GRENKELEASING: Earnings after taxes increased by 2 % to EUR 7.7 million
•
•
Earnings after taxes increased by 2 % to EUR 7.7 million
Increase in new business of the GRENKE Group by 7 %
Baden-Baden, 26/4/2007: Consolidated earnings after taxes of GRENKELEASING
AG increased by 2% to EUR 7.7 million in the first quarter of 2007 (Q1-2006: EUR
7.5 million). Consolidated earnings before interest and taxes (EBIT) amounted to
EUR 11.4 million in the first quarter of 2007 (Q1-2006: EUR 12 million). Earnings per
share rose from EUR 0.55 to EUR 0.56 in the first quarter of 2007.
As expected, net interest income changed little compared with the prior-year quarter,
with the other components of income increasing as planned. The settlement of losses
also developed according to plan. The expansion of our international sales activities
in 2006 gave rise to a scheduled increase in personnel expenses and operating
expenses compared with the prior-year quarter. The expansion of our international
business not only led to a broader basis of successful national companies, but also to
a lower group tax rate.
As already reported the GRENKE Group’s (incl. franchise partners) volume of new
business - i.e. the sum total of acquisition costs of newly purchased leasing assets
and factoring volume – rose by 7 % to EUR 123.2 million in Q1 2007 (Q1-2006: EUR
115.2 million).
Growth of the international business of the GRENKE Group* was up by 19 % yearon-year and contributed a share of 39 % (previous year: 35 %) to the new business
contracted by the GRENKE Group*.
The CM1 margin of the leasing business of the GRENKE Group* (contribution margin
1 at acquisition value) once again exceeded our target margin of 10% for the first
quarter of 2007, reaching a value of EUR 11.4 million (Q1-2006: EUR 12 million). The
corresponding CM 2 reached a value of EUR 16.1 million and was up by 2 % yearon-year. The CM 2 reflects, yet on the whole, the rising profitability of our new
business is discernible.
In 2007, we expect new business growth of approx. 10% in the GRENKE Group*. We
anticipate that GRENKELEASING AG group profit in 2007 will be on a par with the
prior year as we will continue to push forward our successful strategy of further
developing new markets and products.
The result was generated by 404 employees, compared with 375 in the first quarter
of 2006 (full-time equivalents excluding directors). 62 employees are active in
franchise operations (Q1-2006: 46).
incl. franchise partners
The full three months report for 2007 is available on the internet under
www.grenkeleasing.de Investor Relations – Financial Data.
The Executive Board
Should you have any queries, please contact:
Renate Hauss
Tel.: 0049 -7221/5007-204
Fax: 0049-7221/5007-112
E-mail: investor@grenkeleasing.de
Internet: http://www.grenkeleasing.de
“The result of the GRENKELEASING AG group developed according to plan. The
expansion of our international sales activities in 2006 gave rise to a scheduled
increase in personnel expenses and operating expenses compared with the prioryear quarter. The cost-income ratio rose correspondingly.” explains Dr. Uwe Hack,
CFO of GRENKELEASING AG, commenting on the quarterly financial statement.
As regards to the future trend, he added: “The main growth drivers were the ongoing
good development of the foreign markets and the positive expansion of the factoring
business in Germany. The development of our European markets outside Germany
shows that the strategy of a pan-European approach is the correct one to follow.
Another milestone was reached in April with the signing of the franchise agreement
with GRENKELEASING in Romania. The franchise strategy has proven to be an
excellent way of tapping new markets quickly, sustainably and profitably.”
The GRENKE Group* is now active in seventeen European countries.
The GRENKELEASING AG group (excluding franchise partners) is represented in 20
German cities. In addition to seven branches in France and three in Switzerland, the
enterprise operates with subsidiaries in Austria, Italy, Czechia, Spain, the
Netherlands, Denmark, Sweden, Ireland and Belgium.
In the United Kingdom, Poland, Norway, Hungary, Romania as well as in Germany in
the field of car leasing and factoring, GRENKELEASING has a franchise system in
place.
GRENKELEASING offers contracts predominantly in the field of small-ticket IT
leasing for such products as PCs, notebooks, copiers, printers or software of a
relatively low asset value. GRENKELEASING AG is listed on the Prime Standard of
Frankfurt's Securities Exchange and is part of the SDAX.
* incl. franchise partners