Results for announcement to the market
Name of listed issuer The Colonial Motor Company Limited
Reporting period Year to 30 June 2015
Corresponding reporting period Year to 30 June 2014
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 $787.636 12.8% $698.189
Total operating revenue $789.377 12.9% $699.314
Operating profit $25.091 (7.7)% $27.189
Adjustments to value of property & investments $0.255 (66.5)% $0.761
Net profit before tax $25.346 (9.3)% $27.950
Taxation on operating profit $6.641 (14.2)% $7.744
Profit for period $18.705 (7.4)% $20.206
Net profit for period attributable to shareholders $17.597 (8.1)% $19.153
Profit attributable to Minority Interest $1.108 5.2% $1.053
Profit for the period $18.705 (7.4)% $20.206
Basic earnings per share (cents per share) 53.8 (8.2)% 58.6
Diluted earnings per share (cents per share) 53.8 (8.2)% 58.6
Net tangible assets per share $4.53 6.1% $4.27
FINAL DIVIDEND
Fully-imputed dividend cents per share 20.0
Imputation credit cents per share 7.8
Supplementary dividend (where applicable) cents per share 3.5
Payment date 19 October 2015
Record date 09 October 2015
Profitability held up well in most areas of the business in the face of an increasingly stretched market. The second half of the financial year, January to June, accounted for 49% of the total profit, compared to 53% last year. The result, while down on last year, is ahead of 2013.
Revenue was up 13% primarily driven from the new dealerships. Headline numbers of new light vehicle registrations have remained high, underpinned by increased rental car sales. However the strong growth of past years has eased. In this market, margins are tighter, putting pressure on our car dealerships. Sales and profitability of heavy trucks remain strong, with continuing forward orders. Tractors have been adversely affected by the declining dairy payout.
The outlook is for a less favourable environment, with a lower exchange rate, lower dairy payout, and lower general confidence. However not all areas of the economy are adversely affected and the company has a long record of adapting to changing circumstances.
Jeff Gray BMW
The new Jeff Gray BMW and MINI dealerships have made a small but positive contribution in their first year.
Auckland
The new dealership, Southern Autos - Manukau, selling Peugeot, and Citroen cars and Isuzu light commercials, has in recent weeks moved into its new company owned facilities on Great South Road, Manukau. This completes a two year redevelopment of the total site which started with the new Mazda showroom. Nearby the extensions to Southpac Trucks' facilities on Wiri Station Road are also nearing completion with a complete rebuild of the parts showroom and sales facility. Work has commenced on the building of a new service outlet on company owned land near the airport for South Auckland Ford and Mazda.
Wellington
The company has entered into an unconditional sale of all of its Wellington property occupied by Capital City Motors on the corner of Taranaki and Jessie Streets. The company will lease back the site for two years while alternative facilities in the Wellington region are identified. Settlement will be on 31 August 2015. The carrying value of the property is shown as a current asset in the balance sheet, and the applicable deferred tax has been credited to profit.
