TRA - Turners Automotive Group [previously TNR - Turners Limited]

[sb9]

Confirming what you've said. I've been in the market for a replacement car for my wife aging Honda Civic hybrid. New cars are setting records and late model popular cars seem to be selling very well indeed. Couple I had my eye on were sold from underneath my nose. Had to move very quickly on a 2017 Honda Civic demo as there was a lot of interest in it the day I visited the Honda dealership. By the way, my wife absolutely loves this multi award winning all new 10th generation Honda Civic...picking it up today, happy wife = happy life I think the very strong level of immigration is also very supportive of the vehicle market. Very few cars are sold outright for cash so we realise we're in a fortunate position and also know that a one stop shop like turners is very well placed to meet the finance, after-market insurance and trade-in requirements of motorists. I'm maintaining a sizeable investment in Turners convertible bonds. Disc: Also have stakes in HBL and CMO, the latter of which I expect to do very well indeed from ongoing record new car sales.

Nice car the new Honda Civic, promoted very heavily recently....

[sb9]

I jumped into this one recently after doing some research on TRA all because I have been in the market for a decent used car but every time a model I was after came on the market it was gone within a week. Visited Turners a few times and the place is buzzing with used car sales, a great one stop shop for finance and mechanical insurance. So I have to agree with the article, the used cars sale market is in a boom at the moment. 4 of the 9 people in my team at work have all upgraded their cars. Autosure are very responsive to emails and calls, I found it difficult to deal with AA so all in all I am liking TRA's future.
A small TRA parcel at the moment but will be looking to increase that in the coming months.

Took the opportunity to dip my toes on this y'day, let's see how it plays out. They surely seem to be doing very well in that used car market, couple of my mates recently bought their cars through them recently and are very happy customers.

[janner]

They surely seem to be doing very well .

At the risk of stirring a hornets nest..

I disagree... Held them when they were 0.36 .. They went 1 for 10 .. Sold during that time and ended up with enough to give the accounts department
a reason to grumble..
Nothing they have produced since my selling has made me regret it ..

I know percy will leap to their defence. :-)))

The share price has gone no where..

[LAC]

The business has done well in the last 8 years though....and I think their outlook is looking good. Debt a little on the high side but am looking fwd to the next 5 years.

[winner69]

How are those Bonds priced at the moment

Still a screaming buy?

[winner69]

Salt Took a decent chunk of Greens shares

That's good

....unless you read what punters think of Salt on the SUM thread

[percy]

At the risk of stirring a hornets nest..

I disagree... Held them when they were 0.36 .. They went 1 for 10 .. Sold during that time and ended up with enough to give the accounts department
a reason to grumble..
Nothing they have produced since my selling has made me regret it ..

I know percy will leap to their defence. :-)))

The share price has gone no where..

A "good" business can have a "bad" year,while a "bad " business can have a "good" year,but over time the "good" business will reward those who hold it.
As investors we have to judge the difference between a "good" business and a "bad" business.
In Sir James Goldsmith's brilliant book,Billionaire, he talks about Caversham Foods,and how everyone laughed at its poor performance.Sir James said "I knew if I put the right people in place,and gave them the tools to do the job, they would." Proved right.
So keeping the above in mind lets see how a "bad" [Dorcester Finance}business became a "good" {TRA} business.
First of all it came about by Dorcester getting the Bartel holding in Turners to agree to their takeover.
Then Dorcester wisely changed their name Turners because of the strong brand Turners had.
Turners through very astute acquisitions now control each part of their business.
Sourcing cars from Japan.
Compliance of vehicles.
Sale of vehicles.
Finance of vehicles.
Insurance of vehicles.
Repossession of vehicle.
The business model is brilliant and very easily to roll out.
Turners now have the financial strength to develop their own sites,such as the commercial vehicle site in Wiri.
Their online offerings are gaing traction.
Their non recourse loans via Motor Trade Finance are exceding budget.
The scale of each division,auctions,car sales,finance, insurance,and online means the business is "good",and the foundations for ongoing future growth have been well laid.They clip the ticket all the way through the business,and each ticket is getting bigger.I love big ticket clippers,

[BlackPeter]

The business has done well in the last 8 years though....and I think their outlook is looking good. Debt a little on the high side but am looking fwd to the next 5 years.

Yes debt is rising - but this comes with their growing financial business. If you want to see an indebted balance sheet - look at any of the big banks .

High liabilities to equity are typically a good sign for any financial institution (obviously within reason), otherwise they have a lazy balance sheet ... or would you want to own a bank which does not make money by offering loans ...?

[percy]

Yes debt is rising - but this comes with their growing financial business. If you want to see an indebted balance sheet - look at any of the big banks .

High liabilities to equity are typically a good sign for any financial institution (obviously within reason), otherwise they have a lazy balance sheet ... or would you want to own a bank which does not make money by offering loans ...?

The big difference between Turners and banks is the length of time a loan is for.Vechicle finnancing is very short term lending compared to bank lending.It is also a great deal more profitable.In Turners case they make a profit from the sale of a vehicle,then a profit on the finance,and then a profit on the insurance.
NB.It is estimated more than 80% of retail [car buyers] require finance of some kind.page 14 TRA 2017 annual report.

[janner]

Mission accomplished .. :-)))))