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Colonial Motor Co reports 5.2pc profit dip

NZN 21/02/2017 Rebecca Howard

Colonial Motor Co reported a 5.2 per cent drop in first half profit and while it was guardedly positive about the immediate future it signalled several risks.

The company said profit fell to $10.5 million in the six months to December 31 from $11.1m in the same period a year earlier as trading revenue dipped 0.3 per cent to $437.46m.

While net profit was down, its trading profit after tax was a record high $10.3m, up 8.9 per cent on the year.

According to the company, the new vehicle market continues to grow and there are strong forward orders for heavy trucks.

The new vehicle industry for the full year 2016 grew by 9.5 per cent to a new all-time record of 146,753 registrations, it said. It noted the parts of the business that are reliant on the agricultural economy are beginning to see signs of an uplift. "The outlook for the immediate future is positive," it said.

However, it also noted that in contrast to the prior year, trading profit in the six months was stronger at the beginning of the period than at the end and "there is heightened risk that international events could impact on consumer confidence which is so essential to our success."

Colonial Motor Co will pay a first-half dividend of 13 cents per share on April 18, unchanged from the year-earlier period.

The shares were unchanged at $7.60 and were up 49 per cent over the past 12 months.

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