Guidance update

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PO Box 6159 Level 6, 57 Courtenay Place Telephone: 04 384-9734
Wellington 6141 Wellington Email: cmc@colmotor.co.nz
NEW ZEALAND DX SP21009 Website: www.colmotor.co.nz




GUIDANCE UPDATE

The consistent theme of the Company’s guidance throughout the
current financial year has been the impact of uncertain market
conditions due to a weakening economy. Despite trading conditions
initially stabilising post the end of the Clean Car Discount scheme in
December, the half year report highlighted our caution for the second
half of the financial year.

Consumer confidence is anticipated to remain low over the short to
medium term and interest rates penalise holding inventory. While the
Company has strong brand partnerships, resilient operations and
well-established customer relationships, the financial impacts of the
current market conditions are unavoidable.

Ahead of the December half year result we advised the decrease in
annual net profit before tax would be in the vicinity of 30%. The
announced result proved to be 36% down for the half year. The
expected downward trend continued, such that the combined
economic and market effects on second half trading indicate the full
year result will see a year-on-year decrease of closer to 40%.

That said, the Company remains in a resilient and profitable position,
despite the economic outlook and challenging trading conditions. We
are well placed to build on our strong foundation when conditions
improve.


On behalf of the Board
The Colonial Motor Company Limited

A J Waugh
Chair


21 June 2024