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.
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- 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
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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
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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, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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DGAP-Adhoc: GRENKELEASING AG: Quarterly financial report as per June 30, 2009
| Source: EQS Group AG