ISS intends to divest its French business except for Global Key Account customers that would become the exclusive focus in France
Company Announcement
Copenhagen, 9 August 2023
No. 18/2023
ISS intends to divest its French business except for Global Key Account customers that would become the exclusive focus in France
ISS A/S, a leading workplace experience and facility management company, today announces its intention to divest its French business, except for Global Key Account customers. In the Interim report for 1 January – 30 June 2023, a goodwill impairment and write-down of non-monetary assets related to ISS France are recognised.
The global implementation of the OneISS strategy continues to successfully deliver the planned financial outcomes. However, historically financial results in France have not been satisfactory and have been dilutive to Group operating margins and growth. Furthermore, the development in France has not generated the expected financial improvements due to inherent strategic challenges, difficult market conditions, and continued muted commercial development.
During the past several years, the ISS Group and local management in ISS France have worked towards restructuring the business and establishing a solid foundation in the French market. However, building a long-term, sustainable business and a strengthened market position in France, will require further significant investment and management attention.
The strategic ambition of ISS is to become the global leader in IFS, requiring investments to be prioritised to support this ambition. ISS therefore intends to strategically reposition itself in the French market, to focus on servicing its Global Key Account customers and intends to divest its other activities.
“Our French business has a good and diversified customer portfolio base, as well as experienced and dedicated people. During the search for a buyer, ISS France will continue to service all existing customers in the same way as today. It will be a key priority for us to ensure that we continue to deliver to the same high standards to all our customers,” says Kasper Fangel, Group Chief Financial Officer.
“As for our strategically important Global Key Accounts customers, they are integral to our long-term strategy. We remain fully committed to deliver excellent service to these customers in France, both now and well into the future,” adds Kasper Fangel.
As a consequence, ISS France will, as of today, be classified as held for sale and discontinued operations in accordance with IFRS. Consequently, in the financial statements for 2023 the results of ISS France will be presented in “Net profit from discontinued operations” in the statement of profit or loss and comparative figures for 2022 will be restated accordingly.
Goodwill impairment and write-down of non-monetary assets
Following a reassessment of future expectations as of 30 June 2023 for growth and operating margin, goodwill impairment of DKK 937 million and write-down of non-monetary assets of DKK 320 million related to ISS France are recognised in the Interim Report for 1 January – 30 June 2023.
ISS publishes its Interim Report for 1 January – 30 June 2023 on 9 August 2023.
For investor enquiries
Jacob Johansen, Head of Group Investor Relations, +45 21 69 35 91
Kristian Tankred, Senior Investor Relations Manager, +45 30 67 35 25
For media enquiries
Kenni Leth, Director of External Communications, +45 51 71 43 68
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 2022, Group revenue was DKK 76.5 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
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