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Turners earnings rise 12pc, eyes listing

NZ Newswire logoNZ Newswire 28/03/2017 Paul McBeth

Turners expects annual earnings to rise 12 per cent as it reaps the benefit of buying motor insurer Autosure and setting up a securitisation funding model to cut costs.

The Auckland-based company expects pre-tax earnings of between $24 million and $24.5 million in the year ending March 31, up from $21.6m a year earlier, it said in a statement.

The guidance includes Turners' recent acquisitions including Autosure and car importer and dealer network Buy Right Cars, and the lower cost of funds provided through its $150 million securitisation programme.

"We have successfully integrated the value accretive acquisitions of Buy Right Cars and Autosure into our business in the past six months, and we have made good progress on a number of important initiatives, which all contribute and support the future growth of Turners," chief executive Todd Hunter said.

"There are numerous growth opportunities available to us in the fragmented automotive market and we have a disciplined approach to identifying and assessing those that best fit our business and will add value to our shareholders."

Turners, formerly known as Dorchester Pacific, has built itself into an integrated automotive financial services group, with businesses spanning automotive retail, finance and insurance.

The company will also look to list on the ASX in the 2018 financial year, which starts in April, to "access a larger capital market to support its growth strategy".

Turners announced the guidance after the NZX closed. Its shares slipped 0.3 per cent to $3.56 on Tuesday.

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