RESULTS FOR ANNOUNCEMENT TO THE MARKET
Name of listed issuer: The Colonial Motor Company Limited
Reporting period: Six months to 31 December 2014
Corresponding reporting period: Six months to 31 December 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 half year $ million Up/(down) % Previous corresponding period $ million
Trading revenue $409.665 15.3% 355.378$
Total operating revenue $410.446 15.3% $356.101
Operating profit $12.730 (0.8)% $12.828
Adjustments to value of property & investments $0.085 - $0.085
Net profit before tax $12.815 (0.8)% $12.913
Taxation on operating profit $3.820 0.7% $3.792
Profit after tax $8.995 (1.4)% $9.121
Net profit for period attributable to shareholders $8.440 (2.8)% $8.685
Profit attributable to Non-controlling Interest $0.555 27.3% $0.436
Profit for the period $8.995 (1.4)% $9.121
Basic earnings per share (cents per share) 25.8 cps (3.0)% 26.6 cps
Diluted earnings per share (cents per share) 25.8 cps (3.0)% 26.6 cps
Net tangible assets per share $4.27 5.2% $4.06
INTERIM DIVIDEND
Fully-imputed dividend cents per share 13.000 cps
Imputation credit cents per share 5.056 cps
Supplementary dividend (where applicable) 2.294 cps
Payment date 20 April 2015
Record date 10 April 2015
There has been extensive media coverage of the record sales of new vehicles in 2014. At 127,179 new vehicles it was up 12% on the previous 12 months. The Company revenue at $410.5m including the contribution from Jeff Gray BMW is up 15% on the same period last year. Within this the heavy and light commercial segments had the greatest growth. The Ford Ranger was a stand-out success, becoming the top selling utility and light commercial in New Zealand. The Mazda CX5 and Mazda 3 have also been successful sellers in their markets. Our heavy truck brands, DAF and Kenworth, had combined sales of over 400 heavy trucks for the calendar year for the first time.
However, while industry sales continue to grow, the pace of growth has tapered off. Our dealerships have experienced an even more competitive market which has impacted on profitability. Heavy trucks on the other hand have continued with growing sales and profitability. The drop in dairy payouts has impacted on our tractor business. The Company trading profit after tax for the half year at $8.355m was down 3% on last year’s record half year profit.
The Jeff Gray BMW and MINI business was purchased in August 2014, with dealerships in Christchurch, Wellington, Palmerston North, and Hastings. Moving into the luxury sector was a significant move for the Company. The BMW brand is not a direct competitor to our existing Ford and Mazda dealerships.
Expansion at the Southpac Trucks Manukau facility continues. The extended parts warehouse has been completed and work will soon commence on the new parts supermarket showroom and sales office. Southpac Trucks had a strong six months with increased sales, profitability, and franchise recognition. In January 2015, Southpac was recognised by DAF in Holland when it was named the best performing overall DAF dealer in the 49 export markets outside of the European Economic Union.
The balance sheet reflects current asset movements in the six months since June 2014, with increased inventory and the purchase of Jeff Gray BMW. Heavy truck inventory is in line with the increased volumes, and is funded by bank borrowings. New BMW vehicles are funded by BMW Financial Services and shows as vehicle floorplan finance $10.2m.
