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TRA - Turners Automotive Group

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Turners 2021 Annual Meeting Update Turners Automotive Group (NZX: TRA) will be announcing at its 2021 Annual Shareholders Meeting (ASM) today that it has improved profit momentum, widened competitive advantages and is pleased with progress towards both its FY22 and FY24 targets.
The August Delta lockdown will have a material near-term impact, but it is too early to quantify this effect. The ASM presentation is appended to this announcement, and the Chair and CEO’s speech will be released after the meeting. Highlights include:
 FY22 momentum: Prior to lock down the year has started well and the business was tracking comfortably ahead of the profit run rate during H2 21.
 FY22 Guidance: Prior to lock down we were on track to deliver a 15% uplift in net profit before tax for FY22. However short-term performance will be impacted by the level and duration of Covid-19 restrictions on trading. We will revisit guidance in November.
 L4 National lock down: Biggest impact in Auto Retail division, burns cash at $1m per week. However, this is offset somewhat by annuity revenue streams in finance and insurance. Based on experience, we do expect another “bounce back” in Auto Retail once restrictions are eased.
 Quality of earnings: Monthly and six-monthly profit run rates have become much more consistent over the last two years.
 Valuable property assets: Details of Turners $61m property portfolio are outlined in the presentation. We see our property portfolio as underappreciated by the market and the book value excludes $14m of unrealised valuation gains.
 Advantaged digital assets: Turners digital assets represent a substantial and growing competitive advantage, underpinned by 28 million visits to www.turners.co.nz over the last 12 months.
 Industry consolidation: Registered dealers are down ~10% in 2021 from 2019 levels and ~10% less used imports have come into NZ (June YTD v 2019).
 FY24 Target: Our trajectory over the last two years and pre-lock down YTD performance gives us strong conviction levels around our strategy. We are well on track to exceeding our target of $45m PBT in FY24.

DYOR


i hold TRA ( bought on the ASX )

CAUTION this is a very illiquid share ( there might be no easy exit , via the ASX )

Trade History ( for the last year )​

Download CSV
Trade History table
SORTDATE IN ASCENDING ORDERSORTOPEN $IN ASCENDING ORDERSORTHIGH $IN ASCENDING ORDERSORTLOW $IN ASCENDING ORDERSORTCLOSE $IN ASCENDING ORDERSORTCHANGE $IN ASCENDING ORDERSORTCHANGE %IN ASCENDING ORDERSORTVOLUMEIN ASCENDING ORDER
12/04/20212.8502.8502.8502.8500.0000.00704
26/02/20212.8502.8502.8502.8500.0000.008,000
16/02/20212.8502.8502.8502.850-0.050-1.72190
05/01/20212.9002.9002.9002.900-0.100-3.331,661
04/01/20212.8003.0002.8003.0000.2509.0916,661
21/12/20202.7502.7502.7502.7500.0000.004,884
18/12/20202.7402.7502.7402.7500.0000.00181
15/12/20202.7002.7502.7002.7500.0000.00497
03/12/20202.7502.7502.7502.7500.0501.859,820
26/11/20202.6902.7002.6902.7000.0000.003,915
25/11/20202.5502.7002.5502.7000.50022.733,490
29/10/20202.2002.2002.2002.2000.20010.00500

i bought in late 2018 and during 2019
 
Dear Shareholder
The Turners Limited Annual Report for the year ended 31 March 2022 is now available. We invite you to
read this on our website at https://www.turnersautogroup.co.nz/Investor+Centre/Investor+Reports.html
The FY22 year delivered another record result for our business, with Turners not only demonstrating
earnings resilience but strong growth credentials as well. We are confident we have found the right
formula and that our actions will deliver continuing growth over the next three years.
Our growing returns are driving much improved outcomes for our shareholders, and we were pleased to
deliver record dividends of 23.0 cents per share in FY22.
With another record year of results, a stronger and de-risked business, a clear strategy and a near-term
economic outlook that is looking more uncertain, our business has never been in better shape. We are
ready for whatever comes next.
Our Three Year Plan
Our three-year plan centres on organic growth and is focused on four
key areas, comprising both physical and digital investments.
1. Retail Optimisation and Expansion across people, property and
processes.
2. Vehicle purchasing decision-making using data and tools to help
identify new sourcing opportunities, and leveraging our brand
strength to generate local sourcing leads.
3. Margin management and Premium lending within Finance.
4. Continued investment in digital and improving our omni-channel
customer experience which allows customers to engage with us
however, whenever and wherever they want.
Looking beyond FY23, we remain very confident about further growth
over the medium to longer term. We have updated our three-year rolling
target to grow to more than $50m of underlying profit before tax by
FY25.
On behalf of the Board and management, we would like to thank our
shareholders for your continued support.
FY22 AT A GLANCE
FY22 FINANCIAL SNAPSHOT
■ Record earnings from
divisions operating in
the used car market
(Auto Retail, Finance and
Insurance)
■ Record NPBT up 15% to
$43.1m
■ NPAT up 16% to $31.3m
■ EBIT up 11% to $47.7m1
■ Underlying NPBT up 29%
to $44.1m2
■ Revenue up 14% to
$344.5m
■ Dividends up 15% to 23.0
cents per share
■ Earnings per share up 16%
to 36.4 cents per share
■ Unrealised property gains
per share 22 cents per
share (measured from
carrying value)
More information on Turners
FY22 financial results can be
read in Turners FY22 Annual
Report.
■ Strong consumer demand despite continued disruption
from COVID-19 lockdowns and Omicron outbreak
■ Employee engagement at an all-time high (top 5% of
companies using Peakon tool); continued to increase at
a time where retention and recruitment have been under
significant pressure
■ Auto Retail: Market share continued to grow in Auto Retail
with a good pipeline of new branches
■ Finance: Quality lending strategy resulting in arrears at
record lows
■ Insurance: Strong new policy sales with improving claims
ratios
■ Credit Management: Debt load
returning slowly but environment
should be more productive in FY23
■ Macro headwinds (inflation and
interest rates) starting to
impact… speed of change
biggest challenge
1 Earnings Before Interest and Tax (EBIT) adjusted for interest expense in Finance (non-IFRS measure).
2 Underlying Net Profit Before Tax (NPBT) is a non-GAAP measure and excludes one-off or non-cash costs including property sales
and acquisitions, covid-related support and remuneration sacrifice, review and restructure costs and profit normalisation (Turners’
estimated profit had the business not been shut during lockdown). In FY22, these totalled $1.0 million. A reconciliation can be viewed
in Turners FY22 Annual Report.

===================================================================================

DYOR

i hold TRA

be careful it is a rarely traded share in Australia (on the ASX )
 
Turners Q3 Dividend Declared
Turners Automotive Group (NZX/ASX: TRA) are pleased to announce that directors have declared a Q3
FY23 dividend of 6 cents per share (fully imputed) to be paid on 27 April 2023.
The record date is 17
April 2023.

ENDS

======================================================================================================

DYOR

i hold TRA

be careful it is a rarely traded share in Australia (on the ASX )
 
Turners delivers record FY24 earnings and lays out roadmap for future growth

Turners Automotive Group (NZX/ASX: TRA) has again delivered record earnings for the financial year to March 31, 2024 (FY24), underscoring its resilient earnings platform, and the value of diversification, integrating the activity and annuity elements of its business. Despite economic challenges and soft consumer demand, the company achieved its FY24 target a year early, is well placed to exceed its FY25 Net Profit Before Tax (NPBT) target of $50M and today announced its new medium-term target for $65m NPBT in FY28. Key Financial Highlights:
● Revenue $417m +7%
● EBIT $58.6m up 12%
● NPBT $49.1m +8%
● NPAT $33.0m +1.5% (normalised NPAT $35.1M +8%)1
● Earnings per share (EPS) 37.7cps 0% (normalised EPS 40.2cps +7%)1
● Final dividend declared of 7.5 cents per share (cps)
● Full year dividend of 25.5cps +11%, representing a gross yield of ~9% per annum based on current share price ($4.10)
1 The legislative change to remove depreciation on commercial buildings has increased the effective tax rate to 33% for FY24.
This is a oneoff non-cash impact in FY24 only.
The effective tax rate over the last two years is between 27.5-28.5%.
A normalised NPAT using FY23 tax rate of 28.5% would be $35.1M +8% and EPS would be 40.2 +7%. Key Business Highlights:
● Auto segment profit was up 27% and constituted more than 50% of group profits.
Driven by two new branches launched in FY24, improved sourcing, retail optimisation (from wholesale auctions to retail), growing brand strength, operating efficiencies and solid organic growth across the network.
● Finance segment has weathered the interest rate shock as we deliberately sacrificed some top line growth over the last two years to focus on higher quality borrowers, positioning the segment well as interest rates ease. Net interest margin (NIM) is expanding, following an inflection point during H2 and rate headwinds will now turn into tailwinds. Meanwhile, arrears remain significantly below industry benchmarks.
● Insurance segment increased contribution to profit as a well-tuned business with robust policy sales, well managed claims and improved investment returns. Notably claims cost inflation was offset by reduced frequency of claims.
● Credit Management business has turned a corner with debt load recovering in line with a tightening economy, particularly in SMEs. The business is well-placed for growth as the economy tightens and debt value load continues to increase.
● A strong culture remains a key advantage, ranking in the top 5% of consumer businesses globally using Peakon (employee engagement tool). 50% of the team took up the Employee Share Scheme offer.
● Outlook: An anticipated deterioration in economic conditions during HY25, combined with cycling against a high-growth HY24 comparative period arising in part from extreme weather events, means we expect HY25 to be testing. Our near term focus remains on exceeding the $50M NPBT goal in FY25, despite the economic backdrop. Beyond FY25, Turners is well-placed to continue to make strong progress, thanks to the resilience of a diversified business model (activity and annuity), and clear strategy for further growth.

2
Turner͛s FY24 result demonstrated strong earnings in challenging conditions, thanks to its resilient, diversified business model, and is well placed to implement its next phase of development and growth.
Group revenue rose 7% to $417m, delivering a record NPBT result of $49.1m up 8% on FY23.
The Auto Retail segment achieved another year of 20%+ growth, with segment profit up 27% over FY23 to $ϯϭ.8ŵ.
Although the FiŶaŶĐe segŵeŶt͛s profit ǁas doǁŶ, reǀeŶue ĐoŶtiŶued to groǁ, aŶd further progress ǁas made improving the quality of the loan book, and rebuilding lending margins.

Insurance continued its steady growth of recent years with 15% profit growth. And Credit Management expanded of a low base, recording 9% profit growth.
Todd Hunter, CEO, said: ͞We’re pleased to continue to deliver another record result for shareholders.
Our business is founded on delivering great experiences for our customers.
We continue to innovate, gain market share and improve margins across all segments. In addition to the continued expansion of our activity businesses (Auto Retail and Credit Management), our annuity businesses (Finance and Insurance) have gained momentum.
This underscores the benefits of our diversification strategy and ensures the resilience we need to grow, through all phases of the economic cycle.
Our Auto Retail segment again excelled and is now entering a build phase for our next growth push. Our Finance segment has weathered the interest rate shock, continued to improve its credit scores and is now back into growth mode. Our Insurance and Credit Management teams continue to finely-tune these businesses to market-leading positions with future opportunity as the economic cycle tightens.͟

FY24 Financial results NPBT for the full year increased 8% to $49.1m. Net profit after tax (NPAT) of $33.0m was up 1.5%. EBIT rose 12% to $58.6m. Earnings per share (EPS) for FY24 were 37.7cps, matching last year.

The legislative change to remove depreciation on commercial buildings increased the effective tax rate to 33% for FY24.

This is a one-off non-cash impact for FY24 only. A final 7.5cps dividend (payable in July) takes FY24 dividends to 25.5cps, up 11% on last year.

This meets the ĐoŵpaŶLJ͛s diǀideŶd poliĐLJ paLJout of ϲϬ-70% of net profit after tax (NPAT), and represents a yield of ~9% per annum based on the current share price. Grant Baker, Chairman, said: ͞This is an outstanding result for the business in light of the economic backdrop.
The strength of our brand, and our distribution networks means we are ever more accessible and trusted by customers, offering strong adjacent opportunities.
The resilience of our diversified model leaves us well-placed for what comes next in the economic cycle.
Our leadership position and strong balance sheet, means we can continue to invest for our next phase of growth, even in tough times, so that we remain ahead of the market as conditions begin to improve into the next year and beyond.
We continue to remain focused on returns to shareholders, as well as strengthening our platform for growth as we now implement our roadmap to NPBT of $65m at FY28.
The economic conditions New Zealand is faced with are challenging but I have absolute confidence in the team to keep delivering.͟ Company Announcement 21 May 2024
3 Results by segment Refer to Appendix FY25 Outlook We expect New Zealand͛s tradiŶg ĐoŶditioŶs to remain challenging throughout HY25 (six months ending September 2024).
However we expect to see a recovery in the second half of the year and our near term focus remains on exceeding our goal of $50m NPBT in FY25.
Roadmap to $65m (FY25-FY28 Growth model) Having successfully met our FY24 target a year early, and remaining on track for our FY25 $50m target, we today announced our Roadmap to $65m NPBT for FY28. Our FY25-FY28 growth model is underpinned by five key areas:
● Auto Retail - Branch expansion
● Auto Retail - Retail optimisation (transition of unit sales from wholesale auctions to retail)
Finance - growth in premium lending as economic cycle eases and interest costs start to reduce
● Insurance - growth in market share gains and direct to consumer distribution opportunities;
● Credit Management - growth from rebuilding the payment bank as debt load increases. Given the uncertain economic outlook, the mix of activity and annuity-based revenues remains a core strength for the business as we grow towards our future goals.


Turners FY24 Results Call Todd Hunter (Group CEO) and Aaron Saunders (Group CFO) will present the FY24 financial results followed by Q&A at 10:30am on 21 May 2024.
https://turners.zoom.us/webinar/register/WN_Zqo5c_sKTwaIcgm7IWpEBg

i hold TRA

sorry about the weird stuff in the report , must be a stuff-up in the font conversion

( stuff like that is going to make the digital universe interesting )
 
TRA is NZ based but also listed on the ASX

Screenshot_20240717-085804_Drive.jpg

.
LOOKING AHEAD
There is no doubt that trading conditions got harder in the final quarter of the FY24 year. Looking ahead, we anticipate a further deterioration in economic conditions during the first half of our financial year (HY25) but expect to see the economy start to recover in the second half. Our near-term focus remains on exceeding the $50M NPBT goal in FY25, despite the economic backdrop, however there remains some obvious risks with the level of interest rates impacting the overall economy and consumer demand.

Beyond FY25, Turners is well-placed to continue to make strong progress, thanks to the resilience of our diversified business model (activity and annuity), strong and committed team and clear strategy for further growth. Our growth model has been proven and we will build on this to drive our earnings and achieve our goals.

We have set ourselves a new target of $65M NPBT for FY28. This will deliver a 10-year NPBT compound annual growth rate (CAGR) of 9.4%. Our roadmap, [in summary] is focused on organic growth from Auto Retail with an expanded branch network and continued shift from wholesale to retail sales, a recovery in the Finance and Credit Management businesses, and direct to consumer growth in Insurance.
.
Screenshot_20240717-085526_CommSec.jpg
 
given NZ actually admits they are in a recession , fairly predicable

i hold TRA

a rarely traded share so be careful if you buy in ( a profitable exit might test your skills )
 
Turners continues to have strong take up of employee share scheme

Turners has issued shares under the 2024 Employee Share Scheme.
CEO Todd Hunter said ͞ǁe are very pleased with the uptake, and between the 2022, 2023 and 2024 schemes we now have 53% of our wider team as shareholders in the company.

The ownership mindset combined with our high team engagement levels continues to be a powerful combination and a strong advantage for the Turners organisation.͟
Employees have applied for 91,388 shares and after utilising shares already owned by the Employee Share Scheme a total of 70,352 shares have been issued representing 0.08% of issued capital.

The scheme provides the opportunity for permanent (part-time and full-time) employees of the business to invest $1,000 and receive $1,500 worth of shares at the completion of a 3-year vesting period.
In order to encourage broad participation, the company also offered a 3-year interest-free loan to acquire the shares to all staff.

ENDS

i hold TRA

a rarely traded share so be careful if you buy in ( a profitable exit might test your skills )

well that is one way to incentivize staff ( and keep them on the payroll
 
Turners Q1 Dividend Declared

Turners Automotive Group (NZX/ASX: TRA) are pleased to announce that directors have declared a Q1FY25 dividend of 6 cents per share (fully imputed) to be paid on 30 October 2024.

The record date is 14 October 2024

.ENDS

i hold TRA

a rarely traded share so be careful if you buy in ( a profitable exit might test your skills )
 
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