Turners Auctions post strong 2011 half year results

Turners Auctions today reported a 2011 half year net profit after tax of $1.6 million, 12 percent ahead of the same period last year.

The positive result reflects a solid performance for the Turners Trucks and Commercial businesses, off the back of large receivership sales in the contracting and construction sector, and growth of 12 percent in the Turners Finance ledger.

“The Finance ledger has grown to 19.3 million since June 2010.This growth and the strength of add-on sales of insurance products to vehicle sales has resulted in continued growth in operating profit from this division of the business,” says Turners’ Chief Executive Officer, Graham Roberts.

“With reduced availability of imports from Japan, and diminished demand from the public in the current economic environment, the used car business remains challenging. The overall supply of used vehicles is becoming more constrained resulting in the supply lines that Turners have access to becoming more valuable.”

The 12 percent increase in net profit comes despite total revenue being down three percent to $34.9 million, due to a reduction in the sale of imports.

“This positive result and Turners’ cash position has led the company to declare a dividend of five cents per share from first half operating activities with a special dividend of six cents per share payable on 21st September,” says Mr Roberts.

Results summary:

• Operating Revenues           $34.9 million
• Group Net Profit                  $1.6 million
• Interim dividend payment     5.0 cps
• Special dividend payment    6.0 cps