Results for announcement to the market
Name of listed issuer The Colonial Motor Company Limited
Reporting period Year to 30 June 2014
Corresponding reporting period Year to 30 June 2013
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 698.189 14.0 612.496
Total operating revenue 699.314 13.8 614.407
Operating profit 27.189 30.1 20.906
Adjustments to value of property & investments 0.761 257.2 (0.484)
Net profit before tax 27.950 36.9 20.422
Taxation on operating profit 7.744 37.7 5.622
Profit for period 20.206 36.5 14.800
Net profit for period attributable to shareholders 19.153 37.8 13.902
Profit attributable to Minority Interest 1.053 17.3 0.898
Profit for the period 20.206 36.5 14.800
Basic earnings per share (cents per share) 58.6 37.9 42.5
Diluted earnings per share (cents per share) 58.6 37.9 42.5
Net tangible assets per share $4.27 6.7 $4.00
FINAL DIVIDEND
Fully-imputed dividend cents per share 22.0
Imputation credit cents per share 8.6
Supplementary dividend (where applicable) cents per share 3.9
Payment date 20 October 2014
Record date 10 October 2014
It has been a very successful year for the Company, with both record profits and now the expansion of the business. Trading Profit after Tax at $18.221 million is up 31% on last year, which in turn was up 17% on the previous year.
Results
The new vehicle industry continued to grow in the reporting period. In the first six months of 2014, new passenger registrations grew by 11% over the same period in 2013; light commercials grew by 21%, and heavy commercials by 20%. The Company continues to have desirable products, in growing segments within this growing industry. Additionally operating efficiencies have improved. A feature of this year has been the concurrent strong operating performance from all of the trading companies; car dealerships, heavy trucks, and tractors. However there are increasing signs that the favourable conditions are easing.
New Developments
On 24 July the Company announced the purchase of Jeff Gray BMW, which was settled on 19 August 2014. The business consists of four BMW dealerships in Christchurch, Wellington, Palmerston North, and Hastings. The BMW dealerships will be a stand-alone cluster, separate from the other CMC dealerships. At South Auckland, a new dealership is to be established, Southern Autos – Manukau Ltd, with franchises for Citroen and Peugeot cars and Isuzu light commercials.
Property
A company owned site alongside South Auckland Motors is to be developed for Southern Autos - Manukau, and concurrent with this, the adjacent Mazda facilities are being upgraded. The Company has purchased a property near the Auckland airport to be developed into a service centre for South Auckland Motors Ford and Mazda. At Gore, a property has been purchased to facilitate the expansion of the New Holland tractor business for Agricentre South.
