Half Year Result and Dividend

The Colonial Motor Company Limited has released its results for the six months ended 31 December 2024. The Company recorded a trading profit after tax of $6.9m, down 23.8% on the comparative period.

Together with the result announcement, the Board declared an unchanged, fully imputed, interim dividend of 15 cents per share to be paid on 31 March.

Chair, Ash Waugh, confirmed this had been a better result than anticipated at the time of the 2024 AGM in November, when the market and outlook appeared bleak. The second half of 2024 had largely lived up to that expectation but a strong December result, assisted by continued prudent cost management, had seen the six months end on a more positive note.

The market remained subdued, relative to the trading conditions enjoyed over the past few years, with recessionary impacts affecting demand for new light vehicles and now heavy trucks. He pointed out that in terms of light vehicles, continued excess stock in the market was maintaining the challenging trading environment. The refreshed focus Management had placed on used vehicles within the dealerships, together with the ongoing cost management, had been contributors to the better than expected result.

At the same time, the positive tone within the agricultural sector, driven by an increased dairy payout and aggressive marketing by the major brands, had seen some ‘life’ return to the tractor market.

Mr Waugh noted the Company would continue to support the property investment and refurbishment programme, including the new showroom at Fagan Motors in Masterton which was all but complete. Development activity has been slowed in response to a costlier market. This year will see progress in the development project in Palmerston North for Southpac Trucks.

The Company had purchased a site in Rangiora to strengthen the Ford representation in that growth corridor.

In addressing the outlook for the remainder of the financial year, Ash Waugh remarked the January market across the country had not heralded any significant news for a change in market sentiment, with new car volumes 14% lower than January 2024. Given the concentration on cost reduction, efficiency, a revitalised used vehicle focus and the strength of the core franchise offerings, the Company is well placed to compete in this changed and challenging market environment.

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Announcement PDF