Vehicle auctioneer, retailer and financier Turners Limited has announced increased profits for the six months to the end of September.
The company, formerly Dorchester Pacific, released its unaudited interim results this morning – showing a 47% net increase in profit after tax to $7.44 million (2014 $5.06 million).
Net profit before tax was $10.26 million (2014 $5.59 million), ahead of the recent market guidance of $9.50 million.
Chief executive and director Paul Byrnes says all of Turners’ businesses traded on or ahead of budget for the six months.
“Turners Group (previously Turners Auctions) recorded an outstanding second quarter with car sales volumes holding up, margins on both locally sourced and imported vehicles increasing and buoyant truck and machinery sales contributing to higher and sustained sales activity,” Byrnes says.
“The Turners Finance loan book increased by 30% in the last year to $42 million, he explains. “Operating profit for the half year was approximately 40% ahead of the previous corresponding (pre-acquisition) period.”
Byrnes says online and mobile technology development is expected to contribute to further business growth and efficiencies.
The ‘second tier’ finance market was working well for the company.
“Both Dorchester Finance and Oxford Finance traded at over 20% ahead of the corresponding period last year despite the more competitive second tier motor vehicle finance market that has evolved with banks and some newer finance companies chasing lending targets and market share,” he notes.
He noted the recently-acquired Southern Finance has now been successfully integrated into the company’s network.
Turners is predicting a full year bet profit before tax of $20.0 million – but notes it may exceed that.
Chairman, Grant Baker says the pleasing aspect of trading performance for the first half was the strong contribution from all operating entities.
“Trading performance of the group overall remains on plan,” baker says. “We have also addressed a number of capital structure issues.
“The balance sheet is relatively conservatively geared and the business is in a strong position overall.
“Our aspirations are for significant further growth and greater scale particularly in our finance and insurance activities,” Baker says. “Inevitably this will involve further acquisitions and we are actively considering merger and acquisition opportunities consistent with our strategy and which will create positive shareholder value”.
