Announcement
HALFYR: CMO: Half Year Result to 31 December 2021
04:32pm
CMO
17/02/2022 16:32
HALFYR
PRICE SENSITIVE
REL: 1632 HRS The Colonial Motor Company Limited
HALFYR: CMO: Half Year Result to 31 December 2021
The Colonial Motor Company Limited
Half Year Result for the six months ended 31 December 2021
Trading Profit after tax at $18.0m, up 42% on the same prior year period
Interim Dividend unchanged at 15cps.
Trading Results
Trading profit after tax for the first half of our 2021/22 financial year was
a record high at $18.0m, up 42% on the prior year equivalent period.
Dividend
The Board has declared a fully imputed interim dividend of 15 cents per
share. The dividend will be paid on 28 March, with a Record Date of 18
March.
Trading Conditions
It is seldom that all of our major trading operations within the Group
deliver outstanding results in one six-month period but this has been the
case over the first half of the financial year. Motor vehicles, heavy trucks
and tractors have all delivered excellent results within a very challenging
environment, particularly in terms of stock availability and especially for
used cars, where supply remains an issue.
Disruptions to the supply chain of new vehicle arrivals has been the biggest
operational challenge. From a dealership perspective, managing customer
expectations is more complex than ever before. Demand has generally
outstripped supply across the board and while vehicle flows through our
dealerships have been strong, we did experience some negative impacts from
the covid lockdowns. Despite these challenges, our dealership staff are
working at capacity in an ever changing and uncertain environment. These
efforts are recognised and appreciated at every level.
The total new vehicle industry for the year recovered to end up as an
all-time record of 165,287 vehicles registered. In the case of utility
vehicles, the Government's new emissions-based taxes, that are due to be
introduced soon after the end of March 2022, contributed to exceptional
demand as buyers endeavour to secure vehicles before prices rise. Our major
franchises scrambled well to meet that demand but as we trade into 2022,
stock availability is patchy and with some brands and models it has the
potential to adversely affect our trading over the second six months of the
financial year.
Property Developments
It is pleasing to report that the major property redevelopments, of the Team
Hutchinson Ford facility in central Christchurch and the Capital City Motors
Ford and Mazda facilities in Lower Hutt, are finally complete and we are
delighted with the outcome of these investments.
A new leased service facility on Mustang Drive in Bell Block, New Plymouth
will improve Energy City Motors' service offering in Taranaki. Southpac
Trucks also has a TRP parts store in the same location. We also have
significant upgrade developments underway at Avon City Ford in Christchurch
and Dunedin City Motors is going through a brand refresh. Two years after a
major fire in our Nelson Ford Dealership (M.S. Ford), a rebuild of the leased
facility is nearing completion.
Outlook
As we present this six month result, New Zealand is awaiting the impact of
Omicron and the reality is that it has the potential to be disruptive across
all of our businesses. CMC has developed specific response plans for all
operations, including the Group Office in Wellington.
At a macro level, consumer demand continues to be robust. However, the
potential headwinds that could impact the results in the second half include
direct and indirect disruptions to trading, labour and vehicle supply due to
Omicron, as well as price increases from tax changes and inflation. CEO Alex
Gibbons and the Management Team are performing well and our Dealerships are
guided by experienced and capable leaders. We are well prepared as we enter a
somewhat uncertain 2022.
Annual Meeting
Due to difficulty in securing a venue, the date for our annual meeting has
been moved to Friday, 11 November (previously 4 November).
End CA:00387453 For:CMO Type:HALFYR Time:2022-02-17 16:32:01
Click here
to view related attachments.
