Turners
Auctions has posted a 28% fall in full net year profit citing a
slowdown in the used car market.
The $5 million profit for the year to December was down from $7
million the previous year and 7% below forecast.
Most of the reduction against forecast profit was due to
restructuring of Turner's North American businesses, which it
secured control of during the year, the company says.
Turners Auctions and Turners Fleet revenues were below the previous
year, mainly due to a slowing market for used vehicle sales caused
by a glut in Japanese imports, and high fuel prices impacting on
the price of larger vehicles, the company says.
The group, which is competing with only auction site TradeMe, says
it made significant investments in technology throughout the year,
launching a new website with enhanced search capability, allowing
customers to more easily access information on vehicles.
The company has also invested in the development of its own online
auctions, Turners Live, which allows customers to attend live
auctions and bid from their home or office.
Operating revenue for the group grew 1% to $79.5 million which the
company says is encouraging given some difficult market conditions
in New Zealand.
Turners Finance saw earnings rise 398% to $900,000 compared to
$200,000 in the previous year. The finance ledger is now $10.7
million up from $5.3 million a year ago.
Turners expanded operations with the opening of its new Supersite
in Christchurch, and a new branch in Napier, the company
says.
It also opened SMART Autocentre in Auckland, a new business that
provides a time definite, one stop shop repair service.
Turners has declared a final dividend of six cents a share,
bringing the full year's dividend to 14 cents a share.
