Turners Auctions' strategy pays off
Turners Auctions' strategy to buy more vehicles domestically has paid off for the firm, with the auctioneer reporting a 14 per cent increase in full year earnings.
The company posted a net profit of $4.2m for the 12 months ending December 31, up from $3.7m in the same period a year earlier.
That was off the back of a 4 per cent increase in revenue to $78.2m, although total expenses were just over $2m higher at $72.4m.
The firm said its policy of ramping up vehicle purchases paid off on both the car and fleet side of its businesses, helped by tighter supply of vehicles from Japan due to higher vehicle emission standards which came into effect last year.
The company's shares rose 4.7 per cent to $2.21, almost 50 per cent higher than they were a year ago.
The auctioneer said its damaged vehicle division grew on the back of new business, with its commercial and trucks business chalking up a "steady performance".
A fully imputed final dividend of 8 cents per share was declared, up 33 per cent compared to last year.
That takes the total dividend to 15cps for the year, down from 17cps a year ago when Turners paid a 6cps special dividend.
Chief executive Graham Roberts said the firm elected not to declare a special dividend this year because it was sizing up a number of growth opportunities in the market which may require investment.