Turners posts 22% profit increase

Turners Auctions has posted a 22% increase in full-year profit, defying a current tough automotive market.

Vehicle auctioneer Turners Auctions has posted a 22% increase in full-year profit, beating its guidance on increased market share and strong sales.

Company profit rose 22% to $3.7 million in the 12 months ended on December 31, said the Auckland based company in a statement, with overall sales rising 7% to $75 million.

October saw the company flagging an annual profit increase of between 13.3% - 20%.

Although the automotive market has been challenging over the past few years, the company’s auction business has continued to perform well. Its truck and commercial operations have delivered some strong growth following an increase in business due to the Christchurch rebuild.

“A change in strategy focussed the business on buying domestically to support the decline in Japan imported vehicles,” said Graham Robert, chief executive of Turners Auctions.

“The business focused on add-on sales on insurance products combined with tight credit control.”

September saw Guinness Peat Group selling its 19.4% stake in the car auctioneer for $7 million in an off market transaction, involving Milford Asset Management.

The board declared a fully imputed dividend of 6 cents per share, with total dividends for the year at 17 cents.

Shares in Turners Auctions rose 1.4% to $1.50, with the shares having gained around 9% this year so far.