Half Year Result and Dividend
26/02/2026 16:06 NZDT, HALFYRP
The Colonial Motor Company Limited has released its results for the six months ended 31 December 2025, recording a trading profit after tax of $10.4m. This was significantly ahead of the comparative period, being up 50.0% on the 31 December 2024 result.
Together with the results announcement, the Board declared an unchanged, fully imputed, interim dividend of 15 cents per share to be paid on 30 March.
Chair, Ash Waugh, confirmed this to be an appreciably better result than was anticipated at the time of the 2025 AGM in November. He noted that, as was often the case, December could be a fickle month to predict, this year being no exception. Strong new and used car sales elevated December trading, resulting in this further positive impact on the half year.
Alongside the economy in general, the new light vehicle market continued its gradual recovery and the Company’s six-month result was evidence of that. Despite this trend, somewhat erratic vehicle supply and demand was an ongoing hurdle, something that could be further compounded by several vehicle model changes expected during 2026. Management across the Group had continued the refreshed focus on used vehicles within the dealerships and this had been a significant factor in the better than expected half year result.
Mr Waugh pointed out the heavy commercial truck sectors that Southpac Trucks operated in remained subdued, with national volumes well down on the prior year. It was not anticipated that a recovery in this market would build any marked momentum in the short term. The Company remained confident these market sectors would eventually improve as the wider economy does. Despite this current tough market, the truck business was performing well.
He said the improved outcomes within the agricultural sector, driven by a continued positive dairy outlook and its related strong returns, together with a better level of demand in the red meat sector, had contributed to a solid recovery in the Company’s tractor business, an industry that remained fiercely competitive. Agricentre South successfully sold the Kubota business in November in order to focus on its core New Holland and Case IH heavy tractor franchises. The sale included the North Road property in Invercargill.
Also on the property front, Hutchinson Motors had opened a new leased facility on Detroit Place in Christchurch, replacing the previous inner-city facility on St Asaph Street. This new facility trades under the banner of ‘Team Hutchinson All Makes’ and would provide a much-needed capacity boost for both used vehicles and new vehicle preparation support functions.
Ash Waugh outlined that, while the heavy truck market remained subdued, Southpac Trucks continued to see growth opportunities for its parts and service network. Two new ‘Truck Related Parts’ stores had been established in Nelson and Dunedin to support both the local service dealers and large fleet customers who operate in these regions.
Mr Waugh explained that maintaining the first half trajectory may not be a realistic prospect but the objective remained to hold onto, if not build on, the gains of the first six months. That said, new vehicle registrations in January 2026 were 8.9% higher than in January 2025, so if there was confidence the New Zealand economy would continue a growth trend, this should reflect positively on new vehicle registrations.
He said the headwinds in the heavy commercial truck sectors were anticipated to continue into the second half. At the same time, disruption from new vehicle model changes and a weak New Zealand dollar both had the potential to impact trading results.