Turners FY25 Annual Report
CELEBRATING
A DECADE
OF GROWTH
ANNUAL REPORT
FOR THE YEAR ENDED 31 MARCH 2025
OUR BUSINESS 4
FY25 AT A GLANCE 6
CHAIR AND CEO’S REPORT 8
OUR AUTO ECO-SYSTEM 12
OUR BUSINESSES 14
FY25 FINANCIAL REVIEW 19
BUILDING A BETTER BUSINESS 22
CELEBRATING OUR PEOPLE 28
OUR LEADERSHIP TEAM 30
OUR BOARD 32
FINANCIAL STATEMENTS 35
2
Welcome to Turners’ Annual Report.
This year marks a full decade of consistent growth and plenty of satisfied shareholders. Since 2014,
we’ve tripled our profits, quadrupled dividends and revved up market share. And we’re not done yet –
the engine is just starting to warm up.
To our shareholders, customers and team, thanks for backing us. We’re proud to be New Zealand’s largest
buyer and seller of used vehicles along with auto finance and insurance – and we’ll keep delivering the
goods whether it’s Paddy Gower’s V-Dub with the flower, or that one with the Macca’s bag still in it!
On behalf of the Board and management of Turners Automotive Group Limited, we are pleased to present
the Annual Report for the financial year ended 31 March 2025.
Beep Beep!
Grant Baker Todd Hunter
Chairman Group Chief Executive Officer
& Managing Director
24 June 2025
3
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
From Whangarei to Invercargill and
everywhere in between, we make
it easy for customers to buy, sell,
finance and insure their vehicle
through Turners’ trusted brands and
businesses. From FY26, we will be
expanding our customer offer further,
with Turners Servicing & Repairs.
1
Auto Retail voted New Zealand’s Most Trusted Used
Vehicle Dealership in the Readers Digest Trusted
Brand awards.
2
Turners ranks in the top 5% of consumer businesses
globally using Peakon survey tool.
3
96% of Turners Cars customers surveyed would
recommend Turners to others.
Positive customer
satisfaction
96% of customers would
recommend
3
Voted Most Trusted Brand
6 years in a row
1
Growing shareholder
returns
Network spanning from
Whangarei to Invercargill
Own 17 of 32 Auto Retail
sites in the network
More than 700 team
members
Diversified model with
widespread growth
Strong culture and highly
engaged team
Top 5% globally
2
OUR BUSINESS
Turners is a New Zealand success story and, this year, we are
celebrating an outstanding decade of growth.
“Our formula
of a great employee
experience + a great
customer experience
leads to a great
shareholder experience
has well and truly been
proven up.”
4
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
AUTO RETAIL
■
New Zealand’s largest buyer and seller of vehicles
■
Bricks and clicks retail model, combining national network with online digital
experience
■
Local sourcing strategy provides competitive advantage and higher margins
■
51% of vehicles sold through retail channels
■
Awarded New Zealand’s Most Trusted Used Vehicle Dealership in the Readers
Digest Trusted Brand awards for 6th year in a row
FINANCE
■
Targeting high quality consumer and commercial lending – primarily for
automotive customers
■
Loans originated through the Turners Auto Retail network, independent dealers
and brokers
■
Average consumer loan size - $19,500 - based on new consumer lending in FY25
■
Average 60% of new consumer lending was premium tier in FY25
■
Over 28,000 current consumer loans as 31 March 2025
■
$447m in receivables in FY25
INSURANCE
■
Motor vehicle, loan protection and life insurance solutions
■
Sold through more than 700 licensed car dealers, finance companies and brokers,
and life insurance advisers as well as online
■
Issuer Credit Rating upgraded to bbb+ in FY25
■
5,500 insurance policies sold every month (including car insurance)
■
$40.8m in new policies sold in FY25
■
Average 1,124 claims paid out monthly; $21.2m paid out in FY25
CREDIT MANAGEMENT
■
A recognised leader in debt collection and credit management, for both
corporate and SME customers
■
Provides income diversification for Turners Group
■
$187m in Total Debt loaded in FY25
■
22% average recovery rate
■
$42m collected from debtors in FY25
TURNERS SERVICING & REPAIRS
■
Purchased 50% of My Auto Shop in August 2024
■
Currently helping service and prepare vehicles for sale on Turners sites
■
Rebranding to Turners Servicing & Repairs with customer offer launching
Q1 FY26
5
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
OPERATING ENVIRONMENT
■
Challenging economic conditions
and depressed consumer sentiment,
particularly in first half year
■
Strong recovery in second half, with
economic cycle moving to a more positive
mode
■
Demand for used vehicles remained
resilient, although with some margin
squeeze in H1 FY25
■
Economic challenges and rising
unemployment putting pressure on
borrowers, however, Turners’ arrears have
remained consistent and outperformed the
broader market
■
Dealer numbers have continued to
decrease over the last six years and are
expected to reduce further
■
EVs remain a very small part of the total
New Zealand fleet, at around 2%
■
The last year saw a material impact on
the used import market with continued
changes in government regulation,
resulting in a 21% decrease in used
overseas imports registered in NZ over
FY25
COMMERCIAL HIGHLIGHTS
Turners’ diversified business model is
creating sustainable, profitable growth
■
Auto Retail: Revenue declined due
to a higher proportion of lower-value
vehicle sales, but this was largely offset
by increased volumes and solid margin
recovery in the second half
■
Finance: Profitable growth supported by
interest rate tailwinds
■
Insurance: Solid growth with momentum
building in the digital/direct to consumer
platform
■
Credit management: Debt load continuing
to build, particularly for SMEs
■
Invested in growth with 50% acquisition
of My Auto Shop (mobile servicing and
repairs) and $1 million investment in
Quashed insurance platform
■
Expanded the property footprint - new
commercial site in Tauranga, doubled
size of Invercargill operation, and
commenced work on three new branches
in Christchurch
■
Improving operational efficiency and
system enhancements driving strong
operating leverage
■
Turners’ team remain highly motivated,
with high levels of employee engagement
and share ownership
■
Tina brand refresh and new campaign
launch (in May 2025), reflecting investment
in a proven formula that is delivering
strongly
FY25 AT A GLANCE
Turners delivered a record profit and dividends in FY25,
capping off a decade of sustainable growth.
ADVERTISING
EFFECTIVENESS GOLD
AWARD FOR SUSTAINED
SUCCESS
NZ MARKETING AWARD
EXCELLENCE IN LONG-TERM
MARKETING STRATEGY
TINA FROM TURNERS
WINNER OF THE
GREATEST NZ CAMPAIGN
OF THE 2020’S
FINALIST IN COMPANY
OF THE YEAR FOR 2024
Deloitte
Top 200
6
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
FINANCIAL HIGHLIGHTS
REVENUE $414.2M 1%
EBIT $62.3M 6%
NET PROFIT BEFORE TAX $54.3M 11%
NET PROFIT AFTER TAX $38.6M 17%
FULL YEAR DIVIDENDS 29 cents 14%
EARNINGS PER SHARE 43.3 cents 15%
FY25
FY24
FY23
414.2
417
390
0100200300400500600
FY25
FY24
FY23
62.3
58.6
52.2
0102030405060
FY25
FY24
FY23
54.3
49.1
45.4
0102030405060
FY25
FY24
FY23
38.6
33
32.5
0102030405060
FY25
FY24
FY23
29
25.5
23
0102030405060
FY25
FY24
FY23
43.3
37.7
37. 5
0102030405060
7
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
We’re pleased to report on
another year and another
record for Turners – despite
some of the toughest
trading conditions we’ve
seen in almost 20 years in
the business. This year’s
result caps off a decade of
sustainable growth as we
continue to focus on the long
game, delivering value to
our shareholders, our team
and Kiwi customers across
Aotearoa.
Dear shareholder
Over the past ten years, Turners has transformed
into a diversified and resilient business that is
proving a winner for our shareholders. We further
strengthened our track record of growth this year
with another record profit and dividend.
Net profit before tax (NPBT) grew to $54.3 million,
a 10% increase from the previous year, and our net
profit after tax (NPAT) was $38.6 million, up 17%.
Earnings per share have risen to 43.3 cents and
we were pleased to deliver a full-year dividend of
29 cents per share, nearly tripling from 10 cents in
FY15 and reflecting our commitment to delivering
value to our shareholders.
We were honoured to be recognised in a number
of Awards last year – a tribute to our fantastic
team and a clear sign that what we’re doing is
working and being noticed.
STRATEGICALLY INVESTING IN GROWTH
We continued to add to and expand our business
over the last year – strategically investing in
opportunities that expand our reach, fill a gap
in our offering or further strengthen our existing
businesses, while reinforcing our position as a
leader in New Zealand’s Auto ecosystem.
Quashed: In August 2024, we made a strategic
$1 million investment in Quashed, securing a
13% stake in the business and marking another
step in our strategy to partner with innovative
digital platforms that bring added value to our
customers. Quashed simplifies insurance by
allowing users to effortlessly compare policies and
prices across motor, contents, home, pet, and life
insurance—all from one convenient platform. The
service is already proving its worth and is well on
its way to reaching 100,000 users. We see this as
a natural extension of our core business—helping
Kiwis navigate big life decisions like buying a car
or insuring what matters most. Just as we aim to
make car buying easy and fair, Quashed is doing
the same for insurance. We’re excited to support
their growth and to offer even more value to
Turners’ customers through complementary digital
services that put control and transparency in the
hands of everyday New Zealanders.
CHAIR AND CEO’S REPORT
Delivering on our growth plans.
8
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
My Auto Shop: In FY25, we teamed up with
My Auto Shop, taking a 50% stake in the
fast-growing online platform that makes car
servicing and repairs simple and hassle-free.
With over 300 MTA-approved mechanics and
a fleet of mobile vans that come right to your
door, they’re bringing real convenience to a
$3 billion market that’s been missing from
the Turners offering—until now. It’s a great fit
with what we do: helping Kiwis buy, finance,
and insure their cars, and now, keep them
running smoothly too. We’re currently moving
to rebrand the business as Turners Servicing
& Repairs and will shortly start offering these
services to the Turners database of customers.
We’re excited about the growth ahead and the
opportunity to be a scale player in a highly
fragmented market.
More Big Blue Walls: We have continued to
expand our physical footprint across Aotearoa,
with a number of new property developments
and upgrades completed during the year. Our
iconic “big blue walls” popped up in more
locations, helping to reinforce brand visibility
and create a consistent, trusted customer
experience. These investments are strategically
located to support future growth, improve
operational efficiency, and enhance the buying
and selling journey for our customers. With
each new site, we’re not just adding square
metres—we’re strengthening our position as
New Zealand’s leading vehicle retailer, making
it even easier for Kiwis to find us, trust us, and
do business with us.
Our property portfolio currently comprises
a total of 17 sites at a cost of $129m. We
are very pleased to have almost completed
the branch expansion plan in Christchurch,
with three brand new branches in operation
in the city by the end of Q1 FY26. In the last
12 months, we have also completed a new
commercial site in Tauriko, Tauranga and
doubled the size of our Invercargill operation.
We have a number of live conditional offers we
are working on in the wider Auckland area and
in Whanganui.
BUSINESS PERFORMANCE
Despite a challenging economic environment,
our diversified business model proved its
strength again this year.
The first half was impacted by economic
contraction and depressed consumer
sentiment, which led to reduced vehicle
margins. In contrast, the second half
demonstrated a strong recovery, with all four
core business divisions returning to year-on-
year growth, driven by improved margins
and significant momentum in the Finance,
Insurance, and Credit Management segments.
This turnaround reinforces our ability to
navigate market cycles successfully.
Auto Retail: While revenue and profit
faced headwinds reflecting NZ’s economic
downturn and a tough consumer environment,
the second half saw improved margins
and volumes. This was achieved through
disciplined pricing, a shift to domestic
sourcing, and repositioning inventory to lower-
priced vehicles.
Finance: Our finance division experienced
strong revenue and profit growth, benefiting
from a favourable interest rate environment.
Arrears remained well below market levels,
and the loan book expanded with improved
quality metrics.
Insurance: The insurance segment delivered
solid revenue and profit growth, with
momentum building in our digital and direct-
to-consumer platforms. Effective risk-based
pricing ensured claims performance was well
managed.
Credit Management: As the economy
tightened, we observed an increase in debt
load, particularly among SMEs. Our credit
management services are well-positioned to
support clients during these times.
Read more on our businesses’ performance on
pages 14 to 16.
9
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
OUR PEOPLE: THE DRIVING FORCE BEHIND
THE WHEEL
At Turners, our team is what keeps the
engine running. Their energy, resilience, and
commitment are behind every happy customer
and every strong result we deliver.
We’re proud to sit in the top 5% of consumer
businesses globally for employee engagement,
with standout scores of 9.4/10 for diversity
and inclusion, and 9.1/10 for health and
wellbeing. Those numbers say it all—our
people feel valued, supported, and part of
something bigger.
One of the clearest signs of that connection?
More than 53% of our team are now
shareholders through our Employee Share
Scheme. It’s an easy, rewarding way for staff to
get skin in the game: invest $1,000 and, after
three years, receive $1,500 in shares. To keep it
accessible, we also offer a three-year interest-
free loan.
The ownership mindset combined with our
high team engagement levels continues to
be a powerful combination and a strong
advantage for the Turners organisation.
MARKETING SUCCESS: THE TINA EFFECT
Our “Tina from Turners” campaign continues
to be a standout star—just like Tina herself. In
FY25, the campaign hit new heights, taking
out Gold for Sustained Success at the 2024
Effie Aotearoa Awards. That’s a big deal in the
world of marketing, and well deserved.
The catchy tune has become part of the
national soundtrack (we see you singing along,
don’t deny it), and it’s done more than just
get stuck in people’s heads—it’s driven real
results in brand recognition and customer
engagement.
This year, we took Tina on a roadie around
Aotearoa, showing up in towns big and small,
and in May we dropped the first new ad in
four years—packed with iconic Kiwi references
from Hilary Barry to King Kapisi, Dr. Ropata to
Paddy Gower. Beep beep!
It’s a reminder that while Tina might be the
face of the campaign, delivering on her
promises is a whole-of-team effort. From the
marketing crew to the teams on the ground
making the magic happen every day, we’re all
part of the story.
OUTLOOK: SHIFTING UP A GEAR
As we move into FY26, we’re feeling optimistic
about the road ahead. While New Zealand’s
economic recovery is expected to be gradual,
the signs are pointing in the right direction—
particularly with interest rates starting to ease,
which should give both consumers and the
broader economy a much-needed tailwind.
That’s good news for the used car market, and
even better news for Turners.
High engagement + team
ownership = good times
ahead.
10
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
Our Auto Retail business, which weathered
some serious economic headwinds in FY25, is
back in growth mode. Despite facing pressure
tougher than during the GFC, demand
remained resilient.
Our team’s proactive margin management
helped us bounce back strongly in the second
half, and we’re now seeing momentum
building across all parts of the business.
We’re confident in continued profit growth
as we head towards our medium-term
earnings target of $65M. We expect strong
contributions from our newest big blue wall in
Christchurch, with more new branches on the
way. Gains in market share, solid performance
from our annuity businesses (Finance and
Insurance), and increasing operating leverage
across the Group all give us a solid platform to
keep delivering.
Put simply, there’s a lot to feel good about.
We’re tracking well, and we believe we’re
on course to hit our FY28 targets ahead of
schedule.
Thank you for your continued support.
Ngā mihi nui,
Grant Baker Todd Hunter
Chairman Group Chief Executive Officer
& Managing Director
11
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
OUR AUTO ECO-SYSTEM
Our Auto Retail business continues to go from strength to
strength and creates a halo effect into Finance and Insurance.
It starts with sourcing smarter... the unique combination of consigned and owned stock. We are using
brand awareness, our branch network, data and tools to make better buying decisions and purchase
more highly demanded cars than we ever have before.
The more cars we consign and buy, the more cars we have advertised. This leads to a larger audience
and support for more branches. This scale gives us more reach and more market share and more
retail sales.
More retail sales provide greater opportunity for add-on sales from Oxford Finance and Autosure
Insurance which provide greater transaction margins.
Higher transaction margins make us more competitive at the sourcing end, and enable us to pay “fair”
prices for cars... and so the flywheel starts again.
We have very deliberately been improving our capability in each part of this flywheel over the last
couple of years. The good news is that it is working very effectively and there is still more opportunity
for us to fine tune. Our latest initiative is the introduction of Turners Service & Repairs, which expands
our offer and our customer reach.
12
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
HIGHER
TRANSACTION
MARGINS
SOURCE
SMARTER
MORE
RETAIL CARS
FOR SALE
DIGITAL AUDIENCE
+ BRANCH
EXPANSION
MORE
RETAIL MARKET
SHARE
MORE F&I
OPPORTUNITY
BRAND AWARENESS +
BRANCH NETWORK + DATA
+ DIAGNOSTIC TOOLS
MORE MARGIN = MORE
COMPETITIVE SOURCING
AND SELLING
HIGHER X-SELL
+ MARGINS
BUILDING ‘RETAIL’
MARKET SHARE
SECURE THE RIGHT
CARS AT THE RIGHT
PRICE
SUPPLY + CUSTOMER DATA
BUILDS REACH
.
.
.
y
o
u
r
V
-
d
u
b
w
i
t
h
t
h
e
f
o
w
e
r
,
P
a
d
d
y
G
o
w
e
r
!
13
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
OUR HIGH PERFORMING
BUSINESSES
The value of having a diversified business with a balance of
activity and annuity revenues continues to be a strength,
particularly during difficult times. Auto Retail is our largest
business and provided 70% of revenue and 45% of Turners’
profit in FY25.
■ Auto Retail
■ Finance
■ Insurance
■ Credit Management
SEGMENT REVENUE
SEGMENT NPBT
AUTO RETAIL
Revenue $287.9M 4%
NPBT $29.1M 8%
Strong brand, smart sourcing and operational
agility delivering in tougher markets.
Auto Retail remains our largest division, and
the pressure it faced in the first half was no
small matter. But even in worse conditions
than the GFC, we proved that demand for
used vehicles is resilient. Though margins
were squeezed for a period, our ability to
proactively manage and recover margins in H2
was pleasing.
While Auto Retail revenue and profit were
down year on year, we grew sales volumes and
market share. Total owned unit sales were up
6%, with retail units rising 4% and wholesale
auction units increasing 1%. The Commercial
division saw uplift from more liquidations in
H2.
Margins were under severe pressure in H1
(down 16% YoY) as we had to aggressively
discount to achieve sales volumes.
However, our disciplined approach to stock
management positioned us well for when the
market stabilised.
Turners’ shift from wholesale to retail
continues, as we continue to open new
dealerships. For each additional vehicle sold
through retail (not auction), Turners makes
another ~$1,000 per vehicle. Key to achieving
a higher percentage of retail sales is the
creation of more capacity through our branch
network. We know the combination of a larger
retail presence brings additional opportunities
to source vehicles which will lead to additional
sales.
14
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
We were delighted to open a new commercial
site in Tauranga this year, expand our
Invercargill operations and, in the next three
months, will have three brand new branches in
operation in Christchurch.
We are now entering the next phase of our
ongoing growth push. We have a robust plan
in place to continue the growth of our network
(32 branches as at 30 June 2025).
Our Tina brand refresh and new campaign
launch reflect continued investment in a
proven formula that is delivering strongly. We
have just launched our new Tina from Turners
campaign, bringing to life the “sell us your car”
song we have been playing on the radio over
the last 12 months. Initial feedback has been
very positive and we think we are in a unique
position to be increasing our advertising
spend when others will be pulling back.
Outlook: The benefits of our expanded
network in Christchurch will flow through in H1
FY26. We remain focused on accelerating the
transition from wholesale to retail, although
progress is slower than initially anticipated.
Vehicle pricing has stabilised, and margins
are projected to remain in line with H2 FY25.
Overall, sales volumes are expected to
continue tracking ahead of FY25 levels.
FINANCE
Revenue $68.3M 9%
NPBT $16.0M 31%
Net interest margin expanding, arrears stayed
flat and well below industry. Well positioned
for growth.
Finance was a very strong performer in
FY25. We have continued to maintain our
discipline around credit quality and seen
further improvements in overall lending
quality metrics. Despite challenging economic
conditions, the total ledger increased from
$430m in March 2024 to $447m in March
2025. This growth has come largely from an
increase in consumer lending.
Our controlled lending – directly from Oxford
Finance to consumers and through the Turners
Auto Retail network – was up 8% year on year.
These loans provide more margin and the
arrears perform significantly better on a like
for like basis. The overall finance attach rates
through the Auto Retail business held steady
at 32%.
The ledger’s weighted average interest rate is
13.62% (end of FY25) up from 13.07% year on
year.
It is no surprise that with our focus on bringing
better quality borrowers into the loan book,
our arrears level has materially outperformed
the broader market.
Our net interest margin (NIM
1
) increased
further in H2 FY25 as cost of funds stabilised
and the loan book was repriced. At 5.8%, this
was the highest NIM in three years. We expect
our medium term run rate NIM to consolidate
around 6.0%.
We have been very focused on operational
efficiencies and doing more with less. As a
result, our cost to income ratio has reduced
from 65% to 60%. Along with improved loan
conversion rates – now at 50% - we are well
positioned to enable stronger operating
leverage.
Outlook: Maintaining credit discipline remains
a key priority as we continue to grow. For
FY26, we anticipate solid book growth,
supported by prudent lending practices and
a focus on portfolio quality. We also expect
continued improvement in our interest margin,
reflecting ongoing optimisation of our funding
and pricing strategies.
1
NIM - the difference between what we pay to borrow funds vs what we receive in interest on loans net of origination costs.
15
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
INSURANCE
Revenue $47.6M 3%
NPBT $16.2M 13%
Stable and consistent business, distribution
networks remain strategically important,
digital sales platform gaining momentum.
The Insurance segment is a well-tuned
business with robust policy sales, well
managed claims and improved investment
returns. The business delivered strong profit
growth across all insurance portfolios, with key
distribution partnerships continuing to deliver
significant value.
In particular, our Comprehensive Motor
Insurance portfolio (underwritten by Suncorp
NZ) grew 25% year-on-year, supported by
strong customer acquisition and retention.
We launched our new CONNECT digital
platform, enhancing direct-to-consumer
reach and enabling growth via partners like
MyAutoShop, Quashed, and NZ AA. CONNECT
also supports the intermediated channel
(brokers), with volumes expected to grow as
adoption scales. Our direct-to-consumer offer
targets the 50% of used cars bought and sold
between private individuals. Our focus is now
shifting to optimising product design and
customer experience for this channel.
Claims ratios have come down in the last year
reflecting our effective claims management
and pricing alignment. Scale is also helping
reduce repair costs under our Mechanical
Breakdown Insurance.
Outlook: Our earned premium is holding
up very well and claims ratios are expected
to remain stable. Additional contributions
are expected from recently established
distribution arrangements and the continued
growth of direct sales channels. The motor
vehicle insurance portfolio is projected to
maintain its strong growth trajectory.
CREDIT MANAGEMENT
Revenue $10.3M 5%
NPBT $3.5M 11%
Strong growth in both debt referred and
collected. Economic conditions are a tailwind.
Well positioned for further growth.
The Credit Management business continues
to rebuild from the low point in 2023. As
economic conditions have declined, demand
for credit management services has increased.
While this is particularly in the SME market, we
are also seeing it in corporate load as well.
Higher yielding SME debt load was up 8% in
FY25, while first-referral corporate debt load
was up 52%. Total debts under arrangement
rose 17%, and debt collected increased 12% to
$42m.
We have recently onboarded a major new
corporate customer and are seeing a material
increase in the “first referrer” debt we get from
some of our corporate customers.
We remain conscious of the ongoing pressure
on household budgets and are supporting
debtors with lower repayment amounts and
extended payment arrangements.
Outlook: We expect EC Credit to continue
benefiting from the tailwinds of a challenging
economic environment for at least the next
two to three years. As debt levels rise due to
tightening conditions and increasing consumer
arrears, our payment bank is rebuilding to
support growing demand. In April 2025, we
onboarded a significant new corporate client,
further strengthening our market position.
We remain well positioned to navigate and
capitalise on the next phase of the New
Zealand credit cycle.
16
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
Y
o
u
r
s
i
s
t
e
r
h
a
d
a
p
a
s
h
i
n
i
t
,
t
h
e
r
e
’
s
s
t
i
l
l
a
M
a
c
c
a
’
s
b
a
g
i
n
i
t
.
.
.
17
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
70
65
60
55
50
45
40
35
30
25
20
FY19
Target #1 set in FY21 for FY24, and Target #2 set in FY22 for FY25
FY20FY21FY22FY23FY24FY25FY26FY27FY28
Target
29.029.0
37.0
43.0
45.5
49.1
54.2
65.0
TARGETING $65M PROFIT BY END-FY28
NET PROFIT BEFORE TAX ($M)
DRIVING GROWTH
With Auto Retail now firmly back in growth mode, we have
entered FY26 with strong momentum across all segments.
We are making excellent progress and believe we are well on
track to reach our FY28 target of $65m net profit before tax
earlier than expected.
AUTO RETAIL
■
Focus on domestic sourcing
■
Branch expansion
■
Continued investment in the
brand
■
Retail optimisation (transition
from wholesale auctions to
retail)
FINANCE
■
High quality loan book
growth via premium lending
■
Maintain credit quality/policy
discipline
INSURANCE
■
Grow direct to consumer
offer
■
Expand digital distribution
through partnership strategy
■
Continue to enhance risk
pricing and product features
CREDIT MANAGEMENT
■
Grow by rebuilding the
payment bank as debt load
increases
SERVICING AND REPAIRS
■
Rebrand to Turners
■
Launch to Turners’ customers
■
Build network of mobile vans
FY26 GROWTH MODEL
We are well on the path to
achieving our target of $65 million
profit before tax. Our growth
model is underpinned by five key
areas:
18
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
This financial commentary should be read in conjunction with the full financial statements and Notes
to the Financial Statements in the FY25 Annual Report.
Turners further strengthened its track record of resilience through the cycle by delivering another
record profit and dividend for the financial year to 31 March 2025 (FY25).
FY25 FINANCIAL REVIEW
Management comment
REVENUE
Total revenue decreased by 1% to $414.2
million, with lower Auto Retail sales offset by
revenue growth across all other businesses.
In Auto Retail, the economic downturn and
a tough consumer environment saw a shift
towards lower value vehicles, particularly in
H1 FY25. While sales volumes were higher,
Auto Retail revenue was lower, down 4% to
$287.9m.
Insurance, Finance and Credit Management all
saw revenue increases year on year. Finance
was up 9% to $68.3m, the Insurance segment
was up 3% to $47.6m and Credit Management
increased 5% to $10.3m.
PROFIT
Net profit before tax of $54.3m (up 10%) was
another record for Turners, with three of the
four segments delivering profit growth.
Finance was up 31%, Insurance was up 13%
and Credit Management increased 13%.
Auto Retail profit was down 8%, however,
improved momentum was seen in the second
half as vehicle pricing stabilised and margins
improved, with H2 FY25 profits ahead of the
same period in the previous year.
Net profit after tax was $38.6m, up 17% on
prior year.
DIVIDEND
A final dividend of 9 cents per share (cps)
took annual dividends to a record 29 cps
fully imputed, up 14% on the prior year. This
represents a gross yield of approximately 6.9%
per annum based on a $5.82 share price (as at
31 March 2025).
This year’s dividend represents an 14%
compound average growth rate over the last
11 years, a significant increase from 10 cps in
2015. This demonstrates the resilience of our
business model and the scope for growth that
exists in the sector.
Turner’s Dividend Reinvestment Plan was
active for the final FY25 dividend, giving
shareholders the option of converting their
dividend to shares at a modest discount of 2%.
BALANCE SHEET
Turners’ balance sheet has the capacity to
support the company’s future growth plans.
Inventory levels were down due to faster stock
turn and the acquisition of lower priced cars
to reflect current market demand.
Finance receivables reflect the loan book
growth, however, we continue to prioritise
margin and credit quality.
Property, plant and equipment increased due
to acquisition and development of new sites in
Napier, Tauranga and Christchurch.
Borrowings increased $21m, reflecting
receivables growth and properties which have
been acquired and are being developed.
FUNDING
Turners has a mix of bank loans and
securitisation to fund its business. Around 78%
of funding relates to finance receivables in
Oxford Finance. The banks are very supportive
and we have funding capacity in place to
support current committed branch expansion
plans and to support Oxford lending over the
next 12 months.
19
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
TINA’S ROADTRIP
WATCH IT HERE!
20
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
ON THE ROAD WITH TINA
It’s bold, fun and unmistakably Kiwi. In 2025, Tina from
Turners hit the road—and the screen—again, in the
much-anticipated follow-up to one of New Zealand’s
most successful ad campaigns.
It had been four years since Tina last starred in a new campaign, and we knew it was time to bring
her back with something special. This time, Tina packed her bags (and a few cars) and set off on a
roadtrip across Aotearoa, belting out her iconic tune “Sell Us Your Car” at every stop. The result?
A joyous, toe-tapping music video that celebrates not just cars, but Kiwis, culture, and connection.
From Whangārei to Bluff, the response was incredible. Wherever we stopped, people waved,
smiled, shouted “Cars! Cars! Cars!” or “Beep beep!” from across the road. Kids and adults alike
flocked to Tina for selfies, high-fives, and stories. In small towns and big cities, it was clear—
Tina’s become a household name, and Kiwis feel like she’s one of their own.
The new Tina ad dropped in early May. But for many, the magic began long before the
cameras rolled.
21
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
BUILDING A BETTER
BUSINESS
At Turners, we’re committed to building a better business—
one that creates long-term value for our shareholders
while also caring for our people, our communities, and the
environment we all share.
Our approach to sustainability
focuses on two core pillars, where
we believe we can make the biggest
difference.
We have identified key pathways
and initiatives and are making good
progress on achieving our goals.
As a climate-reporting entity under the
Financial Markets Conduct Act 2013,
Turners Automotive Group during the
past year has focused in particular on
our transition planning. This involved
deepening our understanding of the
risks and opportunities presented by
climate change, identifying potential
early indicators, and developing short
and long-term response strategies.
This proactive approach ensures we
are better prepared for climate-related
changes that may impact our business
in the future.
Additionally, we have further developed
our understanding and the reporting
tools to extend the boundary of our
greenhouse gas emissions inventory
to include emissions from our value
chain (suppliers and customers),
known as Scope 3 emissions. Turners
intends to publish its second Climate
Related Disclosures (including
Scope 3 emissions) at https://www.
turnersautogroup.co.nz/climate-related-
disclosure/ by 31 July 2025.
Supporting the transition of
the New Zealand light vehicle
fleet to a cleaner, lower
emission future.
Enhancing the wellbeing of our
staff, customers, stakeholders
and the communities in which
we operate.
22
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
At Turners, we recognise the critical
role the transport sector plays in New
Zealand’s greenhouse gas emissions.
As the leader in used and end-of-life
vehicle sales, we are able to support the
transition to a cleaner, lower emissions
light vehicle fleet for New Zealand.
We understand that becoming a more
sustainable society will take time. Turners
can play a role in helping people shift
from older, high polluting vehicles to
newer, cleaner options. Over 90% of the
vehicles we sell come from within New
Zealand’s existing fleet. Through our
damaged and end-of-life services, we
significantly contribute to retiring older
high-emitting vehicles.
The growing demand for sustainable
vehicles presents a key opportunity
for Turners. We saw a 46% increase in
our sales of lower emission electric and
hybrid vehicles over the course of the
2025 financial year. This has driven the
segment to 12% of our total light vehicle
sales mix, a significant step up from 8% in
the previous financial year.
We are also monitoring the development
of alternative fuels such as hydrogen,
anticipating they will become more
mainstream in the future.
Our focus is also on targeting the areas
of our operations where we have greatest
control. For example, we are transitioning
our company car fleet to Low Emission
Vehicles (LEVs). At the end of FY25, 74%
of our fleet consisted of LEVs, and we
will continue with this transition through
FY26. We believe that by taking this
measured approach, we will not only
deliver value to our shareholders but also
support our employees, communities, and
the environment.
SUPPORTING THE TRANSITION OF THE NEW
ZEALAND LIGHT VEHICLE FLEET TO
A CLEANER, LOWER EMISSION FUTURE
OUR GOALS
Reduce the estimated annual aggregate
emissions of Turners’ total ‘first time
import’ (FTI) vehicles sold to below
7,000 tonnes of CO2 by FY25
1
In FY25, our FTI emissions were 3,499 tonnes of
CO
2
. Whilst this was a 16% increase over FY24 due to
changes in demand and availability, it represents an
82% reduction from the FY19 base year level.
Increase the proportion of Low Emitting Vehicles in
the Turners Subscription fleet to 50%
2
Turners Subscription ceased operations in December
2024. However, during the nine months it was
operating in FY25, the fleet comprised an average of
61% Low-Emitting Vehicles (LEVs).
Reduce the average emissions from vehicles
financed
1
by 25% by FY25 (from FY19 levels)
By assisting customers in purchasing newer, lower-
emitting cars, we support a reduction in vehicle-
related emissions. Since our FY19 base year, this
measure has shown a year-on-year reduction. In
FY25, the estimated average annual emissions per
vehicle financed showed a 17% reduction from FY19,
with a 0.5% improvement from the previous year.
Reduce absolute operational Scope 1 and 2
emissions by 20% by FY25 (from an FY23 base
year).
We aimed to achieve this by transitioning our
company vehicle fleet to lower-emitting vehicles
over time and identifying opportunities to increase
renewable electricity generation at our premises.
Turners achieved a 5.3% reduction from FY23,
representing a 4% reduction from the previous year.
By March 2025, the proportion of Low-Emitting
Vehicles (LEVs) in the company fleet reached
74%. The bulk of the transition occurred late in the
financial year, therefore the full emission reduction
effects will be reflected in our FY26 metrics.
1
These targets are based solely on CO
2
tailpipe emissions, using carbon emissions data provided by the Energy Efficiency and Conservation Authority
(EECA). As this data set only covers CO
2
emissions, not all Scope 2 or 3 CO
2
e emissions as defined by the Greenhouse Gas Protocol are included. The
data does not incorporate emissions from other greenhouse gases such as methane (CH
4
) or nitrous oxide (N
2
O) and does not account for emissions from
electricity consumption by plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs). Turners has used this data set for a number of
years, as it facilitates a direct match to unique vehicle identification numbers (matching accuracy: First time Imports 99%, Vehicles financed 95%).
2
Low emitting vehicles means Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV) and Battery Electric Vehicle (BEV).
23
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
OUR GOALS
Maintain employee engagement in the top 5% category
Promote a diverse and inclusive culture across the organisation
Having a strong culture and an engaged team is very important to us and
a key advantage for our business. Our people deliver day in day out for
our customers and for our shareholders. They are totally committed and
prepared to go above and beyond.
Turners’ employee engagement level ranks in the top 5% of consumer
businesses who use the Workday Employee Voice tool and our goal is to
maintain this ranking. An indication of this engagement is demonstrated
by a further reduction in our employee turnover rate.
It is important to us that we support our people, both at work through
career development and training opportunities, as well as their mental
and physical wellbeing. We provide our team members with access to
EAP services, which helps them to navigate issues at work or home and
to support their general health and wellbeing. We have promoted this
service heavily again this year and are pleased to see our team take
advantage of this valuable support.
Training and development remains a key focus for us, with a year on year
25% increase in training hours in FY24 and a further 10% increase in FY25.
We were very pleased to fill 83% of our leadership positions internally, up
from 58% the previous year, as our talent management and succession
program ramped up. This doesn’t happen by chance - leadership
capability is a key area of focus for us. In August 2024, 36 of our people
graduated from our Aspiring Leaders Program, taking our total number of
graduates to more than 100 over the past three years.
It was great to see our efforts recognised with the Award of Human
Resources Director 5-star employer of choice for 2025.
ENHANCING THE WELLBEING OF OUR
PEOPLE, CUSTOMERS, STAKEHOLDERS AND
THE COMMUNITIES IN WHICH WE OPERATE
PEOPLE METRICSFY24FY25
Development hours 20,000-plus22,000-plus
Turnover23%21%
Number of sessions accessed through EAP services174171
Notifiable injury/incidentsNilNil
Health and safety reportable injury incidents94108
Employee
Engagement
9.1/10
Diversity &
Inclusion
9.4/10
Health &
Wellbeing
9.1/10
Workforce
Growth
8.9%
24
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
Health, safety and wellbeing means different things
to different folks. So we decided to embrace it all.
It kicked off in 2020, when our engagement survey
gave us a decent 7.9/10 for Health & Wellbeing. But
“decent” wasn’t enough—not with pandemics, wild
weather, and life throwing curveballs. We wanted
our people to feel truly supported and connected.
Enter our Health & Safety Champions. Some
volunteered, some were gently “volun-told,” but
all brought big energy. From company-wide safety
campaigns and SafeTea chats, to online wellness
modules and 10 days of paid new parent leave,
we’ve thrown ourselves into looking after our
people.
And that’s not all. We wanted our people to feel
truly connected, so in 2022 we took things up a
notch with a company-wide D&I program.
Think Diversity Calendar, team-led events, and
celebrations that actually matter to our people.
From Anzac Day to Neurodiversity Week to
emotional Pink Shirt Day storytelling, this wasn’t just
ticking boxes—it was a full-on movement. One with
heart, purpose, and maybe a few happy tears.
We even made diversity and inclusion learning
compulsory for our team, because understanding
each other is at the core of wellbeing.
And the results? Lower turnover. Engagement in the
top 5% globally. Even a finalist nod in the Diversity
Works NZ Awards.
Customers noticed too—joining in on branch events
and soaking up the good vibes. Turns out, a happy
and safe workplace isn’t just good for people. It’s
good for business.
No big budgets. No buzzwords. Just good humans,
hot tea, and the odd pair of pink gumboots.
THE TURNERS WAY:
BIG HEART, NO FUSS, ALL IN
At Turners, we’ve got a bit of a magic mix going on—
customer obsession, high engagement, and a team that
genuinely cares. With 53% of our crew owning shares,
there’s real skin in the game. And it shows.
But we don’t just care about customers—we care about
our people, too.
“You can work for a
company that truly looks
after you, or one that’s
purely focused on numbers
and profit — and Turners is
a company that genuinely
looks after its people.”
Scott Stewart, Sourcing Manager,
Turners Christchurch
25
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
SUPPORTING OUR COMMUNITIES
BACKING BRIGHT FUTURES
At Turners, we’re passionate about backing people with
potential — and we’re thrilled to support Jordan Etei-Michael
as our inaugural First Foundation scholarship recipient.
Jordan, a Year 13 student at De La Salle College, is not
only academically gifted but also deeply engaged in his
community. He plans to be the first in his family to attend
university, aiming for a double degree in Law and Business
(Finance) at the University of Auckland.
His impressive achievements — including receiving the St
Vincent De Paul scholarship in 2023 — are a testament to his
dedication and resilience. Jordan leads his school’s debating
team, tutors younger students in maths and is a proud
member of the Young Vinnies group. Above all, he’s driven by
a desire to be a positive role model for his younger brother
and community.
Through our partnership with First Foundation, we’re proud
to support Jordan’s academic journey and future career.
He’ll begin his work experience with Turners alongside his
university studies — and we couldn’t be more excited to
welcome him to the Turners whānau.
MAKING WISHES COME TRUE – THE TURNERS WAY
What started as a feel-good team-building moment in 2021 -
building bikes for local school kids - has grown into something
far more meaningful. The initiative sparked a powerful
realisation: our people wanted to give back—not just with
donations, but with their time, energy, and heart.
This insight led us to partner nationally
with Make-A-Wish New Zealand, a charity
that helps grant life-changing wishes for
children with critical illnesses. The choice
was a natural fit. It gave every Turners
branch the chance to support a child in
their own community—and to use their
unique skills and resources to make each
wish truly special.
Our first wish came to life in December 2023,
when the Turners team came together to create a backyard
playground for a young boy named Lucas. Since then, we’ve
helped grant 18 wishes and counting, from magical bedroom
makeovers to dream adventures. Every wish is a chance for
our people to work together, give back, and create joy.
The pride our teams feel is immense, and the impact—on the
children, their families, and our own people—is something
you can’t put a price on. Our journey with Make-A-Wish is just
getting started, and we’re all in.
26
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
GIVING IT UP FOR GUT CANCER
Turners is proud to continue its partnership with the Gut
Cancer Foundation, which began in 2021. For the second
year running, our team raised over $50,000 for the
Foundation’s Give It Up campaign, with Turners matching
donations dollar-for-dollar up to $20,000. In total, we’ve
raised over $200,000 since the partnership began — an
effort we’re incredibly proud of.
Give It Up is about more than fundraising. It’s about raising
awareness and supporting the wellbeing of our team
and communities. Our people got behind the cause with
everything from silent auctions, raffles, quiz nights, team
lunches, firewood sales to supporting teammates in races.
We also hosted virtual wellbeing workshops, featuring
nutritional experts Sean Robertson and Chrystie Aston,
who shared insights on how gut health influences digestion,
mood, immunity, metabolism, sleep, and cancer risk.
Together, we’re making a real impact — supporting vital
research, raising awareness, and improving our collective
health.
Give It Up is about more than
fundraising. It’s about raising
awareness and supporting the
wellbeing of our team and
communities.
27
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CELEBRATING OUR PEOPLE
MAIOA VAELOTO
CARS REGIONAL MANAGER, UPPER NORTH ISLAND
Maioa joined Turners in 2014 and has worked his way up from
Operations Assistant to Regional Manager. Now overseeing
Whangarei, North Shore, and Westgate branches (which he
also manages), Maioa’s journey reflects his drive, versatility,
and strong leadership within the Turners whānau.
Known for his hands-on approach, Maioa is always on the
front line, doing everything from selling and buying cars to
grooming and photography.
Outside of work he is a proud husband, dad of two daughters,
an active church member, and a passionate fisherman – known
by his team as the “fish whisperer.” He even met his wife
Tamara at Turners!
DILLON LAMB
CUSTOMER SERVICES MANAGER
Dillon began his journey with Oxford Finance in an entry-level
role and quickly stood out by embracing every development
opportunity, including completing our Aspiring Leaders
programme.
Today, he leads our vital Customer Service team — the
frontline for supporting Oxford customers. He’s also helped
shape the team into a talent pipeline for other areas of the
business like collections, payouts and lending.
His leadership is driven by genuine care for people and a
passion for growth — both his own and his team’s. Many
of those he’s hired have gone on to thrive in new roles
across Oxford, and the team consistently hits high marks in
engagement and performance.
Outside of work, Dillon brings the same drive to his creative
life as a hip hop artist. With a number of albums released,
nationwide tours and an annual community festival he
founded in Foxton, he proves leadership comes in many forms.
“I love the culture, the variety, and the opportunity to grow
–Turners allows me to be myself and do what I love to do...
and it’s a super fun place to work!”
“The term ‘work family’ has a very genuine and sincere
meaning here at Oxford/Turners. ‘We Are One Team’ is a
value that everybody within our office stands beside.”
28
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
TANIA CURTIN
BRANCH MANAGER CHRISTCHURCH DAMAGED VEHICLES
Tania began her Turners journey in 2008 as a receptionist with
no office experience—just a great attitude and a desire to be
part of something bigger. Sixteen years later, she’s Branch
Manager of Christchurch DVA, leading her team and the office
with care, purpose, and pride.
Career highlights include helping lead the 2019 Timaru hail
event response and rebuilding her team during a staffing
shortage—both moments she calls career-defining.
A proud graduate of Turners’ Aspiring Leaders programme
and a finalist in the FY25 Emerging Leader Award, Tania says
she’s proof of what’s possible with the right support.
Outside work, she’s a devoted mum, grandmother, and former
street stock racer—once even beating a TV presenter on What
Now. Now, she enjoys South Island campervan adventures and
time with family.
“I love being part of the Blue family. It’s always been about
the people – our team, our suppliers, customers and also
the many people who have mentored and supported me
through my journey.”
29
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
OUR LEADERSHIP TEAM
TODD HUNTER
Group CEO and Managing
Director
GREG HEDGEPETH
CEO Turners Auto Retail
MATTHEW GANNAWAY
CEO EC Credit Control
AARON SAUNDERS
Group Chief Financial Officer
JAMES SEARLE
Group General Manager
Insurance
MARYANNE BURNS
Group General Manager
People & Culture
JEREMY ROOKE
Group Chief Digital Officer
GUY BRYDEN
CEO Oxford Finance
30
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
TODD HUNTER
Group CEO and Managing Director
Todd is a strong and experienced senior
executive, with a background in marketing,
sales and accounting in both large global and
domestic businesses. Before joining Turners
Auctions in 2006 Todd worked for Microsoft
NZ and Ernst and Young. He was appointed
CEO of NZX listed Turners Auctions in 2013,
and took on the CEO role for the wider Turners
Automotive Group in 2016. In 2023 Todd was
appointed to the Chair role for the Financial
Services Federation, which represents the non-
bank lending industry in NZ. Todd is a chartered
accountant and holds a Bachelor and Diploma of
Commerce from Auckland University.
AARON SAUNDERS
Group Chief Financial Officer
Aaron joined Turners Group NZ in 2006. He
has a strong background in financial and
management accounting, at both a strategic
and operating level in local and international
markets. Over the last 30 years, Aaron has
worked across a broad range of company sizes
and industries including vehicle importation and
distribution, broadcasting and the finance sector.
Aaron is a full member of the New Zealand
Institute of Chartered Accountants
and holds a Bachelor of Commerce from
Auckland University.
GREG HEDGEPETH
CEO Turners Auto Retail
Greg joined Turners in 2017 as CEO of the Auto
Retail division, with responsibility for Turners
Cars, Trucks & Machinery and the Damaged
& End of Life business. He is an experienced
automotive executive that has previously held
a number of senior roles in both OEM and retail
organisations. With a Bachelor of Commerce
majoring in marketing from Auckland University
he has successfully completed numerous
marketing roles, followed by a number of years
working for Saatchi & Saatchi in NZ and other
advertising agencies overseas. Greg brings a
customer focused, strategic sales and marketing
focus to his current role.
JAMES SEARLE
Group General Manager Insurance
James is responsible for the sustainable and
profitable growth of DPL Insurance, leading
the company’s focus on delivering outstanding
outcomes for customers.
With over 35 years of experience in the New
Zealand insurance industry, James has held
various roles encompassing all aspects of
insurance, including sales and underwriting,
intermediated distribution management,
as well as managing several portfolio
acquisitions. He joined Turners Automotive
Group in 2011 and holds a Diploma of Business
(Marketing) from Auckland University.
JEREMY ROOKE
Group Chief Digital Officer
Jeremy joined Turners Automotive Group in
2009. His current role involves leading the
operation of our group technology services
and product functions, as well as leading
the adoption of new technologies, business
models, and channels to transform Turners’
digital capabilities. Jeremy brings almost 25
years of experience, including several large
transformational technology programmes
across NZ and Australia prior to Turners. Jeremy
holds degrees in Law and Arts from Auckland
University.
MATTHEW GANNAWAY
CEO EC Credit Control
Since joining EC Credit Control in 2003, Matt
Gannaway has built a rich and varied career
across multiple facets of the business. His
journey through diverse roles has equipped him
with a deep understanding of the company’s
operations, culminating in his appointment as
Chief Executive Officer in 2021. Matt holds a
business degree from Massey University and
is known for his forward-thinking approach,
particularly in leveraging technology to drive
innovation and deliver better outcomes for
clients and teams alike. With over two decades
of experience in the credit management industry,
he brings a wealth of expertise, strategic insight,
and a commitment to excellence that continues
to shape the future of EC Credit Control.
GUY BRYDEN
CEO Oxford Finance
Guy joined Oxford Finance in 2018 as Finance
Manager, later becoming COO in 2020, and
ultimately CEO in 2024. Guy is a strong finance
professional, with over a decade of banking
and finance experience across the NZ and
UK markets prior to joining Turners. Guy is a
chartered accountant and holds a Bachelor of
Commerce from Otago University.
MARYANNE BURNS
Group General Manager People & Culture
Maryanne joined Turners in 2019. She has 20
years of experience as a Human Resources
Professional in a broad range of industries
in New Zealand. These include automotive,
financial services, insurance, environmental
solutions, importation and distribution.
Maryanne has led multiple transformational
people projects across a number of businesses.
31
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
OUR BOARD
Turners is governed by a Board of directors who are
passionate about the business and the industry.
Turners currently has Directors with hands on experience
in the finance, insurance and debt management sectors
as well as Directors with expertise in governance and
very diverse experience and entrepreneurial skills in sales,
digital marketing and communications and business
growth. As at 31 March 2025, the Board comprised of
six directors including a non-executive chairman, three
independent directors and two non-executive directors.
In May 2025, we were pleased to welcome Group CEO
Todd Hunter to the Board as an executive director. Todd
has been with the company for nearly 20 years and has
led the business as CEO since 2016. His appointment to
the Board reflects our commitment to strong, future-
focused governance. His deep operational insight and
leadership experience bring valuable perspective to
board discussions, ensuring strong alignment between
management and the Board, and reinforcing our long-
term succession and continuity plans.
With a Board that balances independence, expertise,
and industry experience, we remain committed to sound
governance practices that support Turners’ strategy and
performance for the long haul.
Profiles on each Director are available at
https://www.turnersautogroup.co.nz/about/.
GRANT BAKER
Non-executive Chairman
Appointed September 2009
MATTHEW HARRISON
Non-executive Director
Appointed December 2012
32
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
ALISTAIR PETRIE
Non-executive Director
Appointed February 2016
ANTONY VRIENS
Independent Director
Appointed January 2015
JOHN ROBERTS
Independent Director
Appointed July 2015
LAUREN QUAINTANCE
Independent Director
Appointed April 2023
33
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
34
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
36 Independent Auditor’s Report
41 Consolidated Statement of Comprehensive Income
42 Consolidated Statement of Changes in Equity
43 Consolidated Statement of Financial Position
44 Consolidated Statement of Cash Flors
45 Notes to the Financial Statements
35
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
36
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
INDEPENDENT AUDITOR’S REPORT
for the year ended 31 March 2025
Level 9, 45 Queen Street, Auckland 1010 T: +64 9 309 0463
PO Box 3899, Auckland 1140 E: auckland@bakertillysr.nz
New Zealand W: www.bakertillysr.nz
36
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of Turners Automotive Group Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Turners Automotive Group Limited and its subsidiaries
('the Group') on pages 41 to 76, which comprise the consolidated statement of financial position as at 31 March 2025,
and the consolidated statement of comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements,
including material accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at 31 March 2025, and its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with New Zealand Equivalents to International
Financial Reporting Standards ('NZ IFRS') and International Financial Reporting Standards ('IFRS').
Our report is made solely to the Shareholders of the Group. Our audit work has been undertaken so that we might
state to the Shareholders of the Group those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the Shareholders of the Group as a body, for our audit work, for our report or for the opinions we have formed.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) ('ISAs (NZ)'). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report. We are independent of the Group in accordance with
Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and
the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor and provider of other assurance services, we have no relationship with, or
interests in, Turners Automotive Group Limited or any of its subsidiaries. During the year ended 31 March 2025, our
network firm in Melbourne, Australia, Pitcher Partners also carried out a one-off tax compliance service relating to the
Group’s Australian subsidiary’s employer tax compliance. The provision of other services has not impaired our
independence.
In addition to this, principals, and employees of our firm deal with the Group on normal terms within the ordinary
course of trading activities of the business of the Group. This has not impaired our independence.
Level 9, 45 Queen Street, Auckland 1010 T: +64 9 309 0463
PO Box 3899, Auckland 1140 E: auckland@bakertillysr.nz
New Zealand W: www.bakertillysr.nz
36
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of Turners Automotive Group Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Turners Automotive Group Limited and its subsidiaries
('the Group') on pages 41 to 76, which comprise the consolidated statement of financial position as at 31 March 2025,
and the consolidated statement of comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements,
including material accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at 31 March 2025, and its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with New Zealand Equivalents to International
Financial Reporting Standards ('NZ IFRS') and International Financial Reporting Standards ('IFRS').
Our report is made solely to the Shareholders of the Group. Our audit work has been undertaken so that we might
state to the Shareholders of the Group those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the Shareholders of the Group as a body, for our audit work, for our report or for the opinions we have formed.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) ('ISAs (NZ)'). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report. We are independent of the Group in accordance with
Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and
the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor and provider of other assurance services, we have no relationship with, or
interests in, Turners Automotive Group Limited or any of its subsidiaries. During the year ended 31 March 2025, our
network firm in Melbourne, Australia, Pitcher Partners also carried out a one-off tax compliance service relating to the
Group’s Australian subsidiary’s employer tax compliance. The provision of other services has not impaired our
independence.
In addition to this, principals, and employees of our firm deal with the Group on normal terms within the ordinary
course of trading activities of the business of the Group. This has not impaired our independence.
37
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
INDEPENDENT AUDITOR’S REPORT cont.
for the year ended 31 March 2025
37
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current year. These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key Audit Matter How our audit addressed the key audit matter
Impairment of Goodwill and Other
Indefinite Life Intangible Assets
As disclosed in Note 7 of the
Group’s consolidated financial
statements the Group has goodwill
of $92.5m allocated across four of
the Group’s cash-generating units
(‘CGUs’) and brand assets of
$67.1m allocated across two of
those CGUs.
Goodwill and brand assets were
significant to our audit due to the
size of the assets and the
subjectivity, complexity and
uncertainty inherent in the
measurement of the recoverable
amount of these CGUs for the
purpose of the required annual
impairment test. The measurement
of a CGUs recoverable amount
includes the assessment and
calculation of its ‘value in-use’.
Management has completed the
annual impairment test for each of
these four CGUs as at 31 March
2025.
This annual impairment test
involves complex and subjective
estimation and judgement by
Management on the future
performance of the CGUs, discount
rates applied to the future cash
flow forecasts, the terminal growth
rates, and future market and
economic conditions.
Management has also engaged an
external valuation expert to assist
in the annual impairment testing of
the four CGUs.
Our audit procedures among others included:
• Understanding and evaluating the Group’s internal controls relevant to the
accounting estimates used to determine the recoverable value of the Group’s
CGUs.
• Evaluating Management’s determination of the Group’s four CGUs based on our
understanding of the nature of the Group’s business and the economic
environment in which the CGUs operate. We also analysed the internal reporting of
the Group to assess how the CGUs are monitored and reported.
• Evaluating the competence, capabilities, objectivity and expertise of Management's
external valuation expert and the appropriateness of the expert's work as audit
evidence for the relevant assertions.
• Challenging Management’s assumptions and estimates used to determine the
recoverable value of its indefinite life intangible assets, including those relating to
forecasted revenue, cost, capital expenditure and discount rates, by adjusting for
future events and corroborating the key market related assumptions to external
data in accordance with NZ IAS 36 Impairment of Assets.
Procedures included:
o Evaluating the logic of the value-in-use calculations supporting Management’s
annual impairment test and testing the mathematical accuracy of these
calculations;
o Evaluating Management’s process regarding the preparation and review of
forecasts;
o Comparing forecasts to Board approved forecasts;
o Evaluating the historical accuracy of the Group’s forecasting to actual
historical performance;
o Challenging and evaluating the forecast growth assumptions;
o Evaluating the inputs to the calculation of the discount rates applied;
o Engaging our own internal valuation experts to evaluate the logic of the value-
in-use calculation and the inputs to the calculation of the discount rates
applied;
o Evaluating the forecasts, inputs and any underlying assumptions with a view
to identifying Management bias;
o Evaluating Management’s sensitivity analysis for reasonably possible
changes in key assumptions; and
o Performing our own sensitivity analysis for reasonably possible changes in
key assumptions, the two main assumptions being: the discount rate and
forecast growth assumptions.
• Evaluating the related disclosures (including the material accounting policy
information and accounting estimates) about indefinite life intangible assets which
are included in Note 7 in the Group’s consolidated financial statements.
38
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
INDEPENDENT AUDITOR’S REPORT cont.
for the year ended 31 March 2025
38
Key Audit Matter How our audit addressed the key audit matter
Valuation of Finance Receivables
As disclosed in Note 4 of the
Group’s consolidated financial
statements, the Group has finance
receivable assets of $447.2m.
Finance receivable assets were
significant to our audit due to the
size of the assets and the
subjectivity, complexity and
uncertainty inherent in the
recognition of expected credit
losses and the amount of those
expected credit losses.
Management has prepared
expected credit loss models to
complete its assessment of
expected credit losses for the
Group’s finance receivables as at
31 March 2025 (including an
economic overlay of $1.9m).
This assessment involves complex
and subjective estimation and
judgement by Management on
credit risk and the future cash
flows of the finance receivables.
Our audit procedures among others included:
•Understanding and evaluating the Group’s internal controls relevant to the
accounting estimates used to determine the recoverable value of the Group’s
finance receivables.
•Evaluating the design and operating effectiveness of the key controls over finance
receivable origination, ongoing administration and expected credit losses
impairment model data and calculations.
•Evaluating and challenging the logic, key assumptions, and calculation of
Management’s expected credit losses provision for impairment for each finance
receivable, examining those finance receivables and forming our own judgements
as to whether the expected credit losses provision for impairment recognised by
Management is appropriate.
Procedures included:
oAgreeing a representative sample of finance receivables to the signed loan
agreement and client acceptance documents;
oInspecting security documentation to ensure that the Group holds a valid
charge on security;
oEvaluating the logic of the discounted cash flow calculations supporting
Management’s expected credit losses provision for impairment and testing
the mathematical accuracy of these calculations;
oEvaluating the key assumptions and inputs into these discounted cash flow
calculations;
oEvaluating and challenging Management’s sensitivity analysis’ for reasonably
possible changes in key assumptions and inputs into the discounted cash
flow calculations; and
oInspecting the borrowers' payment history for indicators of difficulties in the
borrowers' ability to meet the loan obligations.
•Evaluating the selection of estimation methods, inputs and any underlying
assumptions with a view to identifying Management bias.
•For individually assessed finance receivables, examining those finance receivables
and forming our own judgements as to whether the expected credit losses
provision recognised by Management was appropriate.
•For the collectively-assessed finance receivables, challenging and evaluating the
logic of Management’s expected credit losses models and the key assumptions
used with our own experience. Also, testing key inputs used in the expected credit
losses models and the mathematical accuracy of the calculations within the
models.
•Evaluating the changes made to the provisioning model to capture the effect of the
changing economic environment at 31 March 2025 compared to the economic
environment at the date when the historical data used to determine the expected
credit losses was collected (described in Note 4 to the Group’s consolidated
financial statements).
•Evaluating the related disclosures (including the material accounting policy
information and accounting estimates) about finance receivable assets, and the
risks attached to them, which are included in Note 4 and 12 in the Group’s
consolidated financial statements.
39
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
INDEPENDENT AUDITOR’S REPORT cont.
for the year ended 31 March 2025
39
Key Audit Matter How our audit addressed the key audit matter
Valuation and completeness of
Insurance Contract Liabilities
As disclosed in Note 9 of the
Group’s consolidated financial
statements the Group has
insurance contract liabilities of
$61.9m.
The Group’s insurance contract
liabilities were significant to our
audit due to the size of the
liabilities and the subjectivity,
complexity and uncertainty
inherent in estimating the impact
of claims events that have
occurred but for which the eventual
outcome remains uncertain.
Management has engaged an
external actuarial expert to
estimate the Group’s insurance
contract liabilities as at 31 March
2025.
Our audit procedures among others included:
• Understanding and evaluating the Group’s internal controls relevant to the
accounting estimates used to determine the valuation of the Group’s insurance
policyholder liabilities.
• Evaluating the design and operating effectiveness of the key controls over
insurance contract origination, ongoing administration, claims management and
reporting and the integrity of the related data.
• Evaluating the competence, capabilities, objectivity and expertise of Management's
external actuarial expert and the appropriateness of the expert's work as audit
evidence for the relevant assertions.
• Agreeing the data provided to Management's external actuarial expert to the
Group’s records.
• Engaging our own actuarial expert to assist in understanding and evaluating:
o the work and findings of the Group’s external actuarial expert engaged by
Management; and
o the Group’s actuarial methods and assumptions to assist us in challenging
the appropriateness of actuarial methods and assumptions used by
Management.
• Evaluating the selection of methods and assumptions with a view to identifying
Management bias.
• Evaluating the related disclosures (including the material accounting policy
information and accounting estimates) about insurance contract liabilities, and the
risks attached to them, which are included in Note 9 in the Group’s consolidated
financial statements.
Other Information
The Directors are responsible for the other information. The other information comprises the information included in
the Group’s annual report for the year ended 31 March 2025 (but does not include the consolidated financial
statements and our auditor’s report thereon).
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed , we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated
financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the Directors determine
is necessary to enable the preparation of the consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
40
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
INDEPENDENT AUDITOR’S REPORT cont.
for the year ended 31 March 2025
40
Responsibilities of the Directors for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated
financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the Directors determine
is necessary to enable the preparation of the consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible on behalf of the Group for assessing
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the consolidated financial statements is located
at the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
The engagement partner on the audit resulting in this independent auditor’s report is S N Patel.
BAKER TILLY STAPLES RODWAY AUCKLAND
Auckland, New Zealand
24 June 2025
41
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2025
Turners Automotive Group Limited
Consolidated statement of comprehensive income for the year ended 31 March 2025
41
2025
2024
Notes
$’000
$’000
Revenue
3.1
412,904
416,145
Other income
3.1
1,263
823
Cost of goods sold
(167,501)
(177,175)
Interest expense
3.2
(27,451)
(27,842)
Impairment provision expense
3.2
(4,649)
(4,616)
Subcontracted services expense
(15,757)
(15,466)
Employee benefits
(68,065)
(66,365)
Commission
(10,817)
(11,070)
Advertising expense
(6,408)
(5,650)
Depreciation and amortisation expense
3.2
(11,651)
(11,968)
Systems maintenance
(5,517)
(5,384)
Claims
(21,231)
(21,901)
Other expenses
(20,654)
(20,392)
Profit before share of equity accounted loss
54,466
49,139
Share of loss of equity-accounted investee, net of tax
11.8
(192)
-
Profit before taxation
54,274
49,139
Taxation expense
11.1
(15,687)
(16,173)
Profit for the year
38,587
32,966
Other comprehensive loss for the year (which may subsequently be reclassified
to profit/loss), net of tax
Cash flow hedges
(5,444)
(4,118)
Revaluation of financial assets at fair value through OCI
(157)
(73)
Foreign currency translation differences
(7)
21
Total other comprehensive loss
(5,608)
(4,170)
Total comprehensive income for the year
32,979
28,796
Earnings per share (cents per share)
Basic earnings per share
10.5
43.37
37.71
Diluted earnings per share
10.5
43.32
37.61
The accompanying notes from part of these financial statements
42
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
The accompanying notes form part of these financial statements
Turners Automotive Group Limited
Consolidated statement of changes in equity for the year ended 31 March 2025
42
Revaluation
of financial
assets at
fair value Cash
Share Share Translation through flow Retained
capital options reserve OCI hedge earnings Total
Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000
Balance at 31 March 2023
207,076 284 (39) (1,176) 5,892 58,376 270,413
Transactions with shareholders in their capacity as owners
Dividend reinvestment plan
5,134 - - - - - 5,134
Employee share-based payments 10.3 1,012 (41) - - - - 971
Dividend paid 10.4 - - - - - (27,090) (27,090)
Total transactions with shareholders in their capacity as owners 6,146 (41) - - - (27,090) (20,985)
Comprehensive income
Profit
- - - - - 32,966 32,966
Other comprehensive income/(loss)
- - 21 (73) (4,118) - (4,170)
Total comprehensive income for the year, net of tax - - 21 (73) (4,118) 32,966 28,796
Balance at 31 March 2024 213,222 243 (18) (1,249) 1,774 64,252 278,224
Transactions with shareholders in their capacity as
owners
Dividend reinvestment plan
4,518 - - - - - 4,518
Employee share-based payments 10.3 1,174 (181) - - - - 993
Dividend paid/payable 10.4 - - - - - (18,221) (18,221)
Total transactions with shareholders in their capacity as owners 5,692 (181) - - - (18,221) (12,710)
Comprehensive income
Profit
- - - - - 38,587 38,587
Other comprehensive income/(loss)
- - (7) (157) (5,444) - (5,608)
Total comprehensive income for the year, net of tax - - (7) (157) (5,444) 38,587 32,979
Balance at 31 March 2025 218,914 62 (25) (1,406) (3,670) 84,618 298,493
The accompanying notes from part of these financial statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2025
43
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
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
The accompanying notes form part of these financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
for the year ended 31 March 2025
Turners Automotive Group Limited
Consolidated statement of financial position as at 31 March 2025
43
2025
2024
Notes
$’000
$’000
Assets
Cash and cash equivalents
11.2
22,039
17,523
Financial assets at fair value through profit or loss
11.3
79,463
69,558
Trade receivables
11.4
7,533
7,277
Inventories
11.5
22,189
25,051
Finance receivables
4
447,218
430,299
Other receivables, deferred expenses and contract assets
11.6
13,983
13,782
Derivative financial instruments
-
1,774
Financial assets at fair value through OCI
1,000
157
Reverse annuity mortgages
11.7
1,429
2,489
Property, plant and equipment
5
137,715
113,948
Right-of-use assets
6
18,720
20,716
Investment in associate
11.8
3,158
-
Intangible assets
7
163,325
163,084
Total assets
917,772
865,658
Liabilities
Other payables
11.9
56,001
48,352
Contract liabilities
11.10
967
1,297
Tax payables
7,004
5,183
Deferred tax
11.1
14,493
15,037
Derivative financial instruments
3,673
-
Borrowings
8
446,059
425,318
Lease liabilities
6
22,120
24,924
Life investment contract liabilities
12.3.1
7,062
7,188
Insurance contract liabilities
9
61,900
60,135
Total liabilities
619,279
587,434
Shareholders’ equity
Share capital
10
218,914
213,222
Other reserves
(5,039)
750
Retained earnings
84,618
64,252
Total shareholders’ equity
298,493
278,224
Total shareholders’ equity and liabilities
917,772
865,658
For and on behalf of the Board
G.K. Baker
Director
J.A. Roberts
Director
Authorised for issue on 24 June 2025
The accompanying notes from part of these financial statements
44
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
The accompanying notes form part of these financial statements
Turners Automotive Group Limited
Consolidated statement of cash flows for the year ended 31 March 2025
44
2025
2024
Notes
$’000
$’000
Cash flows from operating activities
Interest received
62,809
56,183
Receipts from customers
351,345
359,265
Receipt of government subsidies
-
13
Interest paid - borrowings
(25,058)
(25,954)
Interest paid - lease liabilities
(1,451)
(1,483)
Payment to suppliers and employees
(310,506)
(330,265)
Income tax paid
(14,596)
(15,259)
Net cash outflow from operating activities before changes in operating assets
and liabilities 62,543
42,500
Net increase in finance receivables
(20,062)
(11,117)
Net decrease in reverse annuity mortgages
1,237
673
Net increase of financial assets at fair value through profit or loss
(9,737)
(2,293)
Net withdrawals from life investment contracts
(21)
(92)
Changes in operating assets and liabilities arising from cash flow movements (28,583)
(12,829)
Net cash (outflow)/inflow from operating activities
11.13
33,960
29,671
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and intangibles
6,456
3,180
Purchase of property, plant, equipment and intangibles
(32,897)
(18,641)
Purchase of investments
(4,350)
-
Sale of investments
-
5,526
Net cash outflow from investing activities
(30,791)
(9,935)
Cash flows from financing activities
Net bank loan advances
20,741
13,283
Principal elements of lease payments
(6,676)
(6,303)
Proceeds from the issue of shares
985
918
Dividend paid
(13,703)
(21,956)
Net cash inflow/(outflow) from financing activities
1,347
(14,058)
Net movement in cash and cash equivalents
4,516
5,678
Add opening cash and cash equivalents
17,523
11,845
Closing cash and cash equivalents
22,039
17,523
Represented By:
Cash at bank
11.2
22,039
17,523
Closing cash and cash equivalents
22,039
17,523
The accompanying notes from part of these financial statements
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 March 2025
45
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
45
1. GENERAL INFORMATION
1.1 Basis of Preparation
Reporting Entity
The consolidated financial statements are for Turners Automotive Group Limited and its subsidiaries (together ‘the Group’).
The Group's principal activities are:
Auto retail (secondhand vehicle retailer)
Finance and insurance (loans and insurance products); and
Credit management (collection services).
Statutory Basis and Statement of Compliance
Turners Automotive Group Limited, ('the Company') is incorporated and domiciled in New Zealand. The Company is registered under the
Companies Act 1993 and is an FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013. The Company is listed on
the NZX Main Board (‘NZX’). The consolidated financial statements have been prepared in accordance with the requirements of the NZX
and Part 7 of the Financial Conducts Act 2013.
These financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand ('NZ GAAP').
They comply with New Zealand Equivalents to International Financial Reporting Standards ('NZ IFRS') and other applicable Financial
Reporting Standards, as appropriate for for-profit entities. These financial statements also comply with International Financial Reporting
Standards ('IFRS'). The Group is a Tier 1 for-profit entity in accordance with XRB A1 Application of the Accounting Standards Framework.
The consolidated statement of financial position for the Group is presented on a liquidity basis where the assets and liabilities are presented
in the order of their liquidity. Due to the diverse nature of the Group’s activities presentation on the liquidity basis gives a clearer
representation of the financial position of the Group.
Functional and Presentation Currency
These financial statements are presented in New Zealand Dollars ($) which is the Company's functional currency. All values are rounded to
the nearest thousand ($000), except when otherwise indicated.
Basis of measurement
The financial report has been prepared under the historical cost convention, as modified by revaluations for certain classes of assets and
liabilities to fair value and life insurance contract liabilities and related assets to net present value as described in the accounting policies.
Key Accounting Estimates and Judgements
The Board and management are required to make judgements, estimates and assumptions about the carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised and in any future periods affected. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the consolidated financial statements are described in the following notes:
Fair value measurement (note 1.2.1);
Provision for impairment of finance receivables (note 4);
Right-of-use assets and lease liabilities – determining lease term (note 6);
Impairment of goodwill and corporate brands (note 7); and
Liabilities arising under insurance contracts (note 9).
Climate related risks
As part of its risk management framework the Group continues to monitor its exposure to risk, including climate related risk and related
regulatory reporting requirements. In July 2024 the Group released is its first Climate-Related Disclosure Report which included the risk
management processes for managing climate-related risks. The identified climate-related risk and opportunities including both physical and
transitional have been considered as part of the above critical accounting judgements and estimates.
New and Amended Accounting Standards and Interpretations
All mandatory new and amended standards and interpretations have been adopted in the current year. The new and amended standards
and interpretations that have had an impact on the Group have been described below. The Group has not adopted any new standards,
amendments or interpretations to existing standards that are not yet effective.
Classification of Liabilities as Current or Non-Current and Non-Current Liabilities with Covenants
The Group has adopted Classification of Liabilities as Current or Non-Current (Amendments to NZ IAS 1) and Non-Current liabilities with
Covenants amendments (Amendments to NZ IAS 1) from 1 April 2024. The amendments apply retrospectively and clarify certain
requirements for determining whether a liability should be classified as current or non-current and require new disclosures for non-current
loan liabilities that are subject to covenants within 12 months after reporting date.
The Group has adopted this new amendment for the financial reporting period beginning 1 April 2024. The adoption of this new s
tandard did
not have a financial impact on the Group’s financial statements or the accounting estimates disclosed in the Group’s financial statements
except for minor disclosure amendments. The Group’s balance sheet is presented based on liquidity; however, the classification of
borrowings between current and non-current has been disclosed in Note 8.2 to the financial statements.
Accounting Standards issued but not yet effective
A number of new accounting standards are effective for annual reporting periods beginning after 1 January 2024 and earlier application is
permitted. The Group has not early adopted the following new or amended accounting standards in preparing these consolidated financial
The accompanying notes form part of these financial statements
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
46
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
46
statements.
NZ IFRS 18 Presentation and Disclosure in Financial Statements (NZ IFRS 18)
NZ IFRS 18 Presentation and Disclosure in Financial Statements (NZ IFRS 18) will replace IAS 1 Presentation of Financial Statements and
applies for annual reporting periods beginning on or after 1 January 2027. The new standard introduces the following key new requirements.
Entities are required to classify all income and expenses into five categories in the statement of profit or loss, namely the operating,
investing, financing, discontinued operations and income tax categories. Entities are also required to present a newly-defined operating
profit subtotal. Entities’ net profit will not change.
Management-defined performance measures (MPMs) are disclosed in a single note in the financial statements.
Enhanced guidance is provided on how to group information in the financial statements.
In addition, all entities are required to use the operating profit subtotal as the starting point for the statement of cash flows when presenting
operating cash flows under the indirect method. The Group is still in the process of assessing the impact of the new standard, particularly
with respect to the structure of the Group’s statement of profit or loss, the statement of cash flows and the additional disclosures required for
MPMs.
The Group is also assessing the impact on how information is grouped in the financial statements, including items currently labelled as
‘other.’
Other accounting standards.
There are a number of other new and amended accounting standards issued but not yet effective. These are not expected to have a
significant impact on the Group’s consolidated financial statements.
None of the other new and amendments to standards and interpretations are expected to have a material impact on the Group.
1.2 Material Accounting Policy Information
Material accounting policies which are relevant to understanding the consolidated financial statements are disclosed in each of the
applicable notes. They have been applied on a consistent basis across all periods presented in these consolidated financial statements.
Two other relevant policies are provided as follows:
1.2.1 Fair Value Measurement
Accounting policy information
For financial reporting purposes, 'fair value' is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly
transaction between market participants (under current market conditions) at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique.
When estimating the fair value of an asset or liability, the Group uses valuation techniques that are appropriate in the circumstances and for
which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs. Input to valuation techniques used to measure fair value are categorised into three levels according to the extent to
which the inputs are observable:
Level 1 the fair value is calculated using quoted prices in active markets.
Level 2 the fair value is estimated using inputs other than quoted prices in level 1 that are observable for the assets or liabilities, either
directly (as prices) or indirectly (derived from prices).
Level 3 the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
Further information about assumptions made in measuring fair values is included in note 12.5.
1.2.2 Derivative financial instruments
The Group enters derivative financial instruments (interest rate swaps and foreign exchange contracts) to manage its exposure to interest
rate and foreign exchange rate risks.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair
value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and
effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge
relationship.
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is recognised as a
financial liability. Derivatives are not offset in the financial statements unless the Group has both legal right and intention to offset.
A derivative is presented as a non‑current asset or a non‑current liability if the remaining maturity of the instrument is more than 12 months
and it is not expected to be realised or settled within 12 months. Other derivatives are presented as current assets or current liabilities.
Hedge accounting
The Group designates certain derivatives as hedging instruments in respect of foreign currency and interest rate risk in cash flow hedges.
Further information about assumptions made in measuring the fair value of financial derivatives is included in note 12.5.
47
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
47
2. SEGMENT INFORMATION
Management has determined the operating segments based on the components of Turners Automotive Group Limited and its subsidiaries
(‘the Group’) that engage in business activities, which have discrete financial information available and whose operating results are reg
ularly
reviewed by the Group's chief operating decision maker. The chief operating decision maker has been identified as the Board of Directors.
The Board of Directors makes decisions about how resources are allocated to the segments and assesses their performance.
Geographically the Group's business activities are in New Zealand and Australia.
Five reportable segments have been identified as follows:
Auto retail - remarketing (motor vehicles, trucks, heavy machinery and commercial goods) and purchasing goods for sale.
Finance - provides asset-based finance to consumers and SME's.
Insurance - marketing and administration of a range of life and consumer insurance products.
Credit management - collection services, credit management and debt recovery services to the corporate and SME sectors.
Geographically the collections services segment business activities are in New Zealand and Australia.
Corporate & other - corporate centre.
Revenue
Total Inter-segment Customer
Total Inter-segment Customer
2025 2025 2025
2024 2024 2024
$’000 $’000 $’000
$’000 $’000 $’000
Auto retail
290,166 (2,299) 287,867 300,366 (1,750) 298,616
Finance
68,312 - 68,312 62,416 - 62,416
Insurance
49,260 (1,714) 47,546 47,838 (1,765) 46,073
Credit management
10,291 - 10,291 9,794 (10) 9,784
Corporate & other
151 - 151 79 - 79
418,180 (4,013) 414,167 420,493 (3,525) 416,968
Revenue from external customers reported to the Board of Directors is measured on the same basis as revenue reported in the profit of
loss. Inter-segment transactions are done on an arm’s length basis. The Group has no customers representing 10% or more of the Group's
revenues.
Operating profit
2025
2024
$’000
$’000
Auto retail
29,124
31,807
Finance
16,009
12,228
Insurance
16,167
14,287
Credit management
3,454
3,121
Corporate & other
(10,288)
(12,304)
Profit before share of equity accounted
loss
54,466
49,139
Share of loss of equity-accounted investee, net to tax
(192)
-
Profit before taxation
54,274
49,139
Income tax
(15,687)
(16,173)
Net profit attributable to shareholders
38,587
32,966
Depreciation and
Interest revenue Interest expense amortisation expense
2025
2024
2025
2024
2025
2024
$’000
$’000
$’000
$’000
$’000
$’000
Auto retail
668
687
(3,482)
(3,583)
(9,510)
(9,700)
Finance
59,704
54,551
(19,659)
(18,399)
(824)
(775)
Insurance
4,033
3,505
(37)
(50)
(950)
(1,173)
Credit management
59
5
(37)
(9)
(202)
(162)
Corporate & other
87
31
(4,469)
(6,174)
(165)
(158)
64,551
58,779
(27,684)
(28,215)
(11,651)
(11,968)
Eliminations
(233) (373) 233
373
-
-
64,318
58,406
(27,451)
(27,842)
(11,651)
(11,968)
Other material non-cash items
2025
2024
$'000
$'000
Finance - impairment provisions
(4,649)
(4,562)
48
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
48
Segment assets and liabilities
Assets Liabilities
2025
2024
2025
2024
$’000
$’000
$’000
$’000
Auto retail
190,668
163,917 169,220 143,360
Finance
475,283
457,041
365,351 341,668
Insurance
159,184
151,002
82,343 80,008
Credit management
27,362
35,432 2,536 3,083
Corporate & other
275,056
255,178 100,506 100,562
1,127,553
1,062,570
719,956
668,681
Eliminations
(209,781)
(196,912)
(100,677)
(81,247)
917,772
865,658
619,279
587,434
Acquisition of property, plant & equipment, intangible assets and other non-current assets
2025
2024
$’000
$’000
Auto retail
32,389
17,884
Finance
372
579
Insurance
104
84
Credit management
26
50
Corporate &
other
27
2
32,918
18,599
Eliminations
-
-
32,918
18,599
3. OPERATING PERFORMANCE
3.1 Revenue
Accounting policy information
(i) Revenue from material contracts with customers
Sales of goods
Sales of goods comprise sales of motor vehicles and commercial goods owned by the Group. Sales of goods are recognised when the
customer gains control of the goods and the sole performance obligation is met. This normally occurs on full payment or approval of
financing.
Sales‑related warranties associated with goods cannot be purchased separately and they serve as an assurance that the products sold
comply with agreed‑upon specifications and cover the standard period established by legislation. There is no material amount of variable
consideration under these contracts nor is there the existence of a significant financing component.
Sales of service
Auction commission is recognised at a point in time in the accounting period in which the service is rendered. Payment for services is
normally deducted from the proceeds from the sale. Other than those provided by legislation, no warranties are provided by the Group.
There is no material amount of variable consideration under these contracts nor is there the existence of a significant financing component.
Other sales revenue comprises services rendered preparing the assets for sale and commission earned on the sale of third-party products.
Services rendered while preparing the assets for sale are recognised over time in which the service is rendered, and a contract asset is
recognised for amounts relating to services rendered not yet invoiced. Payment for services rendered is either deducted from the proceeds
from the sale or raised as a trade receivable. Other than those provided by legislation, no warranties are provided by the Group. There are
no rebates or volume discounts. Commissions earned on the sale of third-party products are recognised at a point in time when the sale is
made. Payment is usually received when the sale is made.
(ii) Finance Receivables
Interest income and expense
Interest income and expense is recognised in the profit or loss using the effective interest method.
(iii) Insurance Contracts
Premium income and acquisition costs
Revenue on funeral plan and annuity insurance l
ife contracts for each year includes the changes in the liabilities for remaining coverage that
relate to services for which the Group expects to receive consideration and an allocation of premiums that relate to recovering insurance
acquisition cash flows.
Other insurance contracts revenue is recognised based on an allocation of expected premium receipts to each period of coverage, which is
based on the passage of time.
49
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
49
2025
2024
$’000
$’000
Revenue from continuing operations includes:
Interest income
Bank accounts, short term deposits and investments
4,778
3,891
Finance receivables
59,363
54,224
Reverse annuity mortgages
177
291
Total interest income 64,318
58,406
Operating revenue
Sales of goods
202,268
215,054
Commission and other sales revenue
90,333
87,549
Loan fee income
2,772
2,669
Insurance and life investment contract income
39,725
39,181
Collection income
10,233
9,810
Bad debts recovered
1,636
1,879
Other revenue
1,619
1,597
Total operating revenue 348,586
357,739
Revenue from continuing operations 412,904
416,145
Other income comprises:
Gain on sale of property, plant and equipment
570 233
Rental income
201 386
Other
492
204
1,263
823
Revenue from contracts with customers
Over time
Auto retail
Commission and other sales revenue
21,169
21,874
Finance
Other sales revenue
3,771
3,306
At a point in time
Auto retail
Sales of goods
202,268
215,054
Auction commissions
63,225
60,640
Credit management
Collection income
9,863
9,510
Voucher income
370
300
Insurance
Motor vehicle insurance commissions
2,168
1,729
3.2 Expenses
2025
2024
Note
$’000
$’000
Interest expense
Bank borrowings and other
27,451
27,842
Movement in impairment provisions
Provisions for:
Specific impaired finance receivables
4
601
1,333
Collective impairment provision for finance receivables
4
4,160
2,699
Movement in economic overlay provision
4
(396)
345
Collective impairment on reverse annuity mortgages
11.7
-
57
Finance receivables bad debts written off
284
182
Movement
4,649
4,616
50
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
50
2025 2024
$’000 $’000
Net operating profit includes the following specific expenses
Depreciation
- Buildings
466 380
- Plant, equipment & motor vehicles
1,239 1,456
- Leasehold improvements, furniture, fittings & office equipment
996 1,027
- Computer equipment
878 1,427
- Signs & flags
165 145
Amortisation of right-of-use asset
6,563 6,179
Intangible amortisation
- Amortisation of software
824 834
- Amortisation of customer relationships
520 520
11,651 11,968
Tax advisory fees
252 415
Donations
48 93
Directors’ fees
825 825
Post-employment benefits
1,832 1,765
Loss on sale of property, plant and equipment 54 29
Fees paid to auditor
Baker Tilly Staples Rodway Auckland (auditor of the Group)
Assurance engagements
Audit of annual financial statements
527 551
Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other Than Audits or
Reviews of Historical Financial Information (‘ISAE (NZ) 3000 (Revised)’) on Autosure Insurance
Limited's Annual Solvency Return 12 12
Assurance Engagements (SAE) 3100 (Revised), Compliance Engagements (SAE 3100 (Revised)) in
relation to the EC Credit Control Limited trust account 7 7
Total assurance engagements
546 570
Other non-assurance engagements
Australian Payroll Tax Compliances Services to EC Credit Australia (one-off, non-recurring) 3 -
Total fees 549 570
4. FINANCE RECEIVABLES
4.1 Accounting policy information
Finance receivables are initially recognised at fair value and subsequently measured at amortized cost using the effective interest rate
method. The company assesses impairment at each reporting date. Finance receivables are derecognised when the contractual rights to
cash flows expire, or the receivables are transferred along with substantially all the risks and rewards of ownership. Finance receivables are
generally secured over the assets they finance.
Impairment of finance receivables
The Group assesses finance receivables for impairment using a forward-looking expected credit loss (ECL) model. Finance receivables are
classified into three categories to determine the allowance for credit losses:
• Performing finance receivables with 12-month ECL.
• Finance Receivables with a significant increase in credit risk, recognising lifetime ECL.
• Credit-impaired receivables with lifetime ECL
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a finance
receivable. 12‑month ECL represents the portion of lifetime ECL that is expected to result from default events on a finance receivable that
are possible within 12 months after the reporting date. Homogeneous finance receivables are assessed on a collective basis (collective
impairment provision) and non-homogeneous finance receivables are assessed individually (specific impairment provision).
(i) Significant increase in credit risk
The Group assesses whether a significant increase in credit risk has occurred for finance receivables at each reporting date. This
assessment is based on quantitative and qualitative indicators:
• Quantitative Criteria: for non-homogenous loans significant changes in the value of collateral supporting the loan and for all finance
receivables when contractual payments are more than 30 days past due, unless the Group has reasonable and supportable
information that demonstrates otherwise, such as outstanding insurance payments for damaged collateral.
• Qualitative Criteria: factors such as significant adverse changes in the borrower’s operating results and industry-specific economic
conditions.
51
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
51
The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and
revises them as appropriate to ensure that the criteria can identify significant increase in credit risk before the amount becomes past due.
(ii) Definition of default
The Group considers that default has occurred when a finance receivable is more than 90 days past due unless the Group has reasonable
and supportable information to demonstrate that another default criteria is more appropriate, such as borrower bankruptcy.
(iii) Credit‑impaired finance receivables
Credit-impaired finance receivables are identified based on a combination of quantitative and qualitative criteria, including significant
financial difficulty of the borrower, default or delinquency in payments, loss of security and observable market indicators of credit risk
deterioration.
(iv) Write‑off policy
The Group writes off a finance receivable when they are 180+ days in arrears or have not made a payment for 180 days and earlier if there
is information indicating that the borrower is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the
borrower has been placed under liquidation or has entered bankruptcy proceedings. Finance receivables written off may still be subject to
enforcement activities under the Group’s recovery procedures, considering legal advice where appropriate. Any recoveries made are
recognised in profit or loss.
v) Measurement and recognition of ECL
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if
there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data
adjusted by forward‑looking information as described above.
The exposure at default is the finance receivable’s gross carrying amount at the reporting date. No further advances are allowed against
finance receivables in default.
The expected credit loss for a finance receivable is estimated as the difference between all contractual cash flows that are due to the Group
in accordance with the contract and all the cash flows, after collection/realisation costs, that the Group expects to receive, discounted at the
original effective interest rate.
If the Group has measured the loss allowance for a finance receivable at an amount equal to lifetime ECL in the previous reporting period
but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Group measures the loss allowance
at an amount equal to 12‑month ECL at the current reporting date.
The Group recognises an impairment gains or losses in profit or loss for all finance receivables with a corresponding adjustment to their
carrying amount through an impairment provision account.
4.2 Key Accounting Estimates and Judgements
When measuring ECL the Group uses reasonable and supportable forward-looking information, which is based on forecasts of economic
conditions employment and their expected impacts on the ability of borrowers to service their debt. The probability of default calculations, a
key input in measuring ECL, includes historical data, assumptions and expectations of future conditions. The estimate of the expected loss
arising on default, is based on the difference between the contractual cash flows due and those that the Group expects to receive,
considering cash flows from collateral and integral credit enhancements.
Economic overlay provision
Due to the uncertain economic environment, management have retained the economic overlay provision relating to the impairment for
finance receivables. The provision has decreased from $2.3m to $1.9m.
4.3 Finance Receivables
2025
2024
$’000
$’000
Commercial loans
46,085
66,746
Consumer loans
395,970
359,978
Property development & investment loans
2,452
2,676
Gross finance receivables
444,507
429,400
Deferred fee revenue and commission expenses
11,325
10,111
Specific impairment provision
(1,488)
(1,639)
Collective impairment provision
(5,212)
(5,263)
Economic overlay provision
(1,914)
(2,310)
447,218
430,299
Current
188,004
144,489
Non-current
259,214
285,810
447,218
430,299
52
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
52
2025
2024
$’000
$’000
Gross financial receivables are summarised as follows:
Performing
437,680
423,130
Doubtful
3,188
2,748
In default
3,639
3,522
444,507
429,400
Movement in receivables subject to specific impairment assessment:
Opening balance
2,849
1,829
Additions
1,623
2,151
Amounts recovered
(1,001)
(677)
Amounts written off
(752)
(454)
2,719
2,849
The aging of loans specifically assessed are as follows:
2025
2024
$’000
$’000
Past due up to 30 days
1,138
1,332
Past due 30 – 60 days
348
288
Past due 60 – 90 days
89
106
In default
1,144
1,123
2,719
2,849
The following table shows the Group's provision matrix for finance receivables collectively assessed for impairment. The provision for loss
allowance based on past due status is not presented by customer segments as the Group's historical credit loss experience does not show
significantly different loss patterns for different customer segments.
31 March 2025
Gross Collective
Expected finance impairment
loss rate receivables provision
% $’000 $’000
Current
0.50 428,395 2,151
Past due up to 30 days
6.82 8,148 556
Past due 30 – 60 days
18.33 2,100 385
Past due 60 – 90 days
24.88 651 162
In default
78.51 2,494 1,958
441,788 5,212
31 March 2024
Gross Collective
Expected finance impairment
loss rate receivables provision
% $’000 $’000
Current
0.53 414,102 2,182
Past due up to 30 days
7.55 7,697 581
Past due 30 – 60 days
15.59 1,796 280
Past due 60 – 90 days
25.09 558 140
In default
86.74 2,398 2,080
426,551 5,263
If the ECL rates on performing financial receivables increased/(decreased) by 1%, the loss allowance on receivables would be $4.4m
higher/($2.3m lower) (2024: $4.1m higher/($2.2m lower)).
2025
2024
$’000
$’000
Movement in the impairment provisions:
Specific impairment provision
Opening balance
1,639
774
Impairment charge/(release) through profit or loss
601
1,333
Amounts written off
(752)
(468)
1,488
1,639
53
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
53
2025
2024
$’000
$’000
Collective impairment provision
Opening balance
5,263
5,930
Impairment charge/(release) through profit or loss
4,160
2,699
Amounts written off
(4,211)
(3,366)
5,212
5,263
Economic overlay provision
Opening balance
2,310
1,965
Impairment charge/(release) through profit or loss
(396)
345
1,914
2,310
Total impairment provision
8,614
9,212
Interest rate and foreign exchange risk
A summarised analysis of the sensitivity of finance receivables to interest rate risk can be found in note 12.3.2.
The Group's finance receivables are all denominated in NZD.
Fair value and credit risk
Carrying Fair Carrying Fair
amount value amount value
2025 2025
2024 2024
$’000 $’000
$’000 $’000
Finance receivables
447,218 450,967
430,299 432,065
The fair values are based on cash flows discounted using a weighted average interest rate of 13.61% (2024: 13.07%).
The maximum exposure to credit risk is represented by the carrying amount of finance receivable which is net of any provision for
impairment. The reported credit risk exposure does not consider the fair value of any collateral, in the event of the counterparties failing to
meet their contractual obligation.
Refer to note 12 for more information on the risk management policies of the Group.
Securitisation
The Group has two Trusts under which it securitises finance receivables. The Trusts are special purpose entities set up solely for the
purpose of purchasing finance receivables originated by the finance sector. The New Zealand Guardian Trust Company Limited has been
appointed Trustee and NZGT Security Trustee Limited as the security trustee for both Trusts. The Company is the sole beneficiary of both
Trusts.
The Group has power over the Trusts, exposure, or rights, to variable returns from its involvement with the Trusts and the ability to use its
power over the Trusts to affect the amount of the Group's returns from the Trusts. Consequently, the Group controls the Trusts and has
consolidated the Trusts into the Group's financial statements.
The Group retains substantially all the risks and rewards relating to the finance rece
ivables sold and therefore the finance receivables do not
qualify for derecognition and remain on the Group's consolidated statement of financial position.
Turners Marque Warehouse Trust 1 (the Trust)
The Trust has a wholesale funding facility with the Bank of New Zealand (BNZ) which is secured by finance receivables sold to the Trust.
The facility is $355m and with a 1-year term that will be renewed annually. BNZ fund up to 90% (31 March 2024: 90%) of the purchase price
of the finance receivables with the balance funded by sub-ordinated notes from the Group.
During the reporting period $218.4m finance receivables were sold to the Trust (31 March 2024: $202.4m) and Trust sold $100m finance
receivables to the Turners Marque ABS 2023-1 Trust in the year ended 31 March 2024. As at 31 March 2025 the carrying value of finance
receivables in the Trust was $332.8m (31 March 2024: $281.2m).
Turners Marque ABS 2023-1 Trust (the 2023-1 Trust)
During the year ended 31 March 2024, the Group created the 2023-1 Trust, a closed pool trust that purchased $100m finance receivables
from the Trust and issued $100m notes comprising $70m Class A1 notes and $20.7m Class A2 notes both rated AAAsf (Fitch) and $9.3m
unrated Class B notes. The Class A2 notes, and B notes are held by the Group. As at 31 March 2025 the carrying value of finance
receivables in the 2023-1 Trust was $34.8m (31 March 2024: $72.9m).
54
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
54
5. PROPERTY, PLANT AND EQUIPMENT
5.1 Accounting policy information
Property, plant and equipment are recognised in the statement of financial position at cost less accumulated depreciation and impairment
losses. Land is not depreciated. Depreciation is calculated on all other property, plant and equipment on a diminishing value or straight-line
basis to allocate the costs, net of any residual amounts, over their useful lives.
The rates for the following asset classes are:
Diminishing value Straight line
Buildings - 50 & 33.3 years
Leasehold improvements, furniture and
fittings, office equipment
7.5 - 60.0%
3 - 15 years
Computer equipment 31.2 - 48.0% 3 - 5 years
Motor vehicles and equipment 26.0 - 31.2% 3 - 7 years
Signs and flags - 3 - 12 years
5.2 Property, plant and equipment
Land &
buildings
Plant,
equipment &
motor
vehicles
Leasehold
improvements,
furniture,
fittings & office
equipment
Computer
equipment
Signs &
flags Total
$’000 $’000 $’000 $’000 $’000 $’000
2025
Opening cost
100,954 11,152 9,720 6,181 1,307 129,314
Accumulated depreciation
(1,217) (3,502) (5,165) (4,800) (682) (15,366)
Opening carrying amount
99,737 7,650 4,555 1,381 625 113,948
Additions
29,377 3,188 306 462 383 33,716
Disposals
- (6,151) (41) (10) (3) (6,205)
Depreciation
(466) (1,272) (963) (878) (165) (3,744)
Closing carrying amount
128,648 3,415 3,857 955 840 137,715
Closing cost
130,330 5,792 9,964 6,203 1,677 153,966
Accumulated depreciation
(1,682) (2,377) (6,107) (5,248) (837) (16,251)
Closing carrying amount
128,648 3,415 3,857 955 840 137,715
WIP included above
14,695 - 94 160 296 15,245
2024
Opening cost
92,948 9,454 8,670 5,808 995 117,875
Accumulated depreciation
(837) (2,902) (4,158) (3,448) (537) (11,882)
Opening carrying amount 92,111 6,552 4,512 2,360 458 105,993
Additions
8,014 5,527 1,079 451 312 15,383
Disposals (8) (2,973) (9) (3) - (2,993)
Depreciation
(380) (1,456) (1,027) (1,427) (145) (4,435)
Closing carrying amount 99,737 7,650 4,555 1,381 625 113,948
Closing cost
100,954 11,152 9,720 6,181 1,307 129,314
Accumulated depreciation
(1,217) (3,502) (5,165) (4,800) (682) (15,366)
Closing carrying amount 99,737 7,650 4,555 1,381 625 113,948
WIP included above
6,678 8 180 190 36 7,092
6. LEASES
6.1 Accounting policy information
Right-of-use Assets
Right-of-use assets are measured at cost (adjusted for any remeasurement of the associated lease liability), less accumulated depreciation
and any accumulated impairment loss.
Right-of-use assets are depreciated over the shorter of the lease term and the estimated useful life of the underlying asset, consistent with
the estimated consumption of the economic benefits embodied in the underlying asset.
55
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
55
Lease Liabilities
Lease liabilities are initially recognised at the present value of the future lease payments (i.e., the lease payments that are unpaid at the
commencement date of the lease). These lease payments are discounted using the interest rate implicit in the lease, if that rate can be
readily determined, or otherwise using the Group's incremental borrowing rate.
Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate method. Interest expense
on lease liabilities is recognised in profit or loss (as a component of finance costs). Lease liabilities are remeasured to reflect changes to
lease terms, changes to lease payments and any lease modifications not accounted for as separate leases.
Variable lease payments not included in the measurement of lease liabilities are recognised as an expense when incurred.
Leases of 12 Months or less and leases of low value assets
Lease payments made in relation to leases of 12-months or less and leases of low value assets (for which a lease asset and a lease liability
has not been recognised) are recognised as an expense on a straight-line basis over the lease term.
6.2 Key accounting estimates and judgements
Extension and termination options are included in several leases across the Group. These terms are used to maximise the operational
flexibility of contracts. Most of the extension and termination options are exercisable only by the Group and not by the respective lessor. The
Group has 26 lease extension options covering 16 sites which have
been assessed as more likely than not, but not reasonably certain, to be
renewed.
The Group applied incremental borrowing rates of 3.06% to 8.28% (2024: 3.91% to 8.26%), with maturities up to 9 years (2024: up to 10
years). 1 new lease was entered into during the year (2024:1) and 5 leases were modified or cancelled during the year (2024: 7).
6.3 Right-of-use assets
2025
2024
$’000
$’000
Properties
18,717
20,679
Equipment
3
37
18,720
20,716
Opening balance
20,716
22,226
Additions
671
78
Modifications and reassessments
3,896
4,591
Depreciation
(6563)
(6179)
Closing carrying amount
18,720
20,716
6.4 Lease Liabilities
2025
2024
$’000
$’000
Lease liabilities
22,120
24,924
Current
5,534
6,823
Non-current
16,586
18,101
22,120
24,924
The carrying amounts of the lease liabilities are denominated in the following currencies:
18720
20716
$’000
$’000
Australian dollars
33 60
New Zealand dollars
22,087 24,864
22,120
24,924
Interest expense in profit or loss
1,451
1,484
56
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
56
7. INTANGIBLE ASSETS
7.1 Accounting policy information
Intangible assets comprise goodwill, acquired separable corporate brands, acquired customer relationships and computer software.
Goodwill and corporate brands are indefinite life intangibles subject to annual impairment testing.
Corporate brands and customer relationships acquired as part of a business combination are capitalised separately from goodwill as
intangible assets if their value can be measured reliably on initial recognition and it is probable that the expected future economic benefits
that are attributable to the asset will flow to the Group.
Goodwill and corporate brands are allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those
cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill
and corporate brands arose, identified according to operating segment.
Corporate relationship assets are amortised on the straight-line basis over the expected life (10 years) of the relationship and are
recognised in the statement of financial position at cost less accumulated amortisation and impairment losses.
Computer software is recognised in the statement of financial position at cost less accumulated amortisation and impairment losses.
Direct costs associated with the purchase and installation of software licences and the development of software for internal use are
capitalised where project success is probable, and the capitalisation criteria is met. Cost associated with planning and evaluating computer
software and maintaining a system after implementation are expe
nsed. Computer software costs are amortised on a diminishing value basis
(rate of 50%) or on a straight-line basis (one to five years).
7.2 Key accounting estimates and judgements
Goodwill and brand are allocated to four cash-generating units (CGU’) as follows:
2025
2024
$’000
$’000
Goodwill
Allocated to the insurance CGU/segment
12,777
12,777
Allocated to collection services CGU/segment
23,973
23,983
Allocated to the finance CGU/segment
9,272
9,272
Allocated to the auto retail CGU/segment
46,487
46,487
92,509
92,519
Brand
Allocated to the insurance CGU/segment
21,500
21,500
Allocated to the auto retail CGU/segment
45,600
45,600
67,100
67,100
The recoverable amount of all CGUs has been determined based on value-in-use calculations. These calculations use five-year pre-tax
cash flow projections based on budgets approved by the Board for year one and forecast for subsequent years. Cash flows beyond the
projected period are extrapolated using the estimated long-term growth rates stated below. The cash flows for the Auto retail and Collection
services CGUs are free cash flows to the firm, while the Insurance and Finance CGU is free cash flows to equ
ity. For each of the CGUs with
goodwill and brand the key assumptions, long term growth rate and discount rate used in the value-in-use calculations are as follows:
Key assumptions:
Sales, price and operating cost assumptions were based on the Board’s best estimate of the range of economic conditions the CGUs are
likely to experience during the forecast period. The forecasts for each CGU cover a period of a minimum of 5 years. Annual capital
expenditure, the expected cash costs in CGUs, was based on historical experience and planned expenditure.
2025 Forecast cash flow growth rates (%)
Year 2 Year 3 Year 4 Year 5
Auto retail CGU (weighted average cost of capital)
26.5 6.5 7.6 7.5
Insurance CGU (cost of equity)
16.8 13.3 7.0 6.3
Finance CGU (cost of equity)
6.3 5.6 6.7 7.0
Collection services CGU (weighted average cost of capital)
36.2 14.7 17.4 13.4
2024 Forecast cash flow growth rates (%)
Year 2 Year 3 Year 4 Year 5
Auto retail CGU (weighted average cost of capital)
22.3 4.7 4.1 2.4
Insurance CGU (cost of equity)
3.9 10.1 11.1 10.5
Finance CGU (cost of equity)
31.5 26.5 14.9 4.4
Collection services CGU (weighted average cost of capital) 39.8 27.9 23.0 21.1
57
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
57
2025 2024
Long-term growth rate
2.05% 2.05%
Pre-tax discount rate
Auto retail CGU (weighted average cost of capital)
12.00% 12.20%
Insurance CGU (cost of equity)
11.40% 12.30%
Finance CGU (cost of equity)
19.70% 15.50%
Collection services CGU (weighted average cost of capital) 18.70% 17.50%
The long-term growth rate is the weighted average growth rate used to extrapolate cash flows beyond the forecast period and is based on
the current implied inflation rates and does not exceed the long-term average growth rate for the products, industries, or country or
countries
in which the CGUs operate. The discount rates were established by considering the specific attributes and size of the CGUs.
In assessing the impairment of the goodwill and brand value in the CGUs, a sensitivity analysis for reasonably possible changes in key
assumptions was performed. This included increasing and reducing the terminal growth rate by 0.25% (2024: 0.25%) and increasing and
decreasing the discount rate by 1% (2024: 1%).
These reasonably possible changes in rates did not cause any impairment in the CGUs.
7.3 Intangible assets
2025 2024
$’000 $’000
Brand
Carrying amount 67,100 67,100
Goodwill
Opening carrying amount at cost
92,509 92,519
Foreign exchange adjustment
(5) (10)
Closing carrying amount 92,504 92,509
Software
At cost
7,457 6,992
Accumulated amortisation
(5,928) (5,521)
Opening carrying amount 1,529 1,471
Additions
1,601 893
Disposals
(11) (1)
Amortisation
(824) (834)
Closing carrying amount 2,295 1,529
At cost
8,360 7,457
Accumulated amortisation
(6,065) (5,928)
Closing carrying amount 2,295 1,529
Corporate relationships
At cost
6,510 6,510
Accumulated amortisation
(4,564) (4,044)
Opening carrying amount 1,946 2,466
Amortisation
(520) (520)
Closing carrying amount 1,426 1,946
At cost
6,510 6,510
Accumulated amortisation and impairment provision
(5,084) (4,564)
Closing carrying amount 1,426 1,946
Total intangible assets carrying amount 163,325 163,084
WIP included in software
676 -
The amortisation and impairment charges are recognised in other operating expenses in profit or loss.
58
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
58
8. BORROWINGS
8.1 Accounting policy information
Borrowings are initially measured at fair value and subsequently at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in profit or loss over the period of the borrowing, using the effective interest method.
8.2 Borrowings
2025
2024
$’000
$’000
Secured bank borrowings
424,470
373,710
Non-bank borrowings - Turners Marque ABS 2023-1 Trust - Class A notes
21,589
51,608
Total borrowings
446,059
425,318
Current
16,343
39,627
Non-current
429,716
385,691
446,059
425,318
Secured bank borrowings
At March 2025, the Group has a syndicated funding facility, including a working capital facility, with the Bank of New Zealand, ASB Bank
and Westpac New Zealand and a securitisation facility with the Bank of New Zealand.
The bank borrowings are secured by a first-ranking general security agreement over the assets of the Company and its subsidiaries,
excluding Autosure Insurance Limited, Turners Finance Limited and EC Credit (Aust.) Limited. The bank funded securitisation financing
arrangement is described under finance receivables.
Syndicated funding facility covenants
As at 31 March 2025, the $124.5m (31 March 2024: $100.0m) drawn on the facility is classified as a non-current liability. The facility is
subject to financial covenants, tested and reported quarterly. These include interest cover and leverage ratios, calculated both including and
excluding the impact of NZ IFRS 16. Additional covenants specific to the Oxford Finance facility include limits on receivables-based
borrowings, arrears levels, and loan concentration. Based on management’s financial forecasts, the Group expects to remain in compliance
with all covenants for at least the next 12 months.
Bank of New Zealand securitisation facility
As at 31 March 2025, the $300.0 million (31 March 2024: $253.7 million) drawn on the facility is classified as a non-current liability. The
notes issued by the Trust are not subject to early repayment at the discretion of noteholders and are repaid in line with the amortisation of
the underlying loan receivables. A significant deterioration in arrears metrics could trigger a stop-funding event which would suspend further
advances to the Trust, management has assessed that there is no material risk of such an event occurring within 12 months of the reporting
date.
Non-bank securitisation
The non-bank securitisation is a closed pool trust. The notes issued by the Trust are not subject to early repayment at the discretion of
noteholders and are repaid in line with the amortisation of the underlying loan receivables.
Non-bank borrowings
The Group's non-bank securitisation arrangement with the Accident Compensation Corporation is described under finance receivables.
Foreign currency risk
All the Group's borrowings are in NZD.
Fair value
Carrying Fair Carrying Fair
amount value amount value
2025 2025
2024 2024
$’000 $’000
$’000 $’000
Borrowings
446,059 449,721
425,318 423,539
The fair values are based on cash flows discounted using a weighted average borrowing rate of 5.43% (2024: 5.58%). The fair value of
borrowings considers the impact of interest rate swaps as referred to in note 12.3.2.
Contractual repricing dates
2025
2024
$’000
$’000
1 year or less
-
20,000
Over 1 to 2 years
424,470
258,710
Over 2 to 5 years
-
95,000
Over 5 years
21,589
51,608
446,059
425,318
59
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
59
9. INSURANCE CONTRACT LIABILITIES
Audited financial statements for Autosure Insurance Limited are available on the Companies Office website. The financial statements for the
year ended 31 March 2025 will be lodged by 31 July 2025.
9.1 Accounting policy information
Insurance contracts are those contracts that transfer significant insurance risk and are accounted for in accordance with the requirements of
NZ IFRS 17 Insurance Contracts. The Group issues the following insurance contracts:
Long-term insurance contracts with fixed and guaranteed terms, these contracts insure events associated with human life (for examp
le,
death) over a long duration;
Temporary life insurance contracts covering death disablement, disability and redundancy risks; and
Short-term motor vehicle contracts covering mechanical breakdown risks.
The Group classifies insurance contracts into the following categories:
Life - not measured under PAA (funeral plans, annuity products and participation fund)
Life - measured under PAA (all other life products)
Consumer – measured under PAA (mechanical breakdown and GAP products)
Insurance contracts are initially recognised at the earliest of the beginning of the coverage period of the contract, the date when the first
payment from the policyholder becomes due, or on the date the contract is onerous. At initial recognition, the Group identifies and
recognises homogeneous groups of insurance policies and determines the contractual service margin (CSM’), which represents the
unearned profit the Group will recognise as it provides services. Contracts are onerous if the total fulfillment cash flows exceed the carrying
amount on the liability for remaining coverage.
Measurement – Contracts not measured under the Premium Allocation Approach (PAA)
After initial recognition, the Group will adjust the CSM for changes in estimates of future cash flows related to future service, time value of
money and risk adjustments. Insurance revenue is recognised for the insurance services provided during the period and a loss recognised
immediately in profit or loss if a group of contracts are considered onerous. This approach is applied to funeral plans and annuity insurance
products.
Measurement – Contracts measured under the PAA
PAA is a simplified model that recognises insurance revenue of the coverage period in a way that reflects the insurance services provided.
The Group uses PAA for the measurement of groups of contracts when the Group reasonably expects the measurement of the liability for
remaining coverage for the group of contracts does not differ materially from the result of applying the accounting policies described under
Measurement – Contracts not measured under PAA.
Derecognition
The Group derecognises a contract when the specified obligations in the contract expire, are discharged or cancelled.
Presentation
Portfolios of insurance contracts that are assets and those that are liabilities, and portfolios of reinsurance contracts that are assets and
those that are liabilities, are presented separately in the statement of financial position. All rights and obligations arising from a portfolio of
contracts are presented on a net basis; therefore, balances such as insurance receivables and payables are no longer presented
separately. Any assets or liabilities recognised for cash flows arising before the recognition of the related group of contracts (including any
assets for insurance acquisition cash flows) are also presented in the same line item as the related portfolios of contracts.
9.2 Key accounting estimates and judgements
The Group makes several key estimates and judgments due to the inherent uncertainty and complexity of insurance contracts. These
estimates and judgments significantly impact the measurement, recognition, and disclosure of insurance contract liabilities and revenue.
The Group engages an independent actuary to calculate the insurance contract liabilities.
Contracts not measured under PAA
Key estimates and judgements, include but are not limited to, estimation of future cash flows, selection of appropriate discount rates,
selection of appropriate models and techniques to quantifying risk adjustment for non-financial risk, determining CSM, determining onerous
contracts, determining the quantity of benefits provided under a contract which affect the allocation of CSM over the coverage period,
estimating the impact of reinsurance contracts and changes in assumptions, including but not limited to, mortality rates, morbidity rates
lapse rates, expense levels, inflation rates and policyholder behaviour.
Contracts measured under PAA
Key estimates and judgements include assessing eligibility for the PAA, estimating future cash flows and incurred claims, selecting discount
rates, identifying onerous contracts, and determining the pattern of revenue recognition.
60
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
60
9.3 Analysis of insurance revenue and expenses by segment.
Life Life Consumer
Not
measured Measured Measured
In $'000 under PAA under PAA under PAA Total
2025
Insurance revenue
1,287 5,762 33,034 40,083
Claims expense
(528) (2,723) (17,979) (21,230)
Other insurance expenses
(526) (1,301) (9,314) (11,141)
Insurance result
233 1,738 5,741 7,712
Insurance finance result
(199) - - (199)
Reinsurance expense
(288) (451) - (739)
Reinsurance recovery
100 1,275 - 1,375
(188) 824 - 636
Net underwriting result
(154) 2,562 5,741 8,149
Other income
7,282
Profit before taxation
15,431
2024
Insurance revenue 1,380 5,363 32,994 39,737
Claims expense
(531) (3,068) (18,297) (21,896)
Other insurance expenses (528) (1,186) (9,537) (11,251)
Insurance result 321 1,109 5,160 6,590
Insurance finance result
(175) -
-
(175)
Reinsurance expense
(260) (354)
-
(614)
Reinsurance recovery
142 1,215
-
1,357
(118) 861 - 743
Net underwriting result
28 1,970 5,160 7,158
Other income
6,856
Profit before taxation
14,014
Reconciliation of profit before tax to Operating profit (note 2)
2025
2024
$’000
$’000
Profit before tax
15,431
14,014
Revaluation adjustment of investment property disclosed as property,
plant and equipment in the Group financial statements at cost
877
413
Depreciation on investment property disclosed as property, plant and
equipment
(141)
(140)
16,167
14,287
9.4 Insurance contract liabilities and assets
Insurance contract assets Insurance contract liabilities
2025
2024
2025
2024
$’000
$’000
$’000
$’000
Asset/(liability) for remaining coverage
Life risk - not measured under PAA
837
903
5,255 5,526
Life risk - measured under PAA
-
-
6,732 5,668
Consumer - measured under PAA
-
-
42,452 41,263
Asset/liability for incurred claims
Life risk - not measured under PAA
34
217
135 448
Life risk - measured under PAA
1,874
1,733
3,562 3,429
Consumer - measured under PAA
-
-
3,764 3,801
2,745
2,853
61,900
60,135
61
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
61
Analysis by measurement component - asset/liability for remaining coverage not measured under the PAA
Insurance contract assets Insurance contract liabilities
2025 2024 2025 2024
$’000 $’000 $’000 $’000
Value of fulfilment cash-flows
35 124 2,047 1,738
Risk adjustment
38 189 2,246 2,635
CSM
764 590 962 1,153
837 903 5,255 5,526
Movement in asset/liability for remaining coverage not measured under the PAA
Opening balance
903 964 5,526 5,973
Expected revenue in year
200 197 710 747
Expected expense in year
(96) (99) (1,003) (997)
Release of CSM
(59) (46) (143) (149)
Insurance finance result 45 41 249 216
Expected closing balance
993 1,057 5,339 5,790
Experience movement
(87) (87) (15) 48
Change in assumptions
(49) (60) (78) (309)
New business contracts recognised
(20) (7) 9 (3)
Closing balance 837 903 5,255 5,526
Expected recognition of CSM (number of years expected until recognised)
1
50 35 85 104
2
33 35 76 92
3
32 35 69 92
4
30 30 63 81
5
29 30 57 69
6 - 9
104 112 184 231
10+
486 313 428 484
764 590 962 1,153
9.5 Financial strength rating
The Insurance (Prudential Supervision) Act 2010 requires all licensed insurers to have a current Financial Strength Rating, given by an
approved rating entity. Autosure Insurance Limited has been issued a Financial Strength Rating of B++ (Good) and an Issuer Credit Rating
of bbb+ (Good), with the outlook assigned to both ratings as 'Stable' by A.M. Best. The rating was issued by A.M. Best on 11 September
2024.
Financial Strength Rating scale:
A++, A+ Superior B, B- Fair D Poor
A, A- Excellent C++, C+ Marginal E Under Regular Supervision
B++,B+ Good C, C- Weak F In liquidation
S Suspended
Issuer Credit rating scale:
Investment Grade Non-Investment Grade
aaa (Exceptional) bb (Fair)
aa (Superior) b (Marginal)
a (Excellent) ccc, cc (Weak)
bbb (Good) c (Poor)
rs (Regulatory Supervision/Liquidation)
62
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
62
10. SHAREHOLDER EQUITY
10.1 Share capital
2025
2024
Number of ordinary shares
Opening balance
88,353,689
86,700,247
Shares issued for staff options
490,230
300,000
Shares issued for employee share scheme
70,352
95,305
Shares issued under DRP
979,512
1,258,137
Total issued and authorised capital 89,893,783
88,353,689
Dollar value of ordinary shares ($'000)
Opening balance
213,222
207,076
Shares issued for staff options
939
696
Shares issued for employee share scheme
310
340
Shares issued under DRP
4,518
5,134
Share issue costs
(75)
(24)
Total issued capital 218,914
213,222
Ordinary shares are fully paid with no par value. All ordinary shares have equal voting rights and share equally in dividends and surplus on
winding up.
Capital management
The Group’s capital consists of share capital, share option reserve, translation reserve, cash flow reserve and retained earnings. The Board
seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowing and the advantages and
security afforded by a sound capital position. The allocation of capital between its specific business operations and activities is primarily
driven by optimisation of the return on the capital allocated. The process of allocating capital to specific operations and activities is
undertaken independently of those responsible for the operation. The Group’s strategies in respect of capital management and allocation
are reviewed regularly by the Board of Directors.
10.2 Autosure Insurance Limited
In terms of the Insurance (Prudential Supervision) Act 2010, effective from 1 April 2023, Autosure Insurance Limited is required to maintain
a solvency margin, in accordance with the “Interim Solvency Standard 2023” issued 1 October 2022 (amended on 6 December 2024,
effective 1 March 2025) of at least $0 and is required to maintain a solvency margin in respect of every Statutory Fund, of at least $0.
2025
2024
$’000
$’000
Solvency capital
87,594
80,234
Adjusted prescribed capital requirement
51,822
51,395
Adjusted solvency margin
35,772
28,839
Adjusted solvency ratio
1.69
1.56
Non-life insurance
Solvency capital
74,984
70,311
Adjusted prescribed capital requirement
46,759
45,577
Adjusted solvency margin
28,225
24,734
Adjusted solvency ratio
1.60
1.54
Life insurance
Solvency capital
12,610
9,923
Adjusted prescribed capital requirement
6,697
5,818
Adjusted solvency margin
5,913
4,105
Adjusted solvency ratio
1.88
1.71
Restriction on access to capital
The Group’s access to the capital and retained profits in the statutory fund, held for the benefit of policyholders, is restricted by the
Insurance (Prudential Supervision) Act 2010.
63
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
63
10.3 Share options
In July 2020, the Board approved the grant of 2,300,000 options to Senior Executives of the Group at an exercise price of $2.00 under the
Group's Share Option Plan. The grant is split into four tranches of 575,000 options with the following vesting dates: 1 June 2021, 1 June
2022, 1 June 2023 and 1 June 2024. Each tranche expires two years after the vesting date. During the year ending 31 March 2025 550,000
options (2024: 300,000 options) were exercised.
The weighted average fair value of the options granted, using the Binomial Tree option pricing model, is $0.31 per option. The significant
inputs in the model were, the share price at grant date of $2.19, the exercise price of $2.00, volatility of 27.5%, an expected exercise date
for all tranches of, 80% at vesting date and 20% at expiration date and an annual risk-free rate between 0.24% - 0.63%. Volatility is
measured as the standard deviation of changes in the Company's share price over a 12-month period.
If a participant in the Group Share Option Plan leaves (by any means and for any reason) the employment of the Company or any
applicable subsidiary, the participant’s options which have reached their vesting date, together with any other options as may be nominated
at the discretion of the Board of Directors of the Company in extraordinary circumstances (such as the redundancy, permanent
disablement
or death of a participant), may be exercised within a period of 60 days (following which they will lapse) and the participant's other Options
will lapse immediately.
The share-based payment for the current financial year is $8,000 (2024: $55,000).
Movement in the number of share options outstanding and their related weighted average exercise prices are as follows:
The weighted-average share price at the date of exercise for share options exercised in the year ending 31 March 2025 was $4.02 for
130,000 options $4.30 for 45,000 options and $5.86 for 375,000 options (2024: $3.66 for 245,000 options and $3.65 for 55,000 options).
Weighted
average
Weighted
average
exercise
exercise
price Options price Options
2025 2025 2024 2024
$ 000's $ 000's
Opening balance
2.00 750 2.00 1,050
Granted
-
-
Exercised
2.00 (550) 2.00 (300)
Closing balance 2.00 200 2.00 750
Share options outstanding at balance sheet have the following expiry dates and exercise prices:
Exercise Options Options
price 2025 2024
Expiry date $ 000's 000's
31 May 2025
2.00 50 225
31 May 2026 2.00 150 525
10.4 Dividends
2025 2024
$’000 $’000
Quarterly dividend for the year ended 31 March 2023 of $0.06 per fully paid ordinary share, imputed,
paid on 27 April 2023. - 5,202
Final dividend for the year ended 31 March 2024 of $0.075 (31 March 2023: $0.07) per fully paid
ordinary share, imputed paid on 26 July 2024 (2023: 28 July 2023). 6,635 6,085
Quarterly dividend for the year ended 31 March 2025 of $0.06 (31 March 2024: $0.06) per fully paid
ordinary share, imputed, paid on 30 October 2024 (2024: 27 October 2023). 5,338 5,251
Quarterly dividend for the year ended 31 March 2025 of $0.07 (31 March 2024: $0.06) per fully paid
ordinary share, imputed, paid on 29 January 2025 (2024: 26 January 2024). 6,248 5,267
Quarterly dividend for the year ended 31 March 2024: $0.06 per fully paid ordinary share, imputed, paid
on 27 March 2024. - 5,285
18,221 27,090
64
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
64
Dividend not recognised at year end
In addition to the above dividends, after year end the directors’ recommended payment of the following dividend:
Quarterly dividend for the year ended 31 March 2025 of $0.07 per fully paid ordinary share, imputed,
paid on 29 April 2025 . 6,292 -
Final dividend of $0.09 (31 March 2024: $0.075) per fully paid ordinary share, imputed, payable on 29
July 2025 (2024: 26 July 2024). 8,108 6,627
10.5 Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 31 March was based on the profit attributable to ordinary shareholders and wei
ghted average
number of ordinary shares outstanding, as follows:
2025 2024
Profit for the year ($'000)
38,587 32,966
Weighted average number of ordinary shares at 31 March
88,978,618 87,423,305
Basic earnings per share (cents per share)
43.37 37.71
Weighted number of shares
Opening balance
88,353,689 86,700,247
Shares issued for staff options
152,346 211,858
Shares issued for employee share scheme
41,826 56,246
Shares issued under DRP
430,757 454,954
88,978,618 87,423,305
Diluted earnings per share
The calculation of diluted earnings per share at 31 March was based on the diluted profit attributable to shareholders and a
diluted weighted
average number of ordinary shares outstanding as follows:
2025 2024
$’000 $’000
Continuing operations
38,587 32,966
Add: Long term incentive expense related to options
8 55
Profit for the year 38,595 33,021
Weighted number of ordinary shares (diluted)
Weighted average number of shares (basic)
88,978,618 87,423,305
Effect of the exercise of options
115,573 376,944
Weighted average number of shares (diluted) 89,094,191 87,800,249
Diluted earnings per share (cents per share)
43.32 37.61
11. OTHER DISCLOSURES
11.1 Income tax
2025 2024
$’000 $’000
Net operating profit before taxation
54,274 49,139
Income tax expense at prevailing rates (NZ: 28%; Aust: 30%)
(15,253) (13,761)
Tax impact of income not subject to tax
523 193
Tax impact of expenses not deductible for tax purposes
(165) (2,610)
Under/(Over) provision in prior years
(792) 5
Taxation (expense)/benefit (15,687) (16,173)
Comprising:
Current
(15,961) (13,909)
Deferred
544 (2,626)
Under provision in prior years
(270) 362
(15,687) (16,173)
65
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
65
Deferred taxation
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset assets against liabilities and when the
deferred income taxes relate to the same fiscal authority. The movement on the deferred tax account is as follows:
2025
2024
$’000
$’000
Opening balance
15,037
12,412
Translation difference
-
(1)
Charge to profit or loss
(544)
2,626
Closing balance
14,493
15,037
The charge to profit or loss is attributable to the following items:
Corporate relationships
(146)
(146)
Loan impairment provision
95
(237)
Insurance deductible reserves
30
122
Property, plant and equipment
(189)
3,171
Lease liability
785
614
Right of use asset
(559)
(424)
Provisions and accruals
(560)
(474)
(544)
2,626
Deferred tax (assets)/liabilities to be recovered after more than 12 months
18,223
18,067
Deferred tax (assets)/liabilities to be recovered within 12 months
(3,730)
(3,030)
Closing balance
14,493
15,037
The deferred tax asset/liabilities have been recognised at 28%, the tax rate at which it is expected to reverse.
Deferred tax relates to the following:
Deferred tax assets:
Loan impairment provision
3,153
3,245
Lease liability
6,194
6,979
Provisions and accruals
3,882
3,294
Insurance reserves
211
241
Total deferred tax asset
13,440
13,759
Deferred tax liabilities:
Brand
18,788
18,788
Corporate relationships
399
545
Right of use asset
5,242
5,800
Deferred expenses and accruals
3,504
3,663
27,933
28,796
Net deferred tax liabilities
14,493
15,037
Deferred tax assets are recognised for deductible temporary differences as Management considers that it is probable that
future taxable profits
will be available to utilise those temporary differences.
Imputation credit memorandum account
2025
2024
$’000
$’000
Opening balance
33,866
32,978
Income tax payments/(refunds received)
13,889
8,209
Imputation credits utilised
(10,057)
(7,321)
Closing balance
37,698
33,866
66
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
66
11.2 CASH AND CASH EQUIVALENTS
2025 2024
$’000 $’000
Autosure Insurance Limited
1,382 2,060
Turners Marque Warehouse Trust 1
4,968 3,020
Turners Marque ABS 2023-1 Trust
2,940 3,704
Other 12,625 8,581
Total New Zealand dollars
21,915 17,365
Australian dollars
124 158
22,039 17,523
Autosure Insurance, the Trust and the 2023-1 Trust’s cash and cash equivalents may not all be available to the Group.
11.3 FINANCIAL ASSETS THROUGH PROFIT AND LOSS
2025 2024
$’000 $’000
Insurance:
Investments in unitised funds
7,281 7,508
Term deposits
71,875 61,975
Other:
Deposits
307 75
Total 79,463 69,558
Investments in unitised funds comprise:
New Zealand and overseas equities
2,653 3,067
Fixed Interest securities
2,640 1,679
Cash - deposits
305 1,083
New Zealand and overseas property securities
1,683 1,679
Total 7,281 7,508
Investments with external investment managers
ANZ New Zealand Investments Limited - Unitised Funds 7,281 7,508
The carrying amounts of the financial assets fair value through profit or loss are denominated in NZD.
All term deposits held in the insurance business may not be available for use by the wider Group. Investments in unitised fun
ds, disclosed in
financial assets through profit or loss, underwrite the Life investment policies and are not available for use by the wider Group.
Interest rate and currency risk
A summarised analysis of the sensitivity of financial assets
at fair value through profit or loss, excluding investments in unitised funds (as
market risk on unitised funds is transferred to the policy holder), to interest rate risk and currency risk can be found in note 12.3.
Credit risk
The maximum exposure to credit risk from financial assets
at fair value through profit or loss at reporting date, excluding investments in
unitised funds, is the carrying value. The financial assets in this category, excluding equity investments, are invested in term deposits with
banks. For Life investment linked contracts (investment in unitised funds) the investments credit risk is borne by the policy holder, there is no
significant credit risk assumed by the Group.
Refer to note 12 for more information on the risk management policies of the Group.
11.4 TRADE RECEIVABLES
2025 2024
$’000 $’000
Performing
7,042 6,567
Doubtful
893 1,156
In default - 16
7,935 7,739
Impairment provision
(402) (462)
Net trade receivables 7,533 7,277
Trade receivables are a current asset, with terms of trade usually 30 days or less.
67
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
67
Impaired receivables
If a trade receivable falls overdue and the Group is unable to enter into an arrangement to recover the amount owed, then the receivable is
classified as impaired.
2025
2024
$’000
$’000
The age of doubtful trade receivables is as follows:
Past due up to 30 days
680
895
Past due 30 – 60 days
121
174
Past due 60 – 90 days
84
29
Past due 90+ days
8
58
893
1,156
Movement in the impairment provision:
Opening balance
462
409
Impairment charge/(release) included in other operating expenses
(14)
56
Amounts written off
(46)
(3)
402
462
The Group recognises lifetime expected credit loss for trade receivables. The expected credit loss rate is 5.0% (2024: 6.0%). Amounts charged
to the impairment provision are generally written off when there is no expectation of recovering additional cash.
The carrying amounts of the Group's trade receivables are denominated in the following currencies:
Australian dollars
519
453
New Zealand dollars
7,014
6,824
7,533
7,277
Currency risk
A summarised analysis of the sensitivity of financial assets included in trade receivables to currency risk can be found in note 12.3.
Fair value and credit risk
Due to the short-term nature of trade receivables, their carrying value is assumed to approximate their fair value. The maximum exposure to
credit risk from trade receivables at the reporting date is the carrying amount of trade receivables. Credit risk is concentrated predominantly
in New Zealand within the motor trade sector and private household sector; there is no concentration of credit risk on any individual customer.
Refer to note 12 for more information on the risk management policies of the Group.
11.5 INVENTORY
2025
2024
$’000
$’000
Motor vehicles
24,158
27,161
Less provision for inventory obsolescence
(1,969)
(2,110)
22,189
25,051
Inventory is a current asset.
Movement in provision for inventory obsolescence
Opening balance
2,110
1,669
Movement (included in Cost of goods sold)
(141)
441
Closing balance
1,969
2,110
11.6 OTHER RECEIVABLES, DEFERRED EXPENSES AND CONTRACT ASSETS
2025
2024
$’000
$’000
Other receivables and prepayments
3,581
4,305
Insurance contract assets
2,745
2,853
Accrued interest
3,993
2,882
Contract assets
- Amount relating to services rendered not yet invoiced
3,549
3,535
- Contract fulfilment costs
115
207
13,983
13,782
68
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
68
2025
2024
$’000
$’000
Current
10,739
10,318
Non-current
3,244
3,464
13,983
13,782
Carrying amount of financial assets included in other receivables
11,266
10,350
Expected credit losses on contract assets and other receivables is 0%.
Fair value and credit risk
The carrying value of these receivables is assumed to approximate their fair value. The maximum exposure to credit risk at the reporting date
is the fair value of the financial assets included in other receivables. There is no concentration of credit risk to any individual customer or
sector.
Refer to note 12 for more information on the risk management policies of the Group.
11.7 REVERSE ANNUITY MORTGAGES
2025
2024
$’000
$’000
Reverse annuity mortgages
1,668
2,728
Provision for impairment
(239)
(239)
1,429
2,489
Current
-
-
Non-current
1,429
2,489
1,429
2,489
Movement in provisions for impairment
Opening balance
239
182
Impairment charge/(release) through profit or loss
-
57
Closing balance
239
239
Interest rate
A summarised analysis of the sensitivity of reverse annuity mortgages to interest rate risk is in note 12.3.2.
The Group's reverse mortgage annuities are all denominated in NZD.
Fair value and credit risk
Carrying Fair Carrying Fair
amount value amount value
2025 2025
2024 2024
$’000 $’000
$’000 $’000
Reverse annuity mortgages
1,429 1,699
2,489 2,835
The fair value of reverse annuity mortgages is estimated using a discounted cash flow model based on a current market interest rate for similar
products after making allowances for impairment.
The maximum exposure to credit risk is represented by the carrying amount of reverse annuity mortgages which is net of any provision for
impairment. The reported credit risk exposure does not consider the fair value of any collateral, in event of the counterparties failing to meet
their contractual obligation. All reverse annuity mortgages are secured by residential property in New Zealand.
69
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
69
11.8 INVESTMENT IN ASSOCIATE
On 6 September 2024, the Group acquired a 50% interest in My Auto Shop, a vehicle repair booking platform with an in-house mobile repair
offering, incorporated and operating in New Zealand.
Carrying amount of investment in associate:
2025
2024
$’000
$’000
Goodwill
3,350 -
Loss from continuing operations
(192) -
3,158 -
Revenue
891 -
Profit for the period
(384) -
Group's share of comprehensive loss (50%)
(192) -
11.9 OTHER PAYABLES
2025
2024
$’000
$’000
Accounts payable
25,246
20,963
Employee entitlements (short term)
5,944
4,674
Employee entitlements (long term)
469
1,459
Other payables and accruals
24,342
21,256
56,001
48,352
Carrying value of financial liabilities in other payables
31,367
31,443
The carrying amounts of the Group's financial liabilities in other payables are denominated in the following currencies:
Japanese Yen
18
116
Australian dollars
47
81
New Zealand dollars
31,302
39,660
31,367
31,443
Currency risk
A summarised analysis of the sensitivity of financial liabilities included in other payables to currency risk are in note 12.3.3.
Fair value
Due to the short-term nature of the financial liabilities in other payables, their carrying value is assumed to approximate their fair value.
11.10 CONTRACT LIABILITIES
2025
2024
$’000
$’000
Unredeemed debt and PPSR voucher liability
517
1,036
Motor vehicle insurance rebate liability
450
261
967
1,297
Movement in contract liabilities
Unredeemed debt and PPSR voucher liability
Opening balance
1,036
1,339
Charge/(release) to profit or loss
(519)
(303)
517
1,036
$’000
$’000
Motor vehicle insurance rebate liability
Opening balance
261
223
Additions
189
38
450
261
70
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
70
11.11 INVESTMENT IN SUBSIDIARIES
Ownership
Interest Held
2025 2024
Subsidiary
Carly NZ Limited Vehicle subscription services 100% 100%
Autosure Insurance Limited (formerly DPL Insurance
Limited) Insurance
100% 100%
EC Credit Control (Aust) Pty Limited Collection services
100% 100%
EC Credit Control (NZ) Limited Collection services
100% 100%
Estate Management Services Limited Collection services
100% 100%
Oxford Finance Limited Finance
100% 100%
Payment Management Services Limited Collection services
100% 100%
Turners Finance Limited Finance
100% 100%
Turners Fleet Limited Vehicle and commercial goods trade 100% 100%
Turners Group NZ Limited Auctions
100% 100%
Turners Property Holdings Limited Property
100% 100%
Turners Staff Share Plan Trustees Limited Trustee 100% 100%
All subsidiaries have a balance date of 31 March and, all subsidiaries are incorporated in New Zealand, except for EC Credit Control (Aust)
Pty Limited which is incorporated in Australia.
The Group securitises finance receivables through The Turners Marque Warehouse Trust 1 and the Turners Marque ABS 2023-1 Trust (the
Trusts). The Group has power over the Trust, exposure or rights to variable returns from its involvement with the Trusts and the ability to affect
the amount of the Group's returns from the Trusts. Consequently, the Group controls the Trusts and has consolidated the Trusts into the
Group financial statements.
11.12 TRANSACTIONS WITH RELATED PARTIES
Major shareholders, directors and closely related persons to them are considered related parties of the Group.
Key management personnel compensation
The key management personnel are all the Directors of the Company and the Leadership team. Compensation paid to the Leadership team
in the years ended 31 March 2025 and 31 March 2024 was as follows:
Short term Long term Share based
benefits benefits payments Total
$'000 $'000 $'000 $'000
Year ended 31 March 2025
4,306 129 1,813 6,248
Year ended 31 March 2024 3,780 113 498 4,391
Key management personnel that resigned during the year received no termination benefits and were paid only contractual employment
obligations. Key management do not have any post-employment entitlements.
Directors that resigned during the year did not receive any termination benefits and directors do not have any post-employment entitlements.
The Group has no transactions or loans with key management personnel, other than what is reported above and detailed in the general
disclosure section on pages 77 to 78. Directors’ fees are detailed in note 3 and in the shareholder and statutory information section. The
details of the director’s share purchases are in the statutory and shareholder information section.
71
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
71
11.13 CASH FLOW RECONCILIATIONS
Reconciliation of net surplus with cash flows from operating activities
2025
2024
$’000
$’000
Profit for the year
38,587
32,966
Adjustment for non-cash and other items
Impairment charge on finance receivables, reverse annuity mortgages and other receivables 4,649
4,627
Net loss/(profit) on sale fixed assets
(539)
(204)
Depreciation and amortisation
11,651
11,968
Capitalised reverse annuity mortgage interest
(177)
(291)
Deferred revenues
2,522
713
Fair value adjustments on assets/liabilities at fair value through profit and loss
(200)
(573)
Net annuity and premium change to policyholders' accounts
28
394
Non-cash adjustments to finance receivables effective interest rates
(46)
-
Deferred expenses
(2,288)
765
Adjustment for movements in working capital
Net (increase)/decrease receivables and pre-payments
(767)
(1,870)
Net decrease in inventories
2,863
389
Net decrease in investment in associate
192
Net (decrease)/increase in payables
5,842
(7,033)
Net decrease in contract liabilities
(1,008)
(265)
Net increase in finance receivables
(20,062)
(11,117)
Net decrease in reverse annuity mortgages
1,237
673
Net (increase)/decrease of insurance assets at fair value through profit or loss
(9,737)
(2,293)
Net withdrawals from life investment contracts
(21)
(92)
Net increase/(decrease) in deferred tax liability
(669)
2,327
Net (decrease)/ increase in tax payable
1,903
(1,413)
Cash flows from operating activities 33,960
29,671
Reconciliation of cash flows arising from financing activities
The table below details changes in the Group's cash flows arising from financing activities, including both cash and non-
cash changes.
Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be classified in the Group's consolidated
statement of cash flows as cash flows from financing activities.
Borrowings
Lease
liabilities
$'000 $'000
Balance as at 31 March 2023
412,035 27,120
Changes from financing cash flows
13,283 -
Other changes
Netted off finance receivables
Interest paid
(25,954) (1,483)
Interest expense (excl. accrued interest)
25,954 1,483
Non-cash lease movements
(2,196)
- (2,196)
Balance at 31 March 2024 425,318 24,924
Changes from financing cash flows
20,741
Other changes
Interest paid
(25,058)
(1,451)
Interest expense (excl. accrued interest)
25,058 1,451
Non-cash lease movements
- (2,804)
- (2,804)
Balance at 31 March 2025
446,059 22,120
72
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
72
12. RISK MANAGEMENT
The Group, through its operations, is exposed to financial risks, specifically credit risk, liquidity risk and market risk and non-financial risk,
insurance risk. The Group’s exposure to these risks arises from the use of financial instruments. This note describes the Group’s objectives,
policies and processes for managing the risks.
The carrying value of financial instruments by category and insurance assets and liabilities are as follows:
2025 2024
$’000 $’000
Financial assets
Financial assets at fair value through profit or loss
Cash and cash equivalents
22,039 17,523
Financial assets at fair value through profit or loss
79,463 69,558
Amortised cost
Trade receivables
7,533 7,277
Finance receivables
447,218 430,299
Other receivables and deferred
expenses
11,266 10,350
Reverse annuity mortgages
1,429 2,489
Financial assets at fair value through OCI
Derivative financial instruments
- 1,774
Financial assets at fair value through
OCI
1,000 157
569,948 539,427
Insurance assets
Insurance contract assets 837 903
Financial liabilities
Financial liabilities at fair value through profit or loss
Life investment contract liabilities
7,062 7,188
Amortised cost
Other payables
31,367 31,443
Borrowings
446,059 425,318
Lease liabilities
22,120 24,924
Derivative financial instruments
Financial liabilities at fair value through
OCI
3,673 -
510,281 488,873
Insurance liabilities
Insurance contract liabilities 5,255 5,526
12.1 Credit risk
Credit risk is the risk that a borrower or counterparty will fail to meet its obligations according to the agreed terms. The following Group assets
are subject to credit risk: cash and cash equivalents, financial assets at fair value through profit or loss (excluding equities held in unitised
funds), trade receivables, derivative financial instruments, finance receivables, reverse annuity mortgages, and other receivables.
Cash and cash equivalents, financial assets at fair value through profit or loss and derivative financial instruments
To limit exposure to credit risk these assets are placed with registered banks.
Trade receivables
To manage credit risk on trade receivables management assigns risk limits to customers. These limits are based on an assessment of the
creditworthiness of the customers, by conducting credit checks, analysing their financial position, past payment history and other factors. The
risk limits and outstanding trade receivables are regularly monitored by management. Sales to public customers are settled in cash, bank
transfer or using major credit cards, mitigating credit risk.
Financial receivables
All loan applications are assessed and approved in accordance with the Group’s lending policies that are approved by the Board. The Board
has a Lending and Credit Committee to assist the Board in fulfil ling its responsibility by providing oversight of the credit risk management of
finance receivables, including reviewing credit policies and recommending portfolio limits to the Board.
The lending policies cover the credit evaluation processes and approval limits to be followed when considering a loan. The evaluation process
assesses the creditworthiness of borrowers by considering several factors including an approved credit reporting agency’s credit check, past
performance, ability to repay, amount of money to be borrowed against the security, acceptability of the security, and the creditworthiness of
any guarantor/co-borrower.
73
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
73
The Group has a risk grade framework for the ongoing assessment of the credit risk of finance receivables. The framework helps to categorise
receivables based on the likelihood of default and the effectiveness of risk mitigants such as collateral, guarantees, or other forms of credit
enhancement. The current risk grading framework consists of four grades:
performing – the counterparty has a low risk of default and does not have any past due amounts greater than 30 days;
doubtful – amount is > 30 days past due or there has been a significant increase in credit risk since initial recognition;
in default - amount is > 90 days past due or evidence indicating the asset is credit impaired; and
write-off – there is evidence indicating the debtor is in severe financial difficulty and the Group has no realistic prospect of recovery.
For finance receivables secured by collateral, estimates of the value of collateral are assessed at the time of borrowing, and are not updated
unless the receivable is being assessed for specific impairment. The allowance for impairment includes the Group's estimate of the value of
collateral held.
Life investment linked contacts
The credit risk is borne by the policy holder and there is no significant risk assumed by the Group.
12.2 Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its obligations associated with financial liabilities as they fall due.
The Group endeavors to maintain sufficient funds to meet its commitments based on forecasted cash flow requirements. Due to the
dynamic nature of the underlying businesses, flexibility is maintained by having diverse funding sources and adequate committed credit
facilities. Management has internal control processes and contingency plans to actively manage the lending and borrowing portfolios to
ensure the net exposure to liquidity risk is minimised. As part of the Group’s liquidity management processes, the exposure is reviewed on
an on-going basis from daily procedures to monthly reporting.
The liquidity risk for cash flows payable on the life investment contracts liabilities that are unit linked contracts are managed by holding a
pool of readily tradeable investment assets (included in financial assets at fair value through profit or loss). The liability and supporting
assets have been excluded from the maturity analysis below because there is no contractual or expected maturity date for the life
investment contracts and the readily tradable investment assets offset any liquidity risk. The liquidity risk on other insurance cash flows is
managed by holding designated percentages of insurance reserves in liquid assets such as cash and cash equivalents.
The table below analyses the Group’s financial liabilities and net settled derivative financial instruments into relevant maturity groupings
based on the remaining period at reporting date to contractual maturity date. The amounts disclosed in the tables are the contractual and
the expected undiscounted cash flows. Contractual and expected amounts agree, except for borrowing where expected maturity is the
facility maturity date.
0-6 months
7-12
months
13-24
months
25-60
months 60+ months Total
$’000 $’000 $’000 $’000 $’000 $’000
2025
Contractual undiscounted cash flows:
Other payables
31,367 - - - - 31,367
Borrowings
21,068 18,850 434,451 - - 474,369
Lease liabilities
3,851 3,106 5,762 9,960 3,150 25,829
56,286 21,956 440,213 9,960 3,150 531,565
Expected undiscounted cash flows:
Other payables
31,367 - - - - 31,367
Borrowings
31,891 11,152 22,305 66,915 535,995 668,258
Lease liabilities
3,851 3,106 5,762 9,960 3,150 25,829
67,109 14,258 28,067 76,875 539,145 725,454
2024
Contractual undiscounted cash flows:
Other payables
31,443 - - - - 31,443
Borrowings
48,180 25,671 290,169 101,608 - 465,628
Lease liabilities
3,923 3,827 5,847 9,920 5,126 28,643
83,546 29,498 296,016 111,528 5,126 525,714
Expected undiscounted cash flows:
Other payables
31,443 - - - - 31,443
Borrowings
49,685 27,356 48,324 74,453 477,799 677,617
Lease liabilities
3,923 3,827 5,847 9,920 5,126 28,643
85,051 31,183 54,171 84,373 482,925 737,703
12.3 Market Risk
Market risk is the risk that changes in market prices, such as interest rates, foreign exchange rates and equity prices, will affect the Group's
income or the value of its holdings of financial instruments.
74
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
74
12.3.1 Life investment liabilities
The market risk on life investment liabilities is transferred to the policy holder. The Group earns fees on investment linked policies that are
based on the amount of assets invested and it may receive lower fees should markets fall. The asset allocation for investment linked
policies is decided by the Policy Holder. Refer to note 11.3 for information on the investments in unitised funds that back the life investment
liabilities.
12.3.2 Interest rate risk
Interest rate risk refers to the risk that changes in interest rates will adversely affect the Group’s financial position. The Group’s exposure to
both interest-earning assets and interest-bearing liabilities, can result in fluctuations in interest rates impacting both the income generated
from these assets and the cost of servicing theses liabilities. Discount rates are used to determine the Group’s life insurance contract assets
and liabilities not measured under PAA and changes to these rates can impact the value of the insurance contract assets and liabilities.
Interest rates are managed by assessing the demand for funds, new lending, expected debt repayments and maintaining a portfolio of
finance receivables and liabilities, including derivative financial instruments, with a sufficient spread between the Group's lending and
borrowing activities. Exposure to interest rates is monitored by the Board of Directors monthly.
The interest rates earned on finance receivables are fixed over the term of the contract. When approving interest rates for individual loan
advances, interest rate risk is measured in accordance with the approved lending policy. The Group uses interest rate swap contracts to
convert a portion of its variable rate debt to fixed rate debt. No exchange of principal takes place. The notional principal amount of interest
rate swaps at 31 March 2025 was $325.6m (2024: $256.9m) and weighted average interest was 4.16% (2024: 3.87%). There was no hedge
ineffectiveness recognised in profit or loss during the period (2024: $nil).
The table below summarises the sensitivity of the Group’s financial assets and liabilities to interest rate risk.
Carrying
amount -1% Profit -1% Equity +1% Profit +1% Equity
$’000 $’000 $’000 $’000 $’000
2025
Financial Assets
Cash and cash equivalents
22,039 (220) (158) 220 158
Financial assets at fair value through profit or loss 79,463 (795) (572) 795 572
Finance receivables
447,218 (4,472) (3,220) 4,472 3,220
Derivative financial instruments
-
Reverse annuity mortgages
1,429 (14) (10) 14 10
Insurance assets
Insurance contract assets
837 (31) (22) 30 22
Financial Liabilities
Borrowings
446,059 4,461 3,212 (4,461) (3,212)
Derivative financial instruments
3,673
Insurance liabilities
Insurance contract liabilities
5,255 455 328 (431) (310)
Total increase/(decrease) (616) (443) 639 459
2024
Cash and cash equivalents
17,523 (175) (126) 175 126
Financial assets at fair value through profit or loss 69,558 (696) (501) 696 501
Finance receivables
430,299 (4,303) (3,098) 4,303 3,098
Derivative financial instruments
1,774 19 (2,568) (19) 2,511
Reverse annuity mortgages
2,489 (25) (18) 25 18
Insurance assets
Insurance contract assets
903 (143) (103) 135 97
Financial Liabilities
Borrowings
425,318 4,253 3,062 (4,253) (3,062)
Insurance liabilities
Insurance contract liabilities
5,526 445 320 (420) (303)
Total increase/(decrease) (625) (3,032) 642 2,986
12.3.3 Currency risk
Currency risk refers to the potential for financial loss due to fluctuations in exchange rates between different currencies. The Group has
exposure to the Australian Dollar (‘AUD’) through EC Credit Control (Aust) Pty Limited and Japanese Yen (‘JPY’) from the purchase of
motor vehicle inventory.
To ensure the net exposure to EC Credit Control (Aust) Pty Ltd, which has AUD as its functional currency, is kept to an acceptable level, the
Group has a comprehensive transfer pricing policy and converts the AUD unredeemed voucher liability into a NZD liability by selling the
AUD liability to the New Zealand entity that will be providing the relevant services to settle the liability when the voucher is redeemed.
75
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
75
The Group limits its exposure to JPY by hedging the anticipated cash flows (mainly purchased inventory) when the commitment is made. All
projected purchases qualify as ‘highly probable’ forecast transactions for hedge accounting purposes.
The table below summarises the Group’s financial exposure to currency risk.
in NZD'000 2025 2024
Net exposure to AUD
595 671
Net exposure to JPY 18 116
In NZD'000 -10% Profit -10% Equity +10% Profit +10% Equity
2025
AUD
- 66 - (54)
JPY
185 133 (151) (109)
2024
AUD
- 75 - (61)
JPY (171) (123) 204 147
12.4 Insurance risk
Insurance risk is the risk of financial loss in the insurance business due to the uncertainty of future events and claims. The Group manages
this risk through various strategies to ensure the Group can meet its obligations to policyholders while maintaining financial stability and
profitability.
Life insurance
Life risk management activities involve managing risks concerned with the pricing, acceptance and management of the mortality, and
longevity risks accepted from policyholders. These risks are controlled using underwriting procedures and adequate premium rates and
policy charges, all of which are approved by the Actuary. Tight controls are also maintained over claims management practices to ensure
the correct and timely payment of insurance claims.
Non-life insurance
Non-life risk management activities include prudent underwriting, pricing, and management of risk, together with claims management,
reserving and investment management. The objective of these disciplines is to enhance the financial performance of the insurance
operations and to ensure sound business practices are in place for underwriting risks and claims management.
Claims
Variations in claim levels will affect reported profit and equity. The impact may be magnified if the variation leads to a change in actuarial
assumptions which cannot be absorbed within the present value of planned margins for a group of related products. Insurance risk may
arise through the reassessment of the incidence of claims, the trend of future claims and the effect of unforeseen events, such as
epidemics. Insurance risk is controlled by ensuring underwriting standards adequately identify potential risk, retaining the right to amend
premiums on risk policies where appropriate and purchasing reinsurance. The experience of the Group's life insurance business is reviewed
regularly.
The table below illustrates how changes in key assumptions would impact the reported profit and liabilities of the Group:
Effect on Effect on Effect on
life risk contract assets life risk contract liabilities future profit
2025 2024 2025 2024 2025 2024
Change in key assumptions ($'000) $’000 $’000 $’000 $’000 $’000 $’000
Increase in expenses of 10%
- - 43 13 43 (13)
Decrease in expenses of 10%
- - (43) (13) (43) 13
Increase in mortality by 10%
6 (5) 16 (27) 10 22
Decrease in mortality by 10%
(6) 5 (16) 27 (10) (22)
Increase in cancellation rates by 10%
7 (12) 4 (25) 3 13
Decrease in cancellation rates by 10% (7) 12 (4) 25 (3) (13)
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
76
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2025
Turners Automotive Group Limited
Notes to the financial statements for the year ended 31 March 2025
76
12.5 Assets and liabilities carried at fair value
The fair value of assets and liabilities carried at fair value as well as the methods used to calculate fair value are summarised in the table
below.
Level 1 the fair value is calculated using quoted prices in active markets.
Level 2 the fair value is estimated using inputs other than quoted prices in level 1 that are observable for the assets or liabilities, either
directly (as prices) or indirectly (derived from prices).
Level 3 the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
Level 1 Level 2 Level 3 Total
$’000 $’000 $’000 $’000
2025
Fair value assets:
Financial assets at fair value through profit or loss - insurance - 7,281 - 7,281
Financial assets at fair value through profit or loss - term deposits 72,182 - - 72,182
72,182 7,281 - 79,463
Fair value liabilities:
Derivative financial instruments - 3,673 - 3,673
Level 1 Level 2 Level 3 Total
$’000 $’000 $’000 $’000
2024
Fair value assets:
Financial assets at fair value through profit or loss - insurance - 7,508 - 7,508
Financial assets at fair value through profit or loss - term deposits 61,975 - - 61,975
Investment property
- - - -
Derivative financial instruments
- 1,774 - 1,774
61,975 9,282 - 71,257
Fair value - insurance
The financial assets in this category back life investment contract liabilities and are investments in managed funds. The fair value of the
investments in the managed funds are determined by reference to published exit prices, being the redemption price based on the market price
quoted by the fund manager, ANZ New Zealand Investments Limited (refer note 12.3.1).
Fair value - term deposits and fixed interest securities
Term deposits are recognised at fair value based on the interest rate set at inception of the term deposit (refer note 12.3.2).
These financial assets are exposed to interest rate risk as disclosed above.
Derivative financial instruments
The fair value of forward exchange contracts is determined using forward exchange rates at balance date, with the resulting value discounted
to present value. The fair value of interest rate swaps is calculated as the present value of estimated future cash flows based on observable
yield curves.
During the year there were no movements of fair value assets or liabilities between levels of the fair value hierarchy.
13. COMMITMENTS AND CONTINGENT LIABILITIES
Capital Expenditure:
At the reporting date the Group had commitments for $10,819.000 for the purchase of one site and development of four sites (2024:
$15,547,000 for the purchase of two sites).
Future Lease Commitments:
The Group has 1 lease commitments commencing after the balance date (2024: 2 lease commitments).
The Group has no other material commitments or contingent liabilities at the reporting date.
14. EVENTS SUBSEQUENT TO REPORTING DATE
The Group had no reportable events subsequent to reporting date (2024: no reportable events) other than those disclosed elsewhere in the
Group financial statements such as dividends.
77
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
GENERAL DISCLOSURES
Turners Automotive Group Limited
General Disclosures
77
BOARD OF DIRECTORS
Grant Baker
Turners’ directorships – Turners Group NZ Limited, EC Credit Control (NZ) Limited, Turners Property Holding Limited, Turners Staff Share
Plan Trustees Limited. Trustee – Turners Employees Share Scheme Trust, Turners Exempt Employee Share Scheme Trust.
Other directorships - Baker Consultants Limited, King Honey Limited, Liam Lawson Management Limited, Liam Lawson Supporters GP
Limited, Liam Lawson Supporters GP Number 2 Limited, Me Today Limited, Montezemolo Holdings Limited, MTL Securities Limited,
Stoneleigh Forestry Limited, The Good Brand Company Limited, The Home Bakery Limited, Velocity Capital GP Limited.
Matthew Harrison
Turners’ directorships – Turners Group NZ Limited, Oxford Finance Limited, EC Credit Control (NZ) Limited, EC Credit (Aust) Pty Limited,
Estate Management Services Limited, Payment Management Services Limited, Turners Property Holding Limited, Turners Staff Share Plan
Trustees Limited. Trustee – Turners Employees Share Scheme Trust, Turners Exempt Employee Share Scheme Trust.
Other directorships - Farne Investments Limited, Harrigens Investments Limited, Harrigens Trustees Limited, HD Property Company Limited,
HDK Property Company Limited, JHFT Trustees Limited, MJH Consultants Limited, Northco Housing Group Limited, Tom Bewley Motorsport
Partners Limited.
Alistair Petrie
Turners’ directorships – Oxford Finance Limited.
Other directorships - Bartel Holdings Limited, Darling Group Holdings Limited, Jellicoe Enterprises Limited, Puketapu Properties Limited,
Smiling Cabbage Limited. Officer - Horticulture New Zealand Incoporated. Advisor - PSG Holdings Limited.
John Roberts
Turners’ directorships – Oxford Finance Limited, Autosure Insurance Limited.
Other directorships - Apollo Foods Limited, Centrix Group Limited, Global Strategic Services Limited
Lauren Quaintance
Turners’ directorships – Autosure Insurance Limited.
Other directorships - Crusaders (GP) Limited, ChristchurchNZ Holdings Limited, ChristchurchNZ Limited.
Antony Vriens
Turners’ directorships – Autosure Insurance Limited.
Other directorships - Gut Cancer Foundation Limited, Me Today Limited, P.I.C Insurance Brokers Limited, Stockade Premium Funding Limited.
Specific disclosure of interest
Mr Baker has disclosed a potential conflict of interest in relationship to sponsorship arrangements between Turners and Liam Lawson
Management Limited, due to his directorship of that company.
Directors’ shareholdings as at 31 March 2025
Shares
Grant Baker 6,000,000
Matthew Harrison 4,972,294
Alistair Petrie 11,842,735
John Roberts 108,790
Antony Vriens 7,300
Mr Petrie controls 11,802,724 shares held by Bartel Holdings Limited in a trustee capacity (so does not have beneficial ownership of
those shares) and 40,011 shares as beneficial owner.
Directors’ share dealings
Date of
transaction
Shares
(disposed)/acquired
Consideration
(received)/ paid $
Nature of relevant interest
Alistair Petrie 24/07/2024 100,000 439,670 Note 1
John Roberts 26/07/2024 1,748 7,377 Registered holder and beneficial owner
Alistair Petrie 26/07/2024
185,691 783,616 Note 1
Antony Vriens 6/08/2024
(7,500) (32,400) Registered holder and beneficial owner
John Roberts 30/10/2024 1,351 5,998 Registered holder and beneficial owner
Alistair Petrie
30/10/2024 144,784 642,841 Note 1
Alistair Petrie 29/01/2025 144,375 759,407 Note 1
Notes:
1. Controller of shares held by Bartel Holdings Limited. Alistair Petrie is the legal owner of 100% of the shares in Bartel Holdings Limited.
78
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
GENERAL DISCLOSURES
Turners Automotive Group Limited
General Disclosures
78
SHAREHOLDER INFORMATIOM
Top 20 ordinary shareholders as at 31 May 2025
Rank
Holder’s Name
Shares
% of issued
capital
1 Bartel Holdings Limited 11,866,022 13.16
2 Custodial Services Limited <A/C 4> 7,127,146 7.91
3 Montezemolo Holdings Limited 6,000,000 6.66
4 Harrigens Trustees Limited 4,972,294 5.52
5 New Zealand Depository Nominee Limited <A/C 1 Cash Account> 3,176,990 3.52
6 BNP Paribas Nominees (NZ) Limited - NZCSD <BPSS40> 2,488,112 2.76
7 Stephen John Sinclair & Jacqueline Margaret Sinclair & Roger Frederick Wallis <The Sinclair
Investment A/C>
2,021,461
2.24
8 HSBC Nominees (New Zealand) Limited - NZCSD <HKBN90> 1,963,107 2.18
9 Forsyth Barr Custodians Limited <1-CUSTODY> 1,893,768 2.10
10 FNZ Custodians Limited 1,797,354 1.99
11 Citibank Nominees (New Zealand) Limited - NZCSD <CNOM90> 1,555,357 1.73
12 Glenn Arthur Duncraft 1,269,565 1.41
13 Todd William Hunter & Elizabeth Hunter & Graham Rodney Leaming <Stanmore A/C> 1,232,049 1.37
14 John Jeffers Harrison & Hawke's Bay Legal Trustees (Harrison Trusts) Limited <John Harrison
Family A/C>
1,203,782
1.34
15 Accident Compensation Corporation - NZCSD <ACCI40> 1,046,964 1.16
16 TEA Custodians Limited Client Property Trust Account - NZCSD <TEAC40> 967,132 1.07
17 JBWere (NZ) Nominees Limited <NZ Resident A/C> 943,825 1.05
18 MMC - Queen Street Nominees Ltd ACF Salt Funds Management <Salt Funds Management> 824,995 0.92
19 Citicorp Nominees Pty Limited 716,879 0.80
20 PT (Booster Investments) Nominees Limited 708,237 0.79
Spread of ordinary shareholders as at 31 May 2025
Range
Total
holders
Shares
% of issued
capital
0 – 999 1,594 697,375 0.77
1,000 – 1,999 753 1,013,238 1.13
2,000 – 4,999 893 2,720,941 3.02
5,000 – 9,999 488 3,220,714 3.57
10,000 – 49,999 637 12,539,384 13.91
50,000 – 99,999 75 4,863,907 5.40
100,000 – 499,999 46 8,939,050 9.92
500,000 – 999,999 9 6,528,231 7.24
1,000,000 plus 15 49,613,973 55.04
Total 4,510 90,136,813 100.00
Domicile of ordinary shareholders as at 31 May 2025
Number of
shareholders
% of
shareholders
Number of
shares
% of issued
capital
New Zealand 4,312 95.61 84,652,545 93.91
Australia 110 2.44 5,072,264 5.63
Other 88 1.95 412,004 0.46
Total 4,510 100.00 90,136,813 100.00
Substantial product holders
The following information is given under section 293 of the Financial Markets Conduct Act 2013. As at 31 March 2025, details of the Substantial
Product Holders in the company and their relevant interests in the company’s shares are as follows:
Substantial product holder
Holding as at 31
March 2025
% of issued
capital
Bartel Holdings Limited 11,802,724 13.13
Montezemolo Holdings Limited 6,000,000 6.67
Harrigens Trustees Limited 4,972,294 5.53
The total number of quoted voting products of the company on issue at 31 March 2025 was 89,893,783 paid ordinary shares.
79
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT
CORPORATE GOVERNANCE REPORT
79
FY25 CORPORATE GOVERNANCE REPORT
Turners’ Board of Directors has adopted a corporate governance framework which encourages the highest standards of ethical conduct and
provides accountability and control systems commensurate with the risks involved.
The framework has been guided by the principles and recommendations set out in the NZX Corporate Governance Code (31 January 2025)
(NZX Code) and the requirements set out in the NZX Listing Rules. The Board considers that this framework and governance practices for
the year ended 31 March 2025 are generally in line with the NZX Code, except as stated below:
• Recommendation 2.5: An issuer should have a written diversity policy which includes requirements for the Board or relevant committee
of the Board to set measurable objectives for achieving diversity. Turners has a diversity policy which encourages a culture of diversity
and inclusiveness at Turners. While no measurable objectives are in place, the Board requires management to provide regular
reporting and monitoring on diversity within the Turners workforce. The Board also uses tools such as the quarterly staff engagement
survey to measure diversity and how the business is recognising, valuing and respecting differences to establish benchmark measures
and progress.
• Recommendation 2.8: A majority of the Board should be independent Directors. For the FY25 year, the Board consisted of three
independent and three non-independent, non-executive Directors. The non-executive Directors are not involved in the day-to-day
operations of Turners and do not have significant influence over operational decisions. At the current time, there are an equal number
of independent and non-independent directors. Turners remains in compliance with the NZX Listing Rules regarding Board
composition, in that there are at least two independent directors.
• Recommendation 2.9: An issuer should have an independent chair of the Board. The chair of the Board is Grant Baker, who has been
deemed to be a non-independent Director due to his 6.66% shareholding in Turners. This is the only reason the Board considers
Grant to be non-independent, having considered a range of other factors including tenure and related party relationships. As such, his
interests are directly aligned with all shareholder interests. The Chair is not the Chief Executive Officer (CEO) of Turners, is not
involved in the day to day running of the business and does not have significant influence over operational decisions.
• Recommendation 3.3 and 3.4: An issuer should have a remuneration committee and a nomination committee. Due to the size of the
Turners’ Board, these matters are dealt with by the full Board.
Turners will continue to monitor best practice in the governance area and update its policies to ensure it maintains the most appropriate
standards.
The information in this report is current as at 24 June 2025 and has been approved by the Board of Turners.
The Turners Corporate Governance Code and other key policies are available on the Turners Automotive Group Limited website:
https://www.turnersautogroup.co.nz/corporate-governance/
PRINCIPLE 1 – ETHICAL STANDARDS
Directors should set high standards of ethical behaviour, model this behaviour and hold management accountable for these
standards being followed throughout the organisation.
Code of Ethics
The Board recognises that high ethical standards and behaviours are central to good corporate governance, and it is committed to the
observance of Turners’ Code of Ethics. The Code of Ethics is the framework of standards by which Directors, employees, contractors for
personal services and advisers to Turners and its related companies are expected to conduct their professional lives. It was last reviewed
by the Board in June 2025
The Code of Ethics is intended to facilitate decisions that are consistent with Turners values, business goals and legal and policy
obligations, thereby enhancing performance outcomes, brand value and investor confidence. It covers conflicts of interest, gifts,
confidentiality, corporate opportunities, behaviour, proper use of assets and information and compliance with laws and policies. The Board
believes that all Directors conformed to the Code of Ethics during the 2025 financial year.
A copy of the Code of Ethics is provided to all new employees at the start of their employment, is available on the internal Group intranet,
and on the Turners website. Employees also receive an annual reminder to familiarise themselves with the policy. Ethics training for all
employees is included in Turners’ Learning Management System. Training must be undertaken by new staff and then once every three
years or in any year the Code of Ethics is materially amended. Employees are expected to report any breaches, in line with the processes
outlined in the Code of Ethics. Any breach will be dealt with in a consistent and even-handed manner and be reported to the Board. Turners
has a Whistle Blower Policy to allow employees to raise the alarm on concerns they may have over serious wrong doings without fear of
retribution from their colleagues or employer.
80
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT cont.
CORPORATE GOVERNANCE REPORT cont.
80
Turners has a Quoted Financial Product Trading Code of Conduct to mitigate the risk of insider trading in Turners’ financial products by
employees and Directors. A copy of this is available on Turners’ website. Additional trading restrictions apply to Restricted Persons
including Directors and certain employees. Details of Directors’ share dealings are on page 77 of the 2025 Annual Report.
No donations were made to any political parties in FY25.
PRINCIPLE 2 – BOARD COMPOSITION AND PERFORMANCE
To ensure an effective Board, there should be a balance of independence, skills, knowledge, experience and perspectives.
The Turners’ Board is responsible for setting the strategic direction of Turners, overseeing the financial and operational controls of the
business, putting in place appropriate risk management strategies and policies and enhancing its value for shareholders in accordance with
good corporate governance principles.
Board Charter
In addition to the Turners Corporate Governance Code, the Turners Board also operates under a written charter which sets out:
• the structure of the Board;
• the role and responsibilities of Directors;
• procedures for the nomination, resignation and removal of Directors;
• procedures to ensure that the Board meets regularly, conducts its meetings in an efficient and effective manner; and
• procedures to ensure that each Director is fully empowered to perform his or her duties as a Director of Turners and to fully participate
in meetings of the Board.
Day to day management of Turners is undertaken by the executive team under the leadership of the Chief Executive Officer, through a set
of delegated authorities which are reviewed annually.
In discharging their duties, Directors have direct access to and may rely on information, financial data and professional or expert advice
provided by Turners’ senior management and external advisers. Directors have the right, with the approval of the Chair or by resolution of
the Board, to seek independent legal or financial advice at the expense of Turners for the proper performance of their duties.
Newly elected Directors are expected to familiarise themselves with their obligations under the constitution, Board Charter, Turners
Corporate Governance Code and the NZX Listing Rules. Training is also provided to new and existing Directors where required to enable
Directors to understand their obligations.
Nomination and appointment of Directors
The number of elected Directors and the procedure for their retirement and re-election at Annual Shareholder Meetings is set out in Turners’
Constitution. Turners considers that the nomination process for new Director appointments is the responsibility of the whole Board, and it
does not have a separate nomination committee. The Board takes into consideration tenure, capability, independence, diversity and skills
when reviewing Board composition and new appointments.
Directors will retire and may stand for re-election by shareholders every three years, in accordance with the NZX Listing Rules. A Director
appointed since the previous annual meeting holds office only until the next annual meeting but is eligible for re-election at that meeting. At
the Annual Shareholders’ Meeting on 18 September 2024, Antony Vriens and Alistair Petrie were re-elected as Directors.
Written agreements with newly appointed Directors
When a Director is newly appointed, Turners will enter into a written agreement with them setting out the terms of their
employment/appointment. Turners has arranged policies of Directors’ and officers’ liability insurance which, with a Deed of Indemnity
entered with all Directors, ensure that generally Directors will incur no monetary loss because of actions undertaken by them as Directors.
Certain actions are specifically excluded, for example, the incurring of penalties and fines which may be imposed in respect of breaches of
the law.
Board composition and Director information
For the FY25 year, the Board comprised of six Directors - three independent Directors and three non-executive Directors including a non-
executive Chair.
• Grant Baker, non-executive Chair: Appointed 10 September 2009.
• Matthew Harrison, non-executive Director: Appointed 12 December 2012.
• Alistair Petrie, non-executive Director: Appointed 24 February 2016.
81
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT cont.
CORPORATE GOVERNANCE REPORT cont.
81
• John Roberts, independent Director: Appointed 1 July 2015.
• Antony Vriens, independent Director: Appointed 12 January 2015.
• Lauren Quaintance, independent Director: Appointed 3 April 2023.
Turner’s Group Chief Executive Officer, Todd Hunter, was appointed as Managing Director post-period end, on 19 May 2025.
Information on each Director is available on the Turners website https://www.turnersautogroup.co.nz/about/. The table below
summarises the current key skills and experience of the Board.
Industry knowledge/experience Highly skilled Moderately skilled
Industry & sector knowledge
- Auto retail
⬤⬤⬤⬤⬤⬤
◯
- Finance
⬤⬤⬤⬤⬤⬤
◯
- Insurance
⬤⬤⬤⬤⬤
◯◯
- Credit management
⬤⬤⬤⬤
◯◯◯
Technology/digital
⬤⬤⬤⬤⬤
◯◯
Entrepreneurial growth and transformation
⬤⬤⬤⬤⬤⬤
◯
Sales, marketing and brand experience
⬤⬤⬤⬤⬤⬤
◯
People, culture and employee relations
⬤⬤⬤⬤⬤⬤
◯
Finance and capital markets
⬤⬤⬤⬤⬤
◯◯
Risk management and regulatory
⬤⬤⬤⬤⬤
◯◯
Governance
⬤⬤⬤⬤⬤⬤⬤
ESG
⬤⬤⬤
◯◯◯◯
Climate
⬤⬤⬤
◯◯◯◯
Director independence
For the FY25 year, three of Turners’ Board were independent Directors. For a director to be an independent Director, the Board has
determined that the relevant Director must not be an executive of Turners and must have no disqualifying relationships. The Board follows
the guidelines of the NZX Code. In particular, the Board takes into consideration shareholdings in Turners, tenure and other relationships
and assesses whether a director’s interest, position, association or relationship might interfere, or might reasonably be seen to interfere,
with that Director’s capacity to bring an independent judgment to bear on issues before the Board, to act in the best interests of Turners and
to represent its shareholders generally. The Board assesses the independence of Directors on their appointment and at least annually
thereafter.
The Board has determined, based on information provided by Directors regarding their interests, which has been evaluated against the
criteria in the Board Charter, that as at 31 March 2025 and the date of this Annual Report, Grant Baker, Matthew Harrison and Alistair Petrie
are not independent directors, owing to their personal or related shareholdings in Turners. The Board feels that these investments further
align the Directors’ interests with those of shareholders. Arrangements are in place to ensure possible conflicts of interest are mitigated. As
at the date of this report, Todd Hunter who serves as an executive director, is also classified as a non-independent director.
At the date of this report, there are three independent and four non-independent directors on the Board. Turners is in compliance with the
NZX Listing Rules regarding Board composition, in that there are at least two independent directors.
While the Board is very active, non-executive Directors are not involved in the day to day running of the business and have no influence
over operational decisions. Directors are all elected based on the value they bring to the Board and against set criteria detailed in Turners’
Corporate Governance Code. The Board believes that the current Directors provide valuable expertise and experience and offer
complementary skill sets. The mix of long-standing and newer Directors ensures that continuity of knowledge and organisational memory is
balanced with fresh perspectives.
82
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT cont.
CORPORATE GOVERNANCE REPORT cont.
82
Director’s interests are disclosed on page 77 of the 2025 Annual Report.
The Chair is not the CEO of Turners, is not involved in the day to day running of the business and does not have significant influence over
operational decisions.
Board Meetings and Attendance
The Board has 10 scheduled meetings a year. The table below sets out Directors’ attendance at Board and Committee meetings during
FY25. In total, there were 11 Board meetings; 5 Audit, Risk Management & Sustainability Committee meetings; and 6 Lending and Credit
Committee meetings.
Board
Audit, Risk Management &
Sustainability committee
Lending & Credit
committee
Total Number of Meetings
Held
11 5 6
Grant Baker 10 - -
Matthew Harrison 11 - 6
Alistair Petrie 11 5 6
John Roberts 11 5 6
Antony Vriens 11 5 -
Lauren Quaintance 11 - -
Diversity
Turners believes that diversity of background, experiences, thoughts and ways of working lead to greater creative and innovative solutions
which ultimately lead to a superior outcome for its stakeholders socially, economically and environmentally. Diversity in Turners includes
(but is not limited to) the following: gender, race, ethnicity and cultural background, thinking, physical capability, age, sexual orientation, and
religious or political belief.
Turners’ Diversity and Inclusion (D&I) Policy is available on the Turners website. While no measurable objectives are in place, the Board
requires management to provide regular reporting and monitoring on diversity within the Turners workforce. The Board also uses tools such
as the quarterly staff engagement survey to measure diversity and how the business is recognising, valuing and respecting differences to
establish benchmark measures and progress. The regular staff survey includes questions on equality with respondents rating Turners 9.4
out of 10 for D&I.
As part of its ESG goals, Turners is working to promote a diverse and inclusive culture across the business. A Diversity and Inclusion
Committee was established in September 2022 and all new hires complete D&I training as part of their onboarding process. In addition, a
two-page guide titled "Reduce Your Bias" has been introduced to support managers during recruitment. This guide was developed following
feedback from the D&I training. The guide addresses the potential influence of unconscious bias throughout the various stages of
recruitment; from CV screening and phone interviews to in-person interviews. Managers are reminded to remain aware of these biases and
to actively challenge their assumptions. The communication accompanying the guide encourages careful review and application of the
information throughout the recruitment process.
Turners conducts an annual gender pay analysis, reviewing any gaps in relation to performance and role relativity, and is satisfied with our
remuneration positioning.
As at 31 March 2025, the gender balance of Turners Directors and people was as follows:
31 March 2025 31 March 2024
Female Male
Gender-
diverse
Female Male
Gender-
diverse
Directors 1 5 - 1 6 -
Senior Leadership 5 36 - 7 33 -
Management 53 55 - 48 52 -
Other Employees 260 293 - 274 304 -
83
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT cont.
CORPORATE GOVERNANCE REPORT cont.
83
Board Training and Performance
Turners encourages all Directors to undertake appropriate training and education so that they may best perform their duties. This includes
attending presentations on changes in governance, legal and regulatory frameworks; attending technical and professional development
courses; and attending presentations from industry experts and key advisers. In addition, Directors receive updates on releva
nt industry and
company issues, and briefings from key executives.
The Board regularly considers individual and collective performance, together with the skill sets, training and development and succession
planning required to govern the business. A self-evaluation was conducted by the Chair in FY24.
PRINCIPLE 3 – BOARD COMMITTEES
The Board should use committees where this will enhance its effectiveness in key areas, while still retaining Board responsib
ility.
The Board has constituted two standing Committees being the Audit, Risk Management and Sustainability Committee and the Lending and
Credit Committee. Due to the size of the Turners’ Board, remuneration and director nomination and appointment matters are dealt with by
the full Board.
Committees allow issues requiring detailed consideration to be dealt with separately by members of the Board with specialist knowledge
and experience, thereby enhancing the efficiency and effectiveness of the Board. However, the Board retains ultimate responsibility for the
functions of its committees and determines their responsibilities.
The Committees meet as required and have terms of reference (Charters), which are approved and reviewed by the Board. Minutes of each
Committee meeting is forwarded to all members of the Board, who are all entitled to attend any Committee meeting. Management may only
attend committee meetings at the invitation of the Committee. Committee performance is reviewed on a regular basis.
Each Committee is empowered to seek any information it requires from employees in pursuing its duties and to obtain independent legal or
other professional advice. The membership and performance of each Committee is reviewed annually. From time to time, special purpose
committees may be formed to review and monitor specific projects with senior management.
Audit, Risk Management & Sustainability Committee (ARMS Committee)
The role of the ARMS Committee is to assist the Board in carrying out its responsibilities relating to Turners’ risk management and internal
control framework, the integrity of its financial reporting, and Turners’ internal and external auditing processes and activities. This
responsibility includes providing the Board with additional assurance about the quality and reliability of the financial information issued
publicly by Turners. All matters required to be addressed and for which the Committee has responsibility were addressed during the
reporting period. In addition, the Committee oversees the strategies, activities and performance regarding sustainability, corporate social
responsibility and the environment.
The Committee is comprised solely of non-executive Directors of Turners, has three members, has a majority of independent Directors and
has at least one Director who is both independent and has an adequate accounting or financial background. The Chair of the committee is
not the Chair of the Board and does not have a long-standing association with Turners’ external audit firm as a current, or retired, audit
partner or senior manager at that firm.
Management and employees may only attend meetings at the invitation of the Committee and the Committee routinely has Committee-only
time with the external and internal auditors without management present. The Committee Charter is available on the Group’s website.
Members as at 31 March 2025 were John Roberts (Chair), Antony Vriens and Alistair Petrie. Their qualifications and experience can be
found on the Turners website https://www.turnersautogroup.co.nz/about/.
Lending and Credit Committee
The Lending and Credit Committee assists the Board in fulfilling its responsibilities by providing oversight of the credit risk management of
Oxford Finance, Turners’ finance subsidiary, including reviewing internal credit risk policies and recommending portfolio limits for Board
approval. It is also responsible for reviewing the quality and performance of the finance business’ portfolio. The Lending and Credit
Committee is governed by a charter which is available on the Group’s website.
The Lending and Credit Committee members as at 31 March 2025 were Matthew Harrison (Chair), Alistair Petrie and John Roberts.
Control Transactions
Turners is prepared in the event of a control transaction. The Board has adopted a written Control Transaction Response Policy (contained
within the Turners Corporate Governance Code) to follow if a takeover notice, scheme of arrangement proposal, or other control transaction
is imminent. This policy involves Turners potentially forming an independent committee to oversee disclosure and response, and engaging
expert legal and financial/strategic advisors to provide advice on procedure. Where no independent committee is formed, the Board will be
responsible for all matters relating to the Company’s response to the potential transaction.
84
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT cont.
CORPORATE GOVERNANCE REPORT cont.
84
PRINCIPLE 4 – REPORTING AND DISCLOSURE
The Board should demand integrity in financial and non-financial reporting, and in the timeliness and balance of corporate
disclosures.
Continuous Disclosure Policy
Turners’ Directors are committed to keeping investors and the market informed of all material information about Turners and i
ts performance
and ensuring compliance with applicable legislation and the NZX Listing Rules. The release of material information is guided by the
Reporting and Disclosure section in Turners Corporate Governance Code, and the Turners Continuous Disclosure Policy, which are
available to view on Turners’ website.
Copies of other key governance documents are also available on Turners’ website.
In addition to all information required by law, Turners also seeks to provide sufficiently meaningful financial and non-financial information to
ensure stakeholders and investors are well informed.
Reporting
The Board demands integrity in re
porting, and in the timeliness and balance of disclosures. Turners seeks to provide clear, concise financial
statements and recognises the value of providing shareholders with financial and non-financial information, including information on
environmental, social and governance (ESG) matters.
The Board is responsible for ensuring that the financial statements give a true and fair view of the financial position of Turners and have
been prepared using appropriate accounting policies, consistently applied and supported by reasonable judgements and estimates, and for
ensuring all relevant financial reporting and accounting standards have been followed.
The Board requires that, prior to its approval of financial statements, the CEO and CFO certify that, in their opinion Turners’ financial
records have been properly maintained and the financial statements comply with the appropriate accounting standards and give a true and
fair view of the financial position and performance of Turners, and that their opinion has been formed on the basis of a sound system of risk
management and internal control, which is operating effectively.
Turners has not adopted a formal ESG framework but has instead selected key matters to report on. Turners reported against the
mandatory Climate-related disclosures regime for the first time in FY24. The next report will be available on
https://www.turnersautogroup.co.nz/climate-related-disclosure/ by 31 July 2025. Turners has an ESG Policy in section 14 of Turners’
Corporate Governance Code.
Turners is committed to using its resources responsibly and will look for opportunities to reduce any negative environmental risk or impact
from business operations, products and services. Turners is committed to providing fair and responsible products and services that
includes
adherence to the Responsible Lending Code, the Responsible Credit-Related Insurance Code, Insurance (Prudential Supervision) Act 2010
and various other Acts.
The Board encourages diversity and adheres to its Modern-Day Slavery Statement and will not knowingly participate in business situations
where Turners could be complicit in human rights and labour standard abuses.
Turners discusses its strategic objectives and its progress against these in the Chair and CEO’s commentary in shareholder reports, and at
other investor events during the year including investor presentations and the Annual Shareholders’ Meeting.
PRINCIPLE 5 – REMUNERATION
The remuneration of Directors and executives should be transparent, fair and reasonable.
The Group has adopted a Remuneration Policy which outlines the Group’s approach to remuneration. It ensures that compensation is fair,
consistent, competitive, and aligned with the Group’s business strategy and values. The policy supports the attraction, retention, and
motivation of talented individuals while maintaining financial sustainability. The Remuneration Policy which is reviewed every two years by
the People & Culture team, in consultation with the Executive, and is approved by the Board is available on
https://www.turnersautogroup.co.nz/corporate-governance/. The Turners Group remuneration framework is designed to strengthen our
employee value proposition to attract and retain top talent. It helps the Group understand its current market pay position and guide future
remuneration positioning. The framework ensures fair recognition of both high and lower performers within their respective pay bands. It
also supports pay decisions by using clear, data-driven insights that are communicated transparently to employees.
Director Remuneration
Executive directors do not receive director fees. Fees for non-executive directors are reviewed regularly in alignment with market trends.
Any proposed increase in the director fee pool is subject to shareholder approval as outlined in the Company Constitution. If i ndependent
benchmarking data is used to support any proposals it will be disclosed to shareholders in the Notice of Meeting.
85
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT cont.
CORPORATE GOVERNANCE REPORT cont.
85
Shareholder approval for an increase in the pool available to pay Directors’ fees was last sought in 2023 when the pool limit was set at
$920,000.
The Board has determined the following allocation from the current pool:
Position Fees per annum
Board of Directors Chair $190,000
Member $95,000
Autosure Board of Directors Chair $40,000
Member $20,000
Committees Chair $20,000
Member $10,000
Remuneration of Directors in the reporting period is tabulated below
Board
Autosure
Board
Audit, Risk
Management &
Sustainability
Committee
Lending and
Credit
Committee Total Fees
Grant Baker $190,000 - - - $190,000
Matthew Harrison $95,000 - - $20,000 $115,000
Lauren Quaintance $95,000 $20,000 - - $115,000
Alistair Petrie $95,000 - $10,000 $10,000 $115,000
John Roberts $95,000 $20,000 $20,000 $10,000 $145,000
Antony Vriens $95,000 $40,000 $10,000 - $145,000
Total $665,000 $80,000 $40,000 $40,000 $825,000
While there is no formal requirement, most of Turners’ Directors either directly or indirectly own shares in Turners. The Directors do not
receive any performance or equity-based remuneration. Details of shareholdings are on page 77 of the 2025 Annual Report.
Autosure Insurance is legally required to operate a separate Board because it holds an insurance license with the Reserve Bank of New
Zealand. Antony Vriens is the current Chair of the Autosure Insurance Board and is also a non-executive Director of Turners.
Turners does not pay fees upon retirement of Directors.
Executive and Employee Remuneration Policy
The Group has adopted an independent global data-driven platform, to benchmark and evaluate roles within the organisation. This system
provides accurate, customised job grades and allows for relevant peer group comparisons. It also delivers real-time insights into both
external market competitiveness and internal pay equity. Remuneration includes a competitive base salary along with incentives and bonus
opportunities.
Long -term incentives
In 2020, the Board introduced a Share Option Plan for key senior executives. Comprehensive details of the Group’s Share Option Plan are
available on page 63 of the 2025 Annual Report.
In 2022, the Group launched an Employee Share Scheme (ESS), available to all employees. Under the ESS, employees are offered the
opportunity to acquire shares valued at $1,500 for a purchase price of $1,000. These shares are subject to a three-year vesting period. The
purchase price may be settled either through an upfront payment of $1,000 or via an interest-free loan, repayable over three years through
fortnightly instalments.
Short -term incentives
A short-term bonus scheme rewards key executives and employees based on performance. Executive bonuses are tied to a Board-
approved incentive target based on projected profit before tax. Employee bonuses are linked to the achievement of agreed KPIs.
Details of executives’ remuneration and entitlements are detailed under Key Management Compensation on page 70 of the 2025 Annual
Report.
86
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT cont.
CORPORATE GOVERNANCE REPORT cont.
86
During the financial year ended 31 March 2025, the number of employees or former employees of the Group, not being directors of Turners,
who received remuneration and other benefits in their capacity as employees, the value of which exceeded $100,000 for the year are as
follows:
Remuneration range 2025 2024 Remuneration range 2025 2024
100,000 - 109,999 37 38 280,000 - 289,999 2 1
110,000 - 119,999 35 22 290,000 - 299,999 - 3
120,000 - 129,999 27 34 300,000 - 309,999 1 -
130,000 - 139,999 21 18 310,000 - 319,999 2 -
140,000 - 149,999 11 16 320,000 - 329,999 1 -
150,000 - 159,999 8 9 330,000 - 339,000 1 2
160,000 - 169,999 8 11 340,000 - 349,000 1 -
170,000 - 179,999 7 4 350,000 - 359,999 - 1
180,000 - 189,999 5 7 370,000 – 379,999 - 2
190,000 - 199,999 6 4 490,000 - 499,999 1 -
200,000 - 209,999 2 2 510,000 - 519,999 1 1
210,000 - 219 999 - 2 590,000 - 599,999 1 -
230,000 - 239,999 1 2 800,000 - 809,999 1 -
240,000 - 249,999 3 1 850,000 - 859,999 - 1
250,000 - 259,999 1 - 1,410,000 – 1,419,999 - 1
260,000 – 269,999 - 2 2,790,000 - 2,799,999 1 -
CEO Remuneration
The review and approval of the CEO’s remuneration is the responsibility of the Board. The CEO’s remuneration comprises a fixed base
salary, a variable short-term bonus payable annually and a long-term incentive, being participation in the Group’s Share Option Plan.
Benefits include KiwiSaver contributions and any direct cash or non-cash benefits.
The CEO’s remuneration can be summarised as follows:
Salary
Benefits
Subtotal
Pay for performance
Total remuneration
Cash STI Share LTI
FY25 888,767 71,407 960,174 390,000
1
1,446,757
2
2,796,931
FY24 746,724 66,554 813,278 390,000
3
207,500
2
1,410,778
1. STI for FY25, paid in FY26, 106% of target achieved.
2. Taxable value of 125,000 and 375,000 options, with an exercise price of $2.00, exercised in FY24 and FY25 respectively.
3. STI for FY24, paid in FY25, 109% of target achieved.
Short term bonus: A short-term bonus is in place which rewards achievement against an incentive target, based on a dollar value, approved
by the Board. The incentive target is based on projected profit before tax. At the minimum achievement level of 95% of the incentive target,
50% of the bonus is paid, increasing to a maximum of 150% at the achievement level of 105% or more.
Long term incentive (Group Share Option Plan): In July 2020, the CEO was granted 1,000,000 options at an exercise price of $2.00 under
the Group’s Share Option Plan. The grant is split into 4 tranches of 250,000 options with the following vesting dates: 1 June 2021, 1 June
2022, 1 June 2023 and 1 June 2024. Each tranche expires two years after the vesting date. Options are granted at the discretion of the
Board and vesting is dependent on being employed by Turners on vesting date.
PRINCIPLE 6 – RISK MANAGEMENT
Directors should have a sound understanding of the material risks faced by the issuer and how to manage them. The Board
should regularly verify that the issuer has appropriate processes that identify and manage potential and material risks.
Risk management framework
Turners is committed to proactively and consistently managing risk. While this is the responsibility of the entire Board, the ARMS Committee
assists the Board and provides additional oversight in regard to the risk management framework and monitoring compliance with that
framework.
The Board’s approach to risk management is incorporated in the ARMS Committee Charter which is available on the Group’s website. The
Charter ensures that opportunities are pursued in an informed way and aligned with the Board’s appetite for risk.
The Board delegates day to day management of the risk to the CEO. The executive team and senior management are required to regularly
identify the major risks affecting the business and develop structures, practices and processes to manage and monitor these risks. Key
87
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT cont.
CORPORATE GOVERNANCE REPORT cont.
87
risks and challenges, identified by the executive team and management, are included in the CEO’s monthly board report. Ultimately, the
responsibility for risk management and internal controls lies with the Board.
Key financial risks are set out on pages 72 to 76 of the 2025 Annual Report. More information on Climate related risks is included in
Turners’ Climate Related Disclosures. The FY25 report will published at https://www.turnersautogroup.co.nz/climate-related-disclosure/ by
31 July 2025.
Turners maintains insurance policies that it considers adequate to meet its insurable risks.
Health and Safety
The Board recognises that effective management of health and safety is essential for the operation of a successful business, and its intent
is to prevent harm and promote wellbeing for employees, contractors and customers.
The Board is responsible for ensuring that the systems used to identify and manage health and safety risks are fit for purpose, being
effectively implemented, regularly reviewed and continuously improved.
Turners has a Health and Safety Policy which is monitored by a Health and Safety Manager. Health and Safety reports for all business units
are included in the compliance section of Board papers
PRINCIPLE 7 – AUDITORS
The Board should ensure the quality and independence of the external audit process.
The Board’s approach to the appointment and oversight of the external auditor is outlined in Turners’ External Audit Policy (section 9 of the
Turners Corporate Governance Code) and ensures that audit independence is maintained, both in fact and appearance, such that Turners
external financial reporting is viewed as being highly reliable and credible.
The ARMS Committee provides additional oversight of the external auditor, reviews the quality and cost of the audit undertaken by Turners’
external auditors and provides a formal channel of communication between the Board, senior management and external auditors. The
Committee also assesses the auditor’s independence on an annual basis. Procedures are detailed in the ARMS Committee Charter
(available on the Group’s website).
For the financial year ended 31 March 2025, Baker Tilly Staples Rodway was the external auditor for Turners Automotive Group Limited.
Baker Tilly Staples Rodway were first appointed as external auditor in 1999 and were automatically re-appointed under the Companies Act
1993 at the 2024 Annual Shareholder Meeting. Turners requires the lead audit partner to be rotated at least every five years, with the last
audit partner rotation in the 2023 calendar year.
All audit work at Turners is fully separated from non-audit services, to ensure that appropriate independence is maintained. The amount of
fees paid to Baker Tilly Staples Rodway for audit and other services is identified on page 50 of the 2025 Annual Report. Baker Tilly Staples
Rodway has provided the Turners’ Board with written confirmation that, in their view, they were able to operate independently during the
year.
Baker Tilly Staples Rodway attends the Annual Shareholder Meeting, and the lead audit partner is available to answer questions from
shareholders at that meeting.
Internal Audit
While Turners does not have a dedicated Internal Auditor role, it does have a number of internal controls overseen by the ARMS
Committee, including controls for computerised information system, security, business continuity management, insurance, health and
safety, conflicts of interest, and prevention and identification of fraud.
PRINCIPLE 8 – SHAREHOLDER RIGHTS AND RELATIONS
The Board should respect the rights of shareholders and foster constructive relationships with shareholders that encourage them
to engage with the issuer.
Turners’ Board is committed to open dialogue and to facilitating engagement with shareholders. The aim of Turners’ investor relations
programme is to provide shareholders with information about Turners and to enable them to actively engage with Turners and exercise their
rights as shareholders in an informed manner.
88
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
CORPORATE GOVERNANCE REPORT cont.
CORPORATE GOVERNANCE REPORT cont.
88
Turners has a calendar of communications and events for shareholders, including but not limited to:
• Annual and Interim Reports
• Market announcements
• Annual Shareholder Meeting
• Financial results calls
• Other ad hoc investor presentations
• Easy access to information through the Turners website www.turnersautogroup.co.nz
• Access to management and the Board via email info@turnersautogroup.co.nz
Investor website
Turners maintains a comprehensive investor relations website which provides access to key corporate governance documents, copies of all
major announcements, company reports and presentations.
Shareholder engagement
All shareholders are given the option to elect to receive shareholder communications in electronic form (by email) and this is actively
encouraged.
Shareholders are encouraged to attend the Annual Shareholders’ Meeting and may raise matters for discussion at this event. Turners live
streams the annual meeting, which is accessible worldwide. In 2024, an in-person meeting was held, alongside a live webcast. Given the
small size of Turners and the low participation rates, Turners opted for the meeting format above, believing this balances shareholders’
needs with costs. Online shareholders have the opportunity to present questions and vote by proxy prior to the meeting.
In accordance with the NZX Corporate Governance Code, the Board ensured that the notice of the 2024 Annual Shareholder Meeting was
available to shareholders at least 20 working days prior to that meeting.
In addition to shareholders, Turners has a wide range of stakeholders and maintains open channels of communication for all audiences,
including shareholders, brokers and the investing community, as well as staff, suppliers and customers.
Shareholder voting
Shareholders have the ultimate control in corporate governance by voting Directors on or off the Board. Voting is by poll, upholding the ‘one
share, one vote’ philosophy. In accordance with the Companies Act 1993, Turners’ constitution and the NZX Listing Rules, Turners refers
major decisions which may change the nature of Turners to shareholders for approval.
Capital raising
Turners issued the following the shares in the year ended 31 March 2025:
Number of shares
Dividend reinvestment plan 979,512
Staff options exercised 490,230
Employee share scheme 70,352
1,545,094
89
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
DIRECTORY
Turners Automotive Group Limited
Directory
89
CORPORATE DIRECTORY
DIRECTORS
Grant Baker
Chairman
Appointed 10 September 2009
Matthew Harrison
Non-executive director
Appointed 12 December 2012
Todd Hunter
Managing director & CEO
Appointed 19 May 2025
Alistair Petrie
Non-executive director
Appointed 24 February 2016
John Roberts
Independent Director
Appointed 1 July 2015
Lauren Quaintance
Independent Director
Appointed 3 April 2023
Antony Vriens
Independent Director
Appointed 12 January 2015
SHAREHOLDER INFORMATION
COMPANY PUBLICATIONS
The Company informs investors of the Company’s business
and operations by issuing an Annual Report, an Interim
Report and releasing announcements on the NZX’s website.
Financial calendar
First quarterly dividend October
Annual meeting September
Half year results announced November
Second quarterly dividend January
Third quarterly dividend April
End of financial year 31 March
Annual results announced May
Annual report June
Final dividend July
REGISTERED OFFICE
Level 5, 70 Shortland Street, Auckland, New Zealand
PO Box 1232, Shortland Street, Auckland, 1140, New Zealand
Freephone: 0800 100 601
Email enquiries: info@turnersautogroup.co.nz
Website: www.turnersautogroup.co.nz
AUDITOR
Baker Tilly Staples Rodway Auckland Limited
BANKERS
Bank of New Zealand, ASB Bank and Westpac Banking
Corporation
LAWYERS
Chapman Tripp
SHARE REGISTER
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna, Auckland
Private Bag 92119, Auckland 1142, New Zealand
Telephone: +64 9 488 8777
ENQUIRIES
Shareholders with enquiries about transactions, change of address or dividend payments should contact Computershare Investor Services
on +64 9 488 8777. Other questions should be directed to the Company at the registered address.
STOCK EXCHANGE
The Company’s shares trade on the NZX Main Board operated by the NZX Limited under the code TRA and as an exempt foreign entity on
the ASX operated by ASX Limited.
This annual report is dated 24 June 2025 and is signed on behalf of the board by:
G.K. Baker J.A. Roberts
Director Director
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
90
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES
91
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
NOTES
92
TURNERS AUTOMOTIVE GROUP ANNUAL REPORT 2025
Turners Automotive Group Limited
Level 5, 70 Shortland Street
PO Box 1232, Auckland 1140
T: 0800 100 601
E: info@turnersautogroup.co.nz
www.turnersautogroup.co.nz
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.