TRA - Turners Automotive Group

[Waltzing]

a  deep dark place is where the background seems to depict...

https://www.interest.co.nz/economy/130870/updated-treasury-forecasts-will-show-recession-lasting-longer-and-budget-deficits

[Basil]

In light of the above, you'd think it would be common sense for the RBNZ to cut by at least 75 bps on Wednesday but really, why remain restrictive in monetary policy at all?  Maybe cutting 100 bps is what's needed.

[Waltzing]

this comment admit should be on econmic thread...

maybe in light of the comments on growth in the article nothing much since 2014...


100 might not be enough? fire a whole of people in wellington , automate the tax department and close down ministries... reduce tax rates...

heck the kiwi might have a parity party ... AGAIN!!!

[Basil]

Interest rate cuts, no matter whether its 50 or 75 bps on Wednesday the direction is down, down, down for the foreseeable future and that's great for TRA. https://www.nzherald.co.nz/business/markets-with-madison/markets-with-madison-rate-cuts/NGOXYFIDASPHNQJ436OVVTD56U/
 

[Basil]

Results out and as per my expectations indicated yesterday, growth in the face of fierce economic headwinds has slowed a bit from the gains enjoyed last year.  A new interim profit record and on track for yet another full year record profit, (that will make it five years in a row).  A very impressive result in the circumstances.  WOW look at the dividend expectation this year of at least 27 cps !  I posted a few highlights from the presentation below.

Resilient, diversified business model continues to grow value through the cycle

Key HY24 financial metrics

• Revenue $209.0m (- 2%)
• EBIT $31.0m (+3%)
• NPBT $26.9m (+5%)
• NPAT $19.3m (+4%)
• Earnings per share 21.8 cps (+2%)

Highlights

• Record net profit before tax (NPBT) of $26.9m for HY24 (HY23 $25.7m), 5% higher than the same period last year, proving resilience through the cycle during a significant retail downturn
• Reaffirm September 2024 guidance that the business is on track for another record result for FY25, exceeding $50m NPBT target, which was first communicated in [xx date]
• Forecast FY25 dividend of at least 27 cps up 6% on pcp and capping a decade of strongly growing dividends from 10 cps in FY15
• Earning diversification proven again, with lower Auto Retail revenue offset by strong results for Finance, Insurance and Credit Management, as expected
• Consumer sentiment downturn put pressure on vehicle prices, reducing margins during the period, but now showing signs of recovery
• Resilient used car volumes, despite new car demand plummeting
• Motivated team with high levels of employee engagement and share ownership
• Sustained high performance acknowledged by a range of awards for the company, including finalist in Company of the Year 2024 in Deloitte Top 200 Awards
• Q2 dividend declared at 7.0 cps

Full announcement here https://www.nzx.com/announcements/442516

Presentation https://api.nzx.com/public/announcement/442516/attachment/432694/442516-432694.pdf

Noting this statement from the presentation  2H25 trading expected to strengthen across all divisions....(page 5)

How's this !  Marketing association - "Tina" is the Greatest add campaign for the last 50 years !! - page 6

Vehicle pricing pressure persisted through Q1 with signs of improvement in Q2/Q3 - page 8

Q3 update page 11 Q3 Update
• Auto Retail: Volumes elevated with
margins improving.
• Finance: Arrears continue to perform
well with originations starting to lift.
The benefit of easing OCR is
expected in H2.
• Insurance: Claims continue to track
below expectations, GWP holding up
well.

I'm really liking how profitability in insurance has grown over the years and margin on finance has recovered this half, see page 15,.

Growth in dividends over the last decade.  Page 16. A picture says a thousand words !

Page 25 Pressure on vehicle pricing and margins during
Q1, with strong signs of recovery through
second half of Q2 and early part of Q3.

Really pleasing and solid lift in net interest margin year on year, see page 34.

[winner (n)]

NPBT on 12 month basis now over $50m

They say full year 'expected to exceed its $50m NPBT target.'

That's reassuring

[winner (n)]

Resilience used 6 times in announcement

Beat Kiwi Property ...only used that word 5 times

Think everybody is getting carried away with their language these days

At least Todd didn't use the term 'fiercest economic headwinds' 😃

[winner (n)]

Had to get into the presentation before I completed the Bingo card of 15 popular words

Poor Tina wasn't mentioned in announcement

[Basil]

Page 49 summary...read it for yourself.

Overall a deeply impressive result in my opinion and they have weathered the worst economic storm since the GFC extremely well.    Market share grown to 9.5% and headed towards 10%.

Marketing association award - "Tina" is the Greatest marketing campaign for the last 50 years !!
I studied marketing at University as an optional paper and while one paper does not qualify me as an expert by any means lol, in my opinion the Tina campaign is the most brilliant I have ever seen in my lifetime and has been fundamental to growing the Turners business over many years.
I think we have all got a lesson in the power of effective marketing with the Tina campaign.  For some of us holders, it's been a very rewarding lesson already and I am highly confident the best is yet to come in the years ahead.

I'm a very happy camper and this is my largest individual stock position on the NZX.

[winner (n)]

Forgot to say a pretty good result

[lorraina]

An out standing result in this market.

[winner (n)]

Wonder what'll happen to share price today

And it's one of those Adjust Trading days ......strange things happen on these days

[BlackPeter]

In light of the above, you'd think it would be common sense for the RBNZ to cut by at least 75 bps on Wednesday but really, why remain restrictive in monetary policy at all?  Maybe cutting 100 bps is what's needed.

Mmh - 10 year US federal bonds close to 4.5%. I wonder whether the gamble of putting Trump back on the throne was like throwing a hand grenade into any economical recovery? Bond market expects interest rates to stay high for a long time. Ignore them at your peril.

Seriously - while the RB might this time still go down a bit, I don't expect them to make a huge step ... and it might well be the last step down in some time to come.

[Waltzing]

does this mean it better than money in the bank... or land banked...

is it VINDELLATION !!

now was there a minus sign in those reports anywhere and for what... retail sales?


10 dollars by ?

[Pierre]

does this mean it better than money in the bank... or land banked...

is it VINDELLATION !!

What on earth does "vindellation" mean?