TRA - Turners Automotive Group

[winner (n)]

Not to be out done by Tina our Todd is a big award winner

Leadership Award atINFINZ Awards


https://www.nzherald.co.nz/business/infinz-awards-big-winners-in-the-finance-industry-named/PV6JNFYZZ5G33DSPFTZHUNIPJY/

[winner (n)]

Not to be out done by Tina our Todd is a big award winner

Leadership Award atINFINZ Awards


https://www.nzherald.co.nz/business/infinz-awards-big-winners-in-the-finance-industry-named/PV6JNFYZZ5G33DSPFTZHUNIPJY/

And not an awards night for dodgy used car dealers either .....but in finance sector

Our Todd recognised as Leader in this industry ...kudos

[Basil]

Good bloke with a very nice calm manner and very clear way of communicating. Thoroughly deserved.

[LoungeLizard]

Yep, Todd is a class act. Does his homework, communicates very well and always seems to be be thinking about shareholders interests, as opposed to some other CEO's we all know...

[Waltzing]

Oh gosh its boucning of the bottom pastel line that fills in the 3.50 to 4.60 area....

[Basil]

I bought a few more at $3.90 this week.  Expecting a great result on Tuesday and a solid start made to the FY25 year.

[lorraina]

A Stunner.
https://www.nzx.com/announcements/431370

[winner (n)]

A Stunner.
https://www.nzx.com/announcements/431370

STUPENDOUS sounds better than Stunner

[Waltzing]

The effective tax rate over the last two years is between 27.5-28.5%. A normalised NPAT using FY23 tax rate of 28.5% would be $35.1M +8% and EPS would be 40.2 +7%.

This will be across the board on lot of stocks but property has increased in value meaning an uplift over the last 10 years in balance sheet backing of NTA surely..  back news on tax but balanced by increase in land and buidling backing...

nice slow growth stock... almost blue chip for NZX.

The NZX will still come under more pressure this year surely..

Key Business Highlights:

● Auto segment profit was up 27% and constituted more than 50% of group profits.


Driven by two new branches launched in FY24, improved sourcing, retail optimisation (from wholesale auctions to retail), growing brand strength, operating efficiencies and solid organic growth across the network.
● Finance segment has weathered the interest rate shock as we deliberately sacrificed some top line growth over the last two years to focus on higher quality borrowers, positioning the segment well as interest rates ease. Net interest margin (NIM) is expanding, following an inflection point during H2 and rate headwinds will now turn into tailwinds. Meanwhile, arrears remain significantly below industry benchmarks.
● Insurance segment increased contribution to profit as a well-tuned business with robust policy sales, well managed claims and improved investment returns. Notably claims cost inflation was offset by reduced frequency of claims.
● Credit Management business has turned a corner with debt load recovering in line with a tightening economy, particularly in SMEs. The business is well-placed for growth as the economy tightens and debt value load continues to increase.
● A strong culture remains a key advantage, ranking in the top 5% of consumer businesses globally using Peakon (employee engagement tool). 50% of the team took up the Employee Share Scheme offer.

Heres the important bit for the NZX for the next 12 to 16 months.....


● Outlook: An anticipated deterioration in economic conditions during HY25, combined with cycling against a high-growth HY24 comparative period arising in part from extreme weather events, means we expect HY25 to be testing. Our near term focus remains on exceeding the $50M NPBT goal in FY25, despite the economic backdrop. Beyond FY25, Turners is well-placed to continue to make strong progress, thanks to the resilience of a diversified business model (activity and annuity), and clear strategy for further growth.

Future Growth..

Turner's FY24 result demonstrated strong earnings in challenging conditions, thanks to its resilient, diversified business model, and is well placed to implement its next phase of development and growth.

Group revenue rose 7% to $417m, delivering a record NPBT result of $49.1m up 8% on FY23.

[Basil]

Very solid result in the context of economic conditions.
Amazing they can produce one record profit result after another for many years despite all the economic and pandemic challenges faced.  Operating like a well-oiled Swiss watch.    Presentation.
https://api.nzx.com/public/announcement/431370/attachment/418834/431370-418834.pdf
Fabulous to see strong dividend growth this year and the average over the last 5 years has been stunning.   Final divvy of 7.5 cps exceeded my expectations.
Road map to $65 NPBT in FY28 implies average NPBT growth of 7.5% for the next 4 years.
Really happy with the strong and steady way they are going about building the business.
Consensus estimates before this result for FY25 and FY26 were $52m and $57m.
I think they are on track to meet that.
I expect about 35 cps in annual dividends in FY28 which is nearly 12% gross yield based on the current share price.
TRA looks very well positioned to deliver increasing returns to shareholders in the years ahead.
Disc: My #1 NZX position.  Topped up with a few more recently.

[LoungeLizard]

Great result as expected. And that's the thing about TRA - you almost know they are going to deliver, that's how solid and reliable they are. Still well undervalued - should be a $5 stock at least.

[winner (n)]

Turners have number for reverse mortgages on the Balance Sheet

Is that a legacy issue left over from Dorchester

[Basil]

Just a real quick back of the envelope before I tune into the call.

If they can do $52m before tax for FY25 (was consensus before this result) on say 87.5m weighted average number of shares, (has been expanding at about 1m per annum with DRIP so I have accounted for that), that's eps of 42.8 cps, FY25 PE of just 9.6 at the bottom of the economic cycle, looks very cheap.
Assuming divvy payout at mid point of their 60-70% range, 65%, that's 28 cps and fully imputed that's 38.9 cps gross and represents a 9.5% gross yield for the year.  (Can be 9.5 / 0.98)9.7% effective is you take the DRIP at 2% discount.

Looking further out at FY26 based on $57 NPBT I foresee eps of 46.4 cps, forward PE of just 8.8, dividends of 30 cps (41.7 cps gross and a gross yield of 10.2%.

Obviously, there's more growth to come in the years after that.

Very solid dividend yield + ongoing growth in the years ahead and all trading on compelling metrics, with a well proven management team.
Crickey, there's a LOT to like.

[BlackPeter]

A Stunner.
https://www.nzx.com/announcements/431370

Not bad, considering the economic conditions. Great job Todd and team!

On the other hand - while revenue increased, earnings were stagnant (yes, I know on a high level, but it still means margins dropping) - and at least the short term outlook is not that flash.

Maybe the next trick will be to just avoid the descent ...?

Anyway - amazing result given the sorry state of many retail outlets ... Congratulations and lets worry about the future tomorrow ;

[winner (n)]

They don't seem to have mentioned what their market share has grown to

Maybe said something in analysts call

Anybody know.