Results for announcement to the market
Name of listed issuer The Colonial Motor Company Limited
Reporting period Year to 30 June 2012
Corresponding reporting period Year to 30 June 2011
This report has been prepared in a manner which complies with New Zealand equivalents to International Financial Reporting Standards and gives a true and fair view of the matters to which the report relates.
The report is based on unaudited financial statements.
Consolidated Statement of Financial Performance
Current year Up/(down) Previous corresponding year
$ million % $ million
Trading revenue 541.088 13.0% 478.738
Total operating revenue 543.359 13.3% 479.629
Operating profit 17.356 37.4% 12.629
Adjustments to value of property & investments (1.332) (697.3)% 0.223
Net profit before tax 16.024 24.7% 12.852
Taxation on operating profit 4.918 13.9% 4.318
Profit after tax before insurance recovery 11.106 30.1% 8.534
Earthquake insurance recovery 4.489 - -
Profit for period 15.595 82.7% 8.534
Net profit for period attributable to shareholders 15.123 84.8% 8.184
Less profit attributable to Minority Interest 0.472 34.9% 0.350
Profit for the period 15.595 87.2% 8.330
Basic earnings per share (cents per share) 46.3 85.2% 25.0
Diluted earnings per share (cents per share) 46.3 85.2% 25.0
Net tangible assets per share $3.70 6.0% $3.49
FINAL DIVIDEND
Fully-imputed dividend cents per share 16.0
Imputation credit cents per share 6.9
Supplementary dividend (where applicable) 2.8
Payment date 23 October 2012
Record date 12 October 2012
Your Directors are pleased to advise the unaudited preliminary results for the year ended 30 June 2012.
Trading Profit after Tax at $11.835m is up 42% on the previous year and is a record high result. Profit for the Period of $15.595m includes insurance recovery proceeds of $4.489m.
The trading result was driven by the increased new vehicle market, which was especially noticeable in the June quarter. This translated into increased sales in all areas of the business; total revenue was up 13%. Coming off a low cost base, this resulted in a materially increased trading profit. Significant increases came from the new Ford Ranger, Mazda CX5, and DAF heavy trucks.
Trading Profit after Tax is the measure of our underlying activity before accounting for valuation changes and it is the base for our dividend calculations. We have consistently used this measure of profit for many years. This year the main difference between Trading Profit after Tax, and Profit for the Period attributable to shareholders, is the accounting for insurance proceeds, and to a lesser extent the impairment loss, and changes in property value.
We have reached a final agreement with our insurers over the claims that arose from the Christchurch earthquake in February 2011. Some buildings were subsequently demolished, others altered, all while the business continued to trade. While most costs were recovered, the effect on the accounts shows up in the Income Statement as ‘earthquake insurance recovery’ $4.489m, and in the Statement of Comprehensive Income as part of the ‘property revaluation reserve’ $2.340m. The movement in the property revaluation reserve reflects the drop in value of the site along with other property valuation movements. The insurance proceeds constitute part of the reimbursement for the fall in value of the property and the cost of making good. In August CERA announced its plan for central Christchurch. As Team Hutchinson Ford is in the proposed southern frame, we have already engaged in discussions with CERA.
During the year the Directors wrote down the value of the goodwill for the Ford business in the Wellington region. In August the Porirua branch was converted to a service only operation in a new leased location. The previous facility has been put up for sale.
In February 2012 Fagan Motors acquired the Suzuki Motorcycle franchise for Wairarapa and moved it onto the existing dealership site in Masterton. In May Energy City Motors acquired the trading assets of Tower Ford in Hawera, it has become a branch of our Taranaki business.
The Company has a capital commitment with the development for Southpac Trucks in Hobill Ave, Manukau. Work commenced in July 2012 and is due for completion by December 2012.
DIVIDEND. The Directors have resolved that a fully imputed final dividend of 16 cents per share will be paid on 23 October 2012. This takes the full year dividend to 25 cents per share compared to 19 cents per share in 2011. This is a total payout of $8.174m in dividends this year compared to $6.212m last year.
The Annual Report will be mailed by the end of September and the 94th annual meeting will be held at 11 am on Friday 2 November 2012 at the Company’s offices.
