Guidance update

PO Box 6159
Wellington
New Zealand 6141
DX SP21009
Level 6
57 Courtenay Place
Wellington 6011
Telephone: 04 384-9734
Email: cmc@colmotor.co.nz
Website: www.colmotor.co.nz








GUIDANCE UPDATE


At the 2024 Annual Meeting in November, the Chair advised that
trading in the six months to 31 December remained ‘tough’. This
trading environment occurred in a flat market and economy where the
new vehicle market was over-supplied, so over-competitive, which
meant some of the competition was ‘moving the metal’ just to keep
cash flowing.

These supply and competition factors were consistent over the whole
of 2024. They have had an inevitable impact on the half year result to
31 December. Ahead of finalising that result, the suggested decrease
in the trading profit before tax, against the 2023 comparative half year,
is expected to be in the vicinity of 20%.

This is not as significant a decline as was expected back in November.

While December was a strong trading month, it is too early to comment
on whether that was an aberration or a sign of some level of market
recovery. Dealerships continued their cost management focus to
embrace the ‘new normal’ in terms of market volume.



On behalf of the Board
The Colonial Motor Company Limited


A J Waugh
Chair
31 January 2025