Growing retail sales, and strongly performing finance and insurance businesses have seen Turners Automotive Group post a 18% increase in after tax profit for the six months to September.
Net profit after tax was $10 million, up 18% on the previous half year of $8.5m, while overall revenue was up 44% to $163.8m from $113.9m.
Buy Right Cars and the Autosure insurance business both contributed a full six months of earnings, following their acquisition in the 2017 financial year.
“Turners has reported another positive half year of growth and, while some softening in the used vehicle market was seen during the election period, overall market trends are positive and growth prospects remain strong,” chief executive Todd Hunter says.
“We are continuing to benefit from our vertically integrated business model. Finance receivables are growing strongly, as are insurance premiums, both on the back of increasing used vehicle sales.”
The company continues to invest sites for its Auto Retail Division, including two new Trucks & Machinery sites in Wiri and Palmerston North, with another being developed in Hamilton.
A new Turners Cars site is being developed in Porirua and a new site has just been acquired in Whangarei, while a new Buy Right cars site is also under development in Penrose, Auckland.
It is also consolidating its finance brands into one operating entity – Oxford Finance – with completion expected by the start of the 2019 financial year, while Autosure products now represent approximately 70% of Turners’ insurance business.
The company is on track to deliver a net profit before tax of between $29 million and $31 million for the full year to March 31 2018.
