DGAP-News: GRENKELEASING AG / Key word(s): Quarter Results
GRENKELEASING AG: Growth in new business leads to rising income -
Quarterly financial report as per March 31, 2011
04.05.2011 / 07:09
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Growth in new business leads to rising income
* Q1-2011 is the fifth consecutive quarter with rising net interest income
- net interest income up 18.9 % at EUR 22.2 million
* Net profit in Q1-2011 amounts to EUR 8.4 million - up 45.2 % from EUR
5.8 million in the previous year
* Equity ratio of 17.2 % at the level of year-end 2010 - still above our
target level of 16 %
Baden-Baden, May 4, 2011: With the effects of the international financial
crisis now fully surmounted, GRENKE saw a strong start to fiscal year 2011.
The systematic focus on growth after the end of the financial market crisis
and the related concentration on increasing new business were reflected in
a sharp rise in earnings in the first quarter of 2011.
In Q1-2011, net interest income rose by 18.9 % year-on-year from EUR 18.6
million to EUR 22.2 million. This strong increase is due to the
significantly increased contribution margin 2 for new business in 2009 in
order to take into consideration the exceptional uncertainty of 2009 and
the strong growth in 2010, when we re-adjusted the contribution margin 2 in
order to stimulate growth.
The negative impact from settlement of claims and risk provisioning fell by
14.1 % year-on-year to EUR 8.1 million. Irrespective of the usual
fluctuations during the quarter, this decrease shows that the loss rate has
decreased significantly from the cyclical high point of the last recession.
Profit from insurance business amounted to EUR 5.7 million in the first
quarter of 2011 and was thus approximately at the previous year's level of
EUR 5.9 million. Profit from disposals, which often fluctuates considerably
from quarter to quarter, climbed to EUR 1.2 million in the reporting
quarter after EUR 0.4 million in the previous year. Total operating income
therefore increased by 31.1 % to EUR 28.4 million after EUR 21.6 million in
the same quarter of the previous year.
Operating expenses reflected the strong growth. For example, selling and
administrative expenses climbed by a total of 30.7 % to EUR 7.3 million
after EUR 5.6 million in the previous year. The increase in other operating
expenses also resulted to a large extent from non-cash expenses from
currency effects.
Overall, the operating result in the first quarter of 2011 grew by 41.8 %
to EUR 11.3 million after EUR 7.9 million in the previous year. This figure
is higher than the result for Q1-2009 (EUR 10.5 million), when the effects
of the financial markets crisis had not yet had much impact. Consolidated
net profit for the first quarter increased by 45.2 % to EUR 8.4 million
after EUR 5.8 million in the previous year.
Despite the considerable growth in new business, the equity ratio at the
end of the first quarter remained at the same high level as at year-end
2010. It remained at 17.2 and was thus still above our target level of 16
%.
To finance the lease receivables, in the first quarter of 2011 we employed
available cash and cash equivalents in some cases, which decreased to EUR
68.0 million after EUR 78.3 million at the end of fiscal year 2010. In
addition to this, we used GRENKE BANK's deposit business, which rose by EUR
11.7 million to EUR 133.9 million. The refinancing measures in the first
quarter of 2011 included in particular the fact that in January we
succeeded in selling French lease receivables for the first time via the
asset-backed commercial paper (ABCP) programme initiated by Unicredit last
year.
These results were achieved by 556 employees as compared to 526 in Q1-2010
(full-time equivalents not including the Board of Directors).
'Our expansion strategy is continuing in full swing: in the first quarter
of 2011 the GRENKE Group including franchise partners increased its new
business by almost 28 %. This means that, without compromising our
conservative risk orientation, we seamlessly matched our high growth in the
previous year. Overall, a continued high level of growth can be expected
over the remaining course of 2011. This should have a positive impact on
earnings, especially since the high-margin new business of the previous two
years is stimulating consolidated earnings more strongly as the term of
these agreements progresses. With regard to the loss rate, we anticipate a
downwards trend over the course of the year, as the highly robust economic
development in Germany should lead to considerably fewer insolvencies in
industry. Although our systematic expansion in Europe will result in
increasing related expenses in 2011, too, this increase will be more
moderate than the growth in our income and we are therefore maintaining our
forecast of consolidated net profit of EUR 33 million to EUR 36 million in
the current fiscal year,' says Wolfgang Grenke, Chairman of the Board of
Directors of GRENKELEASING AG, describing the goals for the fiscal year.
'We are generating this growth with continued sound capital resources. At
17.2 %, the Group's equity ratio was at the same level as at year-end 2010
and therefore was still higher than our long-term target level of 16 %. We
are thus securing our very good reputation on the debt markets. To finance
our growth, we again made use of our wide range of refinancing sources in
the reporting quarter. A particularly noteworthy recent measure was that we
succeeded in financing French lease receivables for the first time via the
ABCP programme Arabella. In addition, the majority of repayments still due
after the end of the first quarter of 2011 have already been refinanced.
There are therefore no further major refinancing measures pending for the
rest of the fiscal year,' explains Dr. Uwe Hack, Deputy Chairman of the
Board of Directors of GRENKELEASING AG.
The full Quarterly Financial Report to March 31, 2011 can be accessed on
the Internet at www.grenke.de - INVESTOR RELATIONS - Reports - Figures
2011.
Should you have any queries, please contact:
Renate Hauss
Phone: +49 7221 5007-204
Fax: +49 7221 5007-112
E-mail: investor@grenke.de
Internet http://www.grenke.de; http://www.grenkebank.de,
http://www.grenkefactoring.de
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 eight further
countries in Europe by way of a franchise system. Including its leasing
franchise partners and its factoring franchise partner in Switzerland, the
GRENKE Group is represented at 23 locations in Germany and a total of 46
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.
End of Corporate News
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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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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122829 04.05.2011
DGAP-News: GRENKELEASING AG: Growth in new business leads to rising income - Quarterly financial report as per March 31, 2011
| Source: EQS Group AG