Apr 22, 2021 | Egham
Despite challenging economic conditions in the pandemic year 2020, the CHG-MERIDIAN Group delivered a successful financial year. New customer business proved to be particularly challenging, as economic uncertainty and supply shortages made forward-looking planning and investment much more difficult for companies and organisations. For these reasons, lease origination decreased by 12 per cent to €1.758 billion in 2020 (2019: €1.995 billion).
“The pandemic has presented us with considerable challenges, but it has not blown us off course,” says Dr Mathias Wagner, Chairman of the Board of Management. “Our digital and sustainable business model, based upon the circular economy, has proven itself highly resilient and reliable.” This is reflected in the growth of the technology portfolio that CHG-MERIDIAN manages on behalf of its customers, which reached a total of €7.5 billion as of December 31, 2020 (December 31, 2019: €6.9 billion).
The Group’s profit from ordinary activities (before taxes) amounted to €123 million, significantly higher than the prior-year (2019: €91 million). Net income (after taxes) rose from €65 million to €87 million, a very positive year-on-year increase of 35 per cent.
One of the reasons for the positive trend of net income across the international Group is the strong growth in previous years. CHG-MERIDIAN’s portfolio has continually expanded across its three core IT, industrial, and healthcare technology areas. The positive effects continued into 2020. The CHG-MERIDIAN Group has also built on its successful lifecycle management. It refurbished and remarketed a total of 880,000 used IT assets in 2020, a rise of 26 per cent (2019: 697,000). 96 per cent of all returned assets were given a second life.
“Despite the challenges presented by COVID-19, we have been able to expand our technology portfolio and to respond flexibly to our customers’ changing requirements.”
For many companies, the pandemic has made it evident that they still aren't properly positioned with their digital workplaces. At the same time, ongoing digitalisation and automation are key to their future competitiveness. In this regard, CHG-MERIDIAN is the right partner for these companies and offers customised technology financing and management for such transformation processes.
"Thanks to our value-added products, services, and solutions, we are optimistic about the future and are predicting further growth over the medium term," says Dr Wagner. Alongside digitalisation, sustainability is another area that is driving demand for technology lifecycle management, while climate-friendly business practices are becoming an increasingly important competitive factor. In response to this demand, CHG-MERIDIAN launched carbonZER0 in February 2021, the company's first carbon-neutral financing product for IT infrastructure and investments.
The Group itself is leading by example: "From 2021, CHG-MERIDIAN will be carbon-neutral. This underlines our clear commitment to sustainable and responsible corporate governance", says Dr Wagner. Being carbon-neutral means that the entire CO₂-emissions generated from the company's own business activities will be avoided, reduced, or offset.