Car leasing and fleet management company LeasePlan Corporation has achieved excellent results in the first quarter of 2017, with gross profit up 5% to €399 million year-on-year, underlying net results up 21% to €146 million and underlying return on equity up 2.8% to 18.6%. The company cited “operational excellence improvements” as a main factor in its recent success.
Overheads decreased by 4% to €208 million, thanks mainly to a 7% decrease in the number of employees following a restructuring in Q4 2016; and to a 10% decrease in overhead per vehicle, reflecting increased efficiencies. Total underlying revenues increased by 6% to €2.4 billion, with lease revenues increasing by €115 million, largely driven by the 6% fleet increase.
1.68 miilion vehicles
LeasePlan's total vehicle fleet now numbers 1.68 million, compared to 1.58 million at the end of Q1 2016. Strong fleet growth was noted in Germany, the Netherlands and Italy. The continued rollout of fleet insurance products and services increased the insured fleet by 54,000 vehicles over the past 12 months.
Among international customers, the demand for consultancy continued to increase, on cost optimisation, fleet policy and particularly on sustainability – with LeasePlan's recently-launched Electric Vehicle Centre of Expertise offering solutions in the latter field.
“In addition to these strong Q1 results, LeasePlan was delighted to launch a pan-European partnership with Uber, underlining our increasing presence and expertise in the fast-growing ‘Mobility as a Service’ (MaaS) segment”, commented company CEO Tex Gunning (pictured).
“From an operational perspective, we also successfully rolled out the 'Power of One LeasePlan' initiative within the company, which will enable us to leverage the strength of our organisation across all LeasePlan countries, the value chain and our functional competencies - enabling us to quickly unlock significant additional value for our customers and investors."
The lease company foresees sustainable growth in the corporate, SME, private lease and MaaS market segments.
Finally, LeasePlan announced the relocation of its International and Bank HQs to Amsterdam's Zuidas business district, as of 6 June. LeasePlan Netherlands will remain at Almere.