Photo: RNZ / Nate McKinnon
Automotive retail and finance company Turners expects to post another record full-year profit as car sales continue to boom and margins remain strong.
The company's annual meeting has heard the profit will beat last year's $45.5 million.
Turners Automotive Group chief executive Todd Hunter said new branches in Timaru and Napier as well as tight supply are leading to exceptional performance.
"We're really pleased with the start of the financial year," Hunter said.
While businesses in New Zealand are impacted by a high level of economic uncertainty, Turners' has kept up its higher margins, he said.
Turners Automotive Group chief executive Todd Hunter. Photo: RNZ / Marika Khabazi
"The reason we've got the confidence around announcing this just four months into the year is trading has been very positive for us."
"We've seen very strong car unit sales out of the auto retail division and strong margins on the cars that we own.
"The positives in both auto retail and insurance are outweighing the negatives in the finance business."
The forecast dividend is expected to be at least 24 cents per share which will be a 4 percent lift on last year.
Insurance policy sales remain strong while claims are stable in the insurance component of Turners' business.
Turners expects to see a further lift in debt loads from corporate and small business clients due to worsening economic conditions.
However the company believes they are well placed to handle the next stage of the credit cycle.
In the finance division, the economic downturn is impacting arrears but they remain within expected levels.
