Ad-hoc | 3 July 2007 08:03
GRENKELEASING AG / Miscellaneous/Miscellaneous
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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- Increase in new business of the GRENKE Group by 9.7 %
- Contribution Margin 2 of new business of the GRENKE Group reaches EUR
32.8 million
Baden-Baden, July 3, 2007: In the first half of 2007, the GRENKE Group
(incl. franchise partners) generated a volume of new business – i.e. the
sum total of acquisition costs of newly purchased leasing assets and
factoring volume – amounting to EUR 251 million (HY1-2006: EUR 229
million).
Regarding the first half of 2007, the 9.7 % growth rate achieved in terms
of new business is in line with our expectations. This positive result was
driven by a growth rate of 12.5 % in the second quarter of 2007 compared
with 7 % in the first quarter of 2007 (year-on-year respectively) and shows
that the growth momentum of new business is gathering pace.
The main growth drivers were the international markets and the continual
extension of the factoring business in Germany. Considering that the number
of working days was lower in Q2 of this year, our business performance in
Germany was satisfactory.
New business from leasing and factoring volumes in EUR million
HY1 2007 HY1 2006 % change
GRENKE Group* 251.0 228.8 9.7
GRENKE Group Leasing Division** 229.6 222.7 3.1
GRENKE Group International* 100.0 82.1 21.9
GRENKE Group Germany* 150.9 146.8 2.8
Franchise business 46.0 16.9 172.9
Factoring (Germany) 21.4 6.2 246.6
* incl. franchise partners ** excl. factoring
Growth of new business of the international markets of GRENKE Group reached
21.9 % year-on-year and has continued to develop very positively. The
contribution to the new business of the GRENKE Group amounted to 39.9 %
(previous year: 35.9 %).
The trend relating to contribution margin 2 also continued in the first
half of 2007. Contribution margin 2 (CM2) growing at 31.7 %, continued to
outperform new business growth of the international markets.
Growth of new business in France remains on a positive track. In
Switzerland, the general trend is still being impacted by the difficult
personnel situation. In the United Kingdom, the entire leasing market
performed poorly in the second quarter, impacting the level of new
business growth. Nevertheless, it was possible for contribution margin 2 to
be improved in all those markets.
New business from leasing by foreign markets in EUR million
HY1 2007 HY1 2006 % change
France 51.4 43.4 18.5
Switzerland 7.2 9.3 - 22.5
Italy 7.9 1.8 341.8
Spain 6.4 6.4 -
United Kingdom (franchise partners) 5.7 6.0 - 5.1
The CM1 margin of the leasing business of the GRENKE Group (contribution
margin 1 at acquisition value) reached our target margin of 10 % for the
first half of 2007, reaching a value of EUR 22.9 million (HY1-2006 EUR 23.5
million – comparative figure for leasing operations). The corresponding
contribution margin 2 amounts to EUR 32.4 million, up by 4.7 %
year-on-year. On the whole, the trend relating to CM2 compared with the
first quarter of 2007 reflects a further improvement in the profitability
of our business.
Development of contribution margin 2 (CM2) in EUR million
HY1 2007 HY1 2006 % change
GRENKE Group* 32.8 31.1 5.5
GRENKE Group Leasing Division** 32.4 30.9 4.7
GRENKE Group International* 14.8 11.2 31.7
GRENKE Group Germany* 18.0 19.5 - 7.9
Franchise business 3.0 1.0 188.7
France 7.7 6.5 18.4
Switzerland 1.5 1.5 -
Italy 1.2 0.2 586.4
Spain 0.7 0.6 18.0
United Kingdom (franchise partners) 0.8 0.7 3.5
* incl. franchise partners ** excl. factoring
The margin (turnover/factoring volume) in relation to the factoring volume
of EUR 21.4 million amounts to 2.3 %.
In the first half of 2007, the GRENKE Group recorded 59,299 leasing
inquiries (international markets 27,666) and of which 30,157 new leasing
contracts (international markets 13,303) were generated. The average value
per contract concluded came to approx. EUR 7,613 and is thus slightly
higher than in the previous year (2006: EUR 7,451 – comparative figure
adjusted accordingly).
The company will publish its detailed three months’ report for 2007 on July
26, 2007.
The Executive Board
Should you have any queries, please contact:
Renate Hauss
Tel.: 0049 -7221/5007-204
Fax: 0049-7221/5007-112
E-mail: investor@grenkeleasing.de
Internet: http://www.grenkeleasing.de
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Information and Explaination of the Issuer to this News:
'With 9.7% growth of new business in the first half of 2007 and a growth
rate of 12.5 % in the second quarter of 2007, we are well on our way to
achieving the targeted growth rate of approx. 10 % for new business in the
GRENKE Group for the year as a whole. A growth rate of 21.9 % in our
European foreign markets confirms our strategy of following a pan-European
approach,' said Dr. Uwe Hack, CFO of GRENKELEASING AG, in explaining the
results.
'The growth in CM2 year-on-year also continued to improve in the second
quarter in almost all markets. This is all the more encouraging as we
continue to perceive pressure on margins in the higher ticket
markets.'
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 seven branches in France and three in
Switzerland, 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 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 is listed on the
Prime Standard of Frankfurt's Securities Exchange and is part of the SDAX.
DGAP 03.07.2007
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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: investor@grenkeleasing.de
Internet: www.grenkeleasing.de
ISIN: DE0005865901
WKN: 586590
Indices: SDAX
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Stuttgart, München, Düsseldorf, Hamburg
End of News DGAP News-Service
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