Positive. Company shows strong financial development, increasing share buyback program and upgrading credit rating.

From GlobeNewswire: 2024-08-13 01:30:00

ISS A/S released their interim report for the first half of 2024, showing robust financial development. The share buyback program’s second tranche was increased by DKK 250 million to DKK 750 million. Organic growth in Q2 2024 was 5.8%, driven by price increases and positive volume growth. Operating margin improved to 4.0% in H1 2024.

Key business updates include winning a 7-year contract with the UK DWP worth around DKK 1.2 billion. ISS extended key account contracts, acquired gammaRenax in Switzerland, and completed the divestment of ISS France. The arbitration process with Deutsche Telekom progressed as planned.

ISS upgraded its credit rating to BBB, with a financial leverage of 2.6x. The company concluded the first tranche of its share buyback program and increased the second tranche to DKK 750 million. The 2024 outlook for organic growth is between 5-6%, with an operating margin above 5% and free cash flow above DKK 1.8 billion.

Kasper Fangel, Group CEO, expressed satisfaction with meeting financial targets and operational expectations in the first half of 2024. ISS saw growth and financial improvements due to managing inflationary pressure and securing new customer contracts. The company’s strong liquidity position allowed for the increase in the share buyback program.



Read more at GlobeNewswire:: Robust financial development. Second tranche of the share