Used car market over-supplied: Turners Auctions

Turners Auctions Ltd has reported a 6 percent increase in interim profit and said its sees positive signs in its key areas of revenue in a fickle operating environment.

The car auction company said consumers were benefiting from oversupply in the New Zealand used vehicle market due to a rise in Japanese imports.

"As a result consumers are seeing the benefit of this with reductions in the price of vehicles," said chief executive Graham Roberts.

The net profit before tax of $2.16 million in the six months to June 30 is up from $1.46m last year. It was achieved on a 4 percent rise in total revenue.

Directors declared a fully imputed interim dividend of 5 cents a share, payable on the September 21.

"The outlook is unpredictable, however there are positive signs for key revenue lines within our company, our market share for cars is on the rise and the trucks and heavy machinery business is undergoing substantial growth," Mr Roberts said.

The drivers of revenue growth were higher unit sales from Turners Fleet, a higher Turners Finance ledger, and increased insurance commissions from sales of motor vehicle breakdown insurance policies.

The commercial business is handling many receiverships and liquidation sales.