Turners Automotive : Letter to Shareholders - Turners FY22 Annual Report
June 29, 2022 at 03:52 pm EDT
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Dear Shareholder
The Turners Limited Annual Report for the year ended 31 March 2022 is now available. We invite you to read this on our website at https://www.turnersautogroup.co.nz/Investor+Centre/Investor+Reports.html
The FY22 year delivered another record result for our business, with Turners not only demonstrating earnings resilience but strong growth credentials as well. We are confident we have found the right formula and that our actions will deliver continuing growth over the next three years.
Our growing returns are driving much improved outcomes for our shareholders, and we were pleased to deliver record dividends of 23.0 cents per share in FY22.
With another record year of results, a stronger and de-risked business, a clear strategy and a near-term economic outlook that is looking more uncertain, our business has never been in better shape. We are ready for whatever comes next.
Our Three Year Plan
Our three-year plan centres on organic growth and is focused on four key areas, comprising both physical and digital investments.
Retail Optimisation and Expansion across people, property and processes.
Vehicle purchasing decision-making using data and tools to help identify new sourcing opportunities, and leveraging our brand strength to generate local sourcing leads.
Margin management and Premium lending within Finance.
Continued investment in digital and improving our omni-channel customer experience which allows customers to engage with us however, whenever and wherever they want.
Looking beyond FY23, we remain very confident about further growth over the medium to longer term. We have updated our three-year rolling target to grow to more than $50m of underlying profit before tax by FY25.
On behalf of the Board and management, we would like to thank our shareholders for your continued support.
We couldn't be more pleased about the shape the business is in, the trajectory we're on and the future for the Turners business.
Grant Baker
Todd Hunter
Chairman
Group Chief Executive Officer
FY22 AT A GLANCE
Strong consumer demand despite continued disruption from COVID-19 lockdowns and Omicron outbreak
Employee engagement at an all-time high (top 5% of companies using Peakon tool); continued to increase at a time where retention and recruitment have been under significant pressure
Auto Retail: Market share continued to grow in Auto Retail with a good pipeline of new branches
Finance: Quality lending strategy resulting in arrears at record lows
Insurance: Strong new policy sales with improving claims ratios
Credit Management: Debt load returning slowly but environment should be more productive in FY23
Macro headwinds (inflation and interest rates) starting to impact… speed of change biggest challenge
FY22 FINANCIAL SNAPSHOT
Record earnings from divisions operating in the used car market (Auto Retail, Finance and Insurance)
Record NPBT up 15% to $43.1m
NPAT up 16% to $31.3m
EBIT up 11% to $47.7m1
Underlying NPBT up 29% to $44.1m2
Revenue up 14% to $344.5m
Dividends up 15% to 23.0 cents per share
Earnings per share up 16% to 36.4 cents per share
Unrealised property gains per share 22 cents per share (measured from carrying value)
More information on Turners FY22 financial results can be read in Turners FY22 Annual Report.
Earnings Before Interest and Tax (EBIT) adjusted for interest expense in Finance (non-IFRS measure).
Underlying Net Profit Before Tax (NPBT) is a non-GAAP measure and excludes one-off or non-cash costs including property sales and acquisitions, covid-related support and remuneration sacrifice, review and restructure costs and profit normalisation (Turners' estimated profit had the business not been shut during lockdown). In FY22, these totalled $1.0 million. A reconciliation can be viewed in Turners FY22 Annual Report.
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Turners Automotive Group Limited published this content on 30 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 June 2022 19:51:03 UTC.
Turners Automotive Group Limited is a New Zealand-based integrated financial services company, primarily operating in the automotive sector. The Companyâs segments include Auto retail, Finance, Insurance, Credit management and Corporate & other. The Auto retail segment offers remarketing (motor vehicles, trucks, heavy machinery and commercial goods) and purchasing goods for sale. The Finance segment provides asset-based finance to consumers and SME's. The Insurance segment is engaged in marketing and administration of a range of life and consumer insurance products. The Credit management segment provides collection services, credit management and debt recovery services to the corporate and SME sectors. Its automotive ecosystem makes it easy for its customers, allowing them to buy, sell, finance and insure their vehicle through its brands and businesses. The Companyâs business activities are located in New Zealand and Australia.