Ayvens has posted full-year results, revealing a mixed financial performance during a “transition year” following the LeasePlan acquisition in May 2023.

Avyens said the integration of LeasePlan progressed according to plan in 2023, “paving the way for another key year of transformation in 2024”

Profits for the leasing and fleet management giant in 2023 fell 22% to €1.3bn (£1.1bn) from €1.67bn (£1.43bn) in FY 2022.

Net income was down 32.8% to €816.2m (£697.5m), compared to an “exceptionally high 2022 base”, as a result of the fall in used car values, along with MtM of derivatives, costs to achieve and LeasePlan Purchase Price Allocation.

Tim Albertsen, CEO of Ayvens, said the results had been impacted by “normalising used car markets, higher inflation and volatile interest rates” along with comparison to “an exceedingly high” 2022 base.

He added that the figures confirmed its strong capital position and that the company was working to restore margins, reduce the volatility of revenues and protect the value of assets.

The global fleet stood at 3.4 million vehicles as of the end of 2023 – up by 3.0% compared to the end of 2022. This included 2.7 million vehicles on full-service leasing contracts, up 3.2%, and 710,000 on fleet management contracts, up 2.1%.

Across the 2.7m-vehicle funded fleet, 11% were battery electric vehicles (BEV), 9% were plug-in hybrids (PHEV) while the rest was split between internal combustion engine (ICE) and other powertrains.

Avyens said the integration of LeasePlan progressed according to plan in 2023, “paving the way for another key year of transformation in 2024”. ALD acquired the leading fleet management and mobility company for €4.8bn (£4.2bn), from a consortium led by TDR Capital.

Its Ayvens global mobility brand was launched immediately after the announcement of the PowerUp 26 strategic plan, uniting ALD and LeasePlan together under a single identity and highlighting the new brand promise.

The acquisition is expected to generate €120m (£103m) of pre-tax synergies in 2024, €350m (£300m) in 2025 and €440m (£376m) in 2026, but with investment costs of €190m (£162.3m) in 2024 and €37m (£31.6m) in 2025.

Tim Albertsen, CEO of Ayvens, commented: “2023 was marked by the acquisition of LeasePlan and our teams’ commitment to become one and to lay the foundations for the successful creation of the leading global sustainability mobility player. In our PowerUp 2026 plan, we defined our strategy to shape the future of our industry and achieve excellence around our four priorities: clients, operational efficiency, responsibility and profitability. This plan is supported by state-of-the-art technology as well as our new global mobility brand ‘Ayvens’.

“A few months into the integration, I am grateful for the unwavering commitment of our employees who maintained the highest standards of customer service while efficiently implementing our integration plan, which progresses according to schedule.”

Ayvens said 2024 will be a key milestone year, with the start of the merger of local entities, scheduled for the second quarter of the year, followed by the deployment of the new central and local new organisation structure and the local IT integration, expected to stretch into 2025.