Turners Automotive Group has reported record earnings despite the disruption caused by Covid-19 lockdowns at the start of the financial year.
The company Turners will pay a full-year dividend of 20 cents per share. Photo: AFP
The car sales, finance and insurance company said its total net profit rose 36 percent to $27.5 million in the year ended in March, or an increase of 28 percent to $26.9 million from continuing operations.
"(The team's) high levels of engagement combined with the diversified nature of the business, ensured we were well positioned as we moved out of the lockdown," chief executive Todd Hunter said.
Revenue fell 11 percent to $296.5m, which partly reflected an 11 percent drop in its automotive retail sales, 29 percent drop in credit management and 5 percent drop insurance business.
On the plus side, the financial business's revenue rose 5 percent, accounting for about half of the company's profit, with three of the four business segments returning a profit.
While the credit management's underlying profit fell 22 percent, Hunter expected that business to improve over the current year, with debt recovery returning to business as usual.
The company will pay a full-year dividend of 20 cents per share.
The company said its underlying profit rose 19 percent to $34.3m and expected this financial year to build on that result, with a corresponding increase in dividends.
"Our growth plans are working and the exciting thing is there is more to come," Hunter said.
However, he said the company was expecting the supply-constrained automative retail market to continue for 12-18 months, primarily because of constraints in the new car supply chain.
In addition, Hunter said insurance sales were expected to remain buoyant.
He said the company would update the market with a more specific guidance in the coming months, with April's sales materially ahead of 2019.