Turners Automotive Group logs 4% early profit growth

• Turners Automotive Group reported a 4% increase in group profit for the four months to July, as finance growth offset retail margin pressure.
• The company's loan book grew by 7.5% since March, though consignment sales volumes fell 14% year-to-date.
• Management attributed the mixed results to persistent Middle East conflict and higher fuel prices, which have materially reduced demand for diesel and large vehicles.

Turners Automotive Group (ASX:TRA) announced group profit tracked 4% ahead of last year for the four months to July.

The company stated that trading conditions in early 2027 proved materially harder than the previous two years, noting that the Middle East conflict has persisted, slowing New Zealand’s economic recovery and denting consumer confidence.

Management noted that consignment unit sales dropped 14% year to date as vendors adjusted to lower market prices.

Despite these retail headwinds, the firm reported a 7.5% expansion of its consumer loan book since March.

The company continues to target a $65 million net profit before tax in FY27. However, it noted that without a resolution to the Middle East situation and a recovery in consumer confidence, sales of large engine vehicles and diesel products are likely to remain challenging.

Turners is tracking well towards its $100 million NPBT target by FY31.

Following the announcement, the Turners Automotive Group share price was unchanged at $6.82.