Summer trade boosts Turners
Turners Automotive Group has announced a positive summer of sales activity and upgraded its earnings guidance for the year ending March 31, 2026.
Based on current trading conditions, Turners expects net profit before tax and before goodwill adjustments to be about $63 million.
This is up from its previous guidance of about $60m and approaches the company’s previously stated profit target of $65m for the 2028 financial year.
The new figure comes after a stronger-than-expected trading performance across all core parts of the business, Turners says in a March 19 announcement to the NZX.
It explains summer trading has been positive, with strong vehicle sales volumes and an improvement in vehicle margins earned in the Auto Retail division.
The group notes it has also benefited from disciplined purchasing, effective pricing and continued market share gains.
Finance lending activity also performed well, “with January and February delivering several new lending records”, as Turners seeks to grow its book without compromising credit quality.
The business reportedly continues to gain market share in the vehicle finance segment.
Goodwill review
Turners has also provided an update on a review of the carrying value of its EC credit business, with regard to the second-half performance and the outlook for that operation.
“This review has now been largely completed and, while still subject to final audit review, the group expects a non-cash goodwill write-down of between $7m and $9m,” says Turners.
“EC Credit is the smallest division within the group and is regarded as non-core to the automotive platform strategy.”
Excluding the goodwill write-down relating to EC Credit, the upgraded guidance confirms Turners is set for another record annual result after continued growth in recent years. Its full-year results are due to be announced in May.
Todd Hunter, chief executive officer, adds: “We are delighted with the continued strength across all three core divisions.
“This is a great achievement by the team, particularly given the still challenging economic conditions. We are looking forward to updating the market on our five-year strategy next week.”
The group’s management is hosting an institutional investor day on Tuesday, March 24, when it will reveal its earnings target for the next five-year period.
