Turners is forecasting profit before tax to be $44 million for its full-year result, about $1m more than its record result last year. Photo: RNZ / Nate McKinnon
Automotive retail and finance company Turners is on track to improve on its record result last year, as car sales continue to hold up well.
The company said its market share continued to grow over the fourth quarter and margins were stable.
It remained on track to improve its full-year result, forecasting profit before tax to be $44 million, about $1m more than its record result last year.
Chief executive Todd Hunter said it had come at a time when national used car sales had fallen about 9 percent year-on-year.
"We're really pleased with how the business is performing against a backdrop of a pretty tough market environment," Hunter said.
"I think our focus on sourcing has been a really good strategy and our branch network continues to expand."
However, higher interest rates meant arrears climbed in its finance division over December and January, but the company said its loan book was stable and arrears improved in February.
"We can see that our loan book is performing better than the market statistics are showing," Hunter said.
"We're certainly seeing the improvement in those arrears numbers come through in February, but there's no doubt that the economic conditions and I think cost of living pressures are starting to flow through into loans."