Results for announcement to the market
Name of listed issuer The Colonial Motor Company Limited
Reporting period Year to 30 June 2017
Corresponding reporting period Year to 30 June 2016
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
NZ$ million % NZ$ million
Trading revenue $852.860 (1.5%) $865.530
Total operating revenue $854.763 (1.4%) $867.237
Operating profit $32.050 11.5% $28.739
Adjustments to value of property & investments $0.119 (94.4%) $2.131
Net profit before tax $32.169 4.2% $30.870
Taxation on operating profit $8.634 4.2% $8.285
Profit for period $23.535 4.2% $22.585
Net profit for period attributable to shareholders $22.232 3.5% $21.479
Profit attributable to Minority Interest $1.303 17.8% $1.106
Profit for the period $23.535 4.2% $22.585
Basic earnings per share (cents per share) 68.0 cps 3.5% 65.7 cps
Diluted earnings per share (cents per share) 68.0 cps 3.5% 65.7 cps
Net tangible assets per share $5.50 10.9% $4.96
FINAL DIVIDEND
Fully-imputed dividend cents per share 31.0
Imputation credit cents per share 12.1
Supplementary dividend (where applicable) cents per share 5.5
Payment date 16 October 2017
Record date 06 October 2017
The directors are pleased to advise that the trading profit after tax for the year to 30 June 2017, reached a record $22.0m, up 15% on last year. Total profit after tax for the year at $23.5m was up 4% on last year.
Trading
The new vehicle industry continues to grow. In the 12 months to 30 June 2017, the number of vehicles sold was up 14% over the same period a year ago. Trends within the mix of vehicles sold continue with SUVs now the largest segment, followed by light commercials second, and hatchbacks/sedans the smallest. This segmentation shift favours some brands over others. Mazda with its SUV range of CX3, CX5, and CX9 is well placed. Ford is successful in light commercials. The Ford Ranger continues to be the top selling vehicle in NZ.
The very heavy commercial market is also increasing after two years of small decline from a peak in 2014. Our heavy truck brands, Kenworth and DAF, have benefited from this turn around.
Profitability was above the equivalent period last year in three of the four quarters of the year. The small drop in annual revenue reflects the sale of the BMW dealerships. However, the underlying business continues to grow.
Developments
Southpac Trucks’ new parts and service facility in Hamilton opened on time in June 2017. New developments for South Auckland Motors at Takanini (leased), and Macaulay Motors in Queenstown continue as planned.
Outlook
The combination of low interest rates, strong exchange rate and new desirable technologies continues to stimulate growth in new vehicle sales. The outlook for both light and heavy vehicles is positive. However, as always, we are dependent on consumer confidence remaining high.
Dividend
The directors have declared a fully-imputed dividend of 31 cents per share to be paid on 16 October 2017, with a record date of 6 October. This takes the total dividend declared for the financial year to 44 cps, totalling $14.4m, compared to 40 cps totalling $13.1m for the previous year.
The 2017 annual report will be published in late September, including notice for the 99th annual general meeting to be held at midday on Friday, 3 November at the Michael Fowler Centre, Wakefield Street, Wellington.
