Creditreform Group reported consolidated revenues of Euro 520 million versus Euro 505 million in 2007. The group operates a network of franchises in 20 European countries. It has recently opened a franchise in the Peoples Republic of China and is planning further expansion outside Europe.
Creditreform’s German business accounts for 91% of total revenues and grew by 2% to Euro 472 versus Euro 461 million in 2007. The German group is made up of 130 independent franchises employing 4,000 people serving 126,000 clients. The largest product segment is commercial credit information with Euro 248 million in revenues; followed by accounts receivable management & factoring services with Euro 184 million; Central Services revenues were Euro 40 million which is made up of consumer credit information, rating services, and marketing services. The volume of credit reports grew from 14.5 million in 2007 to 14.9 million in 2008. Creditreform’s database contains 3.9 million records. Its financial statement database contains 1.9 million financial statements from 850,000 companies.
Creditreform did not report product information of its international franchises and affiliates.
Prof. Dr. Helmut Roedl, member of the management board stated that revenue growth exceeded expectations, which was achieved in spite of difficult trading conditions. Notwithstanding continued difficult economic conditions Creditreform expects modest growth for 2009.
The situation in Germany is critical with many of Creditreform’s customers facing loss of revenues. Cash flow from operations is declining, impacting the creditworthiness of businesses. This problem is compounded by banks reducing or cancelling credit lines. The seriousness of the situation is evidenced by an increase in payment delays. For 2008 Creditreform expects an increase in business failures of 33,000 to 35,000. Source: Creditreform Press Release May 26, 2009