Colonial Motor reports $17.88m profit despite challenges

The Colonial Motor Company has reported a trading profit after tax of $17.88 million for the financial year ending June 30 2024.

In a statement, company chair, Ash Waugh, acknowledged the impact of deteriorating market conditions, which had created a challenging trading environment.

Waugh highlighted the decline in the new vehicle market, noting that the June calendar year-to-date was 26.2% lower than the previous year.

He also mentioned the squeeze on dealer profitability due to reduced margins on new and used vehicles.

Despite these challenges, Waugh expressed confidence in the company's heavy truck business and the ongoing investment in the JAC Motors brand.

The directors declared a fully imputed dividend of 20 cents per share, bringing the total dividend for the year to 35 cents per share, which is equivalent to 64% of the trading profit after tax.

The dividend will be paid on Oct 7 2024, with a record date of Sep 27.