DGAP-News: GRENKELEASING AG: GRENKELEASING increases profits by 13 %
(firmenpresse) - DGAP-News: GRENKELEASING AG / Key word(s): Final Results
GRENKELEASING AG: GRENKELEASING increases profits by 13 %
10.02.2011 / 07:08
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GRENKELEASING increases profits by 13 %
- 2010 net profit amounts to EUR 27.8 million, up 13.1 % on the previous
year's level of EUR 24.6 million
- Net interest income rises by 11.5 % to EUR 80.0 million
- Equity ratio of 17.2 % still above our target of 16 % - despite strong
growth in new business of 39.4 % in 2010
- Proposed dividend of EUR 0.70 per share
- Profitability of new business remains higher than pre-crisis level of
2008
- 2011: record profit of EUR 33 million to EUR 36 million targeted
Baden-Baden, Germany, February 10, 2011: For the GRENKE Group, the fiscal
year 2010 was entirely dominated by strong, profitable growth. GRENKE had
already been expanding its new business again since the second half of
2009.
Economic demand picked up more rapidly and more strongly from the beginning
of 2010 in Europe, particularly in Germany, than most economic analysts had
expected.
In anticipation of a rapid recovery of the European economy, the GRENKE
Group had not cut staff levels in crisis year 2008. On the other hand,
lower-margin new business had been reduced, a strategic decision which is
now proving its effectiveness. In 2010 the volume of new business at the
GRENKE Group (including franchise partners) - i.e. the total cost of newly
acquired leased assets plus the factoring volume - amounted to EUR 693.0
million (2009: EUR 497.1 million), corresponding to growth of 39.4 %. The
contribution margin 2 (CM2) fell to15.6 % (2009: 18.8 %) but is still
higher than the pre-crisis level.
The success of this management with a focus on contribution margins in line
with the market can be seen in the year-on-year increase of 8.7 % in
interest income, which amounted to EUR 124.5 million (previous year: EUR
114.6 million). In contrast, interest expense rose by just 4.1 %. This was
due to lower than average refinancing requirements on account of using
large cash holdings at the beginning of the year and our refinancing from
GRENKE BANK deposits, which led to an encouraging rise in net interest
income of 11.5 % to EUR 80.0 million (previous year: EUR 71.8 million).
Loan losses increased in the fiscal year 2010 as a result of the recession.
Having peaked in the first quarter of 2010, they trended downwards over the
rest of the year. Although the resulting earnings effect was still above
the long-term average, the increase of 8.1 % to EUR 33.7 million was much
lower than the increase in net interest income.
Having posted a small negative result in the previous year, the profit from
disposals was positive again at EUR 2.0 million in 2010 and was thus almost
at the level of the pre-crisis year 2008.
In total, operating income increased by 15.8 % to EUR 96.8 million in 2010
(previous year: EUR 83.6 million). The increase in personnel expenses
remained well below average at 11.5 % and was mainly due to the current
development in salaries (variable remuneration). The number of employees
rose by 6.1 %.
In addition to the limited impact of the first-time consolidation of GRENKE
BANK AG and GRENKEFACTORING GmbH for a full twelve-month period, operating
expenses also reflect the acceleration in the push for growth in 2010 in
particular. Accordingly, selling and administration expenses especially
have increased significantly, at 20.7 %. We deliberately factored in this
increase to support the strong expansion in new business and to prepare for
further growth.
Earnings before taxes amounted to a total of EUR 36.5 million in 2010,
following the reduction in the previous year caused by the recession
(previous year: EUR 33.6 million), an increase of 8.6 %. Net profit was up
13.1 % at EUR 27.8 million (previous year: EUR 24.6 million). Earnings per
share came to EUR 2.03 after EUR 1.80 in 2009.
The GRENKE Group traditionally holds a substantial equity base, with the
strategic target set at 16 %. This provides the basis for our high rating
and grants us access to attractive refinancing opportunities. During the
very difficult years for the international financial sector caused by the
recent crisis, the equity ratio was systematically increased well above
this level owing to risk considerations. At the end of the fiscal year it
stood at 17.2 %. GRENKE therefore possesses a good base which allows for
further strong growth in the future and also for proposing a dividend of
EUR 0.70 per share for the fiscal year 2010 (previous year: EUR 0.60), that
is, an increase in line with the increase in the net profit.
'At the end of the worst recession in post-war history, we can say that our
finely honed scoring process to evaluate credit risks arising from lease
agreements has fully proved itself. We are very confident regarding the
fiscal year 2011. Growth in fiscal year 2010 has been driven by the
extraordinary concurrence of the relatively low base of the recessionary
year 2009 with the very rapid economic upturn in 2010 and little
competitive intensity in our international markets and we therefore expect
growth to normalise in 2011. Notwithstanding this, we again expect to
achieve growth in new business in the GRENKE Group including franchise
partners above our long-term target of at least ten percent and to achieve
more than 20 % in fiscal year 2011.
Net profit is expected to increase considerably to reach between EUR 33
million and EUR 36 million in 2011, the highest profit in the company's
history so far. This sharp rise in profits is due to the fact that the
impact of income from the high-margin new business concluded in previous
years is increasingly included in the income statement over the term of
these contracts. At the same time, the loss rate should tend to decrease
further as the economy improves.
As in 2010, higher income will be partly offset by increases in operating
and administration expenses, since we shall press ahead with our continuous
international expansion in 2011 too. The increase in expenses will,
however, be flatter than that in income, meaning that we expect profits to
grow strongly overall,' says Wolfgang Grenke, Chairman of the Board of
Directors of the company, describing the goals for 2011.
Further explanation:
'The new business in the fiscal year 2010 would not have been possible
without our very good standing in the capital markets. In combination with
our now proven refinancing from GRENKE BANK's bank deposits, we have a
broad range of refinancing instruments. The equity ratio and the return on
equity remain the key target values. Our corporate management focuses on
achieving a sustainably high CM2 as prerequisite for an adequate ROE while
at the same time maintaining a solid equity base. We are even more
satisfied with this development given that income is still impacted by
losses - as is typical at the end of a recession - and at the same time we
have invested considerable sums in expanding our geographical presence.
This puts temporary pressure on us as a services company, as personnel and
operating expenses always increase ahead of future income.
The equity ratio was 17.2 % in fiscal year 2010, still above our
medium-term target of 16 % despite our rapid growth. This slight
overcapitalisation was deliberately brought about during the financial
market crisis owing to risk considerations. While the biggest risks from
the crisis now seem to have passed, we still see elevated overall risk
potential on capital markets in light of the numerous problems that have
not yet been overcome, such as the debt overload problem in various
countries. We are therefore continuing to base our balance sheet management
on a scenario with above-average capital market risks,' explains Dr. Uwe
Hack, Deputy Chairman of the Board of Directors of GRENKELEASING AG
The average number of employees in 2010 was 538, compared to 507 in 2009
(full-time equivalents; not including the Board of Directors).
The financial report of the GRENKELEASING AG Group for 2010 is available on
the Internet at www.grenke.de - INVESTOR RELATIONS - Reports - Figures
2010.
Should you have any queries, please contact:
Renate Hauss
Phone: +49 7221 5007-204
Fax: +49 7221 5007-112
E-mail: investor(at)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 41
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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10.02.2011 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(at)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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111707 10.02.2011
Datum: 10.02.2011 - 07:08 Uhr
Sprache: Deutsch
News-ID 33181
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