Surprise trade lift boosts Colonial

Colonial Motor Company is in upbeat mood after recent sales have been stronger than expected and half-year revenue looks set to climb by more than four per cent.

Jim Gibbons, chairman, says a surge in December 2020 sales compared to the same month a year earlier has been key to the boost. 

He recalls how the company told its annual meeting in November that the first quarter of this financial year, July to September, had started on a positive note. 

“Despite a two per cent drop in overall revenue, trading profit was up on the previous year,” adds Gibbons, pictured.

“We further stated that if it carried on then the half year would be ahead of last year.

“Early results for the six months to December 31 indicate a revenue rise of over four per cent, almost all of which is attributable to a much stronger December than the prior year.”

In a guidance update to the NZX on February 3, Gibbons adds that trading profit after tax for the six months is expected to be materially ahead of the same period in 2019 and 2018. 

He says: “Subject to completion of the half-year accounting and related audit review processes and subsequent consideration and approval by the board, the half-year report is expected to be released by the 18th of February.”