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Turners Auctions lifts 1H profit 10 percent, sees flat annual result

Thursday 15th August 2013

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Turners Auctions, the auction house which counts Dorchester Pacific as a cornerstone investor, lifted first-half profit 10 percent on gains in its fleet and finance units, and sees a flat annual result having previously warned it faced a tough year after losing a major contract.

Net profit rose to $2.1 million, or 7.8 cents per share, in the six months ended June 30, from $1.9 million, or 7.3 cents, a year earlier, the Auckland-based company said in a statement. Turners lifted sales 13 percent to $41.8 million.

Annual profit will likely be in line with 2012's $4.2 million result, as the auction house counters the loss of a contract with Insurance Australia Group to sell damaged vehicles. The IAG contract accounted for about 15 percent of Turners' bottom line.

"The business has made good progress in the first half on implementing a multi-channel sales strategy," the company said. "Cost management will continue to be a focus along with securing alternate sources of stock."

The board declared an unchanged interim dividend of 7 cents per share, payable on Sept. 19. The shares were unchanged at $1.92 at the open of trading today, and have gained 3.8 percent this year.

The company's fleet business reported a 24 percent lift in sales to $21.2 million and a 63 percent gain in operating profit to $981,000, and the finance unit boost revenue 8 percent to $2.7 million and earnings 28 percent to $907,000.

The auctions unit increase sales 2.9 percent to $18 million, though operating profit sank 21 percent to $1.1 million.

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