2 Cheap Cars has reported a 48% decrease in net profit after tax for the half year ended September 30, 2024.
The company's net profit for the period was $1.67 million, down from $3.2m in the same period last year.
Despite the decline in profit, the company declared an interim dividend of 3.06 cents per share gross, representing 60% of the underlying npat for the period.
The board's decision to declare a dividend was said to reflect the group's commitment to delivering shareholder value while maintaining prudent financial management.
2 Cheap Cars said the results highlighted the challenges faced by the automotive retail market due to the prolonged economic downturn in New Zealand.
The company said it remained focused on maintaining competitiveness and may need to sustain lower margins for an extended period.
The company ended the half year with $2.54m in cash and stable debt.
It adopted a conservative outlook for the second half, aiming to maintain the profitability levels achieved in the first half.
See more
