ISS A/S
Interim report for the period 1 January – 30 September 2014

DGAP-News: ISS A/S

12.11.2014 / 08:11

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Resilient growth and strong margin performanc

Copenhagen, 2014-11-12 08:11 CET (GLOBE NEWSWIRE) -- 
                                                                     No. 25/2014

ISS (ISS.CO, ISS DC), one of the world's leading facility services companies,
announces its interim financial report for the first nine months of 2014: 



Highlights

  -- Resilient organic revenue growth of 2.4% in the first nine months (2013:
     4.1%) and 2.4% in Q3 (2013: 5.2%).
  -- Strong operating margin of 5.3% in the first nine months (2013: 5.3%) and
     6.4% in Q3 (2013: 6.3%). Adjusted for the impact of the divested pest
     control activities in 2013, the YTD operating margin increased from 5.2% in
     2013 to 5.3% in 2014.
  -- Strong cash conversion over the last twelve months of 97% (2013: 109%) as a
     result of continued focus on cash flows across the Group.
  -- Profit before goodwill impairment and amortisation/impairment of brands and
     customer contracts increased to DKK 1,210 million in the first nine months
     (2013: DKK 726 million).
  -- The strategic initiatives including customer segmentation and central
     procurement are progressing according to plan and support margin
     progression.
  -- Emerging markets represent 24% of total revenue for the Group (2013: 23%)
     and delivered 10% organic growth (2013: 11%) and 6.1% operating margin in
     the first nine months (2013: 6.1%). Western Europe represents 51% of total
     revenue for the Group (2013: 50%) and delivered flat organic growth against
     a backdrop of difficult market conditions (2013: 5%) and 5.7% operating
     margin in the first nine months of 2014 (2013: 5.4%).
  -- Revenue generated from Integrated Facility Services contracts increased 9%
     (currency adjusted) in the first nine months and amounted to DKK 16.5
     billion representing 30% of overall revenue (2013: 26%). Significant IFS
     contract wins in Q3 included Bankia and Aller. The IFS segment includes
     Global Corporate Clients, where revenue increased 4% (currency adjusted) in
     the first nine months.
  -- An EMTN programme is being established to give ISS increased flexibility to
     pursue refinancings in the bond market when considered relevant. European
     investor marketing will commence shortly and issuance of bonds may follow
     subject to market conditions.
  -- The 2014 outlook for organic growth, operating margin and cash conversion
     remains unchanged from our Q2 Interim report.

Jeff Gravenhorst, Group CEO, ISS A/S, said:

'ISS has delivered a resilient performance in the third quarter as we continue
to grow profitably within the attractive global facility services market. 

Against a softer global macro backdrop, we realised resilient organic growth
supported by strong performance in Emerging Markets and an increasing share of
IFS revenue, now 30% of Group total. Significant contract wins in this quarter
included Bankia, Vattenfall, Aller, Norwegian Defence Forces and Molson Coors. 

Our focus on profitable contracts along with progress on our strategic
initiatives such as customer segmentation, central procurement, business
process outsourcing and the successful divestment of non-core activities has
supported another quarter of strong operating margins. 

Whilst we expect operating conditions, particularly in Europe, to remain
challenging through the rest of this year and into next, we remain confident in
our ability to grow organically, with strong operating margins and excellent
cash conversion.' 



Lord Allen of Kensington Kt CBE              Jeff Gravenhorst

Chairman                                                        Group CEO



Conference call details

A conference call will be held on 12 November 2014 at 10:00 CET. Presentation
material will be available online prior to the conference call. 

Link: http://inv.issworld.com/events.cfm

Dial-in details:

DK: +45 35 44 55 79
UK: +44 203 364 5373
US: +1 855 753 2237



For media enquiries
Manuel Vigilius, Global Media Relations Manager, +45 38 17 64 04

For investor enquiries
Martin Kjær Hansen, Investor Relations Manager, +45 38 17 64 31



About ISS                                                                       
The ISS Group was founded in Copenhagen in 1901 and has grown to become one of  
 the world's leading Facility Services companies. ISS offers a wide range of    
 services such as: Cleaning, Catering, Security, Property and Support Services  
 as well as Facility Management. Global revenue amounted to DKK 78.5 billion in 
 2013 and ISS has more than 520,000 employees and local operations in more than 
 50 countries across Europe, Asia, North America, Latin America and Pacific,    
 serving thousands of both public and private sector customers. For more        
 information on the ISS Group, visit www.issworld.com.                          



ISS A/S, ISIN DK 0060542181,
ISS Global A/S, ISIN XS0206714247
News Source: NASDAQ OMX



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12.11.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.

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Language:    English       
Company:     ISS A/S       
 
 
             Denmark       
ISIN:        DK0060294858  
 
 
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