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Record profit for Colonial Motors

Posted on 20 February, 2017

The Colonial Motor Company has announced a record trading half-yearly profit for the period ending December 2016. The after-tax trading profit is up 8.9 per cent on last year to $10.27 million. A dividend of 13 cents per share will be paid to shareholders in light of the record profit. The dividend will be paid on April 18, with a supplementary dividend to be paid to eligible shareholders. The directors attributed this profit increase to the growth of the new vehicle industry and the resurgence of popularity in light commercial and SUV vehicles. Of Colonial Motors’ 20 franchised dealerships, 13 primarily focus on Ford and seven on Mazda, both of which increased their market share in 2016. The remainder focus primarily on commercial and farming vehicles, a segment which also saw growth last year. The sale of Jeff Gray BMW and MINI dealerships following BMW’s decision not to renew the dealer agreement meant Colonial Motors wrote of $315,000 of intangible assets. The directors said, however, that the sale would not impact future trading profitability. New development projects are underway. Construction has begun on the new Southpac Truck service facility in Te Rapa, Hamilton, and is expected to finish mid-2017. A new leased service facility for South Auckland Motors Takanini is on track to be completed before the end of 2017. Colonial Motors has also committed to a new site for Macaulay Motors in Queenstown which will double Ford and Mazda service capacity in the region.