ISS Posts Half-Year Results

ISS has posted positive organic revenue growth for the first half of 2014. The facilities services group posted 2.4% growth after recording 2.0% growth in Q2. It is expected the Group’s organic revenue growth in 2014 will be around the level realised for the first six months of 2014 (from 3%-4% previously).

Jeff Gravenhorst, Group CEO, commented on the negative impact of “weaker economic conditions in Europe”, despite continued growth.

He added: “We are satisfied with our increasing margin in Q2, our strong cash conversion and our significantly improved net result for the first half of 2014. We have further optimised our business through successful divestments of non-core activities allowing us to focus on the activities we are best at.

“When we set guidance for 2014, we did so against a backdrop of an improving macroeconomic outlook in Europe. The recent economic data has shown significant weakening in Europe. This has had an effect on some of our customers’ decision-making and leads us to change our organic growth expectations for the full year to be around the level of the first half of 2014. Our operating margin and cash conversion targets are unchanged.”