Profit levels set to rise

Turners Automotive Group expects net profit before tax for the first half of 2022/23 to be modestly ahead of the $23.2m it notched up in the corresponding period last year. 

The company is waiting on final confirmation of insurance reserve movements before announcing its confirmed half-year results on November 22.

It describes the macro environment as challenging during that period due to four months of the omicron variant of Covid-19 impacting on the market, rising interest rates, increased government regulation and a drop in demand.

That said, Turners has seen an increase in car units sold year on year and, as a result, strong growth in market share. This has come with the wider New Zealand used-car market dropping by 7.5 per cent year to date from April to September when compared to the same period last year.

Todd Hunter, group chief executive officer, says Turners’ auto retail network expansion, highly effective and award-winning advertising, and retail optimisation strategy continue to drive business growth and is offsetting the impact of the interest-rate headwinds being experienced by Oxford Finance.

“We are seeing clear evidence that consumers are increasingly looking to buy and sell with trusted people, and a business that will be around for years to come,” he adds. “We also expect to see further transition from new to used vehicles in tougher economic times.”

Despite the macro context, “the resilience and diversification of the group continue to deliver robust earnings and consistent dividends for Turners’ shareholders”.