ISS has announced its intention to divest its French business, except for global key account customers.
According to the facilities management company, 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,” said 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,” said 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.”
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