One of the leading global provider of facility services, ISS has posted its financial results for the first quarter of 2018, showing organic growth of 3.1%, reflecting better than expected timing in contract transitions.
Total revenue decreased by 0.4% in the first three months (Q4 2017: 1.4%) driven by negative currency effects of 5.6% partly offset by organic growth and a positive net impact from acquisitions and divestments of 2.1%.
Operating margin of 4.0% in the first three months (Q1 2017: 4.5%) reflecting mainly the impact of contracts phasing in and out. Operating profit before other items decreased to £90.07m in the first three months (Q1 2017: £103.3m).
Net profit (adjusted) decreased to £35m in the first three months (Q1 2017: £64.5m), mainly due to increased other income and expenses, net and lower operating profit before other items. Net profit decreased to £22m in the first three months (Q1 2017: £52.5m).
Jeff Gravenhorst (pictured), Group CEO, ISS A/S, said, “Our results for the first three months of 2018 were encouraging. We delivered solid organic growth, supported by contract launches and demand for non-portfolio services within our strategic customer segments. Our margin performance was as expected impacted by acquisitions and divestments and currency effects, as well as phasing in and out of significant contracts.
'We launched a number of major contracts, such as LEGO Group and an international food and beverage company, and we saw several new wins during the quarter, among others Royal Philips, a major international air carrier and a new customer in the pharmaceutical industry.
'We will continue to strengthen our business with the implementation of strategic initiatives and our focus on key accounts. We are proud that our efforts were once again recognised on the IAOP Global Outsourcing Top 100 list where we achieved the highest possible rating for the sixth year in a row.”