Turners forecasts half-year profit of at least $25 million before tax

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1 year Ago

Turners forecasts half-year profit of at least $25 million before tax

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Turners chief executive Todd Hunter says the company’s growth in market share in its auto retail arm was on track to exceed 10 percent in the near term.
Photo: RNZ / Nate McKinnon

Automotive retail and finance company Turners expects to report another record half-year result driven by growth in market share.

The company has forecast its half-year profit before tax to be at least $25 million for the six months to 30 September.

Chief executive Todd Hunter said the company’s growth in market share in its auto retail arm was on track to exceed 10 percent in the near term, a more than doubling of its retail market share over five years.

“Recent gains have come from growing brand awareness, data tools, enhanced sourcing of vehicles, new site openings and damaged and end of life vehicle volume,” he said.

Earlier this year, the company reported full-year profit of $32.9m after record sales, with strong demand for second-hand vehicles.

Hunter said the demand had continued into this year, despite the slowing economy amid high inflation and interest rates.

“We’re growing market share in a market that’s going backwards, but I would say that used cars are traditionally a pretty resilient kind of market,” he said.

“There’s a big cohort of old cars in New Zealand and people’s cars obviously break down and need replacing, so there is a lot of churn in the used car market and we’re certaintly a beneficiary of that.”

Hunter said the company had also diversified its funding and as part of that transaction achieved a Fitch AAA rating underlining the quality of the loan book.

The company has reiterated its guidance that its FY24 profit before tax would be ahead of this year’s record result, with a forecast dividend of 24 cents per share.