Results for announcement to the market
Name of listed issuer The Colonial Motor Company Limited
Reporting period Six months to 31 December 2017
Corresponding reporting period Six months to 31 December 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 half year "Up/(down)" Previous corresponding period
$ million % $ million
Trading revenue $460.896 5.4% $437.461
Total operating revenue $461.729 5.4% $438.193
Operating profit $17.877 17.3% $15.244
Adjustments to value of property & intangibles $- 100.0% $(0.306)
Net profit before tax $17.877 19.7% $14.938
Taxation $4.980 13.3% $4.394
Profit after tax $12.897 22.3% $10.544
Net profit for period attributable to shareholders $12.001 19.6% $10.032
Profit attributable to non-controlling Interest $0.896 75.0% $0.512
Profit for the period $12.897 22.3% $10.544
Basic earnings per share (cents per share) 36.7 cps 19.5% 30.7 cps
Diluted earnings per share (cents per share) 36.7 cps 19.5% 30.7 cps
Net tangible assets per share $5.58 10.9% $5.03
INTERIM DIVIDEND
Fully-imputed dividend 15.000 cents per share
Imputation credit 5.833 cents per share
Supplementary dividend (where applicable) 2.647 cents per share
Payment date 16 April 2018
Record date 06 April 2018
The Directors are pleased to announce the unaudited results for the six months to 31 December 2017. The trading profit after tax of $11.903m is up 15.9% on last year’s record profit for the same period.
The record result for the Company was driven by heavy trucks, with both sales volume and trading profit growing in the six month period. Kenworth and DAF had strong sales growth with a full calendar year total of 482 heavy vehicles registered.
The total new light vehicle industry for the second half of the last calendar year was up 3.9% on the same period a year before, a materially lower rate of growth than the 13.5% growth of a year earlier. This slowing rate of growth impacted on the profitability of our car dealerships. The car dealerships trading profit was lower than the record result a year earlier but above that achieved in both 2015 and 2014. Segment shifts within the market continue with the established pattern away from sedans and hatches into SUVs and light commercials. This trend affects Ford and Mazda differently. Mazda is strong in the important SUV segment, while Ford is successful in the light commercial sector.
Developments
South Auckland Motors’ new facility at Takanini (leased) successfully opened on time in December.
Late in 2017, Southern Autos-Manukau was appointed the Suzuki car franchisee to replace Moyes in Panmure, and on 3 January 2018 began selling Suzuki vehicles from its site at Manukau in addition to Isuzu utes, Peugeot and Citroen.
Work has commenced on a CMC-owned workshop facility in Wellington City for Capital City Motors.
Outlook
The total new vehicle market continues to grow and there are strong forward orders for heavy trucks. However the pace of growth has slowed from a year ago and business confidence is more cautious.
Dividend
The directors also declared an interim dividend of fifteen (15.0) cents per share totalling $4.904m up 2.0 cents from the same period last year.
The dividend will carry full imputation credits based on the corporate tax rate of 28% and a supplementary dividend will be paid to eligible shareholders.
The dividend will be paid on Monday, 16 April 2018 to shareholders on the register at close of business on Friday, 6 April 2018.
