Results for announcement to the market
Name of listed issuer The Colonial Motor Company Limited
Reporting period Six months to 31 December 2015
Corresponding reporting period Six months to 31 December 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.
This report is based on unaudited financial statements.
Consolidated Statement of Financial Performance
Current half year " Up/(down) " Previous corresponding period $ million % $ million
Trading revenue $438.784 7.1% $409.665
Total operating revenue $438.989 7.0% $410.446
Operating profit $13.844 8.8% $12.730
Adjustments to value of property & investments $1.072 - $-
Net profit before tax $14.916 17.2% $12.730
Taxation $3.794 1.6 $3.735
Profit after tax $11.122 23.6% $8.995
Net profit for period attributable to shareholders $10.572 25.3% $8.440
Profit attributable to Non-controlling Interest $0.550 (0.9)% $0.555
Profit for the period $11.122 23.6% $8.995
Basic earnings per share (cents per share) 32.3 cps 25.2% 25.8 cps
Diluted earnings per share (cents per share) 32.3 cps 25.2% 25.8 cps
Net tangible assets per share $4.61 8.0% $4.27
INTERIM DIVIDEND
Fully-imputed dividend cents per share 13.000
Imputation credit cents per share 5.056
Supplementary dividend (where applicable) 2.294
Payment date 18 April 2016
Record date 08 April 2016
The Directors are pleased to advise you of the unaudited results for the six months ended 31 December 2015. The trading profit after tax is a record high for the first half of the year at $9.429m. It exceeds our previous record in 2013 by 10%.
The second half of calendar 2015 was a national record six months for new vehicle registrations, up 4% on the first half of the year. While much of the industry growth was driven by rentals, our dealerships benefited from a desirable mix of in demand vehicles. The Ford Ranger, a light commercial, was the top selling vehicle for the full year, and Mazda sold over 10,000 vehicles for the first time. Our dealerships benefited from the strong market, with increased volumes flowing into trading profit after tax. There was a distinct lift in the December quarter. The first quarter to September, as reported at the AGM on 6 November, was tracking close to the previous year, 2014, and below the record 2013 year. The lift came from new vehicles and a late recovery in tractors. Southpac Trucks had another strong six months, despite a slightly smaller heavy truck market.
Total profit for the period, at $11.122m benefited from the strong trading profit, plus a $1.072m realised gain on the sale of the Taranaki Street property. This is the difference between the carrying value and the sale price of the property. The sale was settled on 1 September 2015.
There has been a change of accounting policy for new vehicle bailment inventory to align with international industry practice. Previously new Ford and Mazda inventory, financed by a bailment agreement, was shown by way of a note to the accounts. Bailment stock and the associated vehicle floorplan finance liability are now shown on the balance sheet. The accounts for the previous periods have also been adjusted, and the impact of the change is shown in Note 3 to the accounts.
In January 2016, South Auckland Motors new airport service facility at Timberly Road opened for business. South Auckland Motors has its main sales and service facility at Manukau, a full sales and service branch at Pukekohe and service only facilities at Botany and now at the airport, and is now looking to develop another service only facility in the Takanini/Papakura area.
Following the redevelopment of the Southpac Trucks site at Manukau, the Company is purchasing a site at Te Rapa, Hamilton, to be developed as a parts and service centre.
At Nelson, BP has decided not to renew MS Motors fixed term license agreement for the three BP service stations which will expire over the next three months. BP is redeveloping the stations to become its own ‘Wild Bean’ operated sites. MS Motors has operated these service stations for 15 years and they have been a significant part of its business.
