BADEN-BADEN (dpa-AFX) - The leasing specialist Grenke is becoming more optimistic for the current year after a significant increase in profits in the third quarter. Consolidated profit should reach the upper half of the previous target range of 80 to 90 million euros, the company announced in Baden-Baden on Thursday. Next year, it should rise to between 95 and 115 million euros as planned. On the stock market, the news was rewarded with a jump in the share price.

In the morning, the Grenke share gained almost ten percent at times to 21.10 euros and was thus traded at its highest price since the end of September. Most recently, it was still one of the strongest gainers in the SDax with a plus of 7.7 percent. In May, however, the share price had risen to more than EUR 32 before beginning a month-long decline. Before the coronavirus pandemic, investors had even paid more than EUR 100 for the share at times.

Grenke CEO Sebastian Hirsch explained the improved profit outlook with the conditions in business with lessees. "We have now been able to fully price in the increased market interest rates," said the manager. The company has thus adjusted to the higher interest rate level faster than expected and sustainably. The margin is already stable and interest income is rising steadily.

In the third quarter, operating income grew by just under 15 percent year-on-year to a good 109 million euros. Meanwhile, losses and payment defaults by customers did not have as great an impact as a year earlier. This is one of the reasons why consolidated profit increased by 18 percent to 24 million euros.

However, demand in the new leasing business is not developing quite as strongly. According to the information provided, the volume of new business in the current year is only likely to reach the lower half of the forecast range of 2.6 to 2.8 billion euros. However, margins are expected to remain stable. For 2024, the Executive Board continues to expect growth to between 3 and 3.2 billion euros.

In 2020, the short seller Viceroy made serious allegations about the company's business practices. A special audit by the financial supervisory authority Bafin subsequently identified organizational deficiencies. Grenke ultimately received a full audit certificate for its balance sheets, but subsequently also reorganized its investments and took over franchise companies whose role had been criticized by investors. The Grenke share has still not recovered from the price losses at that time./stw/mne/jha/