TRA – Letter to Shareholders

Dear Shareholders
Once again, Turners has delivered a record year of results with an Operating Profit (net profit before tax) of $31.1
million, a 26% increase on last year, and Net Profit After Tax of $23.4 million, a 33% increase on FY17.
Based on the ongoing positive performance of the group, the Board declared a fully imputed final quarter
dividend of 5.0 cents per share taking the full year dividends to 15.5 cents per share.
The FY18 financial year was very much about integrating our businesses, after a period of sustained growth and
expansion. We’ve simplified our brands to allow for better marketing and promotion; merged our teams into
centralised locations; built common operating and funding platforms; and continued to improve our systems and
processes to ensure we operate as efficiently as possible.
Our integrated business model remains at the heart of our success, providing us with a myriad of advantages,
from the ability to offer an end to end customer journey and higher margin transactions in our controlled
channels, through to better customer relationships, diversification of earnings and a balanced mix of annuity and
transactional revenue.
We continued to build our investment into our nationwide network, with a number of new sites providing better
access and an improved experience for our customers. We also further strengthened and diversified our funding
platform, reducing our reliance on individual sources and our cost of funding, and providing headroom for
continued growth.
FY19 is about continuing to grow our market share by leveraging the strength and unique benefits of our
integrated business model, and offering more products and services to more customers across more channels.
We will still consider mergers and acquisitions where there is a strategic benefit, however, we see the majority of
our medium-term growth coming from within the group.
An essential ingredient in our success will be building on the “trust” kiwis have in the Turners brand, established
over more than 50 years of doing business in New Zealand.
The used vehicle market remains strong and the large number of end of life vehicles needing replacement
continues to grow. As automotive sales increase, so does the demand for automotive finance and insurance
products.
We remain a proudly New Zealand focused, owned and operated kiwi business. Our company is well funded,
has great brands and is well positioned to continue growing, cementing our unique position as an integrated
automotive group and delivering increasing value for our shareholders.
Grant Baker Todd Hunter
Chairman Chief Executive Officer
TURNERS LIMITED
Consolidated statement of financial position for the year ended 31 March 2016
2016
2015
Notes
$’000
$’000
Assets
Cash and cash equivalents10
13,810
12,339
Financial assets at fair value through profit or loss11
18,455
17,350
Trade receivables12
9,575
7,394
Inventory13
14,156
8,984
Finance receivables14
167,598
142,827
Other receivables and deferred expenses15
8,505
5,946
Reverse annuity mortgages16
9,734
13,253
Property, plant and equipment19
11,108
8,319
Tax receivables
-
433
Deferred tax asset20
4,024
8,532
Intangible assets21
105,338
103,595
Total assets362,303
328,972
Liabilities
Other payables22
22,270
17,790
Deferred revenue23
6,049
7,476
Tax payables
990
71
Derivative financial instruments
49
-
Borrowings24
174,816
156,995
Life investment contract liabilities32
15,629
16,378
Insurance contract liabilities32
12,688
9,260
Total liabilities232,491
207,970
Shareholders’ equity
Share capital25
136,127
135,294
Other reserves
(52)
(23)
Retained earnings
(6,263)
(14,269)
Total shareholders’ equity129,812
121,002
Total shareholders’ equity and liabilities362,303
328,972
For and on behalf of the Board

G.K. BakerP.A. Byrnes
Chairman DirectorExecutive Director
Authorised for issue on 22 June 2016
The accompanying notes from part of these financial statements

FY18 AT A GLANCE
¡ Successfully integrated Autosure and Buy Right Cars into the
group
¡ Integrated three separate finance operating entities into a single
entity under the Oxford Finance brand
¡ Successfully merged existing insurance business into the newly
acquired Autosure Insurance business
¡ Changed name to Turners Automotive Group Limited
¡ Acquired insurance agent, Motorplus NZ Limited
¡ Dual listed on the ASX
¡ Completed $30 million capital raising, to support growth
initiatives
¡ Expanded property footprint with opening of four new retail
sites for Cars and Trucks & Machinery
¡ Acquired new sites for retail development in Auckland,
Wellington and Whangarei
¡ Introduced Dealer Loyalty Scheme and issued first tranche of
shares
¡ Banking syndication finalised with ASB and BNZ (post balance
date, May 2018)
¡ Turners Automotive Retail division celebrated a significant
milestone of being in business for 50 years
FINANCIAL HIGHLIGHTS
GROUP REVENUE | UP 32% | $330.5M
PROFIT BEFORE TAX | UP 26% | $33.1M
NPAT | UP 33% | $23.4M
FULL YEAR DIVIDENDS | UP 7% | 15.5 CENTS PER SHARE


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STRATEGIC FOCUS FOR FY19

CUSTOMER FIRSTQUALITY LENDINGUTILISE OUR
WEALTH OF DATA
LEVERAGE OUR
ECO-SYSTEM
Keep developing ‘Customer
First’ culture across all
businesses
Improve the quality of the
customer experience –
both in-person and online
Continue the transition
to higher quality, more
profitable lending
Access and drive value
from the wealth of data
in the business to engage
with our customers, and
deliver better service
Leverage our unique
automotive eco-system to
meet all of our customers’
needs
SECTOR OPERATING PROFITSECTOR REVIEW


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■

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