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New business model driving increasing returns for Turners

Turners Auctions Limited (Turners, NZX: TUA) is targeting a 10% increase over its 2013 profits, as its new multi-channel, retail focused business model, deployed in the middle of 2013, continues to deliver promising results.

The target was announced by Turners’ chief executive, Todd Hunter, as part of a positive business review at today’s annual meeting of shareholders, held at the company’s headquarters in Penrose.

Turners primarily operates in the used vehicle market which continues to grow and was up 5.4% in 2013. The used vehicle market is extremely fragmented, and while Turners is one of the larger players, it was involved in less than 10% of the approximately 1.3 million transactions in 2013.

"Our goal is to increase our share of these sales and we believe that our new multi-channel, retail focused business model will help us achieve this", said Todd.

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"We have three key strategies for growth - extending our focus from wholesale to retail customers and moving from a single channel business into a multi-channel business; sourcing more stock for sale, particularly Fleet stock where we purchase and own the stock we onsell; and creating more opportunities to sell our finance and insurance products to customers.

"We have a strong platform in place and are continually looking for new and innovative ways to attract customers and sell used vehicles and other products. The world is becoming increasingly digital, and increasingly mobile, and we have a number of new initiatives to build our digital and mobile capability, which in turn will make our services more accessible."

The company also announced an upcoming brand refresh, dropping the name Auctions from the brand name to reflect the more diverse sales activities of the group, whilst retaining the strong brand heritage of the Turners name.

"We are excited about the future for our company", said chairman Michael Dossor.

"The used vehicle market is growing and there is a huge opportunity for us to increase our share. Morale is strong and we are excited about the momentum that has been created and growth potential for the company.

"We are pleased to welcome Victoria Carter as a director on the Board. Victoria has a background in communications, public relations and is well-versed in digital marketing. Her experience will be of value to Turners as we continue to build our digital and mobile capability."

All meeting resolutions were passed by shareholders:

1. Re-election of Denham Shale to the Board. The Board of Directors of the Company has determined that Mr Shale is an "Independent Director" for the purposes of the NZSX Listing Rules.

2. Election of Victoria Carter to the Board. The Board of Directors of the Company has determined that Mrs Carter is an "Independent Director" for the purposes of the NZSX Listing Rules.

3. Record the reappointment of the auditors and authorisation for the directors to fix the auditors’ remuneration