Press release 03.09.2007
Strong income growth for GFKL
Highlights
- Consolidated revenues increase by 21 percent to EUR 548.6 million
- Earnings before taxes increase by 32 percent to EUR 16.8 million
Revenues and income
GFKL Financial Services AG, a leading provider in the leasing and collection sectors, increased its consolidated revenues from EUR 452.8 million EUR in the first half of 2006 to EUR 548.6 million in the first half of 2007. Earnings before taxes rose from EUR 12.7 million to EUR 16.8 million. The return on equity was 14.9 percent.
Dr. Peter Jänsch, chairman of the executive board of GFKL Financial Services AG: “In all, we were very satisfied with the first half-year, as GFKL is still well ahead of the planned figures. Both our leasing business and our collection services have contributed to this very positive development.” Approximately 85 percent of the GFKL Group’s revenues and approximately 80 percent of its pre-tax profit were generated by these two segments. The software and systems areas are the technological pendants to GFKL’s business model.
Segments
GFKL continued to record marked growth in its leasing business. During the first half-year, GFKL booked new agreements with a total volume of EUR 387.5 million (previous year: EUR 322.8 million), a plus of 20 percent. The high volume of new business from the European countries outside Germany was a major contributor to this outstanding growth. Growth in Germany amounted to 11.8 percent. Nearly two thirds of the new business devolved on the German market. During the first half of 2007, earnings before taxes amounted to EUR 7.1 million (previous year: EUR 6.9 million). GFKL intends to continue its adopted growth course by strongly expanding its leasing volume in Europe.
Revenues in the collection segment rose from EUR 19.2 million to EUR 50.2 million, not least due to initial consolidations during the first six months of 2007. This means that the company already has approximately 85 percent of the previous year’s revenues in its books. Earnings before taxes were more than triple the previous year’s figure, rising from EUR 3.9 million to EUR 11.9 million. Demand for collection services is consistently high. In April 2007, GFKL gained access to the Spanish collection services market by taking over the Spanish market leader Multigestion Iberia.
Revenues in the software segment were 8.5 percent up on the previous year, rising from EUR 11.7 million to EUR 12.7 million. Earnings before taxes were more than quadruple the previous year’s figure, rising from EUR 0.8 million to EUR 3.7 million. Sales income in the systems segment increased from EUR 63.3 million to EUR 68.2 million. Earnings before taxes fell by 39.1 percent to EUR 1.4 million (previous year: EUR 2.3 million). This is due to a special effect in the previous year.
Strategy and forecast
This successful business development confirms GFKL’s corporate strategy. This strategy relies on good positioning in the individual markets and minimizing risks by combining diverse segments. In this way, the company profits from the growth of various markets, for example from the consistently positive investment climate in the leasing sector and the increasing demand for professional services in the collection market. Current business developments mean that the company can expect positive developments to continue in the second half-year.
About GFKL Financial Services AG
GFKL is a fast-growing financial services provider focusing on leasing and collection services. GFKL is able to assist clients in financing investments, organizing processes and implementing measures for safeguarding liquidity during every phase of the business process. During the business year 2006, GFKL generated consolidated revenues of one billion Euro with 2,000 employees.
Contact:
Katrin Schwarz
Head of Corporate Communications
and Investor Relations
Tel.: +49 (0)201/102-1192
Fax: +49 (0)201/102-1102-462
E-Mail: katrin.schwarz@gfkl.com
www.gfkl.com
