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Danish cleaning group ISS posts higher profits

11 Nov 2010 7:01 AM | IJCSA - (Administrator)
 

* No new information on possible sale, IPO

* 9-mth revenues up 7 pct, operating profit rises 10 pct

* Sees full-year revenue growth in line with Jan-Sept

COPENHAGEN, Nov 11 (Reuters) - Danish cleaning group ISS [ISSHG.UL], which is mulling a stock market flotation, reported higher nine-month profit and revenue with growth mainly in emerging markets.

ISS, owned by Goldman Sachs Capital Partners (GS.N) and Swedish private equity fund EQT Partners, did not provide new information on Thursday about a possible stock offering or sale to other buyout firms.

In August, ISS said it was looking into a flotation and that it had hired Goldman Sachs and Morgan Stanley to help it carry out a strategic review. [ID:nLDE67O0DK]

An ISS initial public offering could be the biggest IPO in Denmark in years. The firm's owners are also in talks with private equity firms over a possible sale. [ID:nLDE6A01O8]

"The process is progressing as planned," ISS Holding A/S said in its report. "ISS does not expect to publicly disclose additional information regarding the status of the process, including the options available, their likelihood or possible timing, until the review has been completed."

ISS said there was no guarantee that the review would lead to a sale or what the timing would be.

Operating profits rose to 2.76 billion Danish crowns ($511 million) in January-September from 2.50 billion in the same period last year, and revenues grew 7 percent to 54.78 billion.

Revenue growth was driven by 48 percent growth in Latin America and 30 percent expasion in Asia.

"The emerging markets now comprise 18 percent of the total revenue," the outsourcing giant said.

ISS says it is one of the world's largest providers of facility services and employs more than half a million people who clean offices, cook school meals, guard buildings and operate call centres in more than 50 countries.

"Organic revenue growth experienced in the first nine months of 2010 is considered sustainable and the full year organic growth is expected to be in line with the first nine months of 2010," ISS said.

The company will focus on managing its debt level, significantly reducing acquisition spending and continue to focus on cash flow, ISS said. (Reporting by John Acher. Editing by Jane Merriman) ($1=5.406 Danish Crown)

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