Preliminary result and dividend
21/08/2025 15:32 NZST, FLLYRP
The Chair of The Colonial Motor Company, Ash Waugh, today announced a Trading Profit after Tax for the 30 June 2025 financial year of $17.83m; a better than expected result.
He noted the vehicle markets in New Zealand had been patchy at best during the trading year, with new passenger cars, light commercial vehicles and trucks in particular affected by a sluggish economy and high inventory levels across their separate markets. This had resulted in pressured trading, especially in the North Island Metro markets. On the other hand, used car operations across the Group had demonstrated strong growth and contributed positively to the overall result.
Mr Waugh pointed out that most of the Group’s dealerships responded well to the ‘new normal’ trading market by addressing their cost structures and finding new business in this challenging environment. The June calendar year-to-date total new vehicle market had been similar to the prior year in volume, being up 1.3% at 63,458 units.
However, the all-important commercial market was down 18.4% in preference to mid-sized and large SUV vehicles. The Ford Ranger had protected its share in this reduced market but the decline in that segment is of some concern, as this has been a ‘sweet spot’ for a number of years now, he said. The good news is the recent introduction of the hybrid Ranger into this segment, along with the Ranger Super Duty, will further enhance our Ford dealers’ light commercial range in the future.
Mr Waugh said the heavy truck business at Southpac had a difficult year as trucking volumes fell off in all but the dairy and wider agribusiness sector. This led to inventory being held for longer periods across the entire industry and resulted in an aggressive trading environment. In addition, Southpac had been navigating increased operational complexity due to model transitions for both the Kenworth and DAF product lines. While these changes were essential to maintaining a competitive, modern fleet offering, they have added layers of complexity to sales, marketing and inventory planning.
He confirmed the Company’s JAC Motors initiative continued its launch into a very competitive market. We remain confident the ongoing commitment to the JAC brand is an important strategic investment in a Chinese sourced product range.
We were delighted to secure the Mitsubishi franchise in Manukau, South Auckland in May and establish that dealership on our Bakerfield Place site trading as Manukau Autos, he said. As part of that change, the Southern Autos business had relocated its central hub of operations to the Botany Road facility.
On the property front, Mr Waugh stated it was pleasing to report the Fagan Motors dealership rebuild in Masterton had been completed and the new Avon City Ford sales and service facility in Rangiora, purchased earlier in the year, was now operational.
We recently purchased further land in Queenstown next to our dealership in Glenda Drive to protect its options in that fast-growing region.
He pointed out all sectors of New Zealand (except agribusiness) were eagerly awaiting the rebound from OCR interest rate reductions and the positive impacts expected from the many policy changes the Government had made and was continuing to introduce. However, it appears the economic headwinds along with global geopolitical instability will continue to hamper growth.
We certainly see a two-speed economy in New Zealand, Mr Waugh said, with on the downside we have Metro North Island while on the upside the South Island and Rural New Zealand. Until our Metro areas in the North Island and the truck business enjoy the same trading environment, we maintain a cautious watching brief.
The Directors had declared a fully imputed dividend of 20 cps to be paid on Monday, 6 October 2025, with a record date of Friday, 26 September. This would take the total dividend for the year to 35 cps, 64% of the Trading Profit after Tax and matching the previous year.
END