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Grenke AG — Earnings Release 2007
Jan 3, 2008
189_rns_2008-01-03_a7749ec9-b463-4555-b7c8-0329d0569379.html
Earnings Release
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Corporate | 3 January 2008 08:13
GRENKELEASING AG: New business in 2007
GRENKELEASING AG / Miscellaneous
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
- Increase in new business of the GRENKE Group by 10.7 %
- Contribution Margin 2 of new business of the GRENKE Group reaches EUR
66.2 million
Baden-Baden, 03 January 2008: GRENKE Group (incl. franchise partners)
generated in 2007 a volume of new business – i.e. the sum total of
acquisition costs of newly purchased leasing assets and factoring volume –
amounting to EUR 509 million (2006: EUR 460 million).
The growth rate of 10.7 % *in new business achieved by the GRENKE Group
including franchise partners is in line with expectations and was the
result of a traditional strong fourth quarter. The primary drivers of
growth are unchanged the foreign markets with a growth rate of 27 % and the
continued expansion of franchise activities. An increasing momentum we
record in our factoring business with a factoring volume of EUR 48.8
million (2006: EUR 22.5 million).
New business volumes in EUR million
2007 2006 % change
GRENKE Group including franchise partners 509.1 460.0 10.7
- of which: Germany 301.8 296.9 1.7
- of which: International 207.4 163.1 27.1
GRENKE Group leasing business* 460.4 437.5 5.2
Franchise partners 96.3 55.0 75.1
- of which Factoring business (Germany) 48.8 22.5 116.9
* excl. factoring
Both new business growth recorded by the GRENKE Group abroad, at 27.1 %
compared with the previous year and contribution margin 2 (CM2) with an
increase of 32.6 % reflect a highly dynamic trend. The international
segment contributed a share of 40.7 % to the new business of the GRENKE
Group (previous year: 35.5 %).
France remains the key growth driver abroad, up by 20.2 %. France is the
first foreign market where we exceeded EUR 100 million new business and
generated a new business volume of EUR 102.8 million. In November we
performed a further cell division and opened a branch office in Lille and
are now represented in eight locations in France.
In Switzerland the positive development in the third quarter continued in
the fourth quarter. We generated a growth rate of 10.2 % in the second half
of 2007, even though this could not fully make up the decline of the first
half of 2007. Contribution margin 2 was successfully raised again in
Switzerland and remains at a good, above-average level.
In Italy we record a further high speed of growth and more than tripled our
new business with EUR 16.6 million compared to previous year (2006: EUR 5.1
million).
In Poland we exceeded the 10-million hurdle and generated a new business of
EUR 11.9 million.
New business from leasing by foreign markets in EUR million
2007 2006 % change
France 102.8 85.5 20.2
Switzerland 16.8 17.9 -6.5
Italy 16.6 5.1 222.3
Spain (incl. franchise Madrid) 12.1 11.9 1.7
United Kingdom (franchise partners) 12.6 11.0 14.2
Poland (franchise partners 11.9 8.7 37.1
In 2007, the CM1 margin of leasing operations of the GRENKE Group
(contribution margin 1 at acquisition values) reached our target margin of
10 % at a value of EUR 47.1 million (2006: EUR 45.5 million – comparative
figure for leasing operations). The corresponding contribution margin CM2
amounts to EUR 65.1 million, up by 7.2 % year-on-year..
Development of contribution margin 2 (CM2) in EUR million
2007 2006 % change
GRENKE Group including franchise partners 66.2 60.6 9.2
- of which: Germany 36.3 37.9 -4.2
- of which: International 29.9 22.5 32.6
GRENKE Group leasing business* 65.1 60.7 7.2
Franchise business 6.2 2.7 129.6
France 14.6 12.8 13.7
Switzerland 3.5 3.1 12.9
Italy 2.2 0.5 315.1
Spain (incl. franchise Madrid) 1.5 1.1 36.4
United Kingdom (franchise partners) 1.6 1.3 23.1
Poland (franchise partners) 1.3 0.9 44.4
* excl. factoring
The profit margin in relation to factoring volume of EUR 48.8 million was
2.25 %. This margin relates to the approximately 40-day mean term of
factoring transaction.
The GRENKE Group recorded a total of 118,407 leasing inquiries (ex Germany
56,589) and of which 60,000 new leasing contracts (ex Germany 27,481) were
generated. The average value per contract concluded came to approx. EUR
7,673 and is nearly unchanged compared to the previous year (2006: EUR
7,681 – comparative figure adjusted accordingly).
'In line with our expectations we closed 2007 with a growth in new business
volume exeeding 10%. Encouraging is the fact that the international
business is meanwhile being supported by a total of six countries, with
each to report a volume of new business in excess of EUR 10 million for the
year. In Poland we generated new business of EUR 11.9 million', explained
Dr. Uwe Hack, CFO of GRENKELEASING AG in commenting on the results.
He added: With a growth rate of 10.7 % we outperformed the expected
industrial sector growth of 9.5 % in 2007 forecast by the German Leasing
Association (Bundesverband Deutscher Leasingunternehmen – BDL). This
success becomes even more obvious considering that the BDL expects a
decline of 1 % in the segment office equipment incl. IT.
The GRENKE Group (incl. franchise partners) now operates in seventeen
European countries.
The GRENKELEASING AG Group (excluding franchise partners) is represented in
20 German cities. In addition to eight branches in France, three in
Switzerland and two in Italy, the enterprise operates with subsidiaries in
Austria, Italy, Czechia, Spain, the Netherlands, Denmark, Sweden, Ireland
and Belgium.
In the United Kingdom, Poland, Norway, Hungary, Romania, Spain (Madrid) as
well as in Germany in the field of car leasing and factoring, GRENKELEASING
has a franchise system in place.
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 shares are listed at Frankfurt Stock Exchange (SDAX) with
the code GLJ, ISIN DE0005865901.
The company will publish its audited consolidated financial statements 2007
on 1 February 2008.
The Executive Board
Should you have any queries, please contact:
Renate Hauss
Tel.: 0049 -7221/5007-204
Fax: 0049-7221/5007-112
E-mail: [email protected]@grenkeleasing.de
Internet: http://www.grenkeleasing.de
03.01.2008 Financial News transmitted by DGAP
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: [email protected]
Internet: www.grenkeleasing.de
ISIN: DE0005865901
WKN: 586590
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf, Hamburg
End of News DGAP News-Service
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