CMO
17/02/2015 16:20
HALFYR
PRICE SENSITIVE
REL: 1620 HRS The Colonial Motor Company Limited
HALFYR: CMO: Half year report and results
RESULTS FOR ANNOUNCEMENT TO THE MARKET
Name of listed issuer: The Colonial Motor Company Limited
Reporting period: Six months to 31 December 2014
Corresponding reporting period: Six months to 31 December 2013
This report has been prepared in a manner which complies with New Zealand
equivalents to International Financial Reporting Standards and gives a true
and fair view of the matters to which the report relates.
The report is based on unaudited financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
Current half year $ million Up/(down) % Previous corresponding period $
million
Trading revenue $409.665 15.3% 355.378$
Total operating revenue $410.446 15.3% $356.101
Operating profit $12.730 (0.8)% $12.828
Adjustments to value of property & investments $0.085 - $0.085
Net profit before tax $12.815 (0.8)% $12.913
Taxation on operating profit $3.820 0.7% $3.792
Profit after tax $8.995 (1.4)% $9.121
Net profit for period attributable to shareholders $8.440 (2.8)%
$8.685
Profit attributable to Non-controlling Interest $0.555 27.3%
$0.436
Profit for the period $8.995 (1.4)% $9.121
Basic earnings per share (cents per share) 25.8 cps (3.0)% 26.6 cps
Diluted earnings per share (cents per share) 25.8 cps (3.0)% 26.6
cps
Net tangible assets per share $4.27 5.2% $4.06
INTERIM DIVIDEND
Fully-imputed dividend cents per share 13.000 cps
Imputation credit cents per share 5.056 cps
Supplementary dividend (where applicable) 2.294 cps
Payment date 20 April 2015
Record date 10 April 2015
There has been extensive media coverage of the record sales of new vehicles
in 2014. At 127,179 new vehicles it was up 12% on the previous 12 months.
The Company revenue at $410.5m including the contribution from Jeff Gray BMW
is up 15% on the same period last year. Within this the heavy and light
commercial segments had the greatest growth. The Ford Ranger was a stand-out
success, becoming the top selling utility and light commercial in New
Zealand. The Mazda CX5 and Mazda 3 have also been successful sellers in
their markets. Our heavy truck brands, DAF and Kenworth, had combined sales
of over 400 heavy trucks for the calendar year for the first time.
However, while industry sales continue to grow, the pace of growth has
tapered off. Our dealerships have experienced an even more competitive
market which has impacted on profitability. Heavy trucks on the other hand
have continued with growing sales and profitability. The drop in dairy
payouts has impacted on our tractor business. The Company trading profit
after tax for the half year at $8.355m was down 3% on last year's record half
year profit.
The Jeff Gray BMW and MINI business was purchased in August 2014, with
dealerships in Christchurch, Wellington, Palmerston North, and Hastings.
Moving into the luxury sector was a significant move for the Company. The
BMW brand is not a direct competitor to our existing Ford and Mazda
dealerships.
Expansion at the Southpac Trucks Manukau facility continues. The extended
parts warehouse has been completed and work will soon commence on the new
parts supermarket showroom and sales office. Southpac Trucks had a strong six
months with increased sales, profitability, and franchise recognition. In
January 2015, Southpac was recognised by DAF in Holland when it was named the
best performing overall DAF dealer in the 49 export markets outside of the
European Economic Union.
The balance sheet reflects current asset movements in the six months since
June 2014, with increased inventory and the purchase of Jeff Gray BMW. Heavy
truck inventory is in line with the increased volumes, and is funded by bank
borrowings. New BMW vehicles are funded by BMW Financial Services and shows
as vehicle floorplan finance $10.2m.
End CA:00260741 For:CMO Type:HALFYR Time:2015-02-17 16:20:54
