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Turners Auctions' profits hit brakes

Turners Auctions directors say the company’s 53% drop in annual profit was a satisfactory result given unprecedented changes in the car market and they have declared a special dividend as an “expression of confidence” in the company’s position.

Turners reported a $1.1 million net profit this morning, on a 9% drop in operating revenues to $78 million.

Group assets were up 5% to $42 million.

Investments in new online sales channels have affected the results but the company says the strategy is starting to pay off.

The company has also cut branches and staff numbers to save costs.

Sales of repossessed vehicles were up 100% over the year, while government business was also strong (up 24%).

This came as the total used car market dropped 9% or 100,000 vehicles on a rapid decline in Japanese used import sales (down 25%).

Turners said it was an unprecedented decline for the market.

The company declared a final dividend of 0.4 cents per share and a special dividend of 4.6 cents per share, both fully imputed.

More by by Fiona Robertson