Facility services provider ISS has released its interim financial report for the first three months of 2017, describing the results as encouraging and “a good start to 2017”.
ISS Group CEO Jeff Gravenhorst said he is confident the company will deliver on its outlook for the year.
“Our results for the first quarter of 2017 were encouraging. We delivered solid organic growth, a consistent margin and strong cash conversion,” said Gravenhorst.
“We remained focused on key accounts. Revenue from global corporate clients increased by 10 per cent and we added three new global corporate clients during the quarter.”
The company experienced organic revenue growth of 2.6 per cent, and a 2 per cent increase in total revenue, driven by organic growth, but partly offset by negative net impact from acquisitions and divestments of 1 per cent.
ISS had an operating margin of 4.5 per cent, and a 98 per cent cash conversion during the last 12 months.
Strategic initiatives, including sharper focus on key customers, the procurement programme and our global concepts and tools, continue to be implemented according to plan and support the margin.
“We continued to grow our integrated facility services segment, driven by contract launches and extensions with Heineken in the Netherlands, Bombardier in North America and Royal Mail in the UK, as well as conversion of existing single service contracts into integrated facility service contracts,” said Gravenhorst.
“We are confident that we will deliver on our outlook for the year, and we will continue strengthening our business with the implementation of strategic initiatives such as our procurement program.”