Facilities services provider ISS has reported that its revenue increased by 2.4 per cent year-on-year in Q1 2020, showing solid organic growth of 4.1 per cent.
The group said organic growth was driven in particular by key account organic growth of 9.1 per cent and strong demand for deep-cleaning and disinfection services.
ISS said that as the Covid-19 crisis unfolds, it has seen “an increasing impact on our operations over the last weeks” and “the estimated negative organic growth in April was around 20 per cent” while “in isolation, the estimated negative organic growth impact from Covid-19 was around 25 per cent with an operating profit drop-through of around 25 per cent”.
As a result of the sudden short-term reduction in activity, ISS said it has been focusing on cost control and cash generation. It is adjusting its cost base and investments and has had to furlough or lay off many employees.
Total readily available liquidity was strong at above DKK 11 billion at 30 April (20 March 2020 announcement: above DKK 8 billion) positively impacted since its update on 20 March 2020 by additional undrawn liquidity facilities of DKK 2.2 billion and broadly neutral free cash flow. ISS has no financial covenants and no short-term debt maturities.
Jeff Gravenhorst, group CEO, ISS A/S, said: “Our number one priority is the health and safety of our employees and our customers. Our solid organic growth, our ability to adapt swiftly to unprecedented circumstances, as well as the central role we take in the business continuity plans of our customers are all the result of our strategic focus towards key accounts.
“The awareness and perception of the role of facility services and the work of our employees have changed significantly. With our international reach, flexible costs base and solid liquidity, ISS is well positioned to come out as an even stronger company.”