ECJ EUROPEAN Cleaning Journal

International facilities services group ISS - which has its headquarter in Denmark - has published its full year financial results for 2023. Among the highlights:

• Business momentum was maintained during the last part of 2023, with organic growth of 7.1 per cent in Q4 2023 (Q4 2022: 10.1 per cent) and 9.7 per cent for the full-year 2023 (2022: 8.4 per cent), primarily driven by price increases and underlying volume growth. Total revenue for the quarter amounted to DKK 20.4 billion (€2.73 billion).

• The underlying operating margin (excluding the impact of hyperinflation in Turkey) improved to 4.6 per cent for the full-year 2023 (2022: 4.0 per cent) and 5.5 per cent in H2 2023 (H2 2022: 4.8 per cent). One-off costs of DKK 233 million (€31.24 million) related to the review of OneISS initiatives were recognised in H2 2023, resulting in a reported operating margin of 4.3 per cent for 2023.

• An agreement to divest the French business has been signed and the divestment process is progressing as planned with expected completion in H1 2024. The integration of Grupo Fissa in Spain is completed, and synergies are as planned expected to be realised in 2024.

• Free cashflow amounted to DKK 1.8 billion (€0.24 billion) for the full year 2023 (2022: DKK 1.7 billion, €0.22 billion) positively impacted by increased operating profit and inflow from changes in working capital.

• For 2024, organic growth is expected to be between four and six per cent. The operating margin is expected to be above five per cent.

Kasper Fangel, goup CEO for ISS commented: "In 2023, we continued the positive development from previous years, reflected in solid performance, on strategic, operational, and financial levels. We took several steps to enhance the potential of the OneISS strategy, including a review and prioritisation of our strategic initiatives to further build a stronger and value-creating enterprise. We also made good progress on our ambition to become the Company of Belonging and reduce our environmental impact."

He continued: "We are in a favorable position, and it gives us the ability to reward shareholders with both an increasing dividend payment and the initiation of a share buyback programme. This has been achieved thanks to the efforts of our more than 350,000 dedicated and passionate placemakers, and I firmly believe that we are well underway in realising the full potential of ISS."

www.issworld.com