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

[blackcap]

Just keeps ticking all the right boxes:

TNR
15/11/2016 09:11
GENERAL
PRICE SENSITIVE
REL: 0911 HRS Turners Limited

GENERAL: TNR: Turners and MTF Sign Exclusive Partnership

15 November 2016

TURNERS AND MTF SIGN EXCLUSIVE PARTNERSHIP AND LAUNCH NEW LOAN PRODUCT

Integrated automotive financial services group, Turners Limited (NZX: TNR)
has signed an exclusive partnership with Motor Trade Finance (MTF) to provide
a non-recourse lending product to MTF's network of franchisees and dealers.

The new product has been developed in response to demand within the MTF
network and will see Turners take on the risk associated with the loans
originated by its franchisees and dealers. Approximately 90% of the loans are
expected to be for consumer purchase of motor vehicles, with the balance as
commercial lending, mainly on trucks and machinery.

The partnership introduces Turners to MTF's network of approximately 250
franchisees and dealers, significantly increasing the company's reach into
the motor vehicle finance sector, providing access to a number of new lending
opportunities for all parties. CEO of Turners Limited, Todd Hunter, said: "We
have had a long standing and successful relationship with MTF and this is
reflected in the substantial investment from both parties to get this product
developed and launched. Turners has an 8% shareholding in MTF and this joint
initiative further strengthens the partnership between our two organisations.
This offer will provide a great outcome for Turners, MTF and the MTF
network."

Glen Todd CEO of MTF commented: "For the first time, the MTF network will
have access to a non-recourse product through MTF's lending platform. The
addition of a non-recourse product gives our franchisees and dealers greater
choice to meet their individual appetite for risk and return, without
exposing MTF shareholders to any additional risk. The non-recourse product
complements our existing model and will leverage off our superior credit
systems and processes. The platform is simple to use and the
recourse/non-recourse option allows MTF franchisees and dealers to easily
select the loan product that best meets their needs. We believe this offer
provides a unique opportunity for MTF and its network."

The partnership is for an initial two year term, with the right to extend,
and funding will be provided by Turners with the support of its banking
partner, BNZ. All loans will be fully secured and be eligible for Turners'
securitisation program which is currently in development and expected to be
launched early in 2017.

A pilot of the new loan product will commence in December 2016 with a
progressive rollout across the MTF network from early 2017.

ENDS

[percy]

blackcap.
Yes they just keep ticking all the boxes.
This is a significant announcement.

[blackcap]

I seem to keep repeating myself... ticking the right boxes....

Market seems to like it...

TNR
22/11/2016 09:29
ASSET
NOT PRICE SENSITIVE
REL: 0929 HRS Turners Limited

ASSET: TNR: TURNERS ACQUIRES AUTOSURE INSURANCE BUSINESS

21 November 2016

Company Announcement

TURNERS ACQUIRES AUTOSURE INSURANCE BUSINESS
Enters into a corporate partnership with Suncorp New Zealand

Turners Limited (NZX : TNR) today announced it has reached agreement to
purchase the Autosure business including the Autosure brand, mechanical
breakdown and payment protection insurance portfolios. Auckland based
Autosure has been market leader in all areas of motor insurance under Suncorp
New Zealand's ownership over the last 12 years. Autosure distributes through
approximately 750 dealer agencies throughout New Zealand.

Turners will pay a total purchase price consideration of $34 million in cash.
Settlement will occur on 1 December 2016. While the sale and purchase is
unconditional, the transfer of in-force portfolios by 31 March 2017 is
subject to regulatory approval from the Reserve Bank of New Zealand.

Turners Limited CEO, Todd Hunter said the acquisition of Autosure will be
transformational for Turner's existing insurance business.

"Autosure will be run as a stand-alone business and all current management
and staff will be retained. We expect Autosure will contribute earnings
before interest, tax, depreciation and amortisation of around $5.5 million in
the first full year following transfer of the in-force portfolios.

"Additional synergies are expected to arise for the Turners group from
utilisation of Autosure's repairer network by our existing insurance business
and from cross selling of insurance and finance to an extended dealer network
and customer base. We believe we can deliver significant additional
opportunities to the current dealer network through the acquisition of the
Autosure business."

Turners has also entered into a new corporate partnership with Suncorp New
Zealand. Under the partnership Turners will sell private motor vehicle
insurance under the Autosure, Mainstream and other Turners controlled brands,
all underwritten by Suncorp New Zealand's intermediated general insurance
provider, Vero.

Suncorp New Zealand CEO, Paul Smeaton, said he was excited about the
opportunity to partner with Turners in a move that delivers on Suncorp New
Zealand's growth strategy. "Turners is New Zealand's largest seller of
cars, trucks and machinery, so it makes perfect sense for Suncorp, a leading
general and insurance provider, to go into partnership with them. Customers
will benefit from Vero's market leading capabilities including expert claims
support.

Turners Limited Chairman, Grant Baker, said the purchase of Autosure
completely aligns with our strategy of building on organic growth with
acquisitions of reputable businesses and brands that build capability and
scale in the integrated automotive financial services market.

"With sustainable earnings expected from both Autosure and the recently
acquired Buy Right Cars, we anticipate group earnings will lift significantly
for the financial year to 31 March 2018. Approximately 70% of the Autosure
acquisition will be funded from our recent Bond conversion and share
placement capital raising. Turners remains in a strong financial position to
continue to invest in organic growth initiatives and evaluate further M & A
opportunities".

ENDS

[percy]

From today's announcement;
New Bond Issue.......................................$25.56 mil
Capital Raise............................................$ 12mil
Conversion of 2014 Bonds..........................$17.4mil
................................................TO TAL......$54.96mil
What does this mean?..................................FUN.!

And FUN is what we are getting.
Today's acquisition of Autosre Insurance is a cracker.
Really strengthens TNR's finance/insurance offering.

[blackcap]

Very well bid today with buyers at $3.45. Just realised that the H/Y must be out pretty soon, was on the 19th Nov last year. Does anyone have a date when it is expected?

[percy]

Very well bid today with buyers at $3.45. Just realised that the H/Y must be out pretty soon, was on the 19th Nov last year. Does anyone have a date when it is expected?

This Friday, 25th November.

[blackcap]

Thanks Percy, adding to my comment before at $3.45 TNR has a market cap of $260m. Give it a nudge upwards and we are starting to get into Top 50 territory....

or do the largish stakes by Baker boys, H green investments etc rule that out?

[Joshuatree]

Took me a month to get some @$3.02 and i was whinging about the liquidity issue.Now thats working in our favour. less than 16,000 on the sell atm which is high!!!

[Beagle]

And FUN is what we are getting.
Today's acquisition of Autosre Insurance is a cracker.
Really strengthens TNR's finance/insurance offering.

Agree. Autosure undoubtedly N.Z. premier aftermarket insurance provider and really rounds out the product offer Turners can provide. Looks good fundamentally and technically the chart looks very strong.

[Beagle]

Strong result with 15% profit growth...all the signs are there that this company will continue growing at about that rate or perhaps better. Pretty reasonable PE considering the growth and the chart looks good.

Thoughts folks ?