3 per cent in consolidated earnings after tax to €7.9m in the first
quarter ended March and predicted net profit for the year would
fall in the range of €30.6m to €33m.
This was the first time the earnings of its franchise companies
in the UK and Poland were included in the group results.
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Grenkeleasing reported and overall increase in the net interest
income from leasing despite higher settlements of claims.
Grenkeleasing said its rapid international expansion resulted in
higher expenses in the income statement. It also paid lower taxes
during the quarter as a result of changes in German corporate tax
laws.
Earlier, Grenkeleasing said growth in new business for the first
quarter slowed to 7.2 per cent in the quarter as fewer working days
resulted in lower business volume. Total value of new assets leased
and factoring volume amounted to €132m.
Going forward, Grenkeleasing said margins would take priority
over volume growth. The CM1 margin (contribution margin 1), one of
the group’s profitability indicators in the first
quarter was 11.7 per cent, exceeding internal targets.
“Both new business and profitability of the Grenke Group and its
franchisees were satisfactory and as planned in the first quarter
of the fiscal year. Noticeably tighter lending policies and the
tendency of some banks to withdraw from the small-ticket leasing
business, will stimulate new business. On the whole, we anticipate
that growth in new business will reach our medium-term goal of 10
per cent in the current year,” said chief financial officer Dr. Uwe
Hack.
