Turners Auctions Ltd 2007 Half Year Results

Turners Auctions Ltd 2007 Half Year Results Summary

Turners Auctions today announced its half year net profit after tax and minority interests of $524,000, down 78% on the same time last year. This result had been adversely impacted by the discovery of a fraud for which a provision of $1.158m was allowed for. Restating profit, without the unexpected fraud, the Group first half profit after tax and minority interests would be $1.3m.

The CEO, Graham Roberts, again expressed his disappointment at the extent of the alleged fraud. He reported the Serious Fraud Office had been very supportive in assisting his team with the fraud investigation and stated that the company was now focused on remedying its internal control systems and investigating all avenues to recover the stolen money.

The company was pleased to report growth in Group revenues by 3.9%. The biggest growth area for the Group was Turners Fleet Limited where revenues were up 15% or $2.8 million on the prior period. The increase in Fleet revenues, coupled with a significant increase in gross margin resulted in Turners Fleet having doubling its earnings when compared with the prior year.

The Chairman, Michael Dossor, advised that the used car market remained tough with more traders disappearing from the market and registrations of Ex Overseas vehicles having further declined by 10% in the first half of 2007. He reported that Auctions unit sales down were currently 4% on the same period last year. Mr. Roberts reported a brighter outlook for the remainder of 2007 as the Ex overseas import market had grown by 5% in June 2007 for the first time since January 2006.

The CEO advised that the company had undertaken a thorough review of its business strategy in response to changing market dynamics. As a result, he outlined several initiatives to drive Groups earnings as follows:

* Implementation of “Buy Now” service

* 30% more cars available online

* The launch of the next generation of Turners “Live”

* Provision of more detailed vehicle related information from its web site

* New Trade in Service

The directors declared a fully imputed interim net dividend of 1.5 cents per share as well as a further special fully imputed dividend of 8 cents per share, payable on 21 September 2007. The special dividend returns surplus cash reserves to shareholders and also allows the Group to distribute its surplus imputation credits.

Results highlights:

* Operating Revenues up 4% to $42.2 million

* Group Net Earnings after tax down 78% to $524,000

* Total Group Assets up 2% to $45.7 million

* Return to shareholders a net interim and special dividend up 19% to 9.5 cps.

ENDS

See...
Appendix 1
Appendix 7 Interim
Appendix 7 Special
June 2007 Investor Briefing

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