first quarter, with organic growth of 4.1 per cent driven by key account organic growth (9.1 per cent) and strong demand for deep-cleaning and disinfection services.

The company said it had seen an increasing impact of COVID-19 on operations over the last weeks. The estimated negative organic growth in April was around 20 per cent.

In isolation the estimated negative organic growth impact from COVID-19 was around 25 per cent, with an operating profit drop-through of around 25 per cent.

“As a result of the sudden short-term reduction in activity, we focus on cost control and cash generation. We are adjusting our cost base and investments and have had to furlough or lay-off many hard-working employees,” the company said.

“Total readily available liquidity was strong at above DKK 11 billion at 30 April 2020 positively impacted since its update 20 March 2020 by additional undrawn liquidity facilities of DKK 2.2 billion and broadly neutral free cash flow.”

Jeff Gravenhorst Group CEO, ISS A/S, said: “Our number one priority is the health and safety of our employees and our customers. Our solid organic growth, our ability to adapt swiftly to unprecedented circumstances, as well as the central role we take in the business continuity plans of our customers are all the result of our strategic focus towards key accounts.

“I am immensely proud of the hard work of all of my colleagues and the role ISS currently plays in society at large. The awareness and perception of the role of facility services and the work of our employees have changed significantly. With our international reach, flexible costs base and solid liquidity, ISS is well positioned to come out as an even stronger company.”

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