SYDNEY, AUSTRALIA: Turners Automotive Group Limited (NZX/ASX: TRA), a leading provider of automotive services in New Zealand, has announced an upgrade to its profit guidance for the financial year 2024, citing strong performance across its business segments.

The company expects to report a net profit before tax of at least NZ$48m, surpassing the NZ$45.5m achieved in the previous year. This will be the fourth consecutive year of record profit for Turners, which is now among the top 50 companies on the NZX.

Turners also increased its forecast dividend to NZ25 cents per share, up 9% from the previous year and reflecting its confidence in the full year result. The company has maintained a consistent dividend growth rate of 11% since 2015, offering attractive returns to its shareholders.

The third quarter dividend will be paid in late March 2024, followed by the final dividend in late July 2024. Both dividends will be fully imputed and eligible for the Turners’ Dividend Reinvestment Plan (DRP), which allows shareholders to reinvest their dividends in additional shares.

Turners attributed its robust performance to the resilience of the NZ used car market and its diversified business model, which includes auto retail, finance, insurance, and credit management. The company said it benefited from the stabilisation of the official cash rate (OCR), which improved its interest margins and loan book growth.

The company also highlighted the expansion of its auto retail network, with new branches opening in Timaru and Napier, and the growth of its damaged and end of life vehicle volumes. It reported strong sales of new policies and stable claims ratios in its insurance segment, as well as improved investment returns. In its credit management segment, it noted an increase in debt load levels and payment arrangements, especially from the SME sector, as a result of the challenging economic conditions.

Turners Automotive Group will release its full year results in late May, with more details on its individual business segments. The company said it remains optimistic about its future prospects and committed to delivering value to its customers, shareholders, and stakeholders.