Turners Auctions: Full Year Report Announcement

Turners Auctions: Full Year Report Announcement

FY to 31/12/05 Actual $5.019M ($7.005M) -28.4%, FY DIV 14 CPS

Turners Auctions today announced its full year profit, which was $5.0m, $0.4m or 7% below forecast. Most of the reduction against forecast profit was due to the restructuring of the company’s North American businesses. Michael Dossor, Turners Chairman, said that the company secured control of its North America operations during the year.

Operating revenue for the group grew to $79.5m, up 1% over last year, which was encouraging given some difficult market conditions in New Zealand.

Turners Finance delivered a strong performance for the year, increasing segment earnings by 398% to $0.9m compared to $0.2m in the prior period. The finance ledger is now $10.7 million up from $5.3 million last year.

Turners Auctions and Turners Fleet revenues were below last year, mainly due to a slowing market for used vehicle sales caused by a glut in Japanese imports, and high fuel prices impacting on the price of larger vehicles.

The group made significant investments in technology throughout the year, and launched a new website with enhanced search capability, allowing customers to more easily access information on vehicles. Also the company has invested in the development of “Turners Live”, which will allow customers to attend live auctions and bid, from their home or office.

Turners expanded operations with the opening of its new Supersite in Christchurch, and a new branch in Napier. The company also opened SMART Autocentre in Auckland, a new business that provides a high quality, time definite, one stop shop repair service.

The directors are pleased to declare a final dividend of 6 cents per share to be paid on 13th April 2006. This payout brings the full year’s dividend to 14 cents per share or 76% of NPAT.

The dividend is fully imputed and will also include supplementary dividends to shareholders non-tax resident in New Zealand.

FINANCIAL RESULTS:
Key Performance Indicators
12 months 31 December 2005
2005
[$m]
2004
[$m]
%
Operating Revenue $79.5 $78.9 1%
Operating Expenses -$71.8 -$68.7 5%
Surplus before Tax $7.7 $10.2 -25%
Income Tax -$3.1 -$3.6 -14%
Minority Interest $0.4 $0.4 0%
Net Surplus – NPAT $5.0 $7.0 -28%

ENDS

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