Results for announcement to the market
Reporting period Year to 30 June 2011
Previous reporting period Year to 30 June 2010
Amount ($’000) Percent change
Revenue from ordinary activities 485,950 +11.9%
Trading profit from ordinary activities after tax 8,330 +35.9%
Net profit attributable to shareholders 8,184 +759.5%
Final divided
Amount per share 12.00 cents
Imputed amount per share 5.14 cents
Record date 14 October 2011
Payment date 25 October 2011
Trading Profit after Tax for the year was $8.330m, compared to $6.130m last year and the bottom line Profit after Tax was $8.184m compared to a loss of $(1.241)m in the year to 30 June 2010.
While Group turnover shows an increase of 11.9% to $486m, $22m of this increase relates to fuel sales on our account rather than as a commission agent for the three large BP service stations one of our subsidiaries manages. As indicated in the Half Year Report dealerships servicing the primary sector have seen a sustained lift in activity whereas dealerships servicing the consumer markets have continued to battle a weak economy. A measure of this overall weakness is that in the second half of our financial year our ‘year-over-year’ new and used car sales in Christchurch were relatively stronger than both Wellington and Auckland despite the earthquake!
The Christchurch earthquake in February had a significant impact on Team Hutchinson Ford which was located in the red zone and closed for 11 weeks. Operations resumed in mid May on a reduced footprint utilising the rear entrance on St Asaph Street as the front door, as Tuam Street remains closed. It has been a great exercise in perseverance by John Hutchinson and his staff to regain access, create a safe work environment and resume business. A number of the buildings on the site are being demolished and by Spring we plan to have “made good” the remaining buildings. Meantime we are getting on with selling and servicing vehicles despite the frustrations of intermittent power supply and telecommunications.
We have accounted for proceeds from various insurance claims only when received, and have recognised all costs as they have been incurred.
Our Group property is revalued annually at balance date to “fair value”. This year the revaluation resulted in an upward movement to profit of $0.377m and a downward movement in the property revaluation reserve in Comprehensive Income of $1.859m. The majority of this write-down related to Tuam Street in Christchurch which was valued as if the partial demolition had been completed.
The Deferred Tax adjustment relating to non-deductible property depreciation was a cost of $0.369m compared to the adjustment last year of $6.383m when the new tax rules were introduced.
The Directors have resolved that a fully imputed final dividend of 12.0 cents per share will be paid on Tuesday 25 October. This takes the full year dividend to 19.0 cents per share compared to 15.0 cents per share in 2010. This will mean total dividends paid to shareholders for the year of $6.212m compared to $4.904m last year.
The Company’s Annual Report is expected to be mailed by the end of September and the 93rd Annual Meeting will be held at 11:00am on Friday, 4 November 2011 at the Company’s offices.
