Turners says its pleasing half-year result is a reflection of its strategic shift from auction sales to higher margin retail sales.
Auctions revenue dipped 5% from $18 million in the first half of 2013 to $17 in the first half of 2014.
This dip was expected by Turners as it lost a large insurance contract in early 2013, but says it has been pleased with the recovery of the Auction division with an increasing volume of retail customers buying through online auction, the Turners website and through its Trade Me channels.
To meet increasing demand from customers Turners will expand operations in Christchurch and Auckland by establishing separate sites for damaged vehicle storage, trucks, and machinery sales.
Turners released it’s interim report dated June 2014 and says it has delivered an uplift in its six-month result as it continues to build on its new multi-channel sales model.
In the six months to 30 June 2014 Turners reported revenue was $49.6 million a 19% increase on the previous first half year.
Fleet revenue was $28.8 million a 36% increase on the previous corresponding period, and finance revenue was $3.8 million a 41% increase compared to the previous first half in 2013.
The fleet division where vehicles are acquired and on-sold by Turners, benefitted from the growing popularity of its “Buy Now” and “cash Now” services, where customers can buy and sell cars for cash, rather than through auction.
Turners says its loan book has grown 37% since 30 June 2013, and it has seen a 60% increase in the volume of finance contracts written compared to the first half of last year.
In related news Dorchester has made a full takeover offer under the takeovers code for all of the ordinary shares in Turners Group NZ Limited.
In September Dorchester received acceptances from Turners’ shareholders, including Bartel Holdings Limited (of which Turners chairman Micheal Dossor is a director), resulting in Dorchester acquiring a relevant interest in 5,821,744 ordinary shares in Turners not already owned by it.
Dorchester now holds or controls 41.113% of the voting rights in Turners.
