Continued growth across European markets
helped Grenke Leasing to a 23.7% increase in new business volume in
2011.
The German firm recorded €857.5m in new
business during 2011 compared to €693m in 2010, which exceeded the
company’s target of 20% growth for the year.
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Grenke experienced significant increases in
leasing business outside of Germany, particularly in Italy which
became the second non-domestic market to exceed €100m in new
business along with France.
Non-domestic business contributed 61.5% to
Grenke’s total new business compared to 58.4% in 2010 and the firm
continued its expansion programme including a fifth UK office and
concluding a franchise deal in Turkey.
Grenke is now present in 23 locations in
Germany and 52 internationally.
Wolfgang Grenke, chief executive of Grenke
Leasing, said: “We are planning to continue our expansion strategy
in 2012 as well by gaining new franchise partners and implementing
cell divisions.
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By GlobalData“Passing the €100m mark in Italy, the second
of our international markets to do so after France, highlights the
fact that focussing the growth strategy on further countries and
leveraging our competitive edge in existing European countries is
the right way forward.”
Grenke also revealed in its preliminary
financial report the businesses contribution margin on new
business, a measure of profitability, was €124.7m or 16% compared
to 15.6% in 2010.
The firm’s conversion rate of inquires to
contracts was below target at 43% in 2011, with a rate of 42%
internationally compared to 48% in Germany. The company stated
these figures show Grenke is not making any concessions in its
conservative risk approach in certain markets.
A full annual financial report for 2011 is expected in early
February.
grant.collinson@vrlfinancialnews.com
