CHG-MERIDIAN predicts net income to be on a par with 2013
Positive third quarter for the Company
International lease originations rise by 8.5 percent
Continued expansion with successful acquisition in third quarter
The first nine months of 2014 have been positive for technology management company CHG-MERIDIAN AG. Another sharp increase in the leases originated was driven by dynamic growth outside Germany, with international lease originations advancing by 8.5 percent to €328 million (30.09.2013: €302 million). Headquartered in Weingarten, south-west Germany, the Company is therefore well on its way to generating half of its lease originations abroad.
Overall, lease originations across the CHG-MERIDIAN Group rose by 2.9 percent to €670 million in the first three quarters of the year (30.09.2013: €651 million). The main drivers of growth were the markets of southern Europe (up by 16.1 percent to €77 million), eastern Europe (up by 10.5 percent to €18 million), and the Americas (up by 15.5 percent to €113 million). CHG-MERIDIAN is hoping for a sprint finish in the closing months of the year, particularly in its home market of Germany, where there was a small year-on-year decline in lease originations in the first nine months of 2014.
"We are optimistic that we will see a repeat of the exceptionally strong earnings that we achieved last year," said the Chief Executive Officer, Jürgen Mossakowski. "Having passed the billion euro threshold for the volume of lease originations once before, we want to reach this target again. To achieve this we have to once again mobilize all our energies in the fourth quarter."
At the end of the third quarter, the gross profit of the CHG-MERIDIAN Group amounted to €99 million (30.09.2013: €100 million) and therefore remained at a very high level. The exceptional figure reported for the third quarter of last year had been strongly influenced by portfolio restructuring in Mexico. The fact that the group has virtually achieved the same level again this year is above all attributable to the uptrend in the German market, where our gross profit climbed by around 12 percent.
"The Company has established a strong basis for both organic and inorganic growth. We are growing in step with our customers and faster than the market as a whole. These two factors combined give us great cause for confidence – in 2014 and beyond," said Mossakowski.
CHG-MERIDIAN's recent international expansion is an example of successful growth by acquisition. In the third quarter, the Company acquired the Norway-based ACENTO Group. With annual revenue of around €70 million, ACENTO is one of the major providers of finance and services in the IT, industrial, and medical equipment sectors in northern Europe. The company manages technology investments with a total value of more than €167 million. By acquiring a 100-percent stake in the company, CHG-MERIDIAN has gained direct market access to four Nordic countries because ACENTO has branches in Norway, Finland, Denmark, and Sweden, which creates a strategically important sales and marketing network.
The acquisition of the ACENTO Group emphasizes that CHG-MERIDIAN is on a successful growth trajectory. However, the revenue and earnings of our new northern European subsidiaries are not yet included in our results for the first nine months of 2014.
Further information can be found at:
KEY PERFORMANCE INDICATORS OF CHG-MERIDIAN AG* FOR THE NINE MONTHS TO SEPTEMBER 30, 2014
|Group lease originations||670,021||651,018||1,005,725|
|by geographic region:|
|Central Europe (Germany, Austria, Switzerland, Slovenia)||361,698||367,829||506,758|
|New customer lease originations||198,889||196,651||362,089|
|Group gross profit**||98,730|| |
* The figures for the first three quarters of 2014 do not yet include earnings from the ACENTO Group (Norway), which was acquired in July 2014.
** Gross profit is defined as the present value of all new leases and remarketed equipment minus direct funding and acquisition costs.
CHG-MERIDIAN is one of the world's leading non-captive providers of technology management in the fields of IT, industry, and healthcare. The Company has a workforce of approximately 800 professionals and offers one-stop management of customers' technology infrastructure. Its product range includes consulting, financial and operational services, as well as remarketing services for used equipment at its two proprietary Technology and Service Centers in Germany and Norway. CHG-MERIDIAN offers efficient technology management for large corporations, small and medium-sized enterprises, and public-sector clients. It provides services for over 10,000 customers around the world and manages technology investments in excess of €3.6 billion. More than 1,600 of its customers also monitor their technology portfolios online using the TESMA© Online technology and service management system. The Company has a global presence with 40 sites in 23 countries and is headquartered in Weingarten, southern Germany.
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