TRA - Turners Automotive Group

[Basil]

I'd wager you a good German beer that you're just as pleasantly surprised as I am they can grow the business in the current recessionary conditions as I am.  Really pleased with the positive update from the annual meeting.  A real breath of fresh air in this soggy market.

[BlackPeter]

I'd wager you a good German beer that you're just as pleasantly surprised as I am they can grow the business in the current recessionary conditions as I am.  Really pleased with the positive update from the annual meeting.  A real breath of fresh air in this soggy market.

What's the wager? I love good German beer ...

But yes, after sitting today through the OCA AGM I must say that the TRA star appears to shine brighter and brighter ;

[LoungeLizard]

What's the wager? I love good German beer ...

But yes, after sitting today through the OCA AGM I must say that the TRA star appears to shine brighter and brighter ;

You'll probably need quite a few beers if you sat through all of OCA's AGM...

[winner (n)]

Our man Liam Lawson to drive F1 Dutch GP this weekend

Go our Liam

Money well spent

[lorraina]

A big ask as it is a difficult car to drive.

[winner (n)]

Great effort from Liam in Dutch GP

Tina would be proud of him ......Turners 'support' winners

[Basil]

Am I the only one struggling to see how Turners gets any commercial mileage from this sponsorship?

[lorraina]

Yes..............

[winner (n)]

There's a cool bit on Instagram ...Tina going for a spin with Liam

Followers love it ...and will go to Turners next time

[winner (n)]

Am I the only one struggling to see how Turners gets any commercial mileage from this sponsorship?

Probably gives the Chair a buzz

[Basil]

Marketing payback.  Coolest thing I have ever seen is Todd saying the initial $300K cost of creating the Tina marketing program was recovered in the very first month of sales!  Its award-winning and hugely successful marketing like that that's driven the 55% increase in dividends in the last 5 years.

Pet projects of the Chair, much harder to measure the payback if any,  I reckon.  Good thing he has a decent stake in the company though so he'll keep wanting to drive better results and bigger dividends so he can afford even faster Ferrari's.  That's a win-win for everyone.

[winner (n)]

Marketing payback.  Coolest thing I have ever seen is Todd saying the initial $300K cost of creating the Tina marketing program was recovered in the very first month of sales!  Its award-winning and hugely successful marketing like that that's driven the 55% increase in dividends in the last 5 years.

Pet projects of the Chair, much harder to measure the payback if any,  I reckon.  Good thing he has a decent stake in the company though so he'll keep wanting to drive better results and bigger dividends so he can afford even faster Ferrari's.  That's a win-win for everyone.

Ha ha ...only a marketing man / car salesman could come with saying marketing paid for itself in a month .......bit far fetched that claim I reckon ...prob used the same methodology the council uses on its cost benefits studies

Suppose it does work over time though

Wonder how much they give Liam a year

[Onemootpoint]

Am I the only one struggling to see how Turners gets any commercial mileage from this sponsorship?

I noticed that the mister Hunter himself referred to their support elsewhere (other channel) albeit not specifically answering your question.

[Basil]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/TRA/418266/403026.pdf

70% of that at a very low margin.  Presume ND means not disclosed and will be at a higher margin.

I continue to believe there is a very good chance for NZX50 inclusion with the December rebalance and that could lead to a 0-25% increase in the share price that could be temporary or otherwise.  More importantly I believe the business is in very good shape and well placed to grow in the years ahead and at around $3.50 is trading on compelling metrics of forward PE ~ 9 and gross yield based on 25 cps fully imputed, (my estimate) 9.9%.  Additionally, it presently trades cum a 6 cent fully imputed dividend.  Back that out as a return of capital and the gross forecast yield becomes 34.72 cps gross / $3.44 = 10.09%, (10.3% if you take the advantage of the 2% discounted DRP).  I think the prospects for dividend growth in the years ahead are also very good.
Disc: My #1 investment position on the NZX.

[Fiordland Moose]

Yes the top rated tranche a good margin at 155bps over BKBM. With a modeled wal of 1.3 years (but 3.3 years weighted average remaining term) they will be taking out a swap for whatever period (say ~2 years) and pay the margin ontop of that.

Not sure why margin on 2nd tranche not disclosed but yes probably higher given lower level of credit support despite the same credit rating.

Last tranche probably held mostly by Oxford/Turners to provide the credit support to the above tranches.

Reasonably small ABS but still very positive to establish the programme and optimise capital.

https://www.fitchratings.com/research/structured-finance/fitch-assigns-expected-ratings-to-turners-marque-abs-2023-1-trust-outlook-stable-03-09-2023