Source: Radio New Zealand
Turners Automotive posted a net profit $21.9 million for the six months ended September. RNZ / Nate McKinnon
Car dealer and financier Turners Automotive posted a record first-half result as its loan book grew strongly, while margins also improved, despite subdued consumer demand.
Key numbers for the six months ended September compared with a year ago:
- Net profit $21.9m vs $19.4m
- Revenue $219.0m vs $208.6m
- Operating earnings $34.1m vs $31m
- Interim dividend 8 cents per share
Auto retail earnings lifted on improved margins on owned stock, and a stronger commercial business.
However, Turners said financing was its biggest growth engine during the first half, with 18 percent year-on-year profit growth, and its loan book growing 13 percent.
“Delivering record profit in a challenging economic environment is a significant achievement,” Turners chair Grant Baker said.
“It reflects the strength of our diversified model and disciplined execution across every part of the business,” he said.
Its insurance business also continued to grow, with premium growth of 10 percent, and stable claims ratios.
The company was also growing its servicing and repairs business, with new partnerships with VTNZ.
Turners said despite expectations of a patchy economic recovery, the company remained well-positioned with its diversified model.
It forecast pre-tax profit of around $60 million, which could result in a full-year dividend of at least 32 cents per share, compared to 29 cents per share last year.
Group chief executive Todd Hunter said Turners had performed “exceptionally well” in the period.
“We’ve strengthened every part of our model, from sourcing and lending quality to capital efficiency,” he said.
“As the economy starts to recover, Turners is well positioned to deliver further record years, underpinned by our brand strength, motivated team, and reliable execution.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
