In its annual report ISS Group says its preliminary 2021 guidance announced on 16 December 2020 is confirmed and uncertainty remains high as Covid-19 affects activity “in an unprecedented manner”.
This is particularly acute within food services, it said.
ISS’s financial results in the second half of 2020 show organic growth and operating margin were in line with the stated outlook. Free cash flow was DKK1.8 billion (around £201 million) for 2020 against the latest financial outlook of “around DKK 2.0 billion (£233 million)”.
Restructuring costs and one-offs were in total DKK3.5 billion (around £31 million) in 2020 compared with the expectation of DKK3.0million to DKK 3.5 billion.
The OneISS strategy was launched in December to sharpen the group’s strategic focus, enhance the operating model and outline the path for ISS’s short-term turnaround. The strategic agenda is developing as planned under the new executive group management. Andrew Price is currently interim country manager in United Kingdom & Ireland.
Jacob Aarup-Andersen, group CEO of ISS A/S, said: “2020 was a year that will not be forgotten. The global pandemic challenged ISS, economies and businesses around the globe. Our financial performance was negatively impacted by global lockdowns and throughout these challenging times, we have focused on the safety and health of our colleagues as they made a real difference for our customers and their employees.
“Towards the end of 2020, we announced our OneISS strategy to enhance execution. We have kept significant pace, fundamentally improving the operating model while managing a short-term turnaround. The pandemic has made our offerings strategically more important for our customers, and we are using our scale to leverage the increased focus on workplaces that promote health, culture and performance. With our proven leadership in cleaning, we are well positioned for a Covid-19 recovery and emerge as an even stronger business.”