Turners Automotive Group Limited (NZX: TRA) Delivers Robust Earnings Despite COVID Disruption

Wednesday 25th November 2020

Turners Automotive Group (NZX: TRA ) delivered robust earnings in HY21 despite a disrupted operating period, with the used car market rebounding after COVID-19 lockdowns, and the Group’s diversified annuity businesses in Finance and Insurance supporting resilience and contributing to strong and sustainable yield.

• Group revenue 14% lower at $148m

• Reported NPBT increased 26% to $18.7m

• Underlying NPBT down 11% to $13.1m

• Reported NPAT increased 25% to $13.4m

• Used car market proved resilient, rebounding strongly for 'high trust' Turners brand

• Robust annuity earnings from Finance and Insurance validates diversified business model

• Diversified business with ‘high trust’ brands supported robust earnings

• Progress accelerating for transition to digital offering, reducing costs, increasing resilience and enhancing the customer experience

• NPBT guidance for FY21 to be toward the upper end of guidance of $28m to $31m, conditional on no significant further lockdowns

• Projected FY dividend 17.0 cps at mid-point of guidance

Outlook and Guidance

Although the strong market rebound post-lockdowns has been pleasing, the business remains focused on agility and the ability to manage uncertainty while the COVID-19 pandemic remains rife throughout the world. The stress test that COVID-19 provided has proved the benefits of the Group’s strategy of diversification, digital leadership, national distribution and the development of trusted brands.

For every month since June, group operating profit has been well above levels in FY20. Meanwhile, a number of reductions to the fixed cost base will deliver ongoing benefits over the years to come.

See the links below for more details:

Turners delivers robust HY21 earnings, despite COVID disruption

Results Announcement HY21

Distribution notice

HY21 Results Presentation

Source: Turners Automotive Group Limited

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