Announcement
FLLYR: CMO: Preliminary result & dividend
08:30am
CMO
26/08/2020 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS The Colonial Motor Company Limited
FLLYR: CMO: Preliminary result & dividend
o Revenue for the year was $754.9m, down 17% on last year
o Trading profit after tax at $17.3m, down 21% on last year
o Dividend for the year of 32 cps
The Colonial Motor Company has announced its preliminary results for the year
ended 30 June 2020. Revenue for the year at $755m was down 17% on the
previous year and Trading Profit after tax at $17.3m was down 21%.
The Directors consider the trading profit after tax for the year at $17.3m to
be very satisfactory given the challenges of the Covid impacted months.
Chairman Jim Gibbons said revenue was down 37% in March, 87% in April and 27%
in May. It was a very volatile six months, with most of the Company in
hibernation in April, followed by a sudden and strong bounce back after the
initial restrictions were lifted. Profitability suffered in March and April
but recovered in May and June. Inventory, along with floorplan finance and
bank borrowing is down on last year at balance date. Full year remuneration
paid to employees, which includes the wage subsidy, was similar to last year.
Mr Gibbons said that total profit for the year was affected by valuation and
tax changes. The tax deductibility of depreciation on buildings will be
resumed as part of the Governments response to the Covid crisis. This has an
impact on deferred tax, reversing the tax loss recorded in 2010 when the
depreciation deductibility was stopped, and creating a non-cash deferred tax
gain of $6.58m.
The Covid lockdown has delayed but not stopped the Company-owned developments
at Cromwell, Wanaka, Christchurch, Lower Hutt, Manukau and Botany.
Outlook
Mr Gibbons explained that the volatility is expected to continue with
uncertainty from the Covid shutdowns, consumer responses to this and the
impact on the wider economy. It is currently not possible to make
predictions with any confidence into the future. However, the Company has
demonstrated that it can absorb and bounce back from adverse conditions. The
balance sheet is strong, providing resilience in this environment.
Dividend
The interim dividend of 15 cps was cancelled on 24 March at the start of the
level four lockdown. Post lockdown trading in May and June bounced back
strongly. Consequently, the Directors have declared a fully imputed dividend
of 32 cps, representing 60% of the full year trading profit after tax, to be
paid on 5 October 2020 with a record date of 25 September.
End CA:00358637 For:CMO Type:FLLYR Time:2020-08-26 08:30:03
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