The Colonial Motor Company’s annual report for 2022 has been released, revealing the organisation’s current financial position for the year ended 30 June 2022.
Revenue and profit
Revenue for the year was $1,002.8 millon. This is an 11 per cent increase on the previous year’s $901.2 million reflecting continuing strong demand for new and used vehicles and the incentive for customers to purchase before the introduction of the clean car tax on 1 April. This year’s revenue compares to $754.9 million in 2020 and $909.0 million in 2019.
The trading profit after tax for the year was $33.3 million, up 19 per cent on last year’s $27.9 million. Trading profit after tax is not specified under Generally Accepted Accounting Practice but is a consistent measure of the underlying trading profitability of the Group before valuation changes of assets and deferred tax movements. It is also the reference point used by the Board when considering dividends.
Profit for the year attributable to shareholders was $33.2 million, compared to $24.8 million in 2021.
Statement of financial position
Total assets increased to $458.2 million at year end (2021: $447.7 million). Inventory fell by $26.4 million reflecting difficulties with the supply chain for vehicles following Covid and issues with semi-conductors.
Additions to Land & Buildings of $20.8 million focused on the purchase of new property in Auckland and Rotorua and the refurbishment of existing sites in Christchurch and Timaru.
The annual independent revaluation of the Group’s property portfolio brought about an increase in the revaluation reserve of $24.0 million (2021: $25.2 million). At the reporting date, shareholders’ equity was $303.3 million (2021: $262.4 million).
Dividends paid in respect of this financial year will total 62.0 cents per share (2021: 55.0 cents). An interim dividend of 15.0 cents was paid on 28 March 2022 and a final dividend of 47.0 cents will be paid on 3 October 2022. The dividend will carry the maximum level of imputation credits.
The value of the distributions for this financial year will be $20.3 million (2021: $17.9 million), representing 61 per cent (2021: 64 per cent) of the trading profit after tax.
The independent Directors at 30 June 2022 and the date of this report were A J Waugh and J W M Journee. The Listing Rules of the New Zealand Stock Exchange specify that a director must not hold office (without re-election) past the third annual meeting following the director’s appointment or three years, whichever is longer. On that basis, the director to retire this year is J W M Journee. He is eligible and is seeking re-election at the forthcoming annual meeting.
John Hutchinson was appointed as a director with effect from 1 September 2022 and as required by the Listing Rules, he will be seeking election at the annual meeting. Matthew Newman will be retiring from the Board at the annual meeting having been a director since November 2013.
A full copy of the report can be found here.