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Colonial Motor Co full year profit soars 38% to record on growing vehicle sales

Colonial Motor Co [NZX: CMO], the car and tractor dealer, said annual profit rose 38 percent to a record amid growing sales of new vehicles.

Net profit rose to $19.3 million, or 58.6 cents per share, in the 12 months ended June 30, from $13.9 million, or 42.5 cents a year earlier, the Wellington-based company said in a statement. Trading revenue climbed 14 percent to $698.2 million.

"A feature of this year has been the concurrent strong operating performance from all of the trading companies; car dealerships, heavy trucks, and tractors," chairman Jim Gibbons said. "However, there are increasing signs that the favourable conditions are easing."

Government data this month showed retail spending on motor vehicles and parts showed the biggest quarterly volume increase in the three months ended June 30, with Motor Trade Industry Association figures showing sales of new passenger and commercial vehicles tallied 62,200 in the first half of this year.

Colonial said new passenger vehicle registrations rose 11 percent in the first six months of the year from the same period in 2013, while light commercial registrations up 21 percent and heavy commercials up 20 percent.

The board declared a final dividend of 22 cents per share, payable on Oct. 20 with an Oct. 10 record date. That takes the total annual payment to 35 cents per share, up from 30 cents in 2013.

The shares were unchanged at $5.47, and have climbed 19 percent this year.

In June, Colonial announced the purchase of Jeff Gray BMW, which settled yesterday, adding four BMW dealerships in Christchurch, Wellington, Palmerston North and Hastings.

(BusinessDesk)