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

 

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