DGAP-News: GRENKELEASING AG: Double-digit increase

DGAP-News: GRENKELEASING AG / Key word(s): Half Year Results/Quarter Results GRENKELEASING AG: Double-digit increase of operating income - consolidated net profit up 14% at EUR 22.4 million 25.07.2013 / 07:18 --------------------------------------------------------------------- Double-digit increase of operating income - consolidated net profit up 14% at EUR 22.4 million * Rise in net interest income of 21% in first half of 2013 to EUR 63.3 million (previous year: EUR 52.2 million) * Consolidated net profit in first half of 2013 amounts to EUR 22.4 million - an increase of 14% as against EUR 19.6 million in the previous year * As of August 1, 2013, Antje Leminsky will assume the Board of Directors responsibility for Information Technology (IT) as CIO (Chief Information Officer) Baden-Baden, July 25, 2013: In the first half of 2013, GRENKE continued the positive development of the first quarter and again increased its earnings strength. Net interest income improved by 21% in the first half of 2013 to EUR 63.3 million after EUR 52.2 million in the previous year. As before, this shows the attractive contribution margins from new business in past quarters. At the same time, the refinancing costs are increasing only marginally overall due to the currently low interest rate environment. They even declined slightly in the second quarter because we made use of the advantageous capital market conditions by issuing a bond, among others. In the first half of 2013, expenses from the settlement of claims and risk provision increased 15% to EUR 24.7 million after EUR 21.5 million in the previous year. In the second quarter of 2013, expenses for the settlement of claims increased disproportionately, while the loss rate was only marginally higher than in the same quarter of the previous year. Net interest income after settlement of claims and risk provision rose by 26% to EUR 38.6 million after EUR 30.7 million. On a quarterly basis these tend to be volatile which is typical for our type of business. In light of the difficult economic situation of several European countries, this development is in line with expectations. Accordingly, we had successively raised our contribution margins in the new business over the past quarters as part of our risk control. Profit from insurance business increased 20% to EUR 16.6 million in the first half of 2013 (previous year: EUR 13.9 million). Profit from new business rose by 21% to EUR 21.4 million after EUR 17.7 million. Profit from disposals, which is very volatile from quarter to quarter, remained below the previous year's figure, amounting to EUR 1.3 million as against EUR 2.2 million in the first half of 2012. Overall, operating income therefore increased by 21% to EUR 78.0 million after EUR 64.5 million in the previous year. The operating result increased by 13% to EUR 31.2 million after EUR 27.7 million in the previous year. We are currently reporting high rates of increase on the cost side This is partially due to a base effect, caused by the acquisitions of former franchise companies in the third quarter of 2012 and the two smaller acquisitions in Finland and Slovakia - as of the end of June 2013 - which are not included in the figures for the previous year. This was particularly evident in staff costs, among others. Because of the headcount increase, these grew by 23% to EUR 24.9 million after EUR 20.2 million in the previous year. As part of our growing new business and our international expansion, we increased our selling expenses. Accordingly, selling and administrative expenses increased disproportionately by 30% to EUR 18.6 million in the first half of 2013 after EUR 14.3 million in the previous year. The GRENKE Consolidated Group's net profit climbed by 14% to EUR 22.4 million in comparison to EUR 19.6 million in the previous year. Earnings per share amounted to EUR 1.55 after EUR 1.43 in the previous year. The equity ratio increased to 16.6% as per reporting date. It is therefore above our long-term target of at least 16%. With this equity base, we have enough scope for the future growth of the GRENKE Group. This result was achieved by 792 employees as compared to 639 in the first half of 2012 (full-time employees not including the Board of Directors). Mrs Leminsky, who initially joined the company as Representative of the Board on August 1, 2012, will assume Board of Directors responsibility for IT as CIO as of August 1, 2013. The Supervisory Board appointed her as the Deputy Chairman of the Board of Directors at the same time. IT, which was previously managed by Chairman of the Board of Directors and founder Wolfgang Grenke himself, is of strategic importance for the GRENKE Group. The GRENKE Group's business model is based on the highest possible efficiency and reliability. Standardisation, comprehensive IT-based automation, and speed are major unique selling points and represent key barriers to entering our market. Mrs Leminsky has great experience in the field of IT, which she has acquired in various management functions, including at Hamburg-based OTTO GmbH & Co KG, where she was a member of the IT unit management (Group Technology Partner). 'For the future expansion of the GRENKE Group, we have opened new locations and made preparations for further openings, including our market entry in Canada in the second half of the year. In 2013, net interest income is likely to benefit again primarily from the high growth of previous years. However, expenses may result from the current increased loss rate. In addition, we are investing in our expansion with intensified sales efforts, acquisitions of former franchise companies and through a high frequency of cell divisions. We remain by our forecasts of generating profit of between EUR 44 million and EUR 48 million for the GRENKE Group in the 2013 financial year,' said Wolfgang Grenke, Chairman of the Board of Directors of GRENKELEASING AG, of the result. 'In the course of the new business growth, we will continue to work intensively on our regional expansion and the diversification of our financial solutions. The financing of our growth strategy is well secured. Following the successful capital increase in the first quarter of 2013, in the second quarter we most notably placed a EUR 100 million bond at attractive conditions within a short space of time. In addition, the low interest rate environment at present is contributing positively to the earnings performance, which we are using consistently with our good reputation on the capital market. Accordingly, there was a double-digit increase in operating income overall,' explained Jörg Eicker, CFO of GRENKELEASING AG. The full Financial Report for the 2nd Quarter and Half-Year 2013 can be accessed on the internet at www.grenke.de INVESTOR RELATIONS - Financial Reports - Financial Reports 2013. Should you have any queries, please contact: Renate Hauss Tel.: +49 7221 5007-204 Fax: +49 7221 5007-4218 E-mail: investor@grenke.de Internet: http://www.grenke.de, http://grenkeleasing.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 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 26 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. End of Corporate News --------------------------------------------------------------------- 25.07.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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 --------------------------------------------------------------------- 222788 25.07.2013