GRENKELEASING AG / Quarter Results/Quarter Results
28.04.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Earnings after taxes increased by 3 % to EUR 7.9 million
Increase in new business of the GRENKE Group by 7.2 %
Baden-Baden, 28 April 2008: Consolidated earnings after taxes of
GRENKELEASING AG increased by 3% to EUR 7.9 million in the first quarter of
2008 (Q1-2007: EUR 7.7 million). Consolidated earnings before interest and
taxes (EBIT) amounted to EUR 11.2 million in the first quarter of 2008
(Q1-2007: EUR 11.4 million). Earnings per share rose from EUR 0.56 to EUR
0.58 in the first quarter of 2008.
The development of the GRENKELEASING AG Groups consolidated income
statement was on target for the first quarter of fiscal year 2008.
Comparing the figures to those of the prior-year first quarter, it should
be noted that the first-time consolidation of the former franchise
companies in the UK and Poland are reflected in the figures in a number of
ways.
The net interest income from leasing has only been marginally affected
since we refinance the lease receivables of our franchise partners and earn
a - though smaller than post consolidation - margin on this refinancing. In
the other items of the income statement particularly the expense items
first-time consolidations are more noticeable and account for the lions
share of the increase over the prior year. For example, the average number
of employees in the Group increased by 70 in the first quarter, with 44 at
the two new companies.
Overall, the net interest income from leasing increased in the Group. Even
after the settlement of claims, the interest result increased despite an
expected increase in the number of claims. This increase in settlement of
claims is normal in phases of slower economic growth and has already been
included in our planning. Measuring and pricing of risk are two of our core
competences. Accordingly, the current loss rate is lower than estimated.
Profit from the insurance business has developed well and the temporary
decline in profit from disposals in previous years ended as expected.
Our rapid international expansion above and beyond the first-time
consolidation of the UK and Poland resulted in expenses affecting various
items in the income statement. We are currently establishing our market
position in a number of countries, thus laying the foundation for future
growth. These start-up investments will have a positive effect in the
future on earnings as the balance tips in favor of established and
profitable subsidiaries and branches.
The tax burden decreased in the first quarter of 2008 compared with the
prior year as a result of the German business tax reform, with earnings
after tax for the period increasing to EUR 7.9 million, after EUR 7.7
million in the same quarter of the prior year.
As already reported the GRENKE Groups (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 7.2 % to EUR 132 million in
Q1 2008 (Q1-2007: EUR 123.2 million). Growth of the international business
of the GRENKE Group was up by 31 % year-on-year and contributed a share of
47 % (previous year: 39 %) to the new business contracted by the GRENKE
Group.
The CM1 margin of the GRENKE Groups leasing operations (contribution
margin 1 at acquisition values), at 11.7 % in the first quarter of 2008,
substantially exceeded our target margin of 10 %, reaching a value of EUR
14 million (Q1-2007: EUR 11.4 million comparative figure for leasing
operations). The corresponding CM2 amounts to EUR 17.6 million, up by 9.5 %
year-on-year (Q1-2007: EUR 16.1 million).
The result was generated by 474 employees, compared with 404 in the first
quarter of 2007 (full-time equivalents excluding directors). 53 employees
are active in franchise operations (Q1-2007: 62).
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Information and Explaination of the Issuer to this News:
' Both new business and profitability of the GRENKE Group and its
franchisees were satisfactory and as planned in the first quarter of the
fiscal year. Noticeably tighter lending policies and the clear tendency of
some banks starting to withdraw from the small-ticket leasing business,
thereby easing the competition situation somewhat, will stimulate new
business. On the whole, we anticipate that growth in new business will
reach our medium-term goal of 10 % in the current year as well.' said Dr.
Uwe Hack, CFO of GRENKELEASING AG, in explaining the results.
He added: 'Irrespective of the fact that we will grasp any growth
opportunities presenting themselves, the focus in the current fiscal year
will clearly remain on strengthening earnings quality and therefore on
increasing contribution margins - not least because of the ongoing
uncertainties on the capital markets which may spill over onto the rest of
the economy. For the GRENKELEASING AG Group in fiscal year 2008, we expect
a stable and positive development of net profit, falling within a range of
EUR 30.6 million to EUR 33 million. The tax authorities have not clarified
details about how forfaiting transactions will be taxed, adding a question
more to this forecast.
We are also very satisfied with the fact that the Groups liquidity once
again improved considerably in the first quarter of 2008 even though the
capital markets have been afflicted by uncertainties. We were able to
increase the volume of our various refinancing instruments, which we have
steadily built up over the last few years, and raise the overall available
volume by EUR 213 million. This provides us with sufficient funds for sound
financing of our growing new business.
The first quarter of 2008 has put us on course to pursue the successful
development of the GRENKE Group for the short and medium term. The recent
tightening of lending policies of the banks has eased competition. This
presents us with opportunities that we will take advantage of in 2008. We
will tap into any further potential as it arises.'
The GRENKE Group (incl. franchise partners) now operates in nineteen
European countries.
The GRENKELEASING AG Group (excluding franchise partners) is represented in
20 German cities. In addition to eight branches in France, three in
Switzerland and two in Italy, the enterprise operates with subsidiaries in
Austria, Czechia, Spain, the Netherlands, Denmark, Sweden, Ireland, United
Kingdom, Poland and Belgium.
In the Norway, Hungary, Romania, Spain (Madrid), Portugal and Slovakia 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 shares are listed at Frankfurt Stock Exchange (SDAX) with
the code GLJ, ISIN DE0005865901.
Information on the company and its products is available on the Internet
under http://www.grenke.de.
The full three months report for 2008 is available on the internet under
www.grenke.de Investor Relations Financial Data.
Should you have any queries, please contact:
Renate Hauss
Tel.: 0049-7221/5007-204
Fax: 0049-7221/5007-112
Email: investor@grenke.de
Internet: http://www.grenke.de
DGAP 28.04.2008
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Language: English
Issuer: GRENKELEASING AG
Neuer Markt 2
76532 Baden-Baden
Deutschland
Phone: +49 (0)7221 50 07-204
Fax: +49 (0)7221 50 07-112
E-mail: investor@grenke.de
Internet: www.grenke.de
ISIN: DE0005865901
WKN: 586590
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf, Hamburg
End of News DGAP News-Service
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DGAP-Adhoc: GRENKELEASING AG: Quarterly Financial Report as per March 31, 2008
| Source: EQS Group AG