- GRENKE shareholders resolve a dividend of EUR 1.50 per share
- Renewed option to receive the dividend in cash or shares
- Board of Directors and Supervisory Board granted a discharge
- Resolution passed to change name to GRENKE AG
Baden-Baden, May 3, 2016: At today’s Annual General Meeting of GRENKELEASING AG, shareholders resolved a dividend for the 2015 fiscal year in the amount of EUR 1.50 per share (previous year: EUR 1.10). GRENKE shareholders were given the renewed option to choose to receive the dividend exclusively in cash or partly in cash and partly in the form of shares of GRENKELEASING AG (Scrip Dividend).
Shareholders can submit their decision for or against the Scrip Dividend in the period from May 4 to May 23, 2016. Those who decide against the Scrip Dividend or who do not submit a reply will receive the customary cash dividend presumably on June 1, 2016. The new shares are scheduled for delivery on June 6, 2016.
The Annual General Meeting granted the members of the Board of Directors and the Supervisory Board a discharge for the 2015 fiscal year. The Annual General Meeting followed the management’s recommendation in selecting the auditor for the year 2016.
The shareholders in attendance passed the agenda item proposing a change in the Company’s name to "GRENKE AG". Today’s resolution to change the name will take effect with the recording of the resolution in the commercial register. "Through our many years of experience and diversified product range we have created the strong GRENKE brand and consider the change in the Company’s name as a natural consequence of this evolution", said Mr. Wolfgang Grenke in his comments on the forthcoming name change.
Variable remuneration, which can amount up to 200 percent of the fixed salary, was also approved for GRENKE’s Board of Directors and employees. These variable components are governed by a wide range of measurable indicators, without creating any false incentives to enter into inappropriate risks.
To be able to strengthen the Company’s capital base through the issue of participation rights and other hybrid financial instruments, the Annual General Meeting resolved a new authorisation to issue such instruments and cancelled the previous authorisation of May 10, 2011.
In his comments, Mr. Wolfgang Grenke, Chairman of the Board of Directors, summarised the successful 2015 fiscal year and provided an outlook for the current year: "We are very pleased with the past fiscal year’s performance. We have increased the new business of GRENKE Group Leasing by 20%. The new business in the Factoring segment grew a vigorous 55%. We intend to maintain this trend going forward. For 2016, we expect growth in the range of 16% to 20% in the Leasing segment and 30% to 35% in the Factoring segment while maintaining profitable and risk-adequate margins. These forecasts reaffirm our view of ourselves as a growth company. GRENKE Consolidated Group’s net profit is expected to reach a range of EUR 93 to 98 million."
The Company’s Chief Financial Officer (CFO), Jörg Eicker, added: "The past fiscal year was a year of tremendous success. As a result of our profitable new business and increasing income coupled with a comparatively lower rise in expenses, GRENKE Consolidated Group’s net profit reached EUR 80.8 million. This even slightly exceeded the forecast range that was raised to EUR 78 to 80 million. We are once again offering shareholders the opportunity to increase their commitment to our long-term growth strategy and with their choice of a Scrip Dividend strengthen the Company’s financial position and equity. Shareholders have until May 23, 2016 to make their decision for or against a Scrip Dividend."
Around 330 shareholders took part in the Annual General Meeting. Shareholder presence at the time of voting was 83%.
The Company invited several pupils to its Annual General Meeting: the winners of Sparkasse Baden-Baden-Gaggenau’s stock exchange planning game, as well as pupils from the Markgraf-Ludwig High School, Baden-Baden; Pädagogium, Baden- Baden; and the Goethe High School Gaggenau.
The Board of Directors