Turners upgrades FY21 earnings guidance
Company Announcement
19 January 2021
1
Turners upgrades FY21 earnings guidance
Turners Automotive Group (NZX: TRA) now expects FY21 Net Profit Before Tax (NPBT) to be within a
range of $33 million to $35 million, with trading results exceeding expectations across Auto Retail,
Finance and Insurance business units in November and December.
This is an upwards revision from the company’s update in November, when NPBT was “expected to be
towards the upper end” of the $28m to $31m NPBT range provided at its September ASM. (The updated
NPBT range excludes any further one-off adjustments or Covid-19 lockdowns.)
Whilst all three major business units continue to contribute strongly, Finance has led the majority of the
uplift, with new lending volumes tracking well ahead of the prior year. The seasonal spike in finance
arrears has also been more muted than previous years, reflecting continued improvements in ledger
quality. Meanwhile, Auto Retail demand remained solid and margins have continued to benefit from a
supply-constrained operating environment. Insurance policy sales also tracked well ahead of the prior
year and claims ratios are being well managed.
As previously announced, a Q2 dividend of 4.0 cents per share will be paid out on January 28th. The
updated FY21 NPBT guidance implies an indicative full year dividend of around 18 cents per share (fully
imputed), based on the midpoint of the updated range and the company’s dividend pay-out policy of
60% - 70% of NPBT.
Overall, management is encouraged by the broad-based performance, which reflects the deliberate
business diversification strategy, the resilient used car market, and the combination of activity and
annuity based businesses within the group.
ENDS
About Turners
Turners Automotive Group Limited is an integrated financial services group, primarily operating in the
automotive sector www.turnersautogroup.co.nz
For further information, please contact:
Todd Hunter, Chief Executive Officer, Turners Automotive Group Limited, Mob: 021 722 818
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- 2CC — 2 Cheap Cars Group Limited: NZAI FY21 Earnings Guidance2021-02-28
“NZ Automotive Investments Limited, 17 Levene Pl, Mt Wellington, Auckland, 1060 +64 (9) 666 0158 | info@nzautomotiveinvestments.co.nz | nzautomotiveinvestments.co.nz 1 March 2021 Company Announcement NZX:NZA NZ Automotive Investments Limited update of FY21 ear…”
- FBU — Fletcher Building: Fletcher Building Trading Update2020-11-09
“P a g e | 2 Commenting on the year-to-date performance and expected trading conditions for the remainder of FY21, CEO Ross Taylor said: “Through all the disruption and uncertainty of the past year, our people have adapted and responded superbly, maintaining a focus on del…”
- MOV — MOVE Logistics Group Limited: Annual Meeting Speeches and Presentation2020-10-28
“increase in demand as businesses look to strengthen their supply chains, and are also seeing a shift back to a more direct relationship with providers. 27. STRATEGIC PRIORITIES As Trevor has said, we have identified four areas of focus for FY21 being: • The continuing improv…”