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Turners eyes acquisitions as profit rises

NZ Newswire logoNZ Newswire 24/11/2016 Tina Morrison

Financial services firm Turners Group has posted a 15 per cent gain in first-half profit and said all its businesses were expected to lift earnings in the full year.

Profit rose to $8.5 million in the six months to the end of September, from $7.4 million a year earlier, it said.

On a pretax basis, profit of $11.8m was $200,000 ahead of the company's forecast and last year's$10.3m. Revenue rose 36 percent to $115.1 million.

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 said that all sectors are expected to deliver a year-on-year improvement in operating profit for the full year, with 10 per cent organic growth expected from existing businesses.

"Turners remains focused on growth, both through M&A and by leveraging opportunities within each business," the company said.

In the first half, the automotive retail business lifted operating profit 31 per cent to $6.9m. The result includes two months' trading from Buy Right Cars, acquired in July 2016, and Turners also launched online car purchasing website Cartopia and is expanding its footprint in the trucks and machinery market, having acquired a further two properties.

"The Buy Right Cars acquisition is settling in well and Tuners will continue to look at acquisitions in the very large automotive retail sector," the company said.

Turners said it's well funded for continuing merger and acquisition activity, having raised $25.56m from convertible bonds and $13.5m from a share placement.

The latest earnings don't include any contribution from the Autosure Insurance which it bought this week for $34m.

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