Profits for LeasePlan were down 5.4% year-on-year during Q1, to €138m (£121m), due to impairment charges in Germany and Turkey.

The company reported revenues of €2.3bn during the period, in line with Q1 2017. Slight growth in leasing revenues, to €1.6bn, was offset by a €23m decrease in income from vehicle sales and end-of-contract-fees.

Profits were hit for €19.8m by depreciation of the lira in Turkey, and for €10.5m by “loss-making contracts” in Germany.

The defleeting business saw a €23m decline in profits, due to normalisation after the defleeting of a large customer in 2017, as well as a decline in Euro 5 diesel vehicles. LeasePlan said it expects all Euro 5 diesel cars in its fleet to be disposed of within 2018.

It said: “We are closely analysing the developments in diesel prices by market, car type and engine type, [adjusting] residual values on new contracts, customer incentives towards certain car types and the management of existing lease agreements and our fleet value.”

The company added it was “continuing to explore various strategic [funding] alternatives, including an initial public offering”.

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LeasePlan’s stock exchange float was originally planned for June, but was subsequently pushed back. In April, chief executive Tex Gunning said the company was looking at a higher market valuation than rival ALD Automotive’s, valued at €5.6bn.

LeasePlan recently introduced a vehicle subscription service geared towards SME in the UK. It also provides car subscription options on defleeted vehicles sold through its B2C portal.