GRENKELEASING AG / Quarter Results
04.05.2010 07:34
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* Net interest income reflects expansion of the contribution margin (CM) of
new business
* Consolidated profit after taxes amounts to EUR 5.8 million, representing
another encouraging increase against the fourth quarter of 2009 (Q4-2009:
EUR 5.1 million).
* Equity ratio at 18.1% despite strong growth
Baden-Baden, May 4, 2010: The expansion of the CM2 of new business
generated in 2009 is reflected in net interest income, which we increased
to EUR 18.6 million in the first quarter of 2010 (Q1-2009: EUR 18.4
million). This positive development is also confirmed in a comparison of
the first quarter of 2010 with the fourth quarter of 2009. In the first
quarter of 2010, net interest income was significantly higher than in the
fourth quarter of 2009, when it amounted to EUR 17.8 million. In addition
to the rising proportion of high-margin new business, strong growth in the
first three months of 2010 had the effect of increasing income.
The trend in settlement of claims reflects the recessionary development in
2009. Compared to the fourth quarter of 2009, it is already clear that the
increase is slowing. As expected, the loss ratio was at a high level, but
did not continue to rise compared to the fourth quarter of 2009.
We recorded clear growth in insurance business in the first quarter of
2010. The steady rise in our share of international business had an
increasingly positive effect here, as on average we have higher insurance
ratios in countries outside Germany.
Selling and administrative expenses reflected the trend throughout the
fiscal year just ended. The increase was far lower compared to the costs in
the fourth quarter of 2009. The higher costs were due in particular to the
current lower average value of the leases concluded. At EUR 7,404, this was
approximately at the level of the previous year (EUR 7,341) in the first
quarter of 2010, although it remained significantly below that of 2008 (EUR
7,775). The acquisition and management of a higher number of smaller
contracts in order to reach our transaction volume entailed higher costs
than for a lower number of contracts with higher acquisition values.
Despite a rise in profit form disposal, income from operating business
totalled EUR 21.6 million in the first quarter (Q1-2009: EUR 22.8 million).
Overall, year-on-year we recorded a decline in the operating result to EUR
7.9 million in the first quarter of 2010 (Q1-2009: EUR 10.5 million). Net
profit for the period decreased to EUR 5.8 million (Q1-2009: EUR 7.2
million). However, we have already increased earnings again as compared
with the fourth quarter of 2009, when the operating result was EUR 6.3
million and net profit for the period totalled EUR 5.1 million.
Despite the considerable growth in new business, the equity ratio rose to a
very comfortable 18.1 % after 17.5 % at the end of the last fiscal year.
As well as managing funding in the first quarter of 2010 by means of liquid
funds and bank deposits, we were also very successful in using our capital
market-based refinancing instruments again. At the beginning of the year we
were one of the first companies in the leasing industry to place an ABS
bond after the financial markets crisis and also issued a bond in the
amount of EUR 75 million in March. This enabled us to more than offset the
repayment of an expiring bond amounting to EUR 100 million.
These results were generated by 526 employees, as compared with 502 in
Q1-2009 (full-time employees excluding Board of Directors).
'The GRENKE Group is set to expand again. In the first quarter of 2010, the
Group, including franchise partners, increased new business considerably by
26.6 %, thus very clearly exceeding our target of around 15 % growth while
keeping our contribution margin 2 at a high level. This strong growth
should have an increasingly positive effect on net interest income over the
course of 2010. This is also the case with the high-margin new business
from the previous year, which will impact the income statement for a full
reporting period for the first time in 2010,' explained Dr. Uwe Hack,
Deputy Chairman of the Board of Directors of GRENKELEASING AG.
He added: 'In terms of settlement of claims, we are expecting expenses to
level off over the course of the year. This is firstly because business
activity, which is currently picking up again, should help to limit the
number of insolvencies in the economy. Secondly, in 2009 we significantly
raised our risk requirements of new business and also maintained this
risk-averse approach at the start of the 2010 fiscal year. Although this
positive income potential is balanced against higher expenses planned in
connection with the European expansion we have recommenced, these should
remain moderate overall. Overall, we are expecting net profit for the
period to climb successively in the coming quarters and thus confirm our
forecast of net profit for the period in the region of EUR 25 million to
EUR 28 million for the 2010 fiscal year.'
The full Quarterly Financial Report to March 31, 2010 can be accessed on
the Internet at www.grenke.de INVESTOR RELATIONS - Reports - Figures 2010.
The GRENKE Group
The GRENKE Group is a broadly diversified provider of financial services
for small to medium-sized enterprises and for private retail clients.
The GRENKE Group comprises companies which operate in fourteen European
countries, all being part of the consolidated GRENKELEASING corporate
group. In addition the GRENKE Group is represented in seven further
countries in Europe by way of a franchise system. Including its franchise
partners, the GRENKE Group is represented at 20 locations in Germany and a
total of 37 locations internationally.
The range of services offered by the GRENKELEASING Group (not including
franchise partners) covers small-ticket IT leasing and factoring and -
through GRENKE BANK AG - classic online banking services.
GRENKE BANK AG has been part of the GRENKELEASING Group since the beginning
of 2009.
The bank- and vendor-independent GRENKE Group holds a leading market
position in Europe in the field of small-ticket IT leasing for products
such as PCs, notebooks, copiers, printers or software of relatively low
asset value. Its range is rounded off by Car Leasing from one of its
franchise partners.
GRENKELEASING AG is listed on the Prime Standard of the Frankfurt
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 on the GRENKE Group and its products is available for download
on the Internet, at http://www.grenke.de, http://www.grenkebank.de,
http://www.grenkefactoring.de
Should you have any queries, please contact:
Renate Hauss
Tel: +49 (0) 7221/5007-204
Fax: + 49 (0) 7221/5007-112
E-mail: investor@grenke.de
Internet: http://www.grenke.de; http://www.grenkebank.de,
http://www.grenkefactoring.de
04.05.2010 07:34 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: 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-News: GRENKELEASING AG: GRENKE Group set to expand again - Quarterly Financial Report as per March 31, 2010
| Source: EQS Group AG