Turners Auction profits up 69pc

Turners Auctions chief executive Graham Roberts shown earlier this year before an auction of luxury cars. Photo / Dean Purcell

Car auctioneer Turners Auctions has reported a 69 per cent increase in interim profit during a time of market turmoil.

The net profit after tax of $1.4 million in the six months to June 30 was achieved on revenue of $34.73m, down 17 per cent on last year.

The company is paying a 5c a share dividend on September 17.

It attributed the profit increase to a 19 per cent fall in expenses, investing in the brand and pursuing online marketing opportunities.

"This is an extremely pleasing result given the backdrop of a New Zealand vehicle market that has been in turmoil as a result of the recession," the company said.

Sales in the overall New Zealand used vehicle market are down 9.4 per cent. Sales of used Japanese imports are down 40 per cent.

Despite the decline in the used vehicle market, auction revenues are only down 3 per cent from last year.

Receivership and liquidation work is strong, reflecting the economic situation.

"With the reduction in the cost base, growing market share, key customers retained and a New Zealand used vehicle market that is showing early indications of recovery, the company is forecasting a full-year net profit after tax in the range of $2.6m to $2.8m."

- NZPA