Colonial Motor Company releases annual report for 2023

The Colonial Motor Company has released its 2023 annual report for the year ended 30 June, outlining a $30.3 million trading profit after tax.

Revenue for the year was $997.2 million. This is a 0.6 per cent decrease on the previous year’s $1,002.8 million, reflecting a tightening economy and reducing gross margins on vehicles.

The trading profit after tax for the year was $30.3 million, down 9 per cent on 2022’s $33.3 million. Profit for the year attributable to shareholders was $27.8 million, compared to $33.2 million last year.

Total assets increased to $548.4 million at year end (2022: $458.2 million). Inventory increased by $69.0 million reflecting the slow normalisation of the supply chain following Covid-19. Additions to Land & Buildings focused on the purchase of a new property in Palmerston North and the refurbishment of existing sites in Christchurch, Rotorua and Gore.

The annual independent revaluation of the Group’s property portfolio brought about a total decrease of $5.2 million of which $2.6 million reduced the revaluation reserves. At the reporting date, shareholders’ equity was $310.8 million (2022: $303.3 million).

Dividends paid in respect of this financial year will total 57.0 cents per share (2022: 62.0 cents). An interim dividend of 15.0 cents was paid on 27 March 2023 and a final dividend of 42.0 cents will be paid on 2 October 2023. The dividend will carry the maximum level of imputation credits.

The value of the distributions for this financial year will be $18.6 million (2022: $20.3 million), representing 61 per cent (2022: 61 per cent) of the trading profit after tax.

It has been the Board’s practice to review the fees paid to Directors, in total and to individuals, every two years. The last review was undertaken in 2021. At that time the maximum fees payable was increased from $280,000 to $305,000. This was approved by shareholders at the 2021 annual meeting. Total fees paid in the year to 30 June 2023 were $300,932 (2022: $295,548).

Based on the mix of Directors, the total annual remuneration will exceed the current approved maximum. A resolution seeking consent to increase the limit to $330,000 will be considered at the upcoming annual meeting.

A full copy of The Colonial Motor Company’s 105th Annual Report for the year ended 30 June 2023 can be found here.