RESULTS FOR ANNOUNCEMENT TO THE MARKET
Name of listed issuer The Colonial Motor Company Limited
Reporting period Year to 30 June 2016
Corresponding reporting period Year to 30 June 2015
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 $865.530 9.9% $787.636
Total operating revenue $867.237 9.9% $789.377
Operating profit $28.739 14.5% $25.091
Adjustments to value of property & investments $2.131 735.7% $0.255
Net profit before tax $30.870 21.8% $25.346
Taxation on operating profit $8.285 24.8% $6.641
Profit for period $22.585 20.7% $18.705
Net profit for period attributable to shareholders $21.479 22.1% $17.597
Profit attributable to Minority Interest $1.106 (0.2)% $1.108
Profit for the period $22.585 20.7% $18.705
Basic earnings per share (cents per share) 65.7 cents 22.1% 53.8 cents
Diluted earnings per share (cents per share) 65.7 cents 22.1% 53.8 cents
Net tangible assets per share $4.96 9.5% $4.53
FINAL DIVIDEND
Fully-imputed dividend 27.0 cents per share
Imputation credit 10.5 cents per share
Supplementary dividend (where applicable) 4.8 cents per share
Payment date 17 October 2016
Record date 07 October 2016
The directors are pleased to advise that the Trading Profit after Tax for the year to 30 June 2016 reached a record of $19.2 million, up 18% on last year’s $16.3 million and 5% above the previous peak in 2014. The 2016 Profit for the Year including various non-trading adjustments was $22.6 million.
Trading
The new vehicle industry in which CMC operates has achieved its highest levels ever and, in the first half of this calendar year, sales were 5% over the comparable period a year earlier. Within that growing market our two main brands, Ford and Mazda, have both increased their market share. The Ford Ranger, a light commercial, was New Zealand’s top selling vehicle in the six months to June 2016. The Ford Mustang, the latest right-hand drive interpretation of the US ‘muscle’ car, has achieved exceptional market presence. Mazda is now the country’s second most popular new passenger vehicle brand. Sales and profitability of heavy trucks were strong and forward orders remain good despite the market being slightly down.
As reported in February, profitability in the first three months of the financial year (July to September 2015) tracked closely to the preceding year. There was a distinct lift in the second quarter which continued throughout the rest of the year delivering the record annual result
Property
CMC has purchased a site at Te Rapa, Hamilton which will soon be developed as a parts and service centre for Southpac Trucks.
South Auckland Motors’ new airport service centre for Ford and Mazda was opened in January. Plans are under way to develop the remainder of the site for a pre-delivery workshop for the dealership. Work continues to reach agreement on a leased development for a further service centre in Takanini.
Dividend
The directors have declared a fully-imputed dividend of 27 cents per share to be paid on 17 October 2016 with a record date of 7 October. This takes the total of dividends paid for the financial year to 40 cents per share compared with 33 cents per share for the previous year. The total dividend payment for 2016 will be $13.1 million.
The 2016 annual report will be published in late September including the notice of the 98th annual meeting to be held at midday on Friday, 4 November 2016 at the St. James Theatre, Courtenay Place, Wellington.
