KEY POINTS:
Turners Auctions has reported a 37 per cent fall in net profit after tax to $3.17 million for the 2006 calendar year.
The result compared to $5.02 million a year earlier, with the company saying that vehicle and finance market conditions had been a major contributor to the decline.
Operating revenues were down 7 per cent to $74.3 million, with a fully imputed final net dividend of 3.5 cents per share to be paid.
Turners said today that the number of used imported vehicles being bought and sold had been at their lowest level in more than five years.
New registration of used imports was down 13 per cent in the first half and 26 per cent in the second half, with global competition for used Japanese vehicles intensifying.
There was also a temporary reduction in New Zealand new vehicles from lease companies, Turners said.
Tight consumer finance hit dealer customers hard, with dealer to public sales down 4.27 per cent from 2005.
Specific issues affecting Turners Auctions in 2006 included a loss of a major supplier to auctions, the squeezing of Turners Fleet margins, and a more cautious credit policy in response to other finance company failures.
Initiatives and factors giving a more confident outlook for 2007 included the successful introduction of Turners Live resulting in 10 per cent of all Turners vehicle sales now being online, the company said.
Continued growth was expected in that area.
A new valuation services to customers had seen 86,000 price checks in eight weeks and a 20 per cent increase in unit sales during the campaign period.
Key customers had been retained, with new supplier agreements with GSB for government cars and with IAG for damaged vehicles.
Turners Auctions shares closed on Tuesday at $1.55, having been as high as $2.35 a year ago and as low as $1.42 in December.
- NZPA
