Half Year Result to 31 December 2022

Half Year Report
31 December 2022

and Subsidiary Companies
HALF YEAR REPORT
For the Six Months Ended 31 December 2022

Dear Shareholder
Trading Profit after tax at $14.2m, down 21% on the same prior year period
Interim Dividend unchanged at 15cps

Trading Results
Trading profit after tax of $14.2m for the first half of the 2023 financial year was the second highest on record but below the
comparative period’s record result.

Dividend
The Board has declared a fully imputed interim dividend of 15 cents per share. The dividend will be paid on 27 March, with a
Record date of 17 March.

Trading Conditions
All of our major trading operations remained in good shape, with motor vehicles, heavy trucks and tractor dealerships all
contributing to deliver a very sound result for the six-month period despite softening market conditions. While the vehicle supply
shortage shows signs of easing, waiting lists for popular models continued to pose challenges for our dealerships and lengthy wait
times for customers. The trend of shipping arrivals dictating monthly sales results remains while, at the same time, the industry
works through the tail end of the high vehicle demand of the last two years.
The headwinds of growing economic uncertainty, a relatively low New Zealand dollar, the cost-of-living crisis and rising interest
rates have softened new and used vehicle enquiries and increased the cost of doing business. Despite these challenges, our focus
on investing in our people and facilities and supporting our long-term customer relationships has proven to be a successful
formula.
The new vehicle industry totalled 164,813 registrations for 2022, only slightly down on 2021. Targeted government intervention
via the clean vehicle legislation has continued to drive demand for electric vehicles (EVs), with EVs playing an increasingly dominant
role in the Passenger and SUV segments.

Property Developments
Dealership upgrades at Avon City Ford, Dunedin City Ford and Timaru Motors are all on track and due to be completed before the
end of the financial year. A complete rebuild of the Fagan Motors showroom and Agricentre’s tractor dealership in Gore are
nearing their start dates. Later in the year a Mazda brand refresh for South Auckland Mazda and Dunedin City Mazda will get
underway. The Company has also purchased a substantial property in Palmerston North which we plan to develop as a long-term
investment to expand and future proof our heavy commercial business in the region.

Outlook
Uncertainty is the constant keyword heading into the second half of the financial year. While sales of popular vehicle models are
expected to stay robust in the third quarter, the lag effect from lower levels of customer enquiry is anticipated to have a greater
impact by the fourth quarter.
The economic environment experienced in the first half is expected to remain and will likely tighten the screws on the industry
and wider retail sector as the year unfolds. We will also contend with the lead up to the 2023 general election, which can result in
customers deferring major purchase decisions until a degree of certainty resumes.
As showcased at the 2022 AGM, we have an exciting array of new and electrified products coming to market across the portfolio
of brands we partner with. The combination of great staff, investment in facilities and new products positions the Company well
to succeed. However, in the short to medium term, we do expect a degree of turbulence as the supply of EV products remains
globally scarce for the foreseeable future.

Christchurch Dealership Tour
Shareholders are invited to a tour of Team Hutchinson Ford and Avon City Motors on the 12th of May 2023. Please RSVP to
cmc@colmotor.co.nz by the 14th of April if you would like to attend.
Annual Meeting
The 2023 Annual Meeting is scheduled to be held in Wellington at the Harbourside Function Venue at midday on the 10th of
November.

For and on behalf of the Board
A J (Ash) Waugh
Chair 22 February 2023

and Subsidiary Companies
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
For the six months ended 31 December 2022
6 Months to
31 December
2022
$’000
Unaudited
6 Months to
31 December
2021
$’000
Unaudited
12 Months to
30 June
2022
$’000
Audited
Revenue
Products 459,468 496,034 926,432
Services 40,440 36,669 72,600
Other income 1,014 2,972 3,816
Total revenue 500,922 535,675 1,002,848
Trading expenses
Cost of products and services sold 405,026 438,408 815,425
Remuneration of staff 47,073 46,778 90,648
Depreciation and amortisation 3,946 3,957 8,082
Interest 3,635 2,269 4,401
Other operating costs 20,339 17,796 34,921
Total trading expenses 480,019 509,208 953,477
Trading profit before tax 20,903 26,467 49,371
Taxation 5,880 7,514 13,988
Non-controlling interest 802 956 2,038
Trading profit after tax 14,221 17,997 33,345

Non-trading items Fair value adjustments after tax 70 97 (162)
Profit attributable to shareholders 14,291 18,094 33,183
Profit for the period



Profit attributable to: Shareholders 14,291 18,094 33,183
Non-controlling interest 802 956 2,038
Profit for the period 15,093 19,050 35,221

Statistics per share
Basic and diluted earnings per share
Profit attributable to shareholders (cents) 43.7 55.3 101.5
Trading profit after tax (cents) 43.5 55.0 102.0
Dividends
Dividends (cents per share) 15.0 15.0 62.0
Total dividends ($’000) 4,904 4,904 20,271

Net tangible assets per share
9.10 8.13 9.25

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2022
6 Months to
31 December
2022
$’000
Unaudited
6 Months to
31 December
2021
$’000
Unaudited
12 Months to
30 June
2022
$’000
Audited
Profit for the period 15,093 19,050 35,221
Other comprehensive income

Items that will not be reclassified subsequently to profit or loss
Property revaluation reserve - Fair value movement after tax - - 23,307

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 (4,455) (728) 2,810
Total other comprehensive income for the period (4,455) (728) 26,117
Total comprehensive income for the period 10,638 18,322 61,338

Total comprehensive income for the period attributable to:
Shareholders 10,505 17,476 58,879
Non-controlling interest 133 846 2,459
Total comprehensive income for the period 10,638 18,322 61,338

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2022

6 Months to
31 December
2022
$’000
Unaudited
6 Months to
31 December
2021
$’000
Unaudited
12 Months to
30 June
2022
$’000
Audited
Total equity at beginning of the period 307,840 265,834 265,834
Total comprehensive income 10,638 18,322 61,338
Dividends paid to shareholders (15,366) (13,079) (17,982)
Dividends paid to non-controlling interest (450) (450) (1,350)
Total equity at end of period
302,662 270,627 307,840

and Subsidiary Companies
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2022
31 December
2022
$’000
Unaudited
31 December
2021
$’000
Unaudited
30 June
2022
$’000
Audited
Shareholders’ equity
Share capital 15,968 15,968 15,968
Retained earnings 170,808 161,696 171,883
Property revaluation reserve 113,304 89,997 113,304
Foreign exchange cash flow hedge reserve (1,602) (822) 2,185
Total shareholders’ equity 298,478 266,839 303,340

Non-controlling interest 4,184 3,788 4,500
Total equity 302,662 270,627 307,840

Current liabilities
Bank borrowings 32,343 33,447 8,732
At-call deposits 32,700 30,563 31,076
Trade & other payables 47,560 45,227 47,423
Vehicle floorplan finance 73,496 55,853 28,443
Lease liabilities 1,957 2,024 2,027
Other 5,453 5,880 6,000
Total current liabilities 193,509 172,994 123,701
Non-current liabilities
Lease liabilities 18,278 17,909 19,752
Other 12,622 1,085 6,920
Total non-current liabilities 30,900 18,994 26,672

Total equity and liabilities

527,071 462,615 458,213

Current assets
Cash & bank accounts 16,128 13,512 11,844
Trade & other receivables 43,801 51,221 39,200
Inventory 197,278 169,528 137,020
Other 708 969 4,513
Total current assets 257,915 235,230 192,577
Non-current assets
Property, plant & equipment 241,465 199,625 238,170
Right of use asset 18,353 18,094 19,895
Other 9,338 9,666 7,571
Total non-current assets 269,156 227,385 265,636

Total assets

527,071 462,615 458,213

CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2022

6 Months to
31 December
2022
$’000
Unaudited
6 Months to
31 December
2021
$’000
Unaudited
12 Months to
30 June
2022
$’000
Audited
Operating cash flows
Inflows 495,942 529,601 1,008,798
Outflows (546,614) (531,078) (941,543)
Net operating cash flows (50,672) (1,477) 67,255
Investing cash flows
Inflows 1,568 1,573 1,636
Outflows (6,594) (9,573) (24,154)
Net investing cash flows (5,026) (8,000) (22,518)
Financing cash flows
Inflows 75,798 23,522 -
Outflows (15,816) (15,269) (47,629)
Net financing cash flows 59,982 8,253 (47,629)
Net change in cash held 4,284 (1,224) (2,892)
Cash at beginning of period 11,844 14,736 14,736
Cash at end of period 16,128 13,512 11,844

SEGMENT INFORMATION
For the six months ended 31 December 2022

2022
Unaudited
2021
Unaudited
Operating
Segment
$’000
Corporate
$’000
Total
Group
$’000
Operating
Segment
$’000
Corporate
$’000
Total
Group
$’000
Revenue from customers 500,365 557 500,922 535,402 273 535,675
Trading profit before tax 19,771 1,132 20,903 25,652 815 26,467
Total assets 286,968 240,103 527,071 265,279 197,336 462,615

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 22 February 2023.

and Subsidiary Companies

Avon City Ford - the complete rebuild of the showroom and administration building is progressing well
considering the challenges within the construction industry over the last year. Shareholders will have the
opportunity to tour the facility alongside Team Hutchinson Ford in May.

Timaru Motors – the facility is undergoing refurbishment. The interior is now finished and the remainder of the
site is due for completion soon.


Energy Motors - the pre-delivery workshop facility on Mustang Drive, New Plymouth is now complete.

and Subsidiary Companies
Southpac Trucks












Agricentre South










The new Euro6 DAF suits a wide range of agricultural
applications. J Swap of Matamata operates a large
fleet of DAFs specialising in stock food delivery.

The Kenworth T610 offers luxury sleeper cabins suited
for long distance transport. Owner Dibble Transport
of Te Awamutu operates a number of Kenworths for
bulk cement transport.
The versatility of the Australian built Kenworth
K200 is seen here as both a logger - (owner Harley
Tripae) and a livestock unit - (Stephenson
Transport) - working in Hawkes Bay.

The Wilkins Family, loyal customers of Agricentre South, operate two of the
largest New Holland combine harvesters on their farm in northern Southland.

and Subsidiary Companies






South Auckland Motors















Agricentre South specialist baler techs, Jack Pedlar (L)
and Jordan Erskine (R), with the latest New Holland
T6.180 Dynamic Command Transmission tractor and New
Holland RB125C Combi baler.

CaseIH Puma tractor with front and rear Krone mowers
making easy work of the crop in Otago. Krone is a very
popular brand and offers a full range of harvesting
equipment. Agricentre South is the agent for the full range
of Krone equipment in Otago.

A novel way to transport the latest Ford Ranger Raptors, here
being delivered to South Auckland Motors.





Clark Robertson (L) from “Banner and Signs”
(with salesman Paul Whittle) is a repeat
customer and recently purchased a new
Ranger Raptor. Clark also does most of the
signwriting work at South Auckland Motors.

and Subsidiary Companies















A lot of interest was shown in the new fully
electric Ford Mustang Mach E on display at the
“Take Charge EV Vehicle Expo” in Christchurch.
Dunedin City Ford on
Andersons Bay Road, Dunedin
has undergone extensive
renovations. The completed
site is now a modern facility
for both customers and staff
to enjoy.

and Subsidiary Companies





























(L-R) Sam Johnson - M.S. Motors, Nick Hutchinson - Team Hutchinson Ford, Jason Robb
and Andy Kimber - South Auckland Motors, achieved their New Zealand Diploma in
Business - Level 5, majoring in Leadership and Management.

Sebastian Cruzat (L) and Ryan Vezeau (R) of Southpac Trucks
passed all theory and practical training requirements of an
apprenticeship through MITO (Motor Industry Trades
Organisation) and achieved their New Zealand Certificate in
Heavy Automotive Engineering - Level 4, majoring in Road
Transport. They are now qualified Heavy Diesel Road Transport
Technicians.

Amber Kay - Capital City Motors - was
awarded MITO Scholarship Parts and
Accessories - Level 3 and First-line
Management - Level 4 Certificates.
In addition to these awards, Amber was
awarded the Parts and Accessories
Scholarship and the Sandy Fraser Memorial
Scholarship through MITO Advance. She also
holds an Automotive Engineering (Light) -
Level 4 Certificate obtained before starting
with Capital City Motors.

Congratulations

and Subsidiary Companies



























Vinnie Waiwai - Capital City Motors - Apprentice
Graduate of a New Zealand Certificate in
Automotive Engineering - Level 3 and recipient of
a Māori and Pasifika Trades Training Scholarship.

Hemant Bulsara - Capital City Motors - Ford Fleet and New Vehicle Sales
Consultant, was awarded the Ford Guild: Sales Consultant Gold Master
Award for 2022. This award recognises the top-performing salesperson
and their commitment to upholding exceptional guest experiences
across the Ford national network. This recognition is no surprise to his
customers, who often have stories of Hemant going above and beyond.
Ravendra Lal (R) - South Auckland Motors -
was awarded his Light Automotive - Level 3
and 4 National Certificate. Pictured with
Bruce Cullen (Service Manager).

and Subsidiary Companies





















































Shareholders are e-mailed the half year results in February and full-year results in August. To update your address
please e-mail cmc@colmotor.co.nz with your current email address entering “Shareholder email” in the subject
line.
South Auckland Motors held a celebratory
evening to recognise 25 years’ service by (L-R)
Simon Robinson, Greg Huckstep, Greg Lunman
and Aaron Matchett with Michael Tappenden
(Centre).
(L-R) Phil Noble, Matt Carman, Bob Natta - Capital City
Motors and Alex Gibbons - CMC.
Janaya Price and Grant Price - Agricentre South.
Forbes Gourlay (R) and John Luxton - Avon City Ford.

Nathan Davis (L) and Tim Rabbitte - Macaulay Motors.
25 Years’ Service - Gold Watch Presentations

PO Box 6159
Marion Square
Wellington 6141

Level 6
57 Courtenay Place
Wellington 6011
Telephone 04 384-9734
Email cmc@colmotor.co.nz
Website www.colmotor.co.nz

---

Results announcement


CMO

Results for announcement to the market
Name of Issuer The Colonial Motor Company Limited
Reporting Period 6 months to 31 December 2022
Previous Reporting Period 6 months to 31 December 2021
Currency NZ dollars
Amount (000s) Percentage change
Revenue from continuing operations 500,922 (6.5)%
Total Revenue 500,922 (6.5)%
Net trading profit from continuing operations 14,221 (21.0)%
Net profit from continuing operations
attributable to security holders
14,291 (21.0)%
Total net profit attributable to security
holders
14,291 (21.0)%
Interim Dividend
Amount per Quoted Equity Security NZD $0.15000000
Imputed amount per Quoted Equity Security NZD $0.05833333
Record Date 17 March 2023
Dividend Payment Date 27 March 2023

Current period Prior comparable
period
Net tangible assets per Quoted Equity
Security
$9.10 $8.13

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

22 February 2022

Unaudited financial statements accompany this announcement.

---

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: 17 March 2023
Ex-Date 16 March 2023
Payment date 27 March 2023
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 22 February 2023