IIOC member SGS has posted its 2020 Full Year Results.
Revenue fell 8.8% at constant currency to 5.6bn CHF, a 15.1% actual decline. SGS report the decline due to the disposal of the Petroleum Service Corporation (PSC) in 2019 and the Covid-19 pandemic.
Within these results, the Certification and Business Enhancement revenue dropped by 8.1% (constant currency) to 429m CHF (-13.7% actual).
The details from SGS confirm the impact of the Covid-19 pandemic during different periods of 2020, SGS reporting on the Certification and Business Enhancement as follows:
‘Management System Certification revenue declined less than the organic divisional level. Following a challenging H1, H2 demonstrated strong resilience with high single-digit growth as delayed audits were completed and remote auditing adoption increased. North East Asia delivered strong full year growth.
Technical Consultancy declined more than the divisional organic average mainly due to several large projects being postponed and customers deferring consulting spend. Remote consulting solutions were introduced with several projects fully executed off-site.
Responsible Business Solutions and Second Party Audits gradually improved following H1 but remained below the divisional organic average over the second half. Some challenges remained as many traditional retailers continued to face difficult business conditions.
Training declined more than the divisional organic level as classroom-based demand dropped. Virtual training and eLearning solutions were developed. This is transforming the business, accounting for up to 80% of the activity in some geographies.
The adjusted operating margin decreased to 19.1% from 19.7% in prior year (at constant currency). Following a challenging H1, profitability improved significantly in H2 due to the rapid reduction of the cost structure, high utilization of auditors as well as the implementation of remote solutions’.
The SGS 2020 Full Year Results Report can be viewed here.