Colonial Motors lifts profit 12.5%

The Colonial Motor Company Ltd (Colonial Motors) has announced their preliminary full-year results and dividend.

In the year to June 30, 2018, Colonial Motors lifted annual trading profit after tax 12.5 per cent to a record $24.75 million. 

The total new vehicle industry has continued to run at all-time record levels in the 12 months to June. However. The rate of growth has reduced to 2.5 per cent compared to 14 per cent a year ago. 

Amongst this slowing growth, the movement from cars to SUVs has continued. 

The heavy truck industry has also been stronger with a recorded growth of 13 per cent year-over-year and Southpac Trucks has grown both its volume and market share this year. 

Developments

Colonial Motors has invested in new and expanded facilities during the year. 

Most notably, at Southpac Trucks in Manukau City, a new truck preparation facility has been expanded and an extension is underway to the parts warehouse. 

In Wellington, the newly refurbished retail service facility is close to completion. Colonial Motors has also acquired additional land in Lower Hutt adjacent to the dealership. 

In Christchurch, an agreement has been reached with Otakaro, which allows the South Frame greenway to proceed and the dealership to rebuild on its existing site. 

Lastly, a new dealership for Macaulay Ford and Mazda is under construction in Queenstown. 

Dividend

The Directors have declared a fully imputed dividend of 35 cents per share (cps), to be paid on October 15. This takes the total dividend for the year to 50 cps, totalling $16.3m, compared to 44 cps, totalling $14.4m, for the previous year. 

Outlook

Colonial Motor Co is cautious about forecasting for the year ahead despite its strong returns in the year to June 30 2018. 

“There is currently a myriad of mixed messages influencing the confidence of business and consumers that could influence the medium-term outlook for the economy and our industry,” says Colonial Motors.