Financial report for fourth quarter and full year 2016: Robust growth, increased margin and profit
ISS (ISS.CO, ISS DC, ISSDY), a leading global provider of facility services, announces its financial results for the fourth quarter and full year 2016.
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- Organic revenue growth of 3.4% for the year and 2.9% in Q4 (Q3 2016: 3.3%).
- Total revenue decreased by 1% for the year and was flat year-on-year in Q4 (Q3 2016: decrease of 1%) driven by currency effects which reduced revenue by 3% for the year and 3% in Q4.
- Operating margin of 5.8% for the year (2015: 5.7%) and 6.7% in Q4 (Q4 2015: 6.6%).
- Cash conversion over the last twelve months of 98% (Q3 2016: 95% and 2015: 99%).
- Net profit (adjusted) increased to DKK 2,873 million for the year (2015: DKK 2,785 million).
Net profit was DKK 2,220 million (2015: DKK 2,218 million).
- Free cash flow increased to DKK 2,910 million (2015: DKK 2,835 million).
- Proposed dividend for 2016 of DKK 7.70 (2015: DKK 7.40) per share of DKK 1, an increase of 4%, equivalent to a total of DKK 1,430 million.
- Revenue from Global Corporate Clients increased by 19% in local currency in 2016 (2015: 11%) and represents 11% of Group revenue (2015: 10%).
- Revenue generated from IFS amounted to 37% of Group revenue.
- 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 positive margin development.
- Five businesses divested during the year, including our security activities in Finland, our activities in Greenland and the remaining landscaping activities in USA.
- During the year, we acquired Apunto, a leading catering company in Chile.