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Sengkang General Hospital and Sengkang Community Hospital, currently under construction, will be serviced by ISS Singapore under a new three year contract with an extension opportunity of one year. The contract will cover housekeeping services for the in-patient area, outpatient area and all major operating theatres, including bed making/cleaning and outpatient areas, major operating theatres (interim cleaning in between cases and end of day thorough cleaning), terminal cleaning, waste handling within hospital, supplies of toiletries and washroom amenities, curtain changing, linen management and event support. When fully operational 540 full-time equivalent ISS-employees will be working on the contract.
ISS Singapore will commence post construction cleaning in Q3 2017 and will ramp up progressively as the hospitals become operational. Once fully operational by 2020, the combined Sengkang Hospitals will be among the largest regional hospitals in Singapore with a total of 1,400 beds.
Kelvin EYU, Country COO of ISS Singapore:
“This win is extremely gratifying to our healthcare team. It is a testament to our position as the leading facility services provider in Singapore’s healthcare segment. Now the hard work begins to deliver our high quality services as promised to the client.”
The new contract builds on an existing relationship wherein ISS Singapore currently supplies pest control and landscaping services to Sengkang Health Pte Ltds’ temporary hospital.
Financial report for fourth quarter and full year 2016
ISS a leading global provider of facility services, announces its financial results for the fourth quarter and full year 2016.
Highlights
- Organic revenue growth of 3.4% for the year and 2.9% in Q4 (Q3 2016: 3.3%).
- Total revenue decreased by 1% for the year and was flat year-on-year in Q4 (Q3 2016: decrease of 1%) driven by currency effects which reduced revenue by 3% for the year and 3% in Q4.
- Operating margin of 5.8% for the year (2015: 5.7%) and 6.7% in Q4 (Q4 2015: 6.6%).
- Cash conversion over the last twelve months of 98% (Q3 2016: 95% and 2015: 99%).
- Net profit (adjusted) increased to DKK 2,873 million for the year (2015: DKK 2,785 million). Net profit was DKK 2,220 million (2015: DKK 2,218 million).
- Free cash flow increased to DKK 2,910 million (2015: DKK 2,835 million).
- Proposed dividend for 2016 of DKK 7.70 (2015: DKK 7.40) per share of DKK 1, an increase of 4%, equivalent to a total of DKK 1,430 million.
- Revenue from Global Corporate Clients increased by 19% in local currency in 2016 (2015: 11%) and represents 11% of Group revenue (2015: 10%).
- Revenue generated from IFS amounted to 37% of Group revenue.
- Strategic initiatives, including sharper focus on key customers, the procurement programme and our global concepts and tools, continue to be implemented according to plan and support positive margin development.
- Five businesses divested during the year, including ISS' security activities in Finland, activities in Greenland and the remaining landscaping activities in USA.
- During the year, ISS acquired Apunto, a leading catering company in Chile.
Jeff Gravenhorst, Group CEO, ISS A/S, said:
“ISS had a good year in 2016 with robust growth, increased operating margin and profit, and strong cash flows. We saw a good Q4, driven by a high level of non-portfolio work, which enabled our organic growth to reach 3.4% for the year. Integrated Facility Services continued to bolster our results including strong growth from our Global Corporate Clients. We signed a number of new contracts during the year among others with Bombardier, John Crane, Hitachi Rail, Heineken and the Royal Mail Group. We continued to refine our business platform to meet our target customers’ needs, including a number of strategic acquisitions and divestments. We expect continued macroeconomic challenges in 2017, but we enter the year on a strong footing. By accelerating the implementation of our strategic initiatives and driven by our engaged employees, we remain confident we will continue to deliver strong results.”
Outlook
In 2017, ISS expects an organic revenue growth rate of 1.5%-3.5%, an operating margin above the 5.77% achieved in 2016, and cash conversion above 90%. ”.
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