The Colonial Motor Company has announced a Trading Profit after Tax of $30.34m for the 2023 financial year, which is a 9% decrease from the previous year.
The company faced challenges in the light vehicle trading sector due to changes in the clean car scheme and taxes on higher emitting vehicles, as well as supply issues.
However, the light vehicle dealerships still achieved strong full year results.
The tractor dealerships struggled in the last quarter due to inflation and lower returns in the agricultural sector, while the heavy truck dealership maintained steady results.
The company's property projects focused on refurbishments rather than new developments, with several completed facilities.
Future plans include the redevelopment of a building in Masterton and a major development in Palmerston North.
The company expects higher fuel prices, inflation, and a cooling economy to impact customers and the business in the coming years.
However, the introduction of new models and hybrid/electric vehicles is expected to support customer interest.
The company is also exploring opportunities for expansion.
A dividend of 42 cps has been declared, bringing the total dividend for the year to 57 cps, representing 61% of the Trading Profit after Tax.
See more
