Solid delivery in 2023 – ISS initiates a share buyback programme of DKK 1 billion
22 Febrero 2024 - 12:31AM
Solid delivery in 2023 – ISS initiates a share buyback programme of
DKK 1 billion
Company Announcement
Copenhagen, 22 February 2024 No. 3/2023
ISS today announces its full year 2023
financial results
Highlights
- Business momentum was maintained during the last part of 2023,
with organic growth of 7.1% in Q4 2023 (Q4 2022: 10.1%) and 9.7%
for the full-year 2023 (2022: 8.4%), primarily driven by price
increases and underlying volume growth. Total revenue for the
quarter amounted to DKK 20.4 billion.
- The underlying operating margin (excl. impact of hyperinflation
in Türkiye) improved to 4.6% for the full-year 2023 (2022: 4.0%)
and 5.5% in H2 2023 (H2 2022: 4.8%). One-off costs of DKK 233
million related to the review of OneISS initiatives were recognised
in H2 2023, resulting in a reported operating margin of 4.3% for
2023.
- ISS secured a new key account IFS contract with the Danish
Building and Property Agency as well as several smaller and
mid-sized IFS key account contracts across the Group. In the
beginning of 2024, the global contracts with Nordea and an Industry
& Manufacturing customer were extended, supporting a continued
strong customer retention rate of 95%.
- An agreement to divest the French business has been signed and
the divestment process is progressing as planned with expected
completion in H1 2024. The integration of Grupo Fissa in Spain is
completed, and synergies are as planned expected to be realised in
2024.
- Free cash flow amounted to DKK 1.8 billion for the full year
2023 (2022: DKK 1.7 billion) positively impacted by increased
operating profit and inflow from changes in working capital.
- At the end of 2023, financial leverage was 2.2x (2022: 2.6x),
which is within the targeted range of 2.0-2.5x. Based on the
financial results for 2023, the Board of Directors will at the
annual general meeting propose a dividend of 20% of adjusted net
profit for 2023, corresponding to a dividend per share of DKK 2.3.
In addition, ISS will today initiate a share buyback programme of
DKK 1 billion to be executed over a 12-months period.
- For 2024, organic growth is expected to be 4 – 6%. The
operating margin is expected to be above 5%. The expectation for
free cash flow is based on an underlying free cash flow of above
DKK 2.4 billion, equalling a cash conversion of above 60%. However,
in 2024 free cash flow is expected to be above DKK 1.8 billion
(2023: DKK 1.8 billion), adversely impacted by timing effects
including certain payments being withheld by Deutsche Telekom as
described on page 18 in the annual report.
Kasper Fangel Group CEO, ISS A/S,
says:
“In 2023, we continued the positive development
from previous years, reflected in solid performance, on strategic,
operational, and financial levels. We took several steps to enhance
the potential of the OneISS strategy, including a review and
prioritisation of our strategic initiatives to further build a
stronger and value-creating enterprise. We also made good progress
on our ambition to become the Company of Belonging and reduce our
environmental impact. We are in a favorable position, and it gives
us the ability to reward shareholders with both an increasing
dividend payment and the initiation of a share buyback programme.
This has been achieved thanks to the efforts of our more than
350,000 dedicated and passionate placemakers, and I firmly believe
that we are well underway in realising the full potential of
ISS.”
About ISS
ISS is a leading, global provider of workplace and facility
service solutions. In partnership with customers, ISS drives the
engagement and well-being of people, minimises the impact on the
environment, and protects and maintains property. ISS brings all of
this to life through a unique combination of data, insight and
service excellence at offices, factories, airports, hospitals and
other locations across the globe. ISS has more than 350,000
employees around the globe, who we call “placemakers”. In 2023,
Group revenue was DKK 78.7 billion. For more information on the ISS
Group, visit www.issworld.com.
ISS A/S, ISIN DK0060542181, ISIN US4651472056, ISS
Global A/S, ISIN XS2013618421, ISIN
XS1145526825, ISIN XS1673102734, ISS Finance B.V.,
ISIN XS2199343513
- ISS AS H2 2023
- AR2023_Final
- ISS-2023-12-31-en
ISS AS (TG:QJQ)
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