Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Turners Auctions beats annual profit forecast; shares rise

Turners Auctions beats annual profit forecast; shares rise to highest in more than eight years

By Tina Morrison

Feb. 13 (BusinessDesk) – Turners Auctions, which transacts about 10 percent of the New Zealand used vehicle market, beat its annual profit forecast after widening its scope beyond auction sales, and lifting sales of insurance and finance. The shares surged to the highest in more than eight years.

Net profit rose 14 percent to $4.8 million in calendar 2013, the Auckland-based company said in a statement. That’s an improvement from the company’s estimate in November for profit to rise about 10 percent. Revenue increased 14 percent to $89.2 million.

Turners new chief executive Todd Hunter, appointed in August, aims to grow the company’s market share by trading vehicles through a wider range of outlets, and increasing its finance and insurance offerings. In 2013, revenue from the company’s higher-margin fleet division, where vehicles are acquired and on-sold by Turners, surged 30 percent to $46.9 million. Revenue from auctions, where Turners sells on behalf of a customer, fell 1 percent to $36.3 million.

“Our goal is to grow our market share by creating more opportunities to source and sell vehicles,” chairman Michael Dossor said.

Shares in Turners jumped 10 percent to $2.59, their highest level since October 2005. The stock was listed in 2002, following an initial public offering at $1.50 apiece.

Turners Auctions, which traces its history back to 1943 when Turners and Growers began auctioning cars and trucks alongside its traditional fruit and produce lines, is sourcing more product through its CashNow service, where it buys vehicles up-front from customers at an agreed price, and is also widening its retail outlets by using auction website Trade Me and its own revamped Turners website. A bigger role in sales allows Turners more opportunity to sell consumer finance and insurance, it said.

“Although we only have only recently started to implement our new multi-channel business model, early indications of its success are encouraging and the potential for growth is considerable,” Dossor said.

Finance revenue rose 10 percent to $6 million as more customers bought vehicles using consumer finance provided through Turners’ BuyNow service, boosting the company’s loan book by 20 percent to $25.6 million.

The company will pay a 9 cent a share final dividend on April 9, up from 8 cents in the year earlier period.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news