Profit forecast down

2 Cheap Cars has revised its guidance for net profit after tax for 2023/24 to between $6.3 million and $6.5m – down from $6.8m – because of exchange-rate variances in recent months.

A steady increase in the value of the New Zealand dollar against the Japanese yen has led to higher-than-expected hedge losses, it says.

Paul Millward, chief executive officer, notes that despite this the company remains on-track to deliver an “unparalleled result”.

He adds: “All businesses that buy inventory offshore are affected by exchange-rate variations even when hedging is in place. Overall, the company is in great shape and remains on course for a record-breaking result.

“A decision regarding dividends will be made by the board when full-year results are approved. Provided the market remains stable, the strong performance to date indicates that a dividend at the highest end of the policy range is likely.”