CHG-MERIDIAN ends 2010 with strong growth and is seeking strategic partners
Weingarten, 22 February 2011
CHG-MERIDIAN – an IT leasing specialist and IT service provider based in Weingarten in southern Germany – benefited from the global economic recovery in 2010. The volume of lease originations, which represents the total cost of newly acquired leased assets, increased by an impressive 9.82 per cent to €661 million. "This growth is truly amazing when you consider that the leasing sector traditionally lags slightly behind the business cycle", stressed Jürgen Mossakowski, chairman of the Management Board at CHG-MERIDIAN Deutsche Computer Leasing AG. "We really surged ahead in the second half of the year compared with our financial results for the first six months of 2010 which, although representing a turnaround in our fortunes, benefited only modestly from the greater propensity to invest on the part of our customers around the world." CHG-MERIDIAN posted year-on-year growth of 44 per cent in the fourth quarter alone. "We originated leases worth €218 million, which made this period the most successful quarter in the Company's history and comfortably outstripped forecasts. This was an outstanding achievement by our workforce of 700 professionals worldwide."
This strong growth was primarily driven by the Company's international operations. With branches in 18 countries and master agreements under which, among other things, it provides 18 of Germany's DAX 30 companies with the latest IT equipment and related services, CHG-MERIDIAN expanded its international business by 17 per cent, while growth in Germany amounted to only 4 per cent. "The growth we managed to generate – especially in the Americas – demonstrates that our strategy of global expansion is the right one", added Mossakowski. "We are delighted to see the success that our business in Mexico has achieved."
Another encouraging sign for CHG-MERIDIAN, which is one of Germany's top ten IT financial services providers, was that its increased turnover translated into a higher gross margin. Its total cumulative gross margin for 2010 rose by 12 per cent to €105.5 million. "We need this profitability so that we have the necessary resources to develop the Company going forward", concluded Mossakowski. "Over the coming years we will be redoubling our efforts to grow our service business, and we are looking for suitable partners to help us achieve this goal – both in Germany and in our established markets worldwide."
About the CHG-MERIDIAN Group
Publicly traded multinational corporations and medium-sized firms in 18 countries worldwide place their trust in the IT services and financing solutions offered by CHG-MERIDIAN. With a total workforce of some 700 people the Company, which is headquartered in Weingarten in southwest Germany, has leased assets worth in excess of €2 billion under management. What distinguishes CHG-MERIDIAN as one of the world's leading providers in its field is its non-captive status with respect to banks in its funding operations and with respect to vendors in the composition of its comprehensive IT service packages.