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ISS - Iss A/S News Story

DKK83.68 -2.3  -2.6%

Last Trade - 12:05pm

Sector
Industrials
Size
Mid Cap
Market Cap £1.93bn
Enterprise Value £3.95bn
Revenue £9.34bn
Position in Universe 201st / 1791

BUZZ-ISS: Slumps on margin miss, lower outlook

Wed 12th August, 2020 9:20am
** Shares in ISS  ISS.CO  fall almost 10% after the
Denmark-based services provider reported weak H1 and reinstated
full year guidance 
    ** The company posted H1 EBITA at DKK 785 million ($123.61
million) with a -2.2% margin against a profit of DKK 1.42
billion and margin of 3.7% year ago  urn:newsml:reuters.com:*:nL4N2FD3IF
    ** Jefferies says EBITA is significantly worse than expected
and points to negative operating leverage, inefficiencies and
delays in a number of key operational priorities resulting from
COVID-19 and the IT malware attack
    ** The company re-introduce 2020 guidance with organic
growth between -2% and -10% (mid-range -6% to -8%)     
    ** Now sees 2020 operating margin excluding restructurings
and one-off costs to be "marginally positive" versus operating
margin of more than 4.5% seen in February  urn:newsml:reuters.com:*:nL5N2AQ2YZ
    ** Jefferies adds that the re-instated guidance suggests a
much flatter recovery in both growth and margins than consensus
expectations and expects double-digit downgrades to 2021
consensus
    ** ISS is the worst performer on the European STOXX 600
index  .STOXX 

($1 = 6.3504 Danish crowns)

 ((marta.frackowiak@thomsonreuters.com))
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