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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news