ISS has announced its results for the first quarter of 2013 reporting a solid start to the year with revenue amounting to DKK $19.5 billion (AUD $3.5 billion) – driven by an organic growth of 2.7%. Its operating margin was 4.4% compared with 4.5% for the same period in 2012, while net profit was DKK $71 million (AUD $12.5 million) compared with a loss of DKK $116 million (AUD $20 million) for the same period the previous year. Another increase was the last 12 months cash conversion which was 99% up from 97% in 2012.
ISS Group CEO Jeff Gravenhorst commented: “ISS has started 2013 well, delivering solid financial results in spite of continued challenging macroeconomic conditions. We achieved overall positive organic growth in both developed and emerging markets, with double digit growth in Asia,” he stated.
“We have successfully started our new contracts with Barclays and Novartis, and have won additional important international contracts in 2013. Last week ISS was recognised as the world’s number one outsourcing company, a clear sign of the strong international market position of ISS. Lastly, we successfully refinanced the majority of our debt and divested the pest control activities in 12 countries”.
‘The outlook for 2013 remains unchanged and is based on a mixed global macroeconomic outlook with continued strong growth in emerging markets combined with weak growth and difficult macroeconomic conditions in large parts of Europe, including the uncertainty surrounding current and future austerity measures’.
In 2013, the company had a solid start following the wins of several large IFS contracts in 2012. Combined with the underlying business development, the forecast is expected to be about 3% organic growth in 2013. While the operating margin is expected to be maintained at the level realised in 2012, cash conversion is expected to be above 90%.