Half Year Result to 31 December 2021

Half Year Report
31 December 2021

and Subsidiary Companies

HALF YEAR REPORT
For the Six Months Ended 31 December 2021

Dear Shareholder
Trading Profit after tax at $18.0m, up 42% on the same prior year period
Interim Dividend unchanged at 15cps

Trading Results
Trading profit after tax for the first half of our 2021/22 financial year was a record high at $18.0m, up 42% on the prior year
equivalent period.

Dividend
The Board has declared a fully imputed interim dividend of 15 cents per share. The dividend will be paid on 28 March, with a
Record Date of 18 March.

Trading Conditions
It is seldom that all of our major trading operations within the Group deliver outstanding results in one six-month period but this
has been the case over the first half of the financial year. Motor vehicles, heavy trucks and tractors have all delivered excellent
results within a very challenging environment, particularly in terms of stock availability and especially for used cars, where supply
remains an issue.

Disruptions to the supply chain of new vehicle arrivals has been the biggest operational challenge. From a dealership perspective,
managing customer expectations is more complex than ever before. Demand has generally outstripped supply across the board
and while vehicle flows through our dealerships have been strong, we did experience some negative impacts from the Covid
lockdowns. Despite these challenges, our dealership staff are working at capacity in an ever changing and uncertain environment.
These efforts are recognised and appreciated at every level.

The total new vehicle industry for the year recovered to end up as an all-time record of 165,287 vehicles registered. In the case
of utility vehicles, the Government’s new emissions-based taxes, that are due to be introduced soon after the end of March 2022,
contributed to exceptional demand as buyers endeavour to secure vehicles before prices rise. Our major franchises scrambled
well to meet that demand but as we trade into 2022, stock availability is patchy and with some brands and models it has the
potential to adversely affect our trading over the second six months of the financial year.

Property Developments
It is pleasing to report that the major property redevelopments, of the Team Hutchinson Ford facility in central Christchurch and
the Capital City Motors Ford and Mazda facilities in Lower Hutt, are finally complete and we are delighted with the outcome of
these investments.

A new leased service facility on Mustang Drive in Bell Block, New Plymouth will improve Energy City Motors’ service offering in
Taranaki. Southpac Trucks also has a TRP parts store in the same location. We also have significant upgrade developments
underway at Avon City Ford in Christchurch and Dunedin City Motors is going through a brand refresh. Two years after a major
fire in our Nelson Ford Dealership (M.S. Ford), a rebuild of the leased facility is nearing completion.

Outlook
As we present this six month result, New Zealand is awaiting the full impact of Omicron and the reality is that it has the potential
to be disruptive across all of our businesses. CMC has developed specific response plans for all operations, including the Group
Office in Wellington.

At a macro level, consumer demand continues to be robust. However, the potential headwinds that could impact the results in
the second half include direct and indirect disruptions to trading, labour and vehicle supply due to Omicron, as well as price
increases from tax changes and inflation. CEO Alex Gibbons and the Management Team are performing well and our Dealerships
are guided by experienced and capable leaders. We are well prepared as we enter a somewhat uncertain 2022.

Annual Meeting
Due to difficulty in securing a venue, the date for our annual meeting has been moved to Friday, 11 November (previously 4
November).

For and on behalf of the Board
A J (Ash) Waugh
Chair 17 February 2022

and Subsidiary Companies
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
For the six months ended 31 December 2021
6 Months to
31 December
2021
$’000
Unaudited
6 Months to
31 December
2020
$’000
Unaudited
12 Months to
30 June
2021
$’000
Audited
Revenue
Products 496,034 400,627 828,119
Services 36,669 35,506 70,392
Other income 2,972 1,647 2,662
Total revenue 535,675 437,780 901,173
Trading expenses
Cost of products and services sold 438,408 357,922 734,905
Remuneration of staff 46,778 40,565 83,442
Depreciation and amortisation 3,957 3,341 6,785
Interest 2,269 1,423 3,025
Other operating costs 17,796 16,293 32,334
Total trading expenses 509,208 419,544 860,491
Trading profit before tax 26,467 18,236 40,682
Taxation 7,514 4,887 11,178
Non-controlling interest 956 634 1,580
Trading profit after tax 17,997 12,715 27,924

Non-trading items Fair value adjustments after tax 97 74 (3,091)
Profit attributable to shareholders 18,094 12,789 24,833
Profit for the period



Profit attributable to: Shareholders 18,094 12,789 24,833
Non-controlling interest 956 634 1,580
Profit for the period 19,050 13,423 26,413

Statistics per share
Basic and diluted earnings per share
Profit attributable to shareholders (cents) 55.3 39.1 76.0
Trading profit after tax (cents) 55.0 38.9 85.4
Dividends
Dividends (cents per share) 15.0 15.0 55.0
Total dividends ($’000) 4,904 4,904 17,982

Net tangible assets per share 8.13 6.96 8.00

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2021
6 Months to
31 December
2021
$’000
Unaudited
6 Months to
31 December
2020
$’000
Unaudited
12 Months to
30 June
2021
$’000
Audited
Profit for the period 19,050 13,423 26,413
Other comprehensive income

Items that will not be reclassified subsequently to profit or loss
Property revaluation reserve - Fair value movement after tax - (184) 26,255

Items that will be reclassified subsequently to profit or loss if conditions are met
Cash flow hedge reserve - Movement in fair value of hedge derivatives
after tax (728) (898) (693)
Total other comprehensive income for the period (728) (1,082) 25,562
Total comprehensive income for the period 18,322 12,341 51,975

Total comprehensive income for the period attributable to:
Shareholders 17,476 11,842 50,499
Non-controlling interest 846 499 1,476
Total comprehensive income for the period 18,322 12,341 51,975

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2021

6 Months to
31 December
2021
$’000
Unaudited
6 Months to
31 December
2020
$’000
Unaudited
12 Months to
30 June
2021
$’000
Audited
Total equity at beginning of the period 265,834 230,800 230,800
Total comprehensive income 18,322 12,341 51,975
Dividends paid to shareholders (13,079) (10,462) (15,366)
Dividends paid to non-controlling interest (450) (900) (1,575)
Total equity at end of period 270,627 231,779 265,834

and Subsidiary Companies
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2021
31 December
2021
$’000
Unaudited
31 December
2020
$’000
Unaudited
30 June
2021
$’000
Audited
Shareholders’ equity
Share capital 15,968 15,968 15,968
Retained earnings 161,696 149,539 156,682
Property revaluation reserve 89,997 63,561 89,997
Foreign exchange cash flow hedge reserve (822) (378) (204)
Total shareholders’ equity 266,839 228,690 262,443

Non-controlling interest 3,788 3,089 3,391
Total equity 270,627 231,779 265,834

Current liabilities
Bank borrowings 33,447 13,247 12,197
At-call deposits 30,563 30,561 32,304
Trade & other payables 45,227 46,056 54,740
Vehicle floorplan finance 55,853 37,049 55,866
Lease liabilities 2,024 1,925 2,041
Other 5,880 4,560 7,490
Total current liabilities 172,994 133,398 164,638
Non-current liabilities
Lease liabilities 17,909 13,387 15,607
Other 1,085 2,203 1,666
Total non-current liabilities 18,994 15,590 17,273

Total equity and liabilities

462,615 380,767 447,745

Current assets
Cash & bank accounts 13,512 16,452 14,736
Trade & other receivables 51,221 39,711 45,152
Inventory 169,528 129,808 163,378
Other 969 1,331 1,121
Total current assets 235,230 187,302 224,387
Non-current assets
Property, plant & equipment 199,625 169,900 196,619
Right of use asset 18,094 13,491 15,826
Other 9,666 10,074 10,913
Total non-current assets 227,385 193,465 223,358

Total assets

462,615 380,767 447,745

CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2021

6 Months to
31 December
2021
$’000
Unaudited
6 Months to
31 December
2020
$’000
Unaudited
12 Months to
30 June
2021
$’000
Audited
Operating cash flows
Inflows 529,601 439,948 897,905
Outflows (531,078) (408,695) (873,860)
Net operating cash flows (1,477) 31,253 24,045
Investing cash flows
Inflows 1,573 761 1,253
Outflows (9,573) (12,901) (24,169)
Net investing cash flows (8,000) (12,140) (22,916)
Financing cash flows
Inflows 23,522 4,461 15,603
Outflows (15,269) (24,117) (18,991)
Net financing cash flows 8,253 (19,656) (3,388)
Net change in cash held (1,224) (543) (2,259)
Cash at beginning of period 14,736 16,995 16,995
Cash at end of period 13,512 16,452 14,736

SEGMENT INFORMATION
For the six months ended 31 December 2021

2021
Unaudited
2020
Unaudited
Operating
segment
$’000
Corporate
$’000
Total
Group
$’000
Operating
segment
$’000
Corporate
$’000
Total
Group
$’000
Revenue from customers 535,402 273 535,675 437,450 330 437,780
Trading profit before tax 25,652 815 26,467 16,653 1,583 18,236
Total assets 265,279 197,336 462,615 210,843 169,924 380,767

These summary consolidated financial statements have not been audited. They have been prepared using accounting policies that are consistent
with the most recent annual financial statements and comply with NZ IAS 34, Interim Financial Reporting.

The financial statements were authorised for issue by the Directors on 17 February 2022.

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Results announcement


CMO

Results for announcement to the market
Name of Issuer The Colonial Motor Company Limited
Reporting Period 6 months to 31 December 2021
Previous Reporting Period 6 months to 31 December 2020
Currency NZ dollars
Amount (000s) Percentage change
Revenue from continuing operations 535,675 22.4%
Total Revenue 535,675 22.4%
Net trading profit from continuing operations 17,997 41.5%
Net profit from continuing operations
attributable to security holders
18,094 41.5%
Total net profit attributable to security
holders
18,094 41.5%
Interim Dividend
Amount per Quoted Equity Security NZD $0.15000000
Imputed amount per Quoted Equity Security NZD $0.05833333
Record Date 18 March 2022
Dividend Payment Date 28 March 2022

Current period Prior comparable
period
Net tangible assets per Quoted Equity
Security
$8.13 $6.96

Commentary
A commentary to assist in the interpretation of the
figures in this announcement is provided in the
attached unaudited Half Year Report.

Authority for this announcement
Name of person

authorised to make this
announcement
Jack Tuohy, Company Secretary
Contact person for this announcement Ash Waugh, Chairman
Contact phone number 04 384 9734
Contact email address cmc@colmotor.co.nz
Date of release through MAP

17 February 2022

Unaudited financial statements accompany this announcement.

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Distribution Notice


CMO
Page 1 of 1


Section 1: issuer information
Name of issuer The Colonial Motor Company Limited
Financial product name/description Ordinary shares
NZX ticker code CMO
ISIN (If unknown, check on NZX website) NZ CMOE0001S7
Type of distribution
(Please mark with an X in the relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date Close of trading on: 18 March 2022
Ex-Date 17 March 2022
Payment date 28 March 2022
Total monies associated with the distribution $4,904,194.80
Source of distribution Retained earnings
Currency NZ dollars
Section 2: distribution amounts
Gross distribution $0.20833333
Gross taxable amount $0.20833333
Total cash distribution $0.15000000
Excluded amount (applicable to listed PIEs) $0.00000000
Supplementary distribution amount $0.02647059
Section 3:
Is the distribution imputed Fully imputed
Imputation rate applied 28.0%
Imputation tax credits per financial product $0.05833333
Resident withhold tax amount per financial product $0.01041667
Section 4: distribution re-investment plan – not applicable
Section 5: authority for this announcement
Name of person authorised to make this
announcement Jack Tuohy, Company Secretary
Contact person for this announcement Ash Waugh, Chairman
Contact phone number 04 384 9734
Contact email address cmc@colmotor.co.nz
Date of release via MAP 17 February 2022