Colonial Motor reports 23.8% profit drop

The Colonial Motor Company has reported a 23.8% decrease in trading profit after tax for the six months ended December 31, 2024.

The company achieved a profit of $6.9 million, down from the same period last year.

Despite the decline, the board declared an unchanged interim dividend of 15 cents per share, which will be paid on March 31.

Colonial Motor Company chairman, Ash Waugh, said the result was better than anticipated, thanks to a strong December and prudent cost management.

He noted that the market remained subdued, with recessionary impacts affecting demand for new light vehicles and heavy trucks.

However, there was a positive tone in the agricultural sector, which revived some activity in the tractor market.

Waugh said the company would continue to support its property investment and refurbishment programme, including a new showroom in Masterton.

The outlook for the remainder of the financial year is cautious, with new car volumes in January 14% lower than the same month last year.