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

 


Turners Group lifts 1H profit 5.9%

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)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news