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

[percy]

The internet has replaced newspaper classified ads.
Turners have a strong internet sales chanel.
Buy your car online with 7 day money back gurantee.
Finance and insurance arranged too.
Turners are NZ largest used car seller,and their most trusted "brand" has been earnt by offering great ease of tranactions either from their yards or online.

[Snoopy]

they might hold them under nominees listed on pg 86 ??

With no other possibilities I can see, I guess your answer is right Peat! But something still stinks here.

In the 'Substantial Positions ' List:

1/ 'Bartel Holdings' is is shown as holding 7.95% of Turners Automotive Group shares, and holding 7.95% on the Principal Ordinary Shareholders list (p86) as well. This is what I would expect.
2/ 'The Business Bakery' was listed as holding 9.98% of TRA shares on 15th June 2018, yet there is no such entry in the Principal Ordinary Shareholders list. I can only assume 'The Business Bakery' shareholding is held under different nominee entities, none of which exceed the 5% threshold substantial security threshold individually. However in aggregate these holdings do add up to more than 5%. In fact when aggregated, these holdings total 9.98%. So, quite correctly, the registry have been aggregated 'The Business Bakery' holdings so that all shareholders are aware that they are substantial shareholders.
3/ There is no mention of 'Milford Asset Management' being a substantial holder on either list. Yet we know they were from Milford's own declarations made either side of the 15th June 2018 list publication date. We also know they did not sell some of the 7.995% shares they owned on 03/03/2018 after 03/03/2018 to get below the substantial share threshold of 5% on 15/06/2018 (the shareholder list publication date). We know this because any such a change in shareholding from a substantial shareholder must be notified to the market.

So why were shareholders not told that Milford were substantial shareholders in the FY2018 annual report? It wasn't Milford's fault, because they made all the legal declarations they needed to make to the NZX. Shareholders were entitled to be given Milford's shareholding status up front. Milford have a known track record of selling down aggressively under some circumstances (like right now). Who was it that 'dropped the ball' on publishing Milford's shareholding?

SNOOPY

[percy]

I agree with Peat.
At the 31st January NZ Central Securities Depository Ltd held 24,874,642 shares or 24.6599%.[which would include Milford's]
The next largest shareholder is Bartel holdings ;who have a director] with 9,552,642 or 10.7715%.
Bartel were Turners Auctions shareholders.

[winner69]

Snoops ..if you think something dodgy going on you had better sell your shares

[BlackPeter]

Disintermediation. A long word that is wrecking the furniture in the used car sales world.

Back in the day when a movie star wanted to travel by plane to promote her films she would go to a travel agent, now she would bypass the agent and book directly with the airline on the internet.

Same thing is happening in the used car business. For a while it was assumed the new efficient model was an ordinary Kiwi joker wanting to buy a used car would bypass the used car dealer and their margin by raising his finger at a vehicle auction. Hasn't worked.

Nowdays this kiwi joker is more likely to look on the internet to find the used car of his dreams.

https://en.wikipedia.org/wiki/Disintermediation

Boop boop de do
Marilyn

Interesting.

If I look at Turners most recent financial report (2019HY) , than yes, they made 2/3 of their revenue with automotive retail, but only (roughly) 1/3rd (well - 34.9%) of their operating profit.

The other contributors to their operating profit have been:

Finance - 23.6%
Insurance - 27.9%
Credit dep - 13.5%

The automative retail is clearly not their cash cow but their (so to speak) vehicle to give them access to clients in need of finance and insurance. Their business is the package deal.

I don't know how many of their cars they sell as pure cash sells and without Motorsure (which would be in direct competition to TradeMe), but I would expect it is quite a small number.

But you are right - this trend will definitely be a problem for the smaller dealers who need to live of a shrinking automotive retail margin without the option to make the gains with insurance and finance. Expect a market consolidation - this could be a prime opportunity for Turners to increase their footprint.

[blackcap]

With no other possibilities I can see, I guess your answer is right Peat! But something still stinks here.



So why were shareholders not told that Milford were substantial shareholders in the FY2018 annual report? It wasn't Milford's fault, because they made all the legal declarations they needed to make to the NZX. Shareholders were entitled to be given Milford's shareholding status up front. Milford have a known track record of selling down aggressively under some circumstances (like right now). Who was it that 'dropped the ball' on publishing Milford's shareholding?

SNOOPY

Possibly because Milford Asset Management do not own the shares but the following entities:

Milford Active Growth Wholesale Fund (3.606%), (Custodian - NNL Custodians),
Milford NZ Equities Wholesale Fund (2.520%), (Custodian - NNL Custodians),
Milford
Income Wholesale Fund (1.339%), (Custodian - NNL Custodians), Milford
Australian
Absolute Growth Wholesale Fund (0.194%), (Custodian - NNL Custodians),
Milford
Australian Absolute Growth Fund (0.336%), (Custodian - NNL Custodians)

They may be listed in a variety of nominees. Although Milford the Fund manager do know that they need to aggregate these for reporting purposes.

I do not have a problem with this at all. I as a shareholder can see by announcements to the NZX that Milford is a SSH!. The Annual Report is 2 months out of date anyway so has little relevance to me the investor.

[Beagle]

. A long word that is wrecking the furniture in the used car sales world.

Back in the day when a movie star wanted to travel by plane to promote her films she would go to a travel agent, now she would bypass the agent and book directly with the airline on the internet.

Same thing is happening in the used car business. For a while it was assumed the new efficient model was an ordinary Kiwi joker wanting to buy a used car would bypass the used car dealer and their margin by raising his finger at a vehicle auction. Hasn't worked.

Nowdays this kiwi joker is more likely to look on the internet to find the used car of his dreams.

https://en.wikipedia.org/wiki/Disintermediation

Boop boop de do
Marilyn

I agree with you Marilyn. CEO of Trade Me told NZ shareholders presentation late last year that they have well over 90% of all vehicle listings in the N.Z. market. Quite a number of things result from this.
Customers ability to search by make, model and type and make direct price comparisons across the whole of N.Z. is greatly enhanced
Private sellers without overheads are able to compete much more freely
Private dealers operating at a low scale and ultra low overheads can compete much more efficiently
Second hand vehicles dealers margins get compressed.
Trade Me now has a partnership with Motor Trade Finance removing the need to go to a dealer to get finance. Note this is a relatively new initiative so the full effect of this is yet to make itself felt in second hand car dealers yards around the country.
Disintermediation - Interesting term, thank you for sharing.

[couta1]

She's going lower.

[percy]

I agree with you Marilyn. CEO of Trade Me told NZ shareholders presentation late last year that they have well over 90% of all vehicle listings in the N.Z. market. Quite a number of things result from this.
Customers ability to search by make, model and type and make direct price comparisons across the whole of N.Z. is greatly enhanced
Private sellers without overheads are able to compete much more freely
Private dealers operating at a low scale and ultra low overheads can compete much more efficiently
Second hand vehicles dealers margins get compressed.
Trade Me now has a partnership with Motor Trade Finance removing the need to go to a dealer to get finance. Note this is a relatively new initiative so the full effect of this is yet to make itself felt in second hand car dealers yards around the country.
Disintermediation - Interesting term, thank you for sharing.

Retailers such as Briscoes and HLG have adapted to online.{including overses competition].
Big part of their business.
So is the case with Turners.
HGH,and other finaniers also offer car/appliances etc loans online.
The big difference is TRA offer the "whole" package including a 7 day money back gurantee.They are the leaders in their field,and I think I read they were growing market share..
.

[percy]

She's going lower.

I must not buy more...lol.