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Global workplace experience and facilities management firm, ISS, has reported a robust first nine months with continued business improvements in its trading update for 1 January – 30 September 2024.
Organic growth was 4.8% in Q3 2024 (Q3 2023: 9.3%) and 5.5% for the first nine months of 2024 mainly driven by price increases implemented across the Group and net positive volume growth.
As announced on 8 August 2024, ISS was awarded a seven-year contract with the UK Department of Work and Pensions (DWP) with an expected annual revenue of around DKK 1.2 billion (£135 million), which will commence in 2025. ISS also extended several key account contracts including the longstanding global partnership with UBS and in addition several local mid-sized and small contracts. The company’s retention rate remains strong at 94 per cent.
On 10 September 2024, ISS completed the acquisition of Grupo BN in Spain adding around 0.5 per cent to Group annual revenue. ISS also states that the arbitration process with Deutsche Telekom progressed according to plan.
Looking ahead, ISS says its outlook for 2024 is unchanged from the H1 report 2024 with organic growth of 5-6%, and operating margin above 5%.
Kasper Fangel Group CEO, ISS A/S, commented: “I’m pleased that in the third quarter, we sustained organic growth, achieving 5.5% for the first nine months of 2024. In addition, our operating margin and free cash flow developed as expected due to ongoing operational improvements across the business. Commercially, we have made strong efforts to secure further extensions of several longstanding customer relationships. Additionally, we have taken steps to leverage our market opportunities through targeted initiatives and higher quality-execution. I’m also encouraged to see social sustainability gaining traction with our customers as a key differentiator for ISS, and I’m confident it will drive stronger commercial outcomes ahead.”
