DGAP-News: GRENKELEASING AG / Key word(s): Final Results
GRENKELEASING AG: Consolidated Group net profit rises 11 % and reaches
EUR 47.0 million - the upper end of our forecast range of EUR 44 to 48
million
07.02.2014 / 07:15
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Consolidated Group net profit rises 11 % and reaches EUR 47.0 million - the
upper end of our forecast range of EUR 44 to 48 million
* 2013 Consolidated Group net profit amounts to EUR 47.0 million - an
increase of 11 % in comparison to EUR 42.5 million in the previous year.
* Net interest income grew 17 % to EUR 130.5 million.
* Intended scrip dividend - dividend proposal of EUR 1.00 per share.
* 2014: Targeted new business growth of 13-16 %; Consolidated Group net
profit expected in a range of EUR 52 million to EUR 56 million.
Baden-Baden, February 7, 2014: In fiscal year 2013, the GRENKE Consolidated
Group carried on the successful development experienced in recent years.
The rise in net profit amounted to 11 % to EUR 47.0 million compared to EUR
42.5 million in the previous year. Thus, GRENKE achieved the upper end of
the forecast range of EUR 44 to 48 million and accelerated the earnings
momentum (previous year: 8 %).
The increase in earnings was largely the result of the strong level of
high-margin new business generated in recent years, which has been
generating income for us gradually as the terms of the contracts progress.
Therefore, the trend continued toward a significantly more pronounced rise
in interest income and similar income from the financing business. This
increased 11 % to EUR 188.8 million (previous year: EUR 169.5 million)
while the interest expenses of the refinancing and deposit business had
only a moderate 1 % rise to EUR 58.3 million after EUR 58.0 million in the
previous year.
Accordingly, net interest income rose 17 % to EUR 130.5 million (previous
year: EUR 111.5 million). By consistently managing our new business margin,
we are in a position to achieve a disproportional rise in income while at
the same time taking into account future risks in our financing conditions.
Consequently, we are always prepared for a possible rise in losses.
During the 2013 fiscal year, the trend of rising expenses for the
settlement of claims and risk provision of the previous years has reversed:
Following a 26 % jump in the prior year, it rose only 15 % in 2013 and
amounted to EUR 49.8 million (previous year: EUR 43.4 million).
Net interest income after settlement of claims and risk provision grew 19 %
and amounted to EUR 80.7 million (previous year: EUR 68.0 million). The
loss rate remained at the level of the two previous years.
Profit from insurance business grew 19 % to EUR 35.8 million (previous
year: EUR 30.2 million). Profit from new business increased 23 % to EUR
43.9 million (previous year: EUR 35.7 million). Profit from disposals tends
to be volatile and declined to EUR 0.7 million in 2013, after being
comparatively high at EUR 4.0 million in the previous year. In total, the
income from operating business grew 17 % to EUR 161.2 million (previous
year: EUR 137.9 million).
In line with the 20 % rise in the number of employees, staff costs
increased 21 % to EUR 51.8 million (previous year: EUR 42.8 million).
Selling and administrative expenses grew disproportionately higher and
increased 27 % to EUR 38.5 million (previous year: EUR 30.4 million). This
was primarily the result of higher investments in our IT systems and
increased consulting and auditing fees. Earnings before taxes amounted to
EUR 64.3 million compared to EUR 59.7 million in the previous year which
represented an increase of 8 %. Consolidated net profit grew 11 % to EUR
47.0 million compared to EUR 42.5 million in the previous year. Earnings
per share totalled EUR 3.23 after EUR 3.10 in the prior year.
At 16.7 %, the equity ratio exceeded our long-term target level of 16 %.
Not only was this the result of the positive earnings development, but it
was also due to the successfully placed capital increase in February 2013
which resulted in proceeds of new equity of EUR 53.7 million.
The development in the 2013 reporting period and the continued positive
outlook for the future lead the Supervisory Board and Board of Directors to
propose a dividend for fiscal year 2013 of EUR 1.00 per share to the Annual
General Meeting of GRENKELEASING AG. For the first time, it is intended to
offer the shareholders the option of receiving the dividend entirely in
cash, or to receive part of the dividend in cash and the remaining portion
in shares of GRENKELEASING AG.
'In recent years, we have evolved as the market leader in our segment in
Central Europe. We focus on IT-based services in the areas of leasing,
factoring, and banking. We now have extensive coverage in Europe and have
also begun to successfully position ourselves globally. In the past two
years, the first steps have already been taken through our entry into the
markets of Brazil, Dubai, and Canada. In 2014, we intend to establish an
initial presence in Chile. Naturally, in the course of this, we will not
neglect our core markets in Europe. This year we plan to enter the Croatian
market and undergo further cell divisions in five of our European markets,
including Germany. We are confident that we will be able to position the
GRENKE Group and its business model in a sustainable manner in the years
ahead.
Our successful strategy should also flourish in the future: In 2014, we
expect growth in GRENKE Group's new business in the range of 13 to 16 %
while maintaining profitable and risk-appropriate CM2 margins. GRENKE
Consolidated Group's net profit should reach a range of EUR 52 to 56
million.
We are proud that our market capitalisation has exceeded the one billion
euro threshold for the first time in 2013 as a result of the strong
performance of the GRENKE shares. As a growth company, we aim at
strengthening GRENKE Group's financial position and equity base and
consider the intended scrip dividend as an attractive and innovative
opportunity for our shareholders to increase their commitment to GRENKE',
commented Wolfgang Grenke, Chairman of the Board of Directors of
GRENKELEASING AG, on the results and the prospects for the future.
'With its solid financial resources, strong positioning in the capital
markets, and long standing and proven risk-appropriate pricing policy, the
GRENKE Consolidated Group is excellently positioned to continue the steady
growth path of the recent years also in the future. We are exceptionally
positioned through our broad range of refinancing instruments and we pay
special attention to maintaining our reputation on the capital markets.
Furthermore, we have expanded our offers of finance solutions. Our
factoring business experienced favourable growth rates and recorded a rise
of 46 %. The development of our relatively new offers in start-up financing
and the provision of development loans are similarly dynamic. Deposit
volumes at GRENKE BANK AG also saw substantial growth in 2013 with an
increase of 22 % to EUR 255.6 million', stated Jörg Eicker, Chief Financial
Officer (CFO) of GRENKELEASING AG.
The average number of employees within the Consolidated Group in 2013 was
819, compared to 681 in 2012 (full-time equivalents; not including the
Board of Directors).
The GRENKELEASING AG Group's financial report for 2013 can be viewed online
at www.grenke.de - INVESTOR RELATIONS - Financial Reports - Financial
Reports 2013.
For further information please contact:
Renate Hauss
Phone: +49 7221 5007-204
Fax: +49 7221 5007-4218
E-mail: investor@grenke.de
The GRENKE Group
The GRENKE Group is a broadly diversified provider of financial services
for small and medium-sized companies and private customers.
The range of services offered by the GRENKE Group covers small-ticket IT
leasing and factoring and - through GRENKE Bank - traditional online
banking services.
The GRENKE Group is independent of vendors and banks and 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. The GRENKE Group operates in 27 countries and
employs more than 800 staff.
GRENKELEASING AG is listed in the Prime Standard of the Frankfurt Stock
Exchange and is included in the SDAX. GRENKELEASING AG shares are listed in
the SDAX on the Frankfurt Stock Exchange with the code GLJ, ISIN
DE0005865901.
Information on the GRENKE Group and its products is available on the
Internet at http://www.grenke.de, http://www.grenkeleasing.de,
http://www.grenkebank.de, and http://www.grenkefactoring.de.
This document is not for publication or distribution, directly or
indirectly, in or into the United States. This document does not constitute
or form part of an offer of securities or subscription rights for sale or
solicitation of an offer to purchase securities or subscription rights in
the United States, Canada, Australia, Japan or in any other jurisdiction
where such offer may be restricted. The securities and subscription rights
referred to in this document have not been, and will not be, registered
under the US Securities Act of 1933, as amended (the 'Securities Act'), and
may not be offered or sold in the United States or to or for the account or
benefit of US persons (as such term is defined in Regulation S under the
Securities Act), except on the basis of an applicable exemption from
registration or in a transaction not subject to the registration
requirements of the Securities Act. There will be no public offering of
securities and subscription rights in the United States or anywhere else,
except for Germany.
End of Corporate News
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Language: English
Company: GRENKELEASING AG
Neuer Markt 2
76532 Baden-Baden
Germany
Phone: +49 (0)7221 50 07-204
Fax: +49 (0)7221 50 07-4218
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, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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251572 07.02.2014
DGAP-News: GRENKELEASING AG: Consolidated Group net profit rises 11 % and reaches EUR 47.0 million - the upper end of our forecast range of EUR 44 to 48 million
| Source: EQS Group AG