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CMC's profits

Posted on 21 September, 2016

Colonial Motor Company Limited (CMC) has released their annual profit for the year ended 30 June 2016. The company posted a trading profit after tax of $19.2 million, up 18 per cent on last year’s $16.3 million. Its revenue rose 10 per cent to $867.2 million, up from $789.4 million in 2015. Jim Gibbons, chairman of the board of directors, says CMC’s total assets were reduced to $300.9 million, down from $326.4 million last year, following a “significant reduction in inventory”, which fell 13 per cent to $138.8 million. However, profit for the year, which included a number of non-trading items relating to the sale of the company’s dealership property in Wellington, asset revaluations and deferred tax, was up 21 per cent to $22.6 million. Chief executive Graeme Gibbons says the year’s trading result is a record for the company, boosted by the new vehicle market “running at an all-time record level.” He adds that CMC’s main brands, Ford and Mazda, both had increased market share, and says: “a growing market, brand product strength, customer focus, quality staff and strong internal management have boosted performance to levels not seen before.” But he says that this level of business meant that vehicle supply and distribution systems had all been challenged at times. CMC group dealership, South Auckland Motors, opened its airport service facility earlier this year, and Gibbons says plans are underway to develop the remainder of the site for a pre-delivery workshop. The company is also working on expanding its Queenstown-based Macaulay Motors’ sales and service operation, while Dunedin City Motors has acquired a service business operation in Alexandra to better service their wide ranging market area. Graeme Gibbons says all-time low interest rates and a strong New Zealand dollar have supported “an ongoing buoyant new vehicle industry”, but adds that there are “headline risks that could impact on the fundamentals and confidence that enable NZ Inc. to be successful.” “CMC as a Group will strive to deliver the best outcomes for shareholders, staff, customers and the franchises our dealerships represent.”