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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news