Colonial profits down 10.9 per cent
The half-year trading profit after tax at $22.1 million is down 10.9 per cent on the same period in 2018.
"The directors consider the trading profit after tax for the year at $22.1m was a very satisfactory result in a changing industry. It was in line with the $22.0m recorded in 2017," said CMC in its report.
"2018 was an exceptional year, capping nine years of continuous industry growth. This year, however, the new vehicle industry slowed to a growth of 1 per cent in the first six months of the financial year then declined by 5 per cent."
"In the second half. Southpac Trucks, with Kenworth and DAF, continued to perform strongly. The new vehicle industry remains at historically high levels and the company‘s balance sheet enables it to adapt to changes."
Developments
CMC also discussed a fire that occurred at Macaulay Motors’ new facility at Queenstown which was contained in the workshop and was fully insured.
"The dealership has been able to continue operating while waiting for repairs. Southern Lakes Motors, representing Mitsubishi and Nissan, has opened at Macaulay’s previous site on Glenda Drive, Queenstown," CMC added.
"The process of establishing a hub and spoke model for the wider Wellington region continues. The hub for both Ford and Mazda will be at the expanded Stevens Motors site in Lower Hutt following the acquisition of additional properties."
The CMC has also purchased a Honda dealership at Pukekohe to add to its stable of brands in South Auckland.
The redevelopment of Team Hutchinson Ford at Tuam Street in Christchurch to accommodate the ‘greenway’ is progressing and will include new Ford retail branding.
Outlook
The range and depth of potential challenges to the industry and the NZ economy, from both offshore and domestically, have increased. "The outlook is for continued uncertainty," CMC said.
Dividend
The directors have declared a fully imputed dividend of 30.0 cps, to be paid on 21 October 2019 with a record date of 11 October 2019. This takes the total dividend for the year to 45.0 cps.
The 2019 annual report will be published in late September, including notice for the 101st AGM to be held at midday on Friday, November 15 at the Harbourside Function Venue, 4 Taranaki Street, Wellington.
