8 Mar 2013

Turners hopes to secure new contracts after loss of IAG

8:59 pm on 8 March 2013

Turners Auction is hopeful of securing new contracts to shore up its bottom line, after losing a major deal with the IAG to a new rival.

Shares in the motor vehicle trader tumbled 14%, or 30 cents, to $1.80 on Thursday after it revealed that the IAG contract to sell damaged cars was worth more than 15% of its profits, and the loss will have a significant negative impact on its future earnings.

Turners chairman Michael Dosser said Manheim Auctions beat them on price, but the company is already talking with potential new clients to try and claw back some of the profits that have been lost.

Mr Dosser said he's not sure whether Turners will be able to recoup the entire loss of IAG which was a reasonably large customer, but he's certain the company will make a lot of headway.