Photo: RNZ / Nate McKinnon
Automotive retail and finance company Turners has reported record sales, reflecting strong demand for second hand vehicles.
Key numbers for the year ended March compared to a year ago:
- Net profit $32.9m vs $36.4m (year earlier includes gains in financial instruments)
- Net profit from continuing operations $32.6m vs $31.5m
- Revenue $389.6m vs $342m
- Underlying profit $45.5m vs $43.1m
- Full year dividend unchanged at 23 cents per share
The company said the result reflects the value of its diversification and de-risking strategy over recent years, but warned high interest rates might derail its FY25 underlying profit target of $50m.
The company said record earnings in auto retail and insurance divisions more than offset tighter net margins in the finance business.
"The company's FY23 result demonstrated earnings resilience despite tough economic conditions, including rapid interest rate rises, and lingering impacts of the Covid-19 pandemic in the first half," it said.
Turners' largest division, auto retail, saw a 28 percent increase in profit, compared with a 26 percent gain the year earlier, reflecting market share gains and margin improvement.
Debt loads were increasing in its credit management sector, but profits were steady, it said.
"Macro headwinds -- inflation, interest rates, and economic conditions -- likely to feature in the year ahead with uncertainty and speed of change key features," it said.
Photo: RNZ / Marika Khabazi
Chief executive Todd Hunter said the past year had been hit by tough economic conditions.
"While we are weathering tough economic conditions, we expect these headwinds to intensify before we are through the current inflation cycle," he said.
"However, we are well-positioned and will continue to look for organic growth opportunities to further our lead in what are uncertain and rapidly changing market conditions."
Turners chair Grant Baker said the used car market was proving resilient to the economic conditions.
"We have achieved these results at a time when retail generally has been under pressure. The used car market is needs-based and stable through downturns, as we envisaged," Baker said.
"Our diversified business is well-placed to deliver further growth as well as offering solid returns to shareholders."
He said the current financial year had started well with April 2023's profit result showing positive growth against April 2022.
