Turners Auctions has still managed a 207% increase in net profit for 2009 to $3.3 million despite an overall slump in the used car market.The listed auction house said it had achieved the result through a growth in market share and a close focus on costs.
Turners Auctions has still managed a 207% increase in net profit for 2009 to $3.3 million despite an overall slump in the used car market.
The listed auction house said it had achieved the result through a growth in market share and a close focus on costs.
After a 9% drop in the local used vehicle market in 2008, last year saw another 5% decline.
But Turners said its auction revenues had held steady at $36.6 million, with continued growth in sales of repossessed vehicles, government fleet vehicles, lease and rental company vehicles.
It also credited the result to “more prudent buying” in Japan and tighter control of inventory, while higher interest margins, a growing loan book and improved sales of add-on insurance products such as mechanical warranties also contributed to the rise in profit..
The company – which has still found willing buyers for cars at its prestige auctions – also cut total expenses for the year by 13.8% to $65.8 million.
It has also seen an increase in online purchasing after an ongoing investment in its online initiatives saw a 31% spike in web traffic.
Turners has declared a final dividend of 7.0 cents per share fully imputed at 33%, payable on 30 March.
