Announced on the same day as the firm’s promotion of Nick Salkeld to the newly created role of COO, the results for the fleet management and driver mobility giant show that net profit for H1 2014 increased by 18.2% to €202.3m from €171.1m in H1 2013.

The firm’s capital and liquidity position further strengthened, with the Common Equity Tier 1 ratio at 17.9% (16.9% at year-end 2013 and 16.1% in H1 2013).

Total assets decreased slightly to €18.6bn in H1 2014 from €19.1bn at year-end 2013 and €20.1bn in H1 2013. However the number of vehicles under management was up to 1.38 million from 1.37 million at year-end 2013. LeasePlan said the rise is mainly attributable to emerging markets such as Mexico and Brazil but also an increase in some East European countries compared to 2013.

The results follow the opening of the firm’s new franchise in Canada and the continued roll out of value-add services including telematics and consultancy services.

Vahid Daemi, CEO of LeasePlan, said: ‘Building on LeasePlan’s consistent track record of growth, our company continued to deliver a strong performance, both operationally and financially. The fact that LeasePlan has performed at such a level over a period where economies have been under sustained pressure is testament to the group’s customer-focus and the determined way in which LeasePlan entities have built long-lasting client relationships.  

‘Structurally our global business is in good shape. In terms of performance, the vast majority of LeasePlan’s income streams across the vehicle value chain, continued to contribute positively to the net result in the first half of the year. Of significant note was the sharp rise of €60m in the result of terminated contracts to €121m, compared to the same period last year. As in 2013, the second hand vehicle market for well-maintained ex-lease vehicles provided a solid revenue stream for LeasePlan, particularly in mature European markets such as France, Germany, Spain, the Netherlands and the UK.’

Commenting on the outlook for the second half, the firm said its performance remains positive going forward on the structure of its business operations and the resilience of its diversified income streams.

It added: ‘The company believes its risk mitigation measures will continue to pay off in the second hand vehicle market. In terms of the company’s largest markets in Europe, recent indicators and developments point towards continued uncertainty in the strength of economic recovery. Despite the challenging circumstances, LeasePlan will continue to place emphasis on growing its fleet. Overall LeasePlan expects its business to maintain momentum and achieve a positive result over the next six months 2014, although not necessarily at the same pace as the first half of the year.’