Turners expects profit rise, eyes ASX

Turners Limited is expecting a 12 per cent rise in annual earnings, according to a business update and guidance released to investors last night. Net profit before tax for the financial year ending March 2017 is expected to be between $24 million and $24.5 million, up from $21.6 million last year. “The Automotive Retail division continues to perform strongly and the multi-channel approach continues to deliver benefits for margins and finance sales,” Turners said in a statement. The announcement follows Turner’s acquisition of the Buy Right Cars Group last June, with the business performing in line with expectations, and momentum building. A $150 million credit limit from the Reserve Bank was approved, which will reduce the cost of funds and facilitate further growth in the vehicle finance arm of the company. After snapping up Autosure from Suncorp New Zealand last November, Turners expects the insurance firm to be fully integrated within the Turners group by the end of the financial year, with profit contributions to begin flowing in 2018. The board has declared a third-quarter dividend of 4 cents a share following the financial guidance, which takes the year-to-date dividends up to 10 cents per share. Final dividends are to be paid in June 2017. With the New Zealand market secure, Turners is also looking to expand overseas, and the company said it is considering a foreign-exempt compliance listing on the Australian ASX, which will significantly grow its potential capital market.  “We have made good progress on a number of important initiatives, which all contribute and support the future growth of Turners,” said CEO Todd Hunter. “There are numerous growth opportunities available to us in the fragmented automotive market and we have a disciplined approach to identifying and assessing those that best fit our business and will add value to our shareholders. Full 2017 financial results and a final dividend will be announced in May.