News on 27 November 2000
Danish services company ISS has set out its vision for the
next five years, during which it aims to continue the transformation from
a supplier of multi-services to a provider of facility services.
ISS's aspirations include "shaping the industry and leading it globally,
being the premier employer in the industry, delivering global concepts
through a strong local presence and partnering with our customers to enhance
their competitiveness."
Simultaneously with launching the new strategy, ISS has adopted a new
logo and branding.
Over the past five years ISS, which employs 265,000 people, has increased
turnover by around 25% on average per annum and operating profit by approximately
29%. The first nine months of this year has seen turnover up 52% and operating
profit up 48%. The company has been extremely acquisitive, making 42 purchases
so far this year which is likely to see it ranked even higher than its
current tenth position amongst Europe's largest employers.
The new strategy, known as 'create2005' states long-term financial goals
of at least doubling turnover, operating profit and EPS (before goodwill
amortisation) by 2005. ISS has also set itself the operating goals of
achieving at least 6% organic growth on average and at least a 6% operating
margin in business units with critical mass.
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Eric
Rylberg
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Eric Rylberg, Chief Executive Officer of ISS, said: “The
aim2002 strategic vision has led to significant progress and placed ISS
in a strong position from which the Group will now take the next step.
create2005 represents the executive management’s joint efforts to
map out how ISS should propel its business forward. create2005 represents
our relentless drive to proactively
create the future”.
ISS says it has a strong market position in an attractive industry: "The
European market alone represents more than Eur100bn and is growing at
the rate of GDP plus the outsourcing trend. The market is very fragmented,
which leaves room for further consolidation.
"ISS is number one in the world and a market leader in more than
20 of the 35 countries, where the Group is currently operating. With a
platform of more than 70,000 business-to-business customers, ISS has a
unique international position for further growth."
The company plans to create separate, dedicated international business
units from existing operations, including ISS Food Services, ISS Aviation
Services, ISS Damage Control and ISS CarePartner. These so-called 'business
builds' are seen as businesses that need strong international platforms
to attain critical mass.
