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

[percy]

Next full moon 17th June.

[Jaa]

Heaps more I hope because today it is an amalgamation of several businesses -

On 1 May 2018, Dorchester Oxford Limited, Oxford Finance Limited, Southern Finance Limited and Dorchester Finance Limited were amalgamated to become Dorchester Finance Limited which changes its name on amalgamation to Oxford Finance Limited.

In 2014, Dorchester paid around $12m for Oxford, for $3m of earnings before interest and tax. Operating profit is now 11.2m. So at the same multiple, the finance division should be worth at least $45m and I would hope more like $60-70m. Its now a larger, more diversified business and prices should have increased since 2014. That's almost a third of Turner's current market cap.

[DarkHorse]

It strikes me as really odd that for as far back as I can remember management and the directors have been singing the praises of an integrated sales / finance / insurance and more lately service model. What we appear to have here is an admission this doesn't work and / or is too capital intensive and Baker et al want some of their capital back in a trade sale of the finance and insurance divisions. Basically this is capitulation on a plan they've been working on for years and they want to get back to absolute basics.

HGH might finally get the acquisition they've been talking about for all these years.

From the presentation: “Whatever the outcome of the strategic review, Turners will continue to maintain its close relationship with Oxford Finance through its expanding distribution platform..."
I suppose they could create a contractual relationship with Oxford before selling it. Perhaps they view the investment in Finance companies a bit like their property investments - capital intensive in the short term, but providing an opportunity for both capital gain and ongoing synergies in the long-term because they provide a guaranteed revenue stream...

[winner69]

Good to see the market appears to like what Turners said yesterday

Onwards and upwards for the share price from here I reckon.

[BlackPeter]

Good to see the market appears to like what Turners said yesterday

Onwards and upwards for the share price from here I reckon.

Though - looks a bit thin on the bid side, doesn't it? The best might be already in the past ...

[MauroNZ]

Next full moon 17th June.

Cakes greatly accepted on that day .

[Beagle]

Next full moon 17th June.

Should I be worried you know so much about the moon's cycle

[percy]

Should I be worried you know so much about the moon's cycle

Very.............................................. .........
Dogs howl to communicate.
On the evenings of The Full Moon,it may just be dogs have more to say than on darker evenings.

Then again.?..................lol.

[Beagle]

Very.............................................. .........
Dogs howl to communicate.
On the evenings of The Full Moon,it may just be dogs have more to say than on darker evenings.

Then again.?..................lol.

Yeah, NAH. There's so many other things to worry about in life...I'll leave you to watch the moon cycles.
You know me, I bark whenever I feel like it whatever the state of the moon

Market's given the TRA result the big ho-hum which is not surprising.
I do note despite TRA's regular assurance that they've been targeting better quality new lending their overdue debtors have blown out quite considerably, (especially very badly for non recourse MTF sourced lending as predicted by some hound on here many months ago) which really tells me they don't have as good a credit handle on their operation as they would lead us to believe so probably it is best for shareholders if they do sell it.

I would expect HGH or any other interested parties who might conduct really thorough due diligence in due course will find plenty of fish hooks in their receivables ledger not previously encapsulated by TRA's "robust" provisioning model so real adjusted earnings will probably be considerably lower than what's stated in TRA's most recent financials with consequent effect upon the sale price.

[trader_jackson]

They say Finance and collections services worth a bit over $150m... (before corporate costs are accounted for), still quite a bit given market cap of turners only $211m
TRA continues to trade below NTA ($2.58), below an analysts target price ($2.59), and way below where management reckon its worth ($3 'worst case')
Has to go up eventually one would think?