Turners Automotive : Results Announcement HY21

Results announcement
Results for announcement to the market
Name of issuer	Turners Automotive Group Limited
Report period	6 months to 30 September 2020
Previous reporting period	6 months to 30 September 2019
Currency	NZD
	Amount (000s)	Percentage change
Revenue from continuing operations	$141,024	-17%
Total revenue	$147,548	-14%
Net profit from continuing operations	$13,434	25%
Total net profit	$13,419	31%
Interim dividend
Amount per quoted equity security	$0.04000000
Imputed amount per quoted security	$0.05555556
Record date	14/01/2021
Dividend payment date	28/01/2021
Interim dividend	Current period	Prior comparable period
Net tangible assets per quoted security	$0.87	$0.75
A brief explanation of any of the figures
above necessary to enable the figures to	Please refer to accompanying Company Announcement
be understood
Authority for this announcement
Name of person authorised to make this
announcement	Barbara Badish
Contact person for this announcement	Todd Hunter
Contact phone number	021 722 818
Contact email address	[e-mail]
Date of release through MAP	25/11/2020

Unaudited financial statements accompany this announcement

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TURNERS AUTOMOTIVE GROUP LIMITED

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 September 2020

		Six months	Six months	Year
		ended	ended	ended
		30/09/2020	30/09/2019	31/03/2020
		Unaudited	Unaudited	Audited
	Note	$'000	$'000	$'000
Revenue from continuing operations	3	141,024	170,555	332,174
Other income	3	6,524	144	500
Cost of goods sold		(54,864)	(72,589)	(135,003)
Interest expense		(5,731)	(7,729)	(14,853)
Impairment provision expense		(2,149)	(2,617)	(6,044)
Subcontracted services expense		(6,583)	(7,166)	(17,149)
Employee benefits (short term)		(26,382)	(27,790)	(55,458)
Commission		(5,887)	(7,070)	(13,368)
Advertising expense		(806)	(1,484)	(2,743)
Depreciation and amortisation expense		(5,771)	(5,865)	(11,919)
Systems maintenance		(874)	(612)	(1,747)
Claims		(11,583)	(13,094)	(25,952)
Movement in life insurance liabilities		(583)	(633)	(836)
Insurance deferred acquisition costs		(563)	(178)	(701)
Other expenses		(7,057)	(9,071)	(17,836)
Profit before taxation		18,715	14,801	29,065
Taxation expense		(5,281)	(4,077)	(8,112)
Profit from continuing operations		13,434	10,724	20,953
Other comprehensive income for the period (which may subsequently be
reclassified to profit/loss), net of tax
Cash flow hedges		(42)	(466)	(447)
Revaluation of financial assets at fair value through OCI		-	-	(310)
Foreign currency translation differences		27	12	(12)
Total comprehensive income for the period		13,419	10,270	20,184
Earnings per share (cents per share)
Basic earnings per share	4	15.70	12.39	24.35
Diluted earnings per share	4	15.79	12.39	24.35

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TURNERS AUTOMOTIVE GROUP LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 September 2020

					Revaluation of
					financial
			Share		assets at
		Share	Options	Translation	fair value	Cash flow	Retained
		Capital	Reserve	Reserve	through OCI	reserve	Earnings	Total
		$'000	$'000	$'000	$'000	$'000	$'000	$'000
Balance at 31 March 2019 (audited)	Note	206,395	1,027	(47)	-	(528)	19,527	226,374
Change in accounting policy
Impact implementation of NZ IFRS 16		-	-	-	-	-	(5,666)	(5,666)
		-	-	-		-	(5,666)	(5,666)
Balance at 1 April 2019 (restated)		206,395	1,027	(47)	-	(528)	13,861	220,708
Transactions with shareholders in their capacity as owners
Capital contributions (net of issue costs)		97	-	-	-	-	-	97
Capital buy back		(3,192)	-	-	-	-	-	(3,192)
Cancellation of options		1,027	(1,027)	-	-	-	-	-
Dividend paid	8	-	-	-	-	-	(7,855)	(7,855)
		(2,068)	(1,027)	-	-	-	(7,855)	(10,950)
Comprehensive income
Profit		-	-	-		-	10,724	10,724
Other comprehensive income		-	-	12		(466)	-	(454)
Total comprehensive income for the period, net of tax		-	-	12	-	(466)	10,724	10,270
Balance at 30 September 2019 (unaudited)		204,327	-	(35)		(994)	16,730	220,028
Transactions with shareholders in their capacity as owners
Dividend paid	8	-	-	-	-	-	(6,887)	(6,887)
		-	-	-	-	-	(6,887)	(6,887)
Comprehensive income
Profit		-	-	-		-	10,229	10,229
Other comprehensive income		-	-	(24)	(310)	19	-	(315)
Total comprehensive income for the period, net of tax		-	-	(24)	(310)	19	10,229	9,914
Balance at 31 March 2020 (audited)		204,327	-	(59)	(310)	(975)	20,072	223,055
Transactions with shareholders in their capacity as owners
Employee share based payments		-	93	-	-	-	-	93
Dividend paid	8	-	-	-	-	-	(5,162)	(5,162)
		-	93	-	-	-	(5,162)	(5,069)
Comprehensive income
Profit		-	-	-		-	13,434	13,434
Other comprehensive income		-	-	27	-	(42)	-	(15)
Total comprehensive income for the period, net of tax		-	-	27	-	(42)	13,434	13,419
Balance at 30 September 2020 (unaudited)		204,327	93	(32)	(310)	(1,017)	28,344	231,405

3

TURNERS AUTOMOTIVE GROUP LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2020

		30/09/2020	30/09/2019	31/03/2020
		Unaudited	Unaudited	Audited
	Note	$'000	$'000	$'000
Assets
Cash and cash equivalents	5	18,864	14,592	32,771
Financial assets at fair value through profit or loss
- Insurance		62,095	59,934	61,834
- Other		3,002	3,500	3,154
Trade receivables		8,116	11,856	8,609
Inventories		29,814	36,492	44,371
Finance receivables	6	300,749	285,686	293,037
Other receivables, deferred expenses and contract assets		8,993	13,052	8,572
Reverse annuity mortgages		4,556	5,859	4,913
Investment property		5,650	5,650	5,650
Financial assets at fair value through OCI		1,000	1,310	1,000
Property, plant and equipment		53,623	52,648	52,788
Right-of-use assets		22,711	26,768	24,850
Intangible assets		166,630	166,629	166,843
Total assets		685,803	683,976	708,392
Liabilities
Other payables		35,826	34,967	28,048
Contract liabilities		2,355	1,771	2,085
Deferred tax		9,794	11,122	10,080
Tax payable		3,475	1,073	2,772
Derivative financial instruments		999	992	985
Borrowings	7	314,392	319,588	350,364
Lease liabilities		27,979	34,641	32,511
Life investment contract liabilities		8,112	7,853	7,072
Insurance contract liabilities		51,466	51,941	51,420
Total liabilities		454,398	463,948	485,337
Shareholders' equity
Share capital		204,327	203,300	204,327
Other reserves		(1,266)	(1,029)	(1,344)
Retained earnings		28,344	17,757	20,072
Total shareholders' equity		231,405	220,028	223,055
Total shareholders' equity and liabilities		685,803	683,976	708,392
Total assets per share ($)		8.02	7.99	8.28
Net tangible assets ($)		0.87	0.75	0.77

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