DGAP-News: GRENKELEASING AG / Key word(s): Miscellaneous
GRENKELEASING AG: GRENKE's growth in new business remains on track in
first half of 2011 - new business up by 25.6%
04.07.2011 / 07:35
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GRENKE's growth in new business remains on track in first half of 2011 -
new business up by 25.6%
- New business in the GRENKE Group amounts to EUR 409,0 million in first
half of 2011 - corresponding to growth of 25.6%
- Contribution margin 2 (CM2) on new business in the GRENKE Group reaches
EUR 56.8 million in first half of 2011 with a CM2 of 14.9% (leasing
division) - new business remains very profitable
- Market entry in Turkey
Baden-Baden, 4 July 2011: In the first half of 2011, the volume of new
business in the GRENKE Group (incl. franchise partners) - i.e. the sum
total of acquisition costs for newly acquired leasing assets and the
factoring volume - amounted to EUR 409,0 million (first half of 2010: EUR
325.6 million), corresponding to 25.6% growth. The GRENKE Group is
therefore still on track in the first half of 2011 to achieve its target
for the year of new business growth of over 20%.
Contribution margin 2 (CM2) on new business in the GRENKE Group reached EUR
56.8 million in first half of 2011 with a CM2 of 14.9% (leasing division).
We were able to increase the CM2 to 15.4% (leasing division) in the second
quarter of 2011 as against 14.3% (leasing division) in the first quarter of
2011. This demonstrates that despite continued strong growth we are
concluding highly profitable new business, which will be reflected in
rising income in the coming quarters.
The international segment contributed a share of 61.6% to the GRENKE
Group's new business (previous year: 59.4%), showing that our expansion
throughout Europe is continuing to bear fruit.
In the second quarter of 2011, we carried out further cell divisions as
part of our market penetration strategy in order to increase our presence
on the market. In Italy, we opened our Turin office and are now represented
at a total of seven locations. In France, we opened a tenth location in
Grenoble. Our franchise partner in Portugal opened a third location in
Leiria. Further cell divisions are also planned for the second half of 2011
so as to take advantage of the strong opportunities for growth and to
secure the market share gained. In addition, we entered another attractive
market by entering into a franchise agreement in Turkey.
In Germany, the encouraging development of new business seen over the past
several quarters continued. Despite the higher competitive intensity in our
home market, we achieved 18.9% growth in new business from EUR 132.2
million in the first half of 2010 to EUR 157.2 million in the first half of
2011.
In first half of 2011, GRENKE Group recorded a total of 110,500 leasing
inquiries (ex Germany 79,937), on the basis of which 46,816 new leasing
contracts (ex Germany 37,372) were generated. The average value per leasing
contract concluded came to approx. EUR 8,013, and is slightly up on the
previous year's figure (first half of 2010: EUR 7,450).
Our conversion rate (inquiries to contracts) in the GRENKE Group (leasing
division) in the first half of 2011 was 42%, thus remaining below our
target level. The conversion rate in our international markets (40%) is
lower than in the German market (47%) and shows that we are not
compromising our conservative risk orientation in individual international
markets.
All figures in EUR million
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New business 1.HY-2011 1.HY -2010 % change
GRENKE Group including franchise 409,0 325.6 25.6
partners*
- of which: Germany 157.2 132.2 18.9
- of which: International 215.9 171.5 25.9
- of which: Franchise international 35.9 21.9 64.0
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* incl. Factoring
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New business 1.HY -2011 1.HY -2010 % change
GRENKE Group leasing business 375.1 309.1 21.3
- of which: Germany 131.0 115.8 13.2
- of which: International 215.9 171.5 25.9
- of which: Franchise international 28.2 21.9 28.9
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New business 1.HY -2011 1.HY -2010 % change
GRENKE Group Factoring 33.8 16.4 105.9
- of which: Germany 26.1 16.4 59.1
- of which: Franchise international 7.7 n.a. n.a.
(CH)
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GRENKE BANK 1.HY -2011 1.HY -2010 % change
Deposits 145.7 134.6 8.2
Business start-up financing volume 0.1 n.a. n.a.
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New business from leasing by international markets in EUR million
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1.HY -2011 1.HY -2010 % change
France 85.5 74.1 15.4
Switzerland 8.6 9.2 -7.0
Italy 52.7 29.9 76.2
Spain (incl. franchise) 11.0 9.1 21.1
United Kingdom 21.0 15.8 33.4
Poland 6.1 5.4 12.8
Netherlands 7.0 6.9 1.7
Portugal (franchise partner) 15.1 12.3 22.6
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At 10.4% in the first half of 2011, the CM1 level of the GRENKE Group's
leasing operations (contribution margin 1 at acquisition values) achieved
our target margin of 10%, reaching a value of EUR 39.1 million (first half
of 2010: EUR 34.8 million - comparative figure for leasing operations). The
corresponding CM2 amounts to EUR 55.8 million, up by 12.0% compared with
the previous year.
Development of contribution margin 2 (CM2) in EUR million
|[![CDATA[|[pre|]]]|]
1.HY -2011 1.HY -2010 % change
GRENKE Group including franchise 56.8 50.2 13.2
partners*
- of which: Germany 17.6 16.1 9.8
- of which: International 33.7 30.1 11.9
- of which: Franchise business 5.5 4.0 36.9
international
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* incl. Factoring
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1.HY -2011 1.HY -2010 % change
GRENKE Group leasing business 55.8 49.9 12.0
- of which: Germany 16.8 15.8 6.7
- of which: International 33.7 30.1 11.9
- of which: Franchise business 5.4 4.0 32.9
international
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1.HY -2011 1.HY -2010 % change
France 13.7 13.3 3.2
Switzerland 1.6 1.9 -16.2
Italy 6.6 4.3 52.6
Spain (incl. franchise) 1.6 1.5 9.6
United Kingdom 4.2 3.0 40.7
Poland 0.6 0.6 -10.7
Netherlands 1.4 1.3 1.1
Portugal (franchise partner) 3.2 2.5 30.1
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The profit margin in relation to the factoring volume of EUR 33.8 million
amounted to 2.4% (first half of 2010: 2.3%). This margin is based on the
average period of a factoring transaction, which was approx. 38 days (first
half of 2010: approx. 38 days).
'The growth in new business of 25.6% in the first half of 2011 shows that
we are well on track to achieve our growth target. In our home market of
Germany, we saw strong double-digit growth. In the first half of 2011
alone, we carried out a total of six cell divisions to further increase our
presence on the individual international markets. This impressively
emphasises our growth strategy. By entering the Turkish market, we will
open up another attractive international market', says Wolfgang Grenke,
Chairman of the Board of Directors of GRENKELEASING AG, describing the
future strategy.
'The development of our CM1, which was at 10.9% in the second quarter,
shows that the decrease in our refinancing margins compensated for the
rising interest rates on the refinancing market. This boosts our
competitiveness, as reflected in the growth in new business. The continued
high level of growth with profitable margins should have a positive impact
on earnings', explains Dr. Uwe Hack, Deputy Chairman of the Board of
Directors of GRENKELEASING AG.
On August 1, 2011, the company is to publish the full quarterly financial
report as per June 30, 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 nine 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 49
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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04.07.2011 Dissemination of a Corporate News, transmitted by DGAP - 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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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130688 04.07.2011
DGAP-News: GRENKELEASING AG: GRENKE's growth in new business remains on track in first half of 2011 - new business up by 25.6%
| Source: EQS Group AG