GRENKELEASING AG / Half Year Results 28.07.2009 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Consolidated profit after taxes totals EUR 13.1 million (compared to EUR 16.3 million in first half of 2008) - Equity and liquidity position remain at very high level Baden-Baden, 28 July 2009: Our early reaction to the deterioration in the overall economy showed the desired effect in the first half of the year. Increasing contribution margins together with a targeted decrease in new business led compared to the end of fiscal year 2008 to a rise in the equity ratio to now 17.4 % despite the dividend payment in the current quarter and to a liquidity position of EUR 72.3 million. The increased contribution margins for new business are also reflected in a year-on-year rise of EUR 2.5 million in net interest income. However, due to the severity of the current recession, settlement of claims increased faster and more significantly than expected in the first half, to the extent that this rise was only partially offset by the increased net interest income. This accordingly led to a decrease in net interest income after settlement of claims and risk provisioning. Net interest income after settlement of claims and risk provisioning amounted to EUR 22.0 million in HY1-2009, as compared to EUR 23.6 million in the first half of 2008. As a result of the targeted reduction in new business, other earnings items also remained slightly below the previous year's figures. Our cost base was intentionally left stable as we intend to return to a growth mode again during second half of 2009. Including the integration costs for GRENKE BANK, net profit after taxes for the first half of 2009 therefore amounted to EUR 13.1 million, as against EUR 16.3 million in the previous year. Our diversified refinancing base also developed positively. We were able to utilise all the components of our financing mix again for the first time since the beginning of the financial crisis, and we also benefited from deposits business at GRENKE BANK. In addition to issuing promissory notes and bonds, we signed another ABS programme with a programme volume of EUR 150 million and extended revolving credit lines with our banks with a total volume of EUR 90 million well in advance. Our business model is proving to be highly robust in the current financial crisis and the timely focus on liquidity, profitability and strengthening the balance sheet has shown the desired effect. With our current good equity and liquidity position, we are now well equipped to exploit the available opportunities for profitable growth of new business. Nevertheless, a recession of this magnitude will not leave us entirely unaffected - for instance, claims in particular increased faster and more significantly than expected and holding additional liquidity is also a cost factor. For fiscal year 2009, we are expecting absolute growth of 5 to 10 % in the contribution margin 2 for new business and overall earnings after taxes in the region of EUR 25 to 28 million. The result was generated by 503 employees, compared with 481 in HY1-2008 (on a full-time basis, excluding the Executive Board). The full quarterly report as per June 30, 2009 is available for download from www.grenke.co.uk Investor Relations - Figures. The Board of Directors --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: 'Despite the increase in claims settlement being more substantial than expected, our business developed well in the first half of 2009 overall. With a better-than-average equity position, additional financing sources such as the new ABS programme, the acquisition of GRENKE BANK and very profitable new business, we have established a strong basis for future growth. We intend to use this basis in the coming quarters to exploit growth opportunities, including those resulting from competitors' repositioning, and to generate new business at the current high contribution margins.' ,explained Dr. Uwe Hack, Deputy Chairman of Board of Directors of GRENKELEASING AG. He added: 'By raising the contribution margins at an early stage, we have set the course for the current year to compensate for the increase in claims settlement resulting from the recession. However, the severity of the recession precisely in the first half of the year, coupled with an sharp drop in overall economic growth rates, led to an increase in claims settlement for us too, which could be only partially offset by increased net interest income. Despite recent improvements in the economic climate, the overall economic environment will remain difficult for the coming quarters and insolvency rates will remain at a high level.' The GRENKE Group (including franchise partners) operates in twenty European countries and is represented at 20 locations in Germany as well as a total of 32 locations abroad. The GRENKELEASING AG Group (excluding franchise partners) operates with subsidiaries in Belgium, Denmark, Germany, France, the United Kingdom, Ireland, Italy, the Netherlands, Austria, Poland, Switzerland, Sweden, Spain and Czechia. In February 2009, GRENKELEASING AG acquired the Hamburg-based private bank Hesse Newman & Co. AG (a private bank since 1777), which continues to trade as GRENKE BANK AG. GRENKE Group has a franchise system in place in Finland, Norway, Portugal, Romania, Slovakia, Spain (Madrid) and Hungary as well as in the Car Leasing and Factoring Division in Germany. 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. The shares of GRENKELEASING AG are listed on the SDAX of the Frankfurt Securities Exchange under the identification code GLJ, ISIN DE0005865901. Information about the company and its products is available for download on the Internet, at http://www.grenke.de, http://www.grenkebank.de, http://www.grenkefactoring.de. Renate Hauss Tel.: +49 -7221/5007-204 Fax: +49 - 7221/5007-112 E-mail: Internet:http://www.grenke.de, http://www.grenkebank.de, http://www.grenkefactoring.de DGAP 28.07.2009 --------------------------------------------------------------------------- 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, München, Düsseldorf, Stuttgart, Hamburg End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: GRENKELEASING AG: Quarterly financial report as per June 30, 2009
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