KEY POINTS:
Turners Auctions first-quarter profits have plunged and the company has been defrauded out of more than $1 million by a long-term employee.
Chairman Michael Dossor said at yesterday's annual meeting that a potential fraud had been uncovered involving an ex-employee who had worked for the company for a number of years.
"The amount involved is in excess of $1 million," Dossor said.
"Because the matter still requires considerable investigation and is otherwise subjudice I am unable to comment further at this time."
The vehicle auctioneer was working with the Serious Fraud Office, its insurers and auditors.
Dossor said first-quarter net profit in the current year was down 59 per cent at $600,000. About 60 per cent of the reduction came from two vehicle suppliers which had been moved into receivership last year.
"We envisage that the conditions will remain difficult for the remainder of this financial year but are confident that in the medium term the group will benefit from this prolonged period of market consolidation."
Net profit for the previous year ending December was $3.2 million down from $5 million.
Chief executive Graham Roberts said it was too early to predict the current full-year result. "I don't think I've been as good at projecting as I would have liked.
"I'd rather reflect on what's happened in the first quarter and by half-year stage I'd like to think that we'd be in a better position to give you some guidance."
Turners' share price closed down 1c yesterday at $1.35 a share.
