Colonial Motor reports unexpected $17.83m profit

The Colonial Motor Company has reported a better-than-expected trading profit after tax of $17.83 million for the 2025 financial year.

The company's chair, Ash Waugh, attributed the result to strong growth in used car operations, which offset the challenges faced in the vehicle markets.

The new passenger cars, light commercial vehicles, and trucks sectors were particularly affected by a sluggish economy and high inventory levels, leading to pressured trading, especially in the North Island Metro markets.

Waugh said the heavy truck business at Southpac also had a difficult year due to falling trucking volumes, except in the dairy and agribusiness sectors.

The company's JAC Motors initiative is still in the launch phase, while the acquisition of the Mitsubishi franchise in Manukau and the completion of the Fagan Motors dealership rebuild were highlighted as positive developments.

A fully imputed dividend of 20 cents per share has been declared, bringing the total dividend for the year to 35 cents per share.