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

[clearasmud]

The problem with having too much money (And loving it) which your never personally going to use, try losing a good lot or giving it away to a chosen charity, you'll feel so much better about things and life in general once you adapt.

Thanks for that pearl of wisdom.

[nztx]

Older dogs like us love the regular fully imputed dividends for life's little treats. Funds thinks like taking my wife and granddaughter out for a fancy meal at a high end beachside restaurant on Sunday.
Really like the roadmap to annual dividends of 26 cps (FY25) in the presentation materials.
Could be a few bumps along the journey but I'm confident over the medium term there's fantastic growth in earnings and dividends ahead.
Noteworthy too is that property valuation increases this year add 5.7 cps that's not recorded in the accounts and despite the very high yield the payout ratio this year is only 63.2% so they're keeping plenty of earnings back to fund future growth.
"Well positioned" definitely springs to mind.
Todd, Tina and the Team are firing on all 12 cylinder's

and there's probably still more surplus gas left in the tank

[Beagle]

and there's probably still more surplus gas left in the tank

Yes, its going to be a long and very rewarding journey with Turners I do believe.
Loved the bit in the call where Todd answered my question about locking in Tina on a long term contract. He said whenever the Tina / Tuners advertisement air's on T.V. the phones get really busy and everyone literally wants Tina to appraise their car LOL.
You can build a really good business on the back of an infectiously positive personality. Tammy has worked absolute wonders for Briscoes over the years and Todd says Tina is working incredibly well.
In last years call I asked Todd if they'd locked her in on long term contract and he said they were working on it. Really glad he took my hint as to how important this is.

[peat]

Noteworthy too is that property valuation increases this year add 5.7 cps that's not recorded in the accounts and despite the very high yield the payout ratio this year is only 63.2% so they're keeping plenty of earnings back to fund future growth.

Baker said 22cps unrecognised property valuations.
But its a harsh bear market, only 10cps increase today.

holding at 12% of my equities.

[toddhunter]

Morning everyone ... been enjoying reading the comments post the announcement, always interesting for me to read how you are all thinking about the company and what we are doing...I did want to make a couple of points and clear up a couple of things.

Government Vehicle Scrapping for EVs Scheme - anything that is encouraging people to take their old car off the road and buy a new one will be good for us. In two respects...firstly we might get to sell them a new car. Probably not a used EV as they are too hard to source, but maybe a new hybrid. Secondly we operate a damaged and end of life vehicle selling business. We have talked to the government on an off over the last 10 years about helping them with this, as we can make sure these vehicles don't end up back on the road. We have a meeting with the Minister of Transport next month about this. Our business is based on churn in the used car market and whatever drives that churn is good for us. Upsizing, down sizing, more fuel efficient...doesn't matter. We just care that people want to change. The used car market has shown resilience through the cycle...it is mostly a needs based purchase for people (unlike the new car market) and anecdotally we are already seeing demand for lower priced cars increasing.

Comment in presentation - I did make a comment yesterday that we would have been very close to our FY24 target of $45m if it hadn't of been for lockdowns in 2021 and Omicron this year. I think Beagle you may have misinterpreted this comment in relation to the new $50m target. Whilst it has been a very good year it wasn't quite that good! My comment was in relation to the FY24 3-year target we set this time last year. Effectively we are two years ahead in our plan from last year. So time to set a new 3-year plan which is the $50m by FY25 target.

Videos - we have done a couple of short videos this year summarising the results and investment case...you can check them out here https://www.turnersautogroup.co.nz/invest

Tina - we are very pleased to have Tina locked in. The auto business in particular has really benefited from this brand investment and she has definitely connected with a very broad range of people both internally and externally...quite a rare thing in my experience! In the used car business you really do make your money when you buy. Each car is a snowflake and must be priced individually according to age, mileage condition etc. The combination of our large network, the lead generation investment with Tina, the data we are using and the diagnostic tools means we are being presented with more opportunities to buy cars than ever before, and we have better information to make buying decisions. And we are genuinely offering a fast, convenient and fair way of selling your car. This single minded focus on sourcing has been critical...if you buy right the selling really does take care of itself. We get asked a lot about whether this "car buying" service can be replicated...I think the answer to that is it would be very difficult to replicate.

Todd and Tina.jpg

Thanks for the continued interest in the business.

[Beau]

Thanks for your comments Todd / Great photo

[Rawz]

Good stuff Todd. I am a happy long term shareholder. Great photo!

[Beagle]

Thanks for clarifying that Todd.
We really appreciate the whole team's hard work and your leadership, you guys are doing a fantastic job. Keep up the hard work !
If I'm silly enough to buy a new high end European car I'll bring my 2019 Holden Calais V to you guys but I must insist on Tina appraising it

[bull....]

As one of the only ones on here to buy near the bottom my conviction has changed regards share price ( if your into div's there is no argument from me about the appeal) but i prefer capital gains to divs


tailwinds were new car shortages meaning second hand cars were the go to if you wanted a new car now , low interest rates , plenty finance available but these will all turn into headwinds soon.
people will have tighter budgets going into next yr and may trade down but that flows down the whole demand spectrum the lower you go with the lower end not replacing at all and that is if they can even get finance next yr.
As for the EV govt scheme it be just just another PR stunt from the govt wont add to demand as EV are to expensive for most people even after the subsidy.


so i stick to my view of the top is in i will watch with interest to see if my reasoning is correct.

and congrats to todd do a good job

[Rawz]

As one of the only ones on here to buy near the bottom my conviction has changed regards share price ( if your into div's there is no argument from me about the appeal) but i prefer capital gains to divs


tailwinds were new car shortages meaning second hand cars were the go to if you wanted a new car now , low interest rates , plenty finance available but these will all turn into headwinds soon.
people will have tighter budgets going into next yr and may trade down but that flows down the whole demand spectrum the lower you go with the lower end not replacing at all and that is if they can even get finance next yr.
As for the EV govt scheme it be just just another PR stunt from the govt wont add to demand as EV are to expensive for most people even after the subsidy.


so i stick to my view of the top is in i will watch with interest to see if my reasoning is correct.

and congrats to todd do a good job

I appreciate the bear case, I dont want to get carried away here with my TRA holding lol.. (very hard not to with consistently growing EPS and DPS and long runway ahead to expand the branch network and financial services businesses)

Who knows what happens. Maybe we all get the chance to buy again at crazy prices in the coming crash. Maybe the coming crash never comes because its what everyone only ever talks about.