7 Mar 2013

Turners' shares down after loss of auction contract

6:41 pm on 7 March 2013

Shares in Turners Auction fell by 14% on Thursday, after the company lost one of its biggest supply contracts. The loss will have a significant negative impact on its earnings.

Turners said the contract to sell damaged vehicles for the IAG Group of companies, which accounted for more than 15% of its profits, will not be renewed.

Chairman Michael Dosser said Turners was simply beaten on price by Manheim Auctions.

The company is in talks with potential customers about new supply contracts, which will recoup some of the profits lost.

Mr Dosser said loss of the contract had nothing to do with the sudden departure of chief executive Graham Roberts last week.

Mr Roberts had headed the company since 2005, but quit suddenly on Friday. Mr Dosser would not make any comment on the reasons for his departure.

Turners Auction shares are down 14% to $1.80.

Last month the company reported a rise in profit of 14% to $4.2 million for the year to December and said it's had a strong start to 2013.