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August 29, 2012updated 12 Apr 2017 4:06pm

LeasePlan “crisis-proof” with ?123m profit

LeasePlan attributes the difference to one-off post-employment benefits, as well as a unique special income event during H1 2011, which brought in30m on the back of a settlement with tax authorities regarding indirect taxes (VAT)

By Jared Fortune

Fleet giant LeasePlan has reported a €123m net profit for the first half of 2012.

The figure represents a €13m year-on year decrease in profit for the company. LeasePlan attributes the difference to one-off post-employment benefits, as well as a unique special income event during H1 2011, which brought in €30m on the back of a settlement with tax authorities regarding indirect taxes (VAT). Despite these factors, a spokesperson for LeasePlan said profit level for 2012 “remains consistent” when compared to the same period in 2011.

While acknowledging that the claim made in previous reports that LeasePlan had “return[ed] to pre-crisis performance” had been premature, the spokesperson argued that “LeasePlan’s results over the past years have proven to be rather crisis-proof”.

Vahid Daemi, LeasePlan chief executive, said: “In the face of economic, political and regulatory changes and challenges across the world and in particular the eurozone, LeasePlan continues to perform well and absorb the unpredictable effects of the global market.”

Leaseplan, which operates in 30 countries worldwide, also reported a reduction in fleet size by 1,000 units in H1 2012, compared to a 3,000 vehicle growth in the first half of 2011. The company claims the loss is due to the recession occurring in several countries in which LeasePlan operates.

The company’s interim results revealed that net interest income level performed well, driven by an increase in the lease portfolio to €14.9bn despite the loss of 1,000 vehicles from the fleet. The value of the average lease written by the company has also increased.

Elsewhere in the interim report, a spokesperson stipulated that the downgrading of LeasePlan’s long-term debt and deposit ratings to Baa2 was a reflection of “the overall negative sentiment towards the banking industry as a whole.” Despite this perspective, early 2012 saw LeasePlan conclude two senior unsecured debt capital market transactions of €500m and €700m respectively.

Leaseplan posted a €225m profit in 2011.

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