Spate of receiverships boosts Turners Auctions
Receiverships in contracting and construction sector help Turners achieve 12% profit increase.
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Turners Auctions (NZX:TUA) has reported a half year net profit after tax of $1.6 million, 12% ahead of the same period last year.
The increase reflects a solid performance for the Turners Trucks and Commercial businesses, off the back of large receivership sales in the contracting and construction sector, and growth of 12% in the Turners Finance ledger.
“The finance ledger has grown to 19.3 million since June 2010. This growth and the strength of add-on sales of insurance products to vehicle sales has resulted in continued growth in operating profit from this division of the business,” says Turners Auctions chief executive Graham Roberts.
“With reduced availability of imports from Japan, and diminished demand from the public in the current economic environment, the used car business remains challenging.
“The overall supply of used vehicles is becoming more constrained resulting in the supply lines that Turners have access to becoming more valuable.”
The 12% increase in net profit was despite total revenue being down 3% to $34.9 million, due to a reduction in the sale of imports.
“This positive result and Turners’ cash position has led the company to declare a dividend of five cents per share from first half operating activities with a special dividend of six cents per share payable on 21st September,” Mr Roberts says.
Results summary:
• Operating Revenues $34.9 million
• Group Net Profit $1.6 million
• Interim dividend payment 5c/share
• Special dividend payment 6c/share
Turners Auctions shares are up 8.7% on the announcement, rising 12c to $1.50.
Niko Kloeten
Thu, 18 Aug 2011
Thu, 18 Aug 2011
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Spate of receiverships boosts Turners Auctions
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