Photo: RNZ / Nate McKinnon
Growth in financing offset a softer second-hand car market to lift Turners Automotive to a better half-year result, and a record full-year result is forecast.
Key numbers for the six months ended September compared with a year ago:
- net profit $19.3m vs $18.5m
- revenue $209m vs $214m
- interim dividend 13 cents a share.
The automotive retail and finance company's revenue slowed 2 percent as it was forced to cut prices between March and August to remain competitive.
However, the 6 percent fall in car sales was largely offset by gains for its finance operations, which offer finance and insurance to buyers.
Chief executive Todd Hunter said the strength of the result despite a weak economic backdrop highlighted the group's diverse base.
"This result reflects not only the effectiveness of our diversified model, but also the quality and skill of our team which responded in an agile fashion to market conditions to ensure that, while margins were squeezed in auto retail, volumes were slightly up and we continued to grow market share."
The company said the second half was shaping up better with car prices and margins rising, while it was writing new finance deals and insurance claims were below expectations.
"A strong auto retail business is proving to have a great halo effect for finance and insurance. The interest cycle is moving into a phase that will provide a tail wind for finance," the company said.
It said Turners was on track for a record pre-tax profit of more than $50m for the year.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
