RESULTS FOR ANNOUNCEMENT TO THE MARKET
Reporting period Six months to 31 December 2011
Previous reporting period Six months to 31 December 2010
Amount ($’000) Percent change
Revenue from ordinary activities $272,322 +17.3%
Trading profit from ordinary activities after tax $5,907 +64.6%
Net profit attributable to shareholders $5,097 +42.0%
Amount per share Imputed amount per share
Final divided 9.00 cents 3.86 cents
Supplementary dividend (where applicable) 1.59 cents
Record date 13 April 2012
Payment date 23 April 2012
The Directors of The Colonial Motor Company Limited are pleased to announce the unaudited results of the Group for the six months ended 31 December 2011.
Group Revenue of $272m is up 17% on the previous comparable period. The Trading Profit after Tax is up 64%, rising from $3.589m to $5.907m. The profit attributable to shareholders is $5.097m after an impairment writedown of $0.810m.
The result was driven by a strong performance from heavy trucks, combined with an excellent last two months by the car dealerships. Trading was quieter during the World Cup. In the Ford range, the new Diesel Territory has been well received. The new Ford Ranger and Mazda BT50 have had a very strong start, but sales of both have now been severely curtailed as a consequence of the floods in Thailand; there will be material supply constraints for the first half of 2012.
Both Christchurch dealerships have traded very well through the period despite the earthquake repercussions, and made a significant contribution to the overall Group performance. At Hutchinson Motors the earthquake damaged buildings have been demolished, however we still do not have full use of the site. Getting the necessary approvals for remedial work is both slow and frustrating. We continue to work with our insurer on the various claims.
The new Hyundai dealership in New Plymouth has started well. In February we were appointed as the Suzuki motorbike franchisee in the Wairarapa, and will locate that on part of the existing Fagan Motors, Masterton site.
The Directors have reviewed the carrying value of goodwill, and an impairment writedown of $0.810m has been recognised. This reduction relates to changes in our Wellington business.
At the Annual Meeting in November two new Directors, Falcon Clouston and Denis Wood, were elected to the board. Both are experienced directors.
While the result for the six months has been very good, we do not expect the next six months to be as good. The supply constraints on Ranger and BT50 will impact on the profitability of our dealerships. Our tractor dealerships also have supply constraints. In addition forward orders of heavy trucks are not as strong as they were six months ago.
The Directors have declared a fully imputed dividend of 9.0 cents per share, totalling $2.943m, to be paid on Monday 23 April 2012. The interim dividend paid in April last year, was 7.0 cps.
