The underlying net result for Netherlands-based leasing and fleet management company Leaseplan was €149.6m (£132m) for the first quarter of the year, down 7.1% year-on-year.
The results were ascribed primarily to higher investments in CarNext.com and Digital LeasePlan.
According to Leaseplan, underlying gross profit growth for lease and additional services of 4.0% year-on-year to €409.6m was driven by significant contributions from repair & maintenance services and damage services & insurance. Profit-and-loss on disposal of vehicles & end of contract fees decreased to €18.8m.
Revenues overall were up 6.3% for the quarter. Lease and additional services income increased 3.2%, in line with serviced fleet growth. Vehicle sales and end of contract fees were up 12.9% to €839 million driven by increased number of cars sold (up 9.6% year on year).
Serviced fleet growth was 3.1% in Q1 2019, with continued growth across most European countries, offset by decreases in fleet size in other countries, primarily Turkey and the de-fleeting of a large, services-only contract.
A company statement from Leaseplan stated that Car-as-a-Service business for new cars showed continued growth throughout the quarter driven by solid fleet growth across Europe and more modest growth in the rest of the wolrd,. In addition, Leaseplan continued to lead the transition to zero-emission mobility in our industry, supported by a full service EV solution. Electric and plug-in hybrid vehicles as a percentage of new car orders steadily increased and represented 5% of all new orders in Q1.
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By GlobalDataTex Gunning, chief executive officer of Leaseplan, said: “We delivered solid results in both of our businesses this quarter, while continuing to make significant strategic investments in CarNext.com and our Digital LeasePlan initiative.
“In our core Car-as-a-Service business for new cars, which operates under the LeasePlan brand, our fleet grew a healthy 3% and we delivered solid growth in our repair & maintenance services and damage & insurance services. We also successfully issued our first ever Green Bond, which we will use to purchase or refinance electric vehicles.”
Last November LeasePlan’s chief financial officer and Europe chief operating officer stepped down from the board by mutual agreement.
Gijsbert de Zoeten, previously senior vice president for finance and chief financial officer since last year, left along with chief operating officer for Europe, Marco van Kalleveen.
