CHG-MERIDIAN, a technology management and financing company, has reported that its lease originations reached €2.45bn in 2023, up 9.9% compared with €2.23bn a year ago.
The Germany-based company’s profit from ordinary activities reached €164.25m, a jump of 20.8% from €135.92m reported in 2022.
CHG-MERIDIAN said the growth was driven by contributions of all regions and all three business categories, namely healthcare, industrial, and information technology, along with the international expansion of its technology2use portfolio
CHG-MERIDIAN’s managed technology portfolio also experienced growth, with assets under management valued at €10.01bn, an increase of 11.8% versus €8.95bn in 2022.
The company remarketed 895,000 assets last year, representing a 95% remarketing rate of all returned assets.
The company said its usage models, based on the principles of the circular economy, have enabled customers to cut running costs while enhancing their sustainability performance.
A McKinsey study highlighted that ICT hardware accounts for 35%-45% of total CO₂ emissions in the service sector.
The company anticipates further growth and demand for its solutions due to increasing regulations around sustainability and ESG.
By adopting CHG-MERIDIAN’s technology2use solutions, companies are said to significantly reduce their IT hardware’s CO₂ emissions by more than 50%.
CHG-MERIDIAN said it is expanding its international presence, focusing on key growth areas for its 12,000 customers.
Currently, around 60% of its business is generated outside Germany.
CHG-MERIDIAN Group CEO Mathias Wagner said: “Our model of ‘usage over ownership’ addresses the switch from a linear to a circular economy, a trend that is gathering momentum around the world. Leasing and other usage models are generally most popular in times of economic uncertainty.
“Our innovative, globally scalable technology2use solutions give companies and institutions access to the latest technology without the need to purchase it. This can help to unlock potential for innovation and growth while optimizing liquidity. For us, this means that the age of use has already begun and we must now play an active role in shaping it.”
