Today, ISS, a leading global facility services provider, has completed the sale of its commercial security activities in Australia and New Zealand to Wilson Security. The sale was originally announced 8 January 2014.
ISS will continue to provide security services at major airports in Australia. ISS is the largest provider of airport security services in Australia, covering 13 airports.
The revenue of the divested activities was DKK 832 million in 2013. ISS intends to use the net proceeds of approximately DKK 110 million for further deleveraging of the company.
Thomas Hinnerskov, Regional CEO, ISS Asia Pacific, commented:
“We are very satisfied that we have completed this transaction according to plan. This will support and further align our business platform in the Pacific Region, strengthen focus on our core activities, and accelerate the execution of our global strategy. We remain committed to delivering security services in airports where we see a strong potential for our Integrated Facility Services.”
The outlook for 2014 remains unchanged, and has as expected been updated to reflect the already announced impact of the divestment of the commercial security activities in Australia and New Zealand on total revenue growth for 2014 as communicated in the Offering Circular dated 3 March 2014.
We expect organic revenue growth in 2014 to be 3% to 4%. Changes in foreign exchange rates are expected to negatively impact revenue growth in 2014 by approximately 3 percentage points1). Divestments and acquisitions completed in 2013 and divestments completed in 2014 are expected to negatively impact revenue growth in 2014 by 5-6 percentage points2). We expect total revenue growth in 2014 to be negative by approximately 5%.
Operating margin in 2014 is expected to be above the 5.5% realised in 2013.Cash conversion is expected to be above 90%.
1) Calculated revenue for 2014 at exchange rates at 31 December 2013, less the same revenue calculated at the average exchange rates for the financial year 2013, relative to revenue realised in 2013 less estimated revenue from divestments completed in 2013 and 2014.
2) The outlook includes only divestments completed as of and including 31 March 2014, comprising the landscaping activities in France, the pest control activities in India, the security activities in Israel, the HVAC activities in Belgium and the commercial security activities in Australia and New Zealand.