RESULTS FOR ANNOUNCEMENT TO THE MARKET
Reporting period Six months to 31 December 2009
Previous reporting period Six months to 31 December 2008
Amount ($’000) Percent change
Revenue from ordinary activities 214,268 -19.1%
Trading profit from ordinary activities after tax attributable to shareholders 2,594 -7.0%
Net profit attributable to shareholders 2,594 +16.5%
Amount per share Imputed amount per share
Final divided 6.00 cents 2.57 cents
Record date 1 April 2010
Payment date 12 April 2010
Profit after tax (attributable to Shareholders) for the period was $2.594m, compared to $2.226m in the six months to 31 December 2008.
Group revenue was $214.268m, down 19% compared to the $264.737m in the comparable period. To put this into perspective the six months to 31 December 2009 was down only 3.7% compared to the six months from January to June 2009, indicating a more stable environment but at a significantly lower level than 2008.
In 2009 the new vehicle industry was down 28% from 2008 and our new vehicle sales reflect this. However, our used vehicle trading has been at a similar level year-over-year and in an environment where used vehicle prices have generally risen after years of exchange rate led price reductions.
Inventory levels held on balance sheet were only slightly down on 30 June 2009 and 31 December 2008, however new product held under bailment was down from $40.8m at 30 June 2009 to $25.7m at 31 December 2009. This shows up as a significant reduction in interest cost.
Around the Group, we have had no capital expenditure projects on our owned dealership properties however Capital City – Kapiti moved into the expanded and refurbished showroom of their leased facility. In July we opened a new tractor dealership – Advance Agricentre in Southland – to represent CASE IH tractors and Kuhn implements. At the end of September Timaru Motors and Trucks South ceased representing Mercedes Benz, Sterling and Mitsubishi Trucks. The truck workshop in Timaru has been leased to the new operator. In Taranaki, the Stratford territory has been added to New Plymouth and the Service department of the former dealership has been appointed a service agent to Energy City Ford.
In general terms the outlook for 2010 is subdued and those areas and businesses that were last to feel the full impact of the recession i.e. provincial New Zealand in particular, will take quite some time to recover. The new normal is at a significantly lower level than in the recent past.
The presentation of the financial statements in the interim report has changed yet again as we continue to adjust to the evolving accounting and reporting standards. This year the Statement of Changes in Equity has been separated into two statements and there is a new note on Segment Reporting.
On 21 December 2009 the Directors announced a fully imputed taxable bonus issue of one new share for every 5.75 shares a shareholder held.
The interim dividend distribution to shareholders to be paid on Monday, 12 April is being increased to $1.962m from $1.671m last year through a 6.0 cps fully imputed interim dividend on all shares, including the recently issued bonus shares.
