Turners to announce a record HY, driven by growth in market

Company Announcement


10 October 2023


Turners to announce a record HY, driven by growth in market share

Turners expects a record HY
Based on management accounts, Turners expects the six months to 30 September 2023 (HY24) to be another HY record for the group, with profit before tax of at least $25m.

Market share growth on track to exceed 10% in the near-term
The highlight of the period has been the sustained market share growth in Auto Retail, which now exceeds 9%, a more than doubling of Turners retail market share over 5 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.

The group’s strength during HY24 comes despite a compression of Finance margins, resulting from the speed of the OCR hiking cycle. With the RBNZ now appearing to moderate the rate of change in the OCR, finance margins have stabilised in recent months.

Turners also recently diversified its funding and as part of this transaction achieved a Fitch AAA rating underlining the quality of the loan book.

Insurance continues to steadily grow its contribution to group earnings, and Credit Management earnings are ahead of prior year.

Reiterate guidance for another record in FY24
Turners reiterates previous guidance for FY24 profit before tax, which is expected to be ahead of the record FY23 result. The forecast dividend at this level of profit would be 24 cents per share, which would continue a decade of steady improvements in distributions for shareholders.

Management remains focused on its target of $50M PBT by FY25.

NZX Webcast this week. HY24 results on 23 November
Todd Hunter (Group CEO) will present at NZX’s Virtual Investor Event on Wednesday 11 October 2023. Registrations are available at: https://register.gotowebinar.com/register/9078714122146731865

The HY24 financial results will announced the morning of 23 November 2023 and followed by Q&A at 10:30am. A weblink to participate in the meeting will be announced to the NZX closer to the date.

ENDS

About Turners

Turners Automotive Group Limited is an integrated financial services group, primarily operating in the automotive sector www.turnersautogroup.co.nz

For further information, please contact:

Todd Hunter, Chief Executive Officer, Turners Automotive Group Limited, Mob: 021 722 818

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Announcement PDF