IT equipment lessor Grenkeleasing grew profit in the first half of 2013 despite cost increases due to acquisition and international expansion.
The company reported 22.4m net profit, up by 14% year-on-year, for the first six months of the year.
New business volume at the firm grew 16.7% to reach 574.7m. Leasing business, separate from factoring and start-up finance, contributed 494.3m in new business – an increase of 13.2% on the first of half of 2012.
The company’s net interest income was up 21% to 63.3m.
The group experienced increased costs across the board for the period, including a 15% rise in expenses related to risk provision and the settlement of claims. Grenke reported the claims expense increased "disproportionately" in the second quarter while the loss rate was up marginal compared to 2012.
Outgoings were also affected by the one-off costs associated with the acquisition of former franchise companies in the third quarter of 2012 and two small acquisitions in Finland and Slovakia which were not realised in previous reports. Staff costs in particular grew 23% year-on-year.
International expansion, including preparation for a planned entry into Canada in the second half of the year, also contributed to increased costs.
Wolfgang Grenke, chairman of Grenkeleasing, said the company is confident in its previous prediction of between 44m and 48m profit for the whole of 2013.