HALFYR: TUA: Half year to 30/6/10 $1.46M up 6%, Interim Div 5.0 cps

20 Aug 2010 9:06 am

TUA 20/08/2010 HALFYR

REL: 0906 HRS Turners Auctions Limited

HALFYR: TUA: Half year to 30/6/10 $1.46M up 6%, Interim Div 5.0 cps

Turners Auctions announced its half year net profit before tax of $2.16M, 10% ahead of the prior corresponding period. This translates to a 6% increase in net profit after tax to $1.46M.

The used vehicle market in New Zealand has made a slow recovery over the first half of 2010 from the lows experienced in 2009. The total New Zealand used vehicle market is up 5% year to date compared to 2009 sales. Used Japanese imports brought into the country are up 82% to 44,109 units signaling the market has moved back into a situation of over-supply.

Total Revenue is up 4% on the prior period primarily due to higher unit sales by Turners Fleet, strong growth in interest revenue due a higher Turners Finance ledger, and increased insurance commissions from sales of motor vehicle breakdown insurance policies.

The Turners Finance ledger has grown to $17.6m as at the end of June up $3.7m or 27% since June 2009. This growth has come from a combination of strong loan sales and a reduction in the proportion of loans settled early.

Whilst the outlook is still unpredictable there are some positive signals for key revenue lines within the business. Market share for the cars business is on the rise and we are experiencing excellent growth in the Trucks and Heavy Machinery business. The commercial business continues to enjoy the counter cyclical aspects of an economy under pressure with many receiverships and liquidation sales taking place.

The strong cashflow generated from operating activities and positive result in the first half, mean the Directors have declared a fully imputed net dividend of 5 cents per share, payable on the 21st September.

Results summary: o Net Profit Before Tax $2.16 million, up 10% o Net Profit After Tax $1.46 million, up 6% o Interim dividend payment 5.0 cps

Contact: Graham Roberts, Chief Executive Officer, phone: +649 580 9353

Half Year Preliminary Announcement Appendix 1

Turners Auctions Limited Results for announcement to the market

2.1 Reporting Period Six months to 30 June 2010 Previous Reporting Period Six months to 30 June 2009

Amount (000s) Percentage change

2.2-a Revenue from ordinary activities $36,160 (4.1%) 2.2-b Profit (loss) from ordinary activities after tax attributable to security holders $1,456 +6.1% 2.2-c Net profit (loss) attributable to security holders $1,456 +6.1%

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

Interim $0.05 $0.021429 2.2-e Record Date 14 September 2010 Dividend Payment Date 21 September 2010

2.2-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 There has been no material change in accounting policies applied in preparation of the statements.

3.4 The financial statements have not been audited.

3.5 See file attached for further information.

3.5, 1.3(k),(m) See file attached for further information. End CA:00198589 For:TUA Type:HALFYR Time:2010-08-20:09:06:54

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