Nicely timed announcement. The share price was just starting to drift downwards…
Nicely timed announcement. The share price was just starting to drift downwards…
Welcome to the forum. Nicely said. I am sure Todd and his team will have more to say about store openings and their timing in the upcoming half year announcement.
In the meantime i note the tailwinds of:-
1. A very strong desire for personal transportation as compared to the readily apparent heightened risks of public transport
2. Second hand cars values rising and this is a phenomenon all around the globe
3. Huge stimulus being poured into the economy with Covid
4. Warmer spring weather in a wide open outdoor shopping experience (I will be very nervous to visit malls)
5. Shortages of new cars due to ongoing semiconductor and other raw material shortages, supply chain and shipping issues raising the attractiveness and pricing of second hand cars
6. Greater market penetration (as you have noted) leading to incresing brand value and brand recognition
7. The ongoing benefits of a concentrated advertising program lead by our "Briscoes" lady "Tina".
I agree.
I would add that Turners is increasing their market share of stock by a reasonable amount in many regions. There is normally a seasonal increase in stock as the year progresses, I don't know of why, but this year, not only is the market inventory increasing, but Turners share in the market is increasing.
I hope it is not overstocking, but I expect it is deliberate as a call on some of your points.
Increasing interest rates and opening up of the borders in the coming year could put a bit of a dampener on car sales, but the shares still look reasonable value.
Armstrong eyeing the stock market
Surprisingly they are bigger than Turners. but not as big as CMO
if we think as per ARV and OCA this could be quite a factor.
discl hold.
I presume you mean financial. How big are they really? I see Business desk makes a guess and bases size on revenue, but profit is the number I look for. CMO & Armstrong's are dependent on New cars, which sometimes have extremely small margins.
A quick check and the inventory of:
Turners 3,795 (all second hand)
Armstrong's 743 (Many New)
CMO Colonial Motors: 193 (Many New)
Revenue and Profits are interesting, Turners 2021 revenue is $296m, Colonial $901m, yet their profit after tax is almost identical at $26.9m and $24.8m respectively. Stock market values reflect this - TRA $363m and CMO $360m
Business desk may have it skewed.
What a stunning set of results, smashed them out of park..
• Expect net profit before tax for FY22 to be in the range of $40m - $42m (assuming current L3/L2 restrictions ease over the coming months).
• Based on the current dividend payout policy of 60-70% of NPAT we anticipate full year fully imputed dividends of 22 cents per share based on full year profit before tax of $40m.
• Our conviction levels are very high to exceed our target for $45m of NPBT in FY24 and we will revisit our FY24 target at year end.
Stupendous resut
Share price 5 bucks next week
Todd needs to update two road map slides
Roadmap to $5/share …
Over three years we target 31% growth in Underlying
WOW that's a breath of fresh air for sure !!!!!!
http://nzx-prod-s7fsd7f98s.s3-websit...046/359524.pdf
Absolutely stunning result and outlook. Now I want to give both Tina and Todd a big hug :D
Tina sums it up perfectly on page 9 !
You can really tell how focused TRA are on its shareholders. Always pointing out growing profits and dividends, also discussing what the future earnings will look like.
With the growth ahead of them (no reason they cannot have 50+ sites nationwide) we will likely see not only eps and dps growth but at the same time expect a re-rate to higher multiples.
What a company