27 Apr 2013

Turners expects profit hit from loss of contract

6:00 pm on 27 April 2013

Turners Auctions expects the loss of the IAG insurance group's damaged car business will cut its 2013 profit by 15%.

The car auctioneering company reported a $4.2 million net profit for 2012. Even though this year's first-quarter profit matched that of the first quarter last year, a decline for the whole year is still being


Acting managing director Todd Hunter, who stepped into the role in March after the abrupt departure of Graham Roberts, told the annual shareholders' meeting that revenue from IAG will cease from the beginning of June.

Mr Hunter said management is working on a number of mitigating strategies to make up for the loss of the IAG contract.

Mr Roberts's departure after nearly eight years in the job was immediately followed by the announcement that the IAG contract had been awarded instead to the New Zealand offshoot of global car auctioneer Manheim International.

Turners' chairman Michael Dossor told shareholders that IAG has said Manheim offered rates too good to turn down, and the switch was no reflection on Turners' service.