The trusted voice of the industry
for more than 30 years

Colonial profit up 4.2 per cent

Posted on 17 August, 2017

Colonial Motor Co (CMC), has announced a 4.2 per cent increase in annual profit, on the back of continued strength in new vehicle sales. Sales volumes for the company were up 14 per cent overall, while Net profit attributable to shareholders rose to $22.2 million, or 68 cents per share, in the 12 months ended June 30, from $21.5 million, or 65.7 cents, a year earlier. Colonial’s shares also rose 4 per cent to $7.80 at market close Wednesday night following the announcement. The share price is $7.75 at time of publishing. Chairman Jim Gibbons said that while the outlook for both light and heavy vehicles was good, the company is dependent on consumer confidence levels remaining high. "The combination of low interest rates, strong exchange rate and new desirable technologies continues to stimulate growth in new vehicle sales," Gibbons said. Autofile reported earlier this month that new vehicle sales are healthy this year. Year-to-date, the new vehicle sector is up 12.6 per cent by approximately 10,000 units on this time last year, with 90,737 vehicles registered compared to 80,704 to the end of July 2016. For the month of July, the top selling models were all light commercial vehicles. The Ford Ranger selling best with 655 units, closely followed by the Toyota Hilux with 654 units, and the Mitsubishi Triton with 342 units. CMC is Wellington based and largely family owned, operating 20 dealerships throughout the country, 12 of those being Ford Dealerships. CMC last year divested their interest in Jeff Gray BMW and Mini dealerships, following BMW NZ’s decision not to renew their dealer agreement. The company is developing its heavy vehicles profile, with construction of Southpac Trucks’ new parts and service facility in Hamilton, expected to be completed this year. According to CMC, while the extra heavy truck market declined in both 2015 and 2016, but Southpac Trucks has increased its share of that market. The company reported strong forward orders for heavy trucks going into this year however, a side of their business they say is reliant on a growing agricultural ecnomy. CMC also intends to open a new dealership in South Auckland and has committed to a new site (subject to resource consent) for Macaulay Motors in Queenstown. The company says the Queenstown site, once open, will double their Ford and Mazda service capacity in the growing Queenstown Lakes District. CMC will release its annual report in late September.