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Global workplace experience and facilities management firm, ISS, has reported robust financial development in 2024, in line with expectations.
In its financial performance update, organic growth was 6.3% in 2024 (2023: 9.7%), and 6.6% in H2 2024 (H2 2023: 8.1%), which ISS says was mainly driven by price increases implemented across the Group, positive volume growth and higher than expected above-base work revenue in the US.
Operating margin before other items (excl. IAS 29) in 2024 improved to 5.0% (2023: 4.3%), and 6.0% in H2 2024 (H2 2023: 4.9%) as a result of broad-based operational improvements across the Group.
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In 2024, ISS conducted a review of the OneISS strategy confirming the overall direction but updating the strategic priorities. With the updated strategic priorities ISS says it has sharpened its commercial focus on segmentation and execution to accelerate growth going forward.
In January 2025, Executive Group Management was aligned with the updated priorities and reduced to five members.
In August 2024, ISS secured a seven-year contract, with the UK Department of Work and Pensions with an expected annual revenue of around DKK 1.2 billion (£135 million). The company also extended several key account contracts including the longstanding global IFS partnership with Barclays and Nordea.
ISS completed five acquisitions in 2024, most significantly gammaRenax in Switzerland and Grupo BN in Spain, and in April 2024 the divestment of ISS France was completed marking the final step in ISS’ strategic divestment programme.
ISS has also stated that the arbitration process with Deutsche Telekom progressed according to plan, and the final oral hearing in the arbitration proceedings is scheduled to take place mid-July 2025.
Looking ahead, ISS says organic growth is expected to be 4 – 6% in 2025 and operating margin is expected to be above 5%.
Kasper Fangel Group CEO, ISS A/S, said: “2024 was an exciting year for ISS. We delivered on our financial targets, and our financial position is robust. We secured contract extensions for significant key customers and took critical steps to strengthen our organisation, enhance execution, and deepen our focus on meeting the evolving needs of our customers.
“Looking ahead, we are committed to driving strong, profitable growth. With our recently launched refreshed strategic priorities and a streamlined and focused Executive Group Management team, we are ready to accelerate growth and seize the significant global and local opportunities in our selected industry segments.”
On 27 February FMJ will be hosting a webinar in partnership with workplace management solutions provider, Matrix Booking, to discuss the challenges posed by managing hybrid work models, meeting sustainability targets, and dealing with economic pressures, which have long required a fine balancing act for Facilities Managers. This is set to become more complicated this year with the Government announcing plans to allow staff to work more flexibly.
The webinar will bring together the digital experts from Matrix Booking alongside a panel of workplace thought leaders to discuss how FMs can create the perfect balance.
Can’t make it no problem… Simply sign up below and after the webinar has been broadcast, we will send you a link to watch the recording. Register for the webinar by clicking here.
