Turners Automotive Group Limited Analysis

Overview

Turners Automotive Group has been formed through the 2014 merger of New Zealand's largest vehicle and machinery retailer, Turners Auctions, and leading consumer finance and insurance business, Dorchester. Turners Auctions was established in 1967 when Turners and Growers Limited began auctioning cars and trucks alongside its fruit and produce business. Today, Turners is New Zealand's largest auction house and vendor of second hand cars, trucks and machinery. Dorchester was incorporated in 1984 as Venture Pacific Limited. The company became Dorchester Pacific Limited in 1992 and over the following years, Dorchester developed a core financial services base through the acquisition of a number of finance companies throughout New Zealand aligned to its consumer finance and insurance strategy. In 2014, Dorchester launched a successful takeover offer for Turners Auctions and consolidated its interests into a single entity that carried the Turners name. The decision to continue the Turners brand recognised the rich history and consumer recognition attached to it. In 2017, Turners Limited changed its name to Turners Automotive Group to enable a Foreign Exempt Listing on the ASX and to reflect the focus of the group on the automotive sector.

The Turners Automotive Group has 3 core operating divisions.

1. The Automotive Retail Division where we control the buying and selling of second hand cars, trucks and machinery to earn a transactional margin and deliver cross-sell opportunities for our Finance and Insurance products. Turners is the largest second hand vehicle retailer in New Zealand.

2. The Finance and Insurance Division where we help customers with simple and attractive finance and insurance products, and through this build annuity revenue streams. Turners has a portfolio of reputable businesses offering finance and insurance products to customers across New Zealand, including personal, motor vehicle loans and insurance.

3. The Debt Management and Credit Collection Division where we help businesses of any size in New Zealand and Australia with collecting debt from customers who are not paying. Turners has a growing presence in the debt management sector in both New Zealand and Australia through its EC Credit Control business.

Performance

The following information was extracted from Turners Limited's half year results, released on 20 November 2025:

Turners Maintains Momentum with Record First Half Performance

Turners Automotive Group (NZX: TRA) has again demonstrated its ability to perform in a challenging market, delivering a record first-half result, despite subdued consumer conditions. The diversified and resilient business model continues to generate sustainable growth and strong shareholder returns.

Turners has continued to make progress and grow profits in each core businesses. While the broader economy shows tentative signs of recovery, Turners’ deliberate strategy and capital discipline position it to drive further growth across its core divisions through FY26.

Key Financial Highlights (HY26 vs HY25):

• Revenue: $219.0m, +5%

• EBIT¹: $34.1m, +10%

• NPBT: $30.4m, +13%

• NPAT: $21.9m, +13%

• Earnings per share (EPS): 24.2 cps, +11%

• Interim dividend declared: 8.0 cps, fully imputed

¹EBIT adjusted for interest expense in Finance (non-IFRS measure)

Financial Performance

Group Revenue rose 5% to $219 million, with growth across Auto Retail, Finance, and Insurance more than offsetting softness in Credit Management. EBIT increased 10% to $34.1 million, reflecting stronger divisional performance, improved vehicle margins, and continued cost discipline. NPBT grew 13% to $30.4 million, while NPAT lifted 13% to $21.9 million. Turners is able to deliver reliable profit growth through operational leverage and diversification.