LeasePlan’s net profits up 18.2% as new chief commercial officer is appointed

LeasePlan Bank’s retail deposits remained stable at €4.2bn at half year-end whilst total assets were €18.6bn, (€19.1bn at year-end 2013 and €20.1bn in H1 2013) mainly as a result of the pay back in May of the last government guaranteed bond.

Vahid Daemi, CEO of LeasePlan said: “Building on LeasePlan’s consistent track record of growth, our company continued to deliver a strong performance, both operationally and financially. The fact that LeasePlan has performed at such a level over a period where economies have been under sustained pressure is testament to the group’s customer-focus and the determined way in which LeasePlan entities have built long lasting client relationships. 

“Structurally our global business is in good shape. In terms of performance, the vast majority of LeasePlan’s income streams across the vehicle value chain, continued to contribute positively to the net result in the first half of the year.”

Daemi added: “Of significant note was the sharp rise of €60m in the result of terminated contracts to €121m, compared to the same period last year. As in 2013, the second hand vehicle market for well-maintained ex-lease vehicles provided a solid revenue stream for LeasePlan, particularly in mature European markets such as France, Germany, Spain, the Netherlands and the UK.”

Fleet size rises

The size of LeasePlan’s fleet under management rose slightly to 1.38m from 1.37m at year-end 2013. This rise is mainly attributable to emerging markets such as Mexico and Brazil but also some East European countries had more vehicles under management compared to 2013.

Focusing services built around the driver

LeasePlan is at the forefront of the shift from services built around the vehicle to services built around the individual driver.

Across LeasePlan’s global operations a range of driver centric services have been developed and implemented, such as My LeasePlan – a portal to serve drivers. Additionally, the introduction of client contact centres and mobile technologies provide 24/7 access to vehicles services, maintenance and repair, which has improved the ease and efficiency for clients and drivers to manage their mobility needs.

The next driver centric trend is in vehicle telematics. LeasePlan is one of the first leasing companies to use its fleet management expertise to further exploit vehicle and driver data to benefit its clients. LeasePlan has conducted a number of trials with clients that have resulted in demonstrable improvements in fuel costs and reduction of driver incidents and vehicle emissions. LeasePlan’s telematics services have recently become available in Italy, Spain and the UK.

New avenues for further global growth

Daemi stressed: “One of the strategic priorities for the years to come is to develop new avenues for further worldwide growth. LeasePlan will continue its strategy of selective geographic expansion. At the beginning of the year, presence in North America increased by opening a new franchise in Canada. LeasePlan is now present in 32 countries.

“The company continually looks for new ways to improve its products and services for example in fleet consultancy services and full outsourcing solutions such as FleetPlan. Clients save time and money and receive a hassle free driving or fleet management experience. In the first months of the year LeasePlan has taken its Consultancy Services to the next level with a fully trained and connected international network of consultants.”

New CCO appointed

To further emphasise the importance of its long term growth strategy and customer focus, LeasePlan has decided to appoint a chief commercial officer (CCO) to join the managing board of LeasePlan Corporation.

Nick Salkeld (pictured) currently senior vice-president for the company’s Southern Europe and Pacific Region, will be appointed in this role with effect from August 21, 2014.

Outlook for second half of 2014

Vahid Daemi said: “LeasePlan has delivered strong operational and financial performance in the first half of 2014 and remains positive going forward on the structure of its business operations and the resilience of its diversified income streams.

“The company believes its risk mitigation measures will continue to pay off in the second hand vehicle market. In terms of the company’s largest markets in Europe, recent indicators and developments point towards continued uncertainty in the strength of economic recovery.

“Despite the challenging circumstances, LeasePlan will continue to place emphasis on growing its fleet. Overall LeasePlan expects its business to maintain momentum and achieve a positive result over the next six months 2014, although not necessarily at the same pace as the first half of the year.”