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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news