Turners flags another record profit

Turners Automotive Group has announced it expects to deliver another record half-year performance with profit before tax for the six months to September 30 set to reach at least $25 million.

The company says the estimate is based on management accounts and has been driven by growth in its market share, which is on track to exceed 10 per cent in the near term.

“The highlight of the period has been the sustained market share growth in auto retail, which now exceeds nine per cent, a more than doubling of Turners’ retail market share over five years,” it explains. 

“Recent gains have come from growing brand awareness, data tools, enhanced sourcing of vehicles, new site openings and damaged and end-of-life vehicle volume.”

The group’s announcement to the NZX on October 10 notes its performance during the half-year comes despite a compression of finance margins, “resulting from the speed of the official cash rate [OCR] hiking cycle”. 

It says with the Reserve Bank of New Zealand now appearing to moderate the rate of change in the OCR, which was held at 5.5 per cent last week, finance margins have stabilised in recent months.

Turners adds insurance continues to steadily grow its contribution to group earnings and credit management earnings are ahead of the same period a year ago.

As a result of the half-year numbers, the company is reiterating its previous guidance that profit before tax in the 2024 financial year is expected to exceed the record $45.5m result achieved in the 12 months to April 30 this year. 

“The forecast dividend at this level of profit would be 24 cents per share, which would continue a decade of steady improvements in distributions for shareholders,” it says.

Management notes Turners remains focused on its target of $50m profit before tax by the 2025 financial year.

The half-year 2024 financial results will be announced on November 23.