Turners Auctions boosts full-year profit by 17pc

Turners Auctions yesterday posted a 17 per cent rise in full-year profit, but said revenue and auction sales had slowed in the second half.

The vehicle and commercial goods auctioneer's profit for the year to December 31 climbed to $7.005 million from $6.012 million in 2003. A final dividend of 10c a share lifted annual dividends 25 per cent to 20c a share.

ABN Amro Craigs analyst Selwyn Blinkhorne said Turners had done well to lift profit 17 per cent when revenue had risen only 5.3 per cent to $79 million.

Turners said revenue growth slowed in the second half-year, after reaching 12 per cent in the first half, because of erratic volumes of second-hand cars shipped from Japan and winter price fluctuations.

"The slowdown for vehicle importers coupled with reduced immigration has also reduced auction sales, especially in Auckland," Turners said.

Turners shares slipped 2c to $4.35.

Blinkhorne said Turners Finance, launched nine months ago, and Turners auction businesses in North America would be important growth drivers.

Turners Finance made a $32,000 profit. It has written $8.4 million worth of contracts.