Grenke still has to nibble on allegations about accounting inconsistencies and an exemption from the rental specialist’s share remains elusive. The jump over resistance at € 35 the previous day turned into a false breakout on Wednesday: Shares fell 4.6 percent to € 33.68 after new business numbers were submitted. The Coronavirus pandemic continues to weigh on business. The fact that profitability increased in the first quarter thanks to the focus on the so-called small ticket business, i.e. smaller contracts, faded into the background.
The accounting claims examination continues
In addition, investors should continue to await the results of investigations into critical accounting. Grenke expects news soon, but audits that audit firm Mazars commissioned by Bafin and the parallel annual review by KPMG are still underway. Grenke expects to conclude and certify consolidated financial statements in the coming weeks.
The group was caught in the crossfire of short sellers in the stock market last year with its business model and treatment of franchisees. Greenink has since tried to refute the allegations.
However, the share price has not yet managed to recover. Before the price drop as a result of these allegations, newspapers cost about 55 euros in September, about 50 percent more than today.
onvista / dpa-AFX
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