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


Turners lifts first-half profit 28% but warns about outlook

By Jenny Ruth

Nov. 27 (BusinessDesk) - Turners Automotive lifted first-half net profit 28 percent and says strong performance from its insurance business offset a country-wide slowdown in the vehicle retailing sector.

The company is also foreshadowing that its full-year result could be impacted if current market conditions persist.

Nevertheless, the company plans to buy back up to 5 percent of the company’s shares because directors think the current share price undervalues the company.

The shares closed at $2.72 on Monday and have fallen about 14 percent in the past 12 months.

Net profit for the six months ended September rose to $12.8 million from $10 million a year earlier.

The latest result also included a $3.4 million gain on the sale of property at Wiri south of Auckland which Turners has leased back in line with its strategy of optimising its real estate.

It was struck on a 3 percent increase in sales to $168.3 million for the six months.

Baker says if October market conditions continue, pre-tax profit for the full year could be impacted by 5-10 percent from the company’s previous guidance of $34-36 million.

The company says its cost of goods sold fell 9 percent to $65.3 million because it sold more vehicles on consignment through Turners’ auctions and therefore owned less stock.

“The business has shown some resilience through tough market conditions in the first quarter and bounced back strongly in the second quarter,” said Baker.

“The diversified revenue streams have really demonstrated their value through the first half of this year. However, market conditions, particularly in the used import car market, remain challenging and pressure is being placed on vehicle margins right across the industry,” Baker said.

“Within the key market of Auckland we have seen a material reduction in demand which we attribute to the cost pressures being experienced by many people across the Auckland region in fuel prices, rents and other household costs.”

Turners will pay a quarterly dividend of 4 cents per share, taking dividends for the first half to 8 cents, up from 6 cents last year.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>


Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing


House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>