CHG-Meridian generated lease originations of €1.24bn, an increase of 8% (2016: €1.15bn).
At €57m, net income was at roughly the same level as in the previous year (2016: €58m).
Profit before taxes amounted to €87m, which was just over 4% above the prior-year figure (2016: €83m).
“Because our customers are taking greater advantage of digitalization in IT, industrial technologies, and healthcare technologies, we have been able to again achieve strong and profitable growth in 2017,” said Dr. Mathias Wagner, chairman of the board of management of CHG- Meridian, at the annual press conference.
The company said the volume of external funding arranged in 2017 totalled €1bn across 70 funding partners in 21 countries of which €155m, which was placed in the capital markets in the form of bonded loans and syndicated loans. This meant a further improvement in funding terms compared with 2016.
Under its corporate strategy, CHG-Meridian focuses on IT and industrial and healthcare technologies. Industrial technology business predominantly consists of investments by large companies in industrial machinery, vending machines, and intralogistics and material handling equipment. This business accounted for around 11% of the total volume of leases originated.
The healthcare technology business encompasses the core medical equipment used by many hospitals and other healthcare providers, such as CT scanners, ventilators, and infusion pumps. One of the benefits of the flexible funding models is that, in an age of ever-tighter budgets, urgently required investments in the healthcare sector can be achieved according to needs. This business contributed around 9% of total lease originations in 2017.
“Now specializing in both, industrial and medical technologies too, we provide our customers with a comprehensive view of the total costs of a technology investment,” adds Dr. Wagner, explaining CHG-Meridian’s technological and financial expertise. “Such costs are normally far higher than the actual initial investment, and there is no transparency regarding these costs over the entire lifetime of the equipment. This means valuable efficiency and cost aspects are not utilized.”
CHG-Meridian said in 2017, around 50% of the volume of lease originations was generated outside the company’s home market of Germany, and all regions contributed to its growth.
CHG-Meridian also said it continued to drive the development of digital skills last year, with its involvement in the D21 Initiative.
This D21 Initiative is Germany’s largest non-profit network for the digital society, consisting of representatives from trade and industry, politics, science, and civil society organizations.
“Companies are increasingly willing to help their employees make greater use of digital technologies, in order to equip themselves for the future and maintain their competitiveness. Our IT solutions, particularly our Enterprise Mobility Solutions, support precisely this trend. I firmly believe that, with our range of solutions, we can still unlock the considerable potential for growth in most of our markets,” says Dr. Wagner. This will include the digitalization of further customer interfaces and the development of supplementary services for Enterprise Mobility Solutions.