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

[Snow Leopard]

Seems to be a good result and the final dividend is bigger than last year's .

Disc: Kept the faith.

[Joshuatree]

"2. Leverage the high trust Turners brand
Our scale offers multiple advantages, and trust will be even more important in the new economy. Turners has just received the READERS DIGEST Winner of the Most Trusted Brand in the NZ Used Car Dealer category. We plan to continue our focus on great customer experiences and outcomes and keep promoting and investing in helping people understand the strength in the Turners brand. "
"At beginning of lockdown we modelled out three scenarios (Worst, Likely and Best). Pleasingly we are thus far tracking ABOVE the best case. April and May trading have been significantly better than what we expected as we moved through alert levels faster than originally anticipated. The benefits of laser focus on costs, rent reductions and wage subsidy have been material.1. Accelerate market share growth
"Turners currently maintains ~6% market share of the used car retail transactions and will concentrate on increasing this through optimising existing branch networks, creating new consignment relationships, expanding its retail footprint, and taking advantage of market consolidation." With car dealership to reduce this year"

"We are working on two major data projects which will help us in the area of pricing vehicles and identifying credit risk. Both these projects leverage “off-the-shelf” cloud-based data tools, including machine-learning. The proof of concept results are promising and we know there is a significant opportunity in vehicle purchasing to help identify and limit our “bad buys”, as there is in the finance business with identifying and limiting our “bad lending”. Using leading edge tech to improve efficiencies ETC.




"Car subscription progress has naturally been impeded by Covid-19. We are working directly with Collaborate Corp (CL8.ASX) in Australia to get the subscription platform set up for NZ. We have now made the decision to brand the business under the Turners brand umbrella due to the high trust and strong brand value and recognition attached to the Turners brand. We expect Turners Car Subscription to be up and running in Q2. " Distancing from CL8?


IT really is an impressive result and well worth a read.Punching above their weight atp.

Strong FY20 result for Turners, and Q1 recovery underway

"Based on a FY20 payout of 14.0 cps (fully imputed) to shareholders this represents a gross dividend yield of ​9.8% at an indicative share price of $1.98. The board’s intention at this stage is to continue dividend payouts at the level of the current policy for FY21 which is 60-70% of net profit after tax." But no guidance

"Our traction with customers connecting to ECCC via Xero and MYOB continues to gather momentum with over 420 customers connected now loading debt worth over $3m. We have been working closely with our large corporate customers to help manage their reputational risk with debt collection work during lockdown and we are expecting a significant increase in debt loaded from these customers in the medium term. We have already seen a lift in debt load over the last few weeks from SME customers. "

[peat]

I feel like Basil Fawlty saying 'no one mention the war' (but of course that episode has now been banned hahah)

• Reported earnings per share was down 8% to 24.4 cents per share

• Shareholder equity decreased to $223m (FY19: $226m)

so actually the result is easy to pick holes in but we are letting them off coz of Covid right?

[Baa_Baa]

The effects of COVID per se, i.e. a couple of months of sales impact, could turn out to be a rounding error on the impact of a sustained deep recession when businesses and punters slam their wallets shut for a few years. Easier and cheaper to get the old dunger maintained than splash out the cash or go into debt for a replacement vehicle.

[Joshuatree]

The worst is ahead of us thats for sure. Hence no guidance,They are optimistic about divis, heres hoping.

[Snow Leopard]

I feel like Basil Fawlty saying 'no one mention the war' (but of course that episode has now been banned hahah)

• Reported earnings per share was down 8% to 24.4 cents per share

• Shareholder equity decreased to $223m (FY19: $226m)

so actually the result is easy to pick holes in but we are letting them off coz of Covid right?

The episode is back for viewing and if you read the accounts you can see the why of your above two items of note.

My faith is unshakable and will remain so until it does not. <<mysticism

[tommy_d]

after hours of reading and crunching numbers (lucky i'm enjoying the geekery as a new hobby!) i bought a tiny position at $1.63 on 29 May. Tiny in dollars (compared to zillions), about 15% of my portfolio, still have 25% in cash so obviously way too conservative and now I can't find many places to buy that don't feel like too many eggs in one basket...

and here was me a week ago concerned about putting more $$ into TRA at about $1.90 or something...

for full context, they are getting a bit close to my sell price right now. Is there any interest in the reasoning on valuation on some unqualified amateur? Could post something if so, i suspect i would learn a lot from people highlighting the massive gaps in my analysis and errors/risks in my assumptions made. Probably more than anyone would gain from my analysis, so maybe no value in posting anything?

[sb9]

Solid result and great divvy despite lot of gloomy talk from many posters here and under current business scenario.

Good on Todd and team, well done.

[SCOTTY]

Solid result and great divvy despite lot of gloomy talk from many posters here and under current business scenario.

Good on Todd and team, well done.

I like your thinking sb9

[winner69]

Baker told us the TRA share price should be over 3 bucks

Getting there