FLLYR: TUA: FY to 31/12/09 $3.3M up 207% FY DIV 12.0 cps

19 Feb 2010 9:28 am

TUA 19/02/2010 FLLYR

REL: 0928 HRS Turners Auctions Limited

FLLYR: TUA: FY to 31/12/09 $3.3M up 207% FY DIV 12.0 cps

Turners Auctions today announced its 2009 net profit after tax of $3.3 million, up 207 percent on the same period last year. Despite the continued decline in the used vehicle markets over the year Turners Auctions has grown market share and focused closely on costs to ensure a strong result for shareholders. There has been strong profit growth in all the core areas of the business which is very pleasing given the economic situation the business has operated in throughout 2009.

The New Zealand used vehicle market has declined a further 5% in 2009 off the back of a 9% decline in 2008. However auction revenues have held up well at $36.6 million up slightly over $36.5 million in 2008. There has been continued growth in sales of repossessed vehicles, government fleet vehicles, lease and rental company vehicles.

Operating profits from Turners Fleet have improved significantly by comparison with 2008 as a result of more prudent buying in Japan and tighter control of inventory. Turners Finance profits have increased due to higher interest margins, a growing loan book and improved sales of add-on insurance products such as mechanical warranties.

As indicated at the half year changes in strategy have delivered significant savings in business costs with total expenses for the year down 13.8% to $65.8 million. Turners Fleet cost of sales are down 25% to $24.7 million and the change to an online advertising strategy has reduced advertising costs by 51% to $1.4 million and delivered an extra 9.4% registered bidders over 2008 levels. We have continued to invest in online initiatives throughout the year and this has delivered an increase of 31% in web traffic in 2009 and contributed to an increase in online purchasing.

The strong full year result and Turners' positive cash position have led the Directors to declare a final dividend of 7.0 cents per share fully imputed at 33%, payable on March 30, 2010. This brings total dividend payments for 2009 to 12.0 cents per share.

Results summary: - Operating Revenues $70.4 million, down 9.5% - Group Net Profit after tax $3.3 million, up 207% - Total Group Assets $44.2 million, up 6% - Final Dividend payment 7.0 cps payable 30th March 2010

For more information contact: Graham Roberts, Turners Auctions Chief Executive Officer, 09 580 9353

Appendix 1

Turners Auctions Limited Results for announcement to the market

1.1 Reporting Period 12 months to 31 December 2009 Previous Reporting Period 12 months to 31 December 2008 Amount (000s) Percentage change

1.2-a Revenue from ordinary activities $70,351 (9.5%) 1.2-b Profit (loss) from ordinary activities after tax attributable to security holders $3,273 +206.7%

1.2-c Net profit (loss) attributable to security holders $3,273 +206.7%

1.2-d Interim/Final Dividend Amount per security Imputed amount per security

Final $0.07 $0.034478

1.2-e Record Date 23 March 2010 Dividend Payment Date 30 March 2010

1.2-f Comments: See attached file. 3.1 All statements are prepared in accordance with New Zealand International Financial Reporting Standards

3.2 The directors believe that the inventories, trade receivables and finance receivables accounting policies are critical to the portrayal of Turners Auctions Limited's financial condition and results and require the directors to make judgements and estimates about matters that are inherently uncertain.

Inventories comprise primarily motor vehicles held for resale and are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the Income Statement. A provision for impairment of finance receivables is established on a counterparty basis when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the Income Statement.

3.3 Turners Auctions has changed some of its accounting policies as a result of new or revised accounting standards which are mandatory for the annual reporting period commencing on 1 January 2009. The affected policies and standards are; - Presentation of financial statements - revised NZ IAS 1 Presentation of financial statements - Segments - new NZ IFRS 8 Operating Segments

There have been no other changes in accounting policies.

Presentation of financial statements The Group has applied the revision of NZ IAS 1 Presentation of financial statements from 1 January 2009. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement. Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The Group has elected to present two statements: an income statement and a statement of comprehensive income. The financial statements have been prepared under the revised disclosure requirements.

Segment reporting The Group has applied NZ IFRS 8 Operating Segments from 1 January 2009. NZ IFRS 8 replaces NZ IAS 14 Segment Reporting. NZ IFRS 8 requires 'a management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. Operating segments are now reported in a manner that is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Board of Directors.

The Group has early adopted the amendment to NZ IFRS 8 that is part of the Accounting Standard Review Board's annual improvement project. The amendment provides clarification that an entity is required to disclose a measure of segment assets only if that measure is regularly reported to the chief operating decision maker.

Comparatives for 2008 have been restated.

3.4 The financial statements have been audited.

3.5, 1.3(k),(m) See file attached for further information. End CA:00191387 For:TUA Type:FLLYR Time:2010-02-19:09:28:05

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