The Netherlands-based fleet management giant saw net profit rise 35% last year to EUR 326 million (2012: EUR 241 million) against a backdrop of continued challenging economic and market conditions in many geographies.

The firm said that profit was positively influenced by a combination of risk mitigation measures and improvements in various European second-hand car markets for terminated lease vehicles due to a scarcity of relatively young used cars.

Meanwhile the total number of vehicles under management increased to 1.37 million from 1.35 million at year-end 2012.

The firm said that total assets decreased slightly from EUR 19.5 billion at year-end 2012 to EUR 19.1 billion at year-end 2013, mainly as a result of currency effects and a trend in certain fleets towards the purchase of less expensive vehicles.

In October 2013, LeasePlan bought back a $500m government guaranteed bond that was due to mature in June 2014. The company has now repaid 85% of its Dutch government guaranteed funding and is well on track for full pay back in May 2014.

LeasePlan added that 2013 saw it continue its strategy of selective geographic growth. In Italy the company completed the acquisition of the fleet and vehicle leasing portfolio of Banco Bilbao Vizcaya Argentaria, SA (BBVA), consisting of approximately 20,000 vehicles, whilst in Austria, BAWAG PSK Fuhrparkleasing GmbH was acquired with a portfolio of some 6,500 cars. Both acquisitions allow LeasePlan to further expand into the local small and medium enterprise (SME) market.

The firm also announced new start-ups, with a new subsidiary opened in Moscow in July 2013 in a move to target both multinational customers, making it easier for them to manage their global fleet, and the development of the local car leasing market.

And LeasePlan Canada opened for business in January 2014. LeasePlan’s North American reach now consists of the USA, Mexico and Canada. LeasePlan Canada meets the needs of multinational clients, especially those with a presence across North America.

Vahid Daemi, CEO of LeasePlan, said: ‘The results LeasePlan announces today demonstrate the underlying strength of the group and the benefits of the geographical diversity of the business. Taken together, the performance indicators represent further evidence that LeasePlan’s businesses are well positioned to take advantage of the slow and gradual economic recovery. While LeasePlan ended its 50th year positive about its strong level of performance, the company is fully committed to pushing forward with the actions it has taken in recent years to achieve further sustainable and profitable growth. LeasePlan employees have worked exceptionally hard during the year and their continued commitment gives cause to feel confident about the company's future prospects.’

Commenting on the outlook for 2014, the company said: ‘A number of key indicators point towards gradual improvements, mainly in European economies where LeasePlan is present. As market leader the company is well positioned to benefit from this development. LeasePlan expects, however, the pace of recovery to be slow and it has yet to be seen what the full effect thereof will be on its markets. In 2013 LeasePlan has profited from exceptional circumstances in second-hand car markets. The company does not expect these very favourable conditions to endure, but believes its risk mitigation measures will continue to pay off. During 2014, LeasePlan will put strong emphasis on further sustainable and profitable growth of its portfolio, as this has always been an important driver for the progress of the business.’