At the recent Turners Group AGM, Chairman Grant Baker said future profitability will involve new branches and thus further sales will drive its growth. The company will also start expanding its loan book and will continue its move into the insurance and vehicle service and repair divisions.
As reported in Autofile, the Chairman said the company is in good financial health, and remains on track for a 2025 profit target of $50m. It expects to net $65m before tax by 2028.
Baker said the company now has vast experience in the used car market. “In the past month, we have made two investments in companies that operate in adjacent markets – insurance, and vehicle servicing and repairs.”
The company recently bought 50 per cent of My Auto Shop, a platform with more than 300 Motor Trade Association-approved repairers. It also has a mobile offering via a fleet of My Auto Shop branded mechanics.
“Vehicle servicing and repairs is a $3 billion business in New Zealand and has been a gap in Turners’ offering” said Baker.
“We buy and sell vehicles, we can insure and finance those vehicles too.
“Now we service and repair. The potential lifetime value of customers to us has increased substantially.
“The repairs business is highly fragmented and this is an opportunity to help develop a provider of scale. This fits well with our mission to consolidate across the auto business and enhance customer experience.”
Turners has also invested in Quashed, an “innovative online insurance platform”. Baker said: “It allows consumers to easily compare, shop and manage policies from multiple insurers across motor, contents, home, pet and life.
“Insurance is something everyone needs and is complementary to our core business of selling used cars. We want Kiwis to be protected. Quashed enables this through the effortless comparison of a multitude of policies, pricing and features.
“We have a commercial agreement established between Quashed and Turners for referrals.”
Baker concluded “The business has stood up incredibly well to the challenges of the economy, interest rates and changing regulation.
“While many consumer and retail businesses struggle, Turners is outperforming.
“The yield on our shares continues to be one of the best on the NZX.
“The best news is there’s more to come for Turners and we are focused on future growth.”
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