Turners Auctions, which transacts about 10 per cent of the New Zealand used vehicle market, beat its annual profit forecast after widening its scope beyond auction sales, and lifting sales of insurance and finance. The shares surged to the highest in more than eight years.
Net profit rose 14 per cent to $4.8 million in calendar 2013, the Auckland-based company said in a statement. That's an improvement from the company's estimate in November for profit to rise about 10 per cent. Revenue increased 14 per cent to $89.2 million.
Turners new chief executive Todd Hunter, appointed in August, aims to grow the company's market share by trading vehicles through a wider range of outlets, and increasing its finance and insurance offerings. In 2013, revenue from the company's higher-margin fleet division, where vehicles are acquired and on-sold by Turners, surged 30 per cent to $46.9 million. Revenue from auctions, where Turners sells on behalf of a customer, fell 1 per cent to $36.3 million.
"Our goal is to grow our market share by creating more opportunities to source and sell vehicles," chairman Michael Dossor said.
Shares in Turners jumped 10 per cent to $2.59, their highest level since October 2005. The stock was listed in 2002, following an initial public offering at $1.50 apiece.