Tuesday 25th May 2021
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Turners Automotive Group has reported record earnings for the financial year to March 31, 2021 (FY21), despite a COVID-19 disrupted year, effectively reducing the year to a 10-month trading period due to lockdowns.
Earnings per share for FY21 were 31.4 cps, up 29% on the previous year. A further 6.0 cps dividend has been declared for the final payment of FY21 (payable in July), taking FY21 dividends to 20.0 cps. This reflects the dividend policy to payout 60-70% of net profit after tax (NPAT).
Grant Baker, Chairman, said: “We remain committed to delivering a strong and sustainable yield to shareholders. Initiatives worked on over the last 2-3 years are really starting to come together and most importantly are delivering results, even during the disrupted period of 2020. Our company is in a real position of strength and we feel very confident in our growth plans. Margin expansion and market share gains are helping deliver the bottom line growth that we knew was possible. Our team right across the wider business has done a fantastic job of managing the business and supporting our customers through the pandemic. Our business has never been in better shape, and the mix of diversified earnings is delivering the consistent growth plus yield that shareholders are looking for. ”
The results to 31 March 2021 have been audited by Baker Tilly Staples Rodway, who expect to give an unmodified opinion on the financial statements.
Outlook and Guidance
April and early May 2021 have seen a continuation of the positive momentum Turners has enjoyed over the past 10 months. Our April 2021, financial results are materially ahead of a more comparative period of April 2019 (non Covid-impacted).
In Automotive Retail, we are expecting the supply-constrained market to continue for 12-18 months due primarily to impacts on the new car supply chain. New lending in the finance business will be strong and our expectation is that arrears will continue to improve, as the weighting towards newly introduced premium loans grows as a percentage of the book. In Insurance, we expect new policy sales to be buoyant and claims ratios to stabilise. Lastly, in Credit Management, debt recovery is returning as corporate customers start to get back to business as usual. Shareholders should expect to see a further improved result in FY22 and accordingly a corresponding increase in FY22 dividends. Turners will update more specific FY22 guidance over coming months.
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