DGAP-News: GRENKELEASING AG: New business growth exceeds 20 % in first Quarter 2011
(firmenpresse) - DGAP-News: GRENKELEASING AG / Key word(s): Miscellaneous
GRENKELEASING AG: New business growth exceeds 20 % in first Quarter
2011
04.04.2011 / 07:46
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New business growth exceeds 20 % in first Quarter 2011
- New business in the GRENKE Group amounted to EUR 191.9 million in first
Quarter 2011 - corresponding to growth of 27.8 %
- Contribution margin 2 (CM2) on new business in the GRENKE Group reached
EUR 26.0 million in first Quarter 2011. With a CM2 of 14.3 % (leasing
division), this is equivalent to typical profitability at the
pre-crisis level with excellent new business growth
- Expansion strategy was well underway in first Quarter 2011
Baden-Baden, April 4, 2011: In first Quarter 2011, the volume of new
business in the GRENKE Group (incl. franchise partners) - i.e. the sum
total of acquisition costs of newly acquired leasing assets and the
factoring volume - amounted to EUR 191.9 million (Q1 2010: EUR 150.1
million), corresponding to 27.8 % growth. The GRENKE Group was thus able to
continue the extremely positive fourth Quarter 2010 growth trend in first
Quarter 2011.
Contribution margin 2 (CM2) on new business in the GRENKE Group reached EUR
26.0 million in first Quarter 2011. With a CM2 of 14.3 % (leasing
division), this is equivalent to typical profitability at the pre-crisis
level with excellent new business growth.
The international segment contributed a share of 61.0 % to the GRENKE
Group's new business (previous year: 58.3 %). In particular, the growth
trend remained strong in our largest international markets of France,
Italy, and the UK.
In first Quarter 2011, we carried out further cell divisions as part of our
market penetration strategy. After the cell division in Brescia, we now
have a total of six locations in Italy. Three of these were cell divisions
that took place in the last 12 months. We opened our second location in
Ireland in Cork. Our franchise partner in Spain (Madrid) opened a location
in Malaga. Our 2011 growth strategy includes further cell divisions to
build the base for future growth but also in order to secure the market
share gains achieved so far. In addition to that we expect to enter the
Turkish market.
In our home market of Germany, the positive trend in the previous quarter -
despite the higher competitive intensity here - remained strong with new
business growth of 19.8 % in first Quarter 2011 and reaching EUR 74.9
million, compared to EUR 62.5 million in the same quarter of the previous
year.
In first Quarter 2011, GRENKE Group recorded a total of 56,266 leasing
inquiries (ex Germany 40,232), on the basis of which 22,693 new leasing
contracts (ex Germany 15,484) were generated. The average value per leasing
contract concluded was around EUR 7,876, which is an increase compared with
the previous year (Q1 2010: EUR 7,404).
Our conversion rate (inquiries to contracts) in first Quarter 2011 was 40
%, which continued to be below our target level. The conversion rate in our
international markets is still generally lower than the conversion rate for
the Group as a whole because we are not yet as well known in new markets
and have maintained a cautious risk policy in some individual international
markets.
All figures in EUR million
New business Q1-2011 Q1-2010 % change* incl. Factoring
GRENKE Group including franchise partners* 191.9 150.1 27.8
- of which: Germany 74.9 62.5 19.8
- of which: International 102.6 77.5 32.4
- of which: Franchise international 14.4 10.1 42.1
New business Q1-2011 Q1-2010 % change
GRENKE Group leasing business 178.7 143.0 24.9
- of which: Germany 63.4 55.4 14.3
- of which: International 102.6 77.5 32.4
- of which: Franchise international 12.8 10.1 26.0
New business Q1-2011 Q1-2010 % change
GRENKE Group Factoring 13.2 7.1 85.8
- of which: Germany 11.6 7.1 62.8
- of which: Franchise international (CH) 1.6 n.a. n.a.
GRENKE BANK Q1-2011 Q1-2010 % changeNew business from leasing by international markets in EUR million
Deposits 133.9 132.7 0.9
Business start-up financing volume 0.1 n.a. n.a.
Q1-2011 Q1-2010 % changeDespite increased capital market interest rates, the CM1 margin of the
France 41.1 34.7 18.3
Switzerland 4.0 3.5 14.4
Italy 25.6 12.6 102.9
Spain (incl. franchise Madrid) 5.4 5.1 7.4
United Kingdom 8.8 6.7 31.3
Poland 2.4 2.5 -1.6
Netherlands 3.7 3.7 -1.8
Portugal (franchise partner) 6.7 5.7 17.3
GRENKE Group's leasing business (contribution margin 1 at acquisition
values) was 9.9 % in first Quarter 2011, nearly reaching our target margin
of 10% and amounting to EUR 17.8 million (Q1 2010: EUR 16.2 million -
comparative figure for leasing business). The corresponding CM2 amounts to
EUR 25.6 million, up by 10.8 % compared with the previous year.
Development of contribution margin 2 (CM2) in EUR million
Q1-2011 Q1-2010 % change* incl. Factoring
GRENKE Group including franchise partners* 26.0 23.3 11.6
- of which: Germany 8.6 7.9 9.5
- of which: International 15.1 13.6 10.7
- of which: Franchise business 2.3 1.8 27.8
international
Q1-2011 Q1-2010 % change
GRENKE Group leasing business 25.6 23.1 10.8
- of which: Germany 8.3 7.7 7.4
- of which: International 15.1 13.6 10.7
- of which: Franchise business 2.3 1.8 25.5
international
Q1-2011 Q1-2010 % changeThe profit margin in relation to the factoring volume of EUR 13.2 million
France 6.6 6.3 5.1
Switzerland 0.7 0.7 -1.0
Italy 2.7 1.8 53.7
Spain (incl. franchise Madrid) 0.8 0.8 -4.1
United Kingdom 1.6 1.3 28.3
Poland 0.2 0.3 -45.7
Netherlands 0.7 0.7 -5.1
Portugal (franchise partner) 1.3 1.1 19.0
amounted to 2.35 % (Q1 2010: 2.3 %). This margin is based on the average
period of a factoring transaction, which was approx. 33.5 days (Q1 2010:
approx. 24 days).
'New business growth of 27.8 % in first Quarter 2011 confirms our planned
growth target of achieving new business growth of over 20 % for the entire
year. We benefit from the various prospects offered by different European
countries and we concentrate primarily on those regions with below-average
competitive intensity. Therefore, profitable growth opportunities will
present themselves for the GRENKE Group with continued cautious risk
management in the individual markets,' stated Wolfgang Grenke, Chairman of
the Board of Directors of GRENKELEASING AG in describing the further course
of action.
'Our standing in the capital markets and a strong financing base will
continue to be essential factors for achieving our targeted growth. For
this reason, we took advantage of declining refinancing margins and issued
a bond in the amount of EUR 75 million in February. In combination with our
now proven refinancing from GRENKE BANK's bank deposits, we possess a broad
range of refinancing instruments. As a result of this favourable mix of
refinancing instruments, we were able to offset the rise in market interest
rates and increase contribution margin 1 slightly compared with the same
quarter of the previous year. As there will be no significant bond
maturities in fiscal year 2011, the course has also been set from the
refinancing side so that we can capitalise on the growth opportunities
presented to us in 2011,' explained Dr. Uwe Hack, Deputy Chairman of the
Board of Directors of GRENKELEASING AG.
On May 4, 2011, the company is to publish the full quarterly financial
report as per March 31, 2011.
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 45
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(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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Datum: 04.04.2011 - 07:46 Uhr
Sprache: Deutsch
News-ID 33696
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