Despite difficult economic conditions during 2020, the CHG-Meridian Group, a German-based provider of IT and finance, including computer leasing, was able to deliver a successful financial year, the company said in a statement.

New customer business proved to be particularly challenging, as economic uncertainty and supply shortages made forward-looking planning and investment much more difficult for companies and organisations.

For these reasons, lease origination decreased by 12 per cent to €1.758bn in 2020 (2019: €1.995bn).

Dr Mathias Wagner (pictured below), chairman of the board of management, said: “The pandemic has presented us with considerable challenges, but it has not blown us off course.

“Our digital and sustainable business model, based upon the circular economy, has proven itself highly resilient and reliable.”

This is reflected in the growth of the technology portfolio that CHG Meridian manages on behalf of its customers, which reached a total of €7.5bn as of 31 December 2020 (31 December 2019: €6.9bn).

The Group’s profit from ordinary activities (before taxes) amounted to €123m, which was significantly higher than the year before (2019: €91m). Net income (after taxes) rose from €65m to €87m, a very positive year-on-year increase of 35 per cent.

One of the reasons for the positive trend of net income across the international Group is the strong growth in previous years, the company said. CHG-Meridian’s portfolio has continually expanded across its three core areas of IT, industrial technology, and healthcare technology. The positive effects continued into 2020.

The CHG-Meridian Group has also built on its lifecycle management business. It refurbished and remarketed a total of 880,000 used IT assets in 2020, a rise of 26 per cent (2019: 697,000). 96 per cent of all returned assets were given a second life.

“Despite the challenges presented by Covid-19, we have been able to further expand our technology portfolio and to respond flexibly to our customers’ changing requirements,” said Dr Wagner.

Digitalisation and sustainability as growth factors For many companies, the pandemic has made it evident that they still aren’t properly positioned with their digital workplaces. At the same time, ongoing digitalisation and automation are key to their future competitiveness.

“Thanks to our value-added products, services, and solutions, we are optimistic about the future and are predicting further growth over the medium term,” said Dr Wagner.

Alongside digitalisation, sustainability is another area that is driving demand for technology lifecycle management, while climate-friendly business practices are becoming an increasingly important competitive factor.

In response to this demand, CHG-Meridian launched carbonZER0 in February 2021, the company’s first carbon-neutral financing product for IT infrastructure and investments.

Carbon-neutral business activities from 2021 The Group itself is leading by example: “From 2021, CHG-Meridian will be carbon-neutral. This underlines our clear commitment to sustainable and responsible corporate governance”, said Dr Wagner.