Turners Group lifts 1H profit 5.9% as cheap imports attract customers
By Paul McBeth
Aug. 15 (BusinessDesk) - Turners Group NZ, which this month changed its name from Turners Auctions, lifted first-half
profit 5.9 percent as a strong New Zealand dollar lowered the cost of imported cars, helping attract customers with
cheaper prices, and the company anticipates good trading conditions for the rest of the year.
Net profit rose to $2.27 million, or 8.3 cents per share, in the six months ended June 30, from $2.14 million, or 7.8
cents, a year earlier, the Auckland-based company said in a statement. Revenue climbed 19 percent to $49.6 million, and
Turners expects sales to increase in the second half of the year. It forecasts annual profit to rise 5 percent to 10
percent from the $4.8 million it reported in 2013.
"Market conditions are moving in favour of customers purchasing used vehicles with a strong New Zealand dollar, heavy
discounting on new cars and an influx of imports from Japan leading to a surge in supply," the company said. "This is
having a positive flow on effect for Turners and we expect good trading conditions for the second half of our financial
year."
Last month Turners' shareholder Dorchester Pacific launched a takeover bid for at least half of the company, offering $3
a share in cash, shares and notes, valuing it at $82 million. Dorchester already has support from Turners' chairman and
biggest shareholder Michael Dossor.
Turners' board today declared an interim dividend of 7.5 cents per share, payable on Sept. 25 with a record date of
Sept. 18. That's up from 7 cents a year earlier.
The company's rose 1.6 percent to $3.10, and have gained 25 percent this year.
Turners' auctions segment reported a 5 percent decline in sales to $17 million, with operating profit falling to
$821,000 from $1.1 million a year earlier. Its fleet unit, where vehicles are purchased and on-sold by Turners, boosted
revenue 36 percent to $28.8 million, and lifted earnings to $1.2 million from $981,000, and the finance division
increased revenue 41 percent to $3.8 million, with operating profit up to $1.2 million from $907,000.
The company plans to expand its Christchurch operations to meet increased demand, and will set up a separate site for
damaged vehicle storage, trucks, and machinery sales, it said.
(BusinessDesk)