Profitable result in subdued market environment
30 May 2025
Market announcement
NZX:2CC
FY25 results
Profitable result in subdued market environment
2 Cheap Cars Group Limited (NZX:2CC) has today reported a net profit after tax (NPAT) of $3.3
million for the full year to 31 March 2025 (FY25), a $2.9 million decrease from FY24.
This result is in line with previously announced guidance of FY25 NPAT to exceed NZ$3m, aided by
the impact of carbon credits carried forward from prior years.
Summary of key results
(Figures quoted are in NZ dollars. Comparisons are made against FY24.)
Revenue and income: $82.0m, down 6%
Gross margin: $17.8m, down 14%
Vehicle sales: down 6% to 7,675 units
Underlying EBITDA including finance income: $8.0m, down 32%
Net profit after tax (NPAT): $3.3m, down $2.9m
Underlying net profit after tax (NPAT): $3.3m, down 47%
Underlying earnings per share (EPS): 7 cents per share (cps), down from 14 cps
Final gross dividend: 2.97 cps
Total FY25 gross dividend: 6.03 cps vs 11.56 cps
Reflecting New Zealand’s continued economic downturn, a sharp fall in immigration and consequent
softer market demand, the company achieved revenue and income of $82.0m, a decline of 6% on
FY24.
Gross margin for FY25 decreased by 14% to $17.8m, driven by aggressive discounting across the
used car sector to meet depressed consumer sentiment. Despite this decrease, gross margin
represented a robust contribution margin of 21.7%.
The company’s strategic focus on optimised purchasing and the insourcing of key compliance and
refurbishment activities has continued to mitigate cost pressures. However, a decline in finance and
insurance penetration rates and lack of diversified revenue streams has limited the company’s ability
to fully mitigate the prolonged downturn in the used car sector.
Included in the FY25 revenue is $1.7m related to carbon credits generated and retained in prior
reporting periods, but not previously recognised due to uncertainty regarding their realisation. At the
gross margin level, this revenue is partially offset by $1.1m of carbon credit costs associated with net
credits attached to vehicles sold during FY25.
Operating expenses increased by 10% year-on-year, primarily driven by significantly rising costs of
listing fees on third-party platforms. In response, the company is accelerating investment into ‘owned’
digital channels and will explore potential new third-party platforms to reduce long-term customer
acquisition costs.
Operating expenses were also impacted by additional vehicle storage requirements due to increased
in-house activity and broader inflationary pressures on rates and utilities. However, these increased
costs were partially offset by targeted initiatives aimed at resizing the business and reducing business
costs.
Interest costs, excluding those associated with leases, were down 44% on FY24, reflecting changes in
finance facilities and prudent capital management.
A substantial part of 2 Cheap Cars' business has historically been linked to immigration. The
prolonged economic downturn and a sharp decline in net migration, particularly in key urban centres,
have contributed to reduced demand, resulting in a 47% decrease in underlying NPAT to $3.3m.
Net operating cash inflow was $6.7m, down $0.2m year-on-year. The company is well positioned with
inventory valued at $14.9m up $1.1m compared with FY24, because of additional direct purchasing
through its Japanese subsidiary, Car Plus.
As at 31 March 2025, 2 Cheap Cars is in compliance with all banking covenants and has cash of $5.3m
and total equity of $21.1m.
The company’s new banking facilities with ANZ, announced in March 2025, have further strengthened
working capital flexibility, providing $5.0m in trade finance and a $1.0m flexi facility to support
operational growth.
2 Cheap Cars Chief Executive, David Sena commented that despite the challenging market
conditions, the company’s fundamentals remain strong.
“We’ve never seen a more turbulent market than this, and there’s no question that trading is tough.
However, we are a resilient business, underpinned by maintaining prudent inventory levels, a laser
focus on cost control, and optimising our retail footprint,” he said.
Dividend
The Board has declared a final gross dividend of 2.97 cents per share (cps), bringing total FY25 gross
dividends to 6.03 cps.
This represents 60% of net profit after tax (NPAT), in line with the company’s stated dividend policy.
Based on a share price of $0.75 as at the announcement date, the total FY25 gross dividend
represents a yield of approximately 8.04%. The record date is 6 June 2025, and payment will be made
on 20 June 2025.
Outlook for FY26
The first two months of FY26 have proven challenging as economic conditions remain uncertain.
However, management expects trading conditions to improve as the cumulative impacts of declining
interest rates and greater access to consumer credit take effect.
While 2 Cheap Cars’ strategy remains focused on margin optimisation, it is also targeting increased
volume through its expanding retail footprint and enhancing the customer experience through digital
and operational improvements.
A key growth driver will be the opening of a new flagship site at Clemow Road, Sylvia Park, scheduled
for August 2025. At close to 5,000 square meters with capacity for 150 cars, this site will materially
increase retail capacity and enhance brand visibility in one of Auckland’s highest-traffic zones.
Chairman Michael Stiassny noted that while the balance sheet is strong and the company remains
well positioned to benefit from an upswing in consumer confidence, it would be reassessing its
strategy.
“As the economic environment eases and consumer confidence returns, the used car sector is one of
the immediate beneficiaries. That’s simply because affordable, reliable cars are a necessity, not a
luxury.
“However, the company is realistic about the need to continually flex to meet the market and to fine-
tune operations to improve profitability. The Board and management are focused on ensuring the
strategy remains fit for purpose and will not shy away from making changes considered necessary to
create stronger shareholder value,” he said.
Ends
This announcement has been authorised by 2CC Chair, Michael Stiassny.
For shareholder enquiries, please contact:
Angus Guerin
CFO
Mobile: +64 21 998 708
Email: angus.guerin@2ccgroup.co.nz
About 2 Cheap Cars Group
2 Cheap Cars Group is an integrated used automotive group. We are vertically integrated from procurement in Japan through
to our retail branches nationwide. Operating under the “2 Cheap Cars” brand, our Automotive Retail company is one of the
largest used vehicle sellers in New Zealand with 12 dealerships across the country. Our mission is to deliver on our promise...
2 Cheap Cars, driving better deals, every day.
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FINANCIAL
STATEMENTS
FOR THE
YEAR ENDED
31 MARCH 2025
DRIVING
BETTER
DEALS
EVERY DAY
Financial Statements For The Year Ended 31 March 2025
1
2 CHEAP CARS GROUP LIMITED
Table of Contents
SectionPage(s)
Director's Report3
Consolidated Statement of Profit or Loss and Other Comprehensive Income4
Consolidated Statement of Financial Position5
Consolidated Statement of Changes in Equity6
Consolidated Statement of Cash Flows7
Notes to the Consolidated Financial Statements8 - 30
Audit Report31 - 33
Company Directory34
1
2 CHEAP CARS GROUP LIMITED
Director's Report
For the year ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
present the consolidated financial statements of the Group
for the year ended ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on this 29th day of May 2025
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2025Date
1
2 CHEAP CARS GROUP LIMITED
Director's Report
For the year ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
present the consolidated financial statements of the Group
for the year ended ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on this 29th day of May 2025
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2025Date
3
Financial Statements For The Year Ended 31 March 2025
1
2 CHEAP CARS GROUP LIMITED
Table of Contents
SectionPage(s)
Director's Report3
Consolidated Statement of Profit or Loss and Other Comprehensive Income4
Consolidated Statement of Financial Position5
Consolidated Statement of Changes in Equity6
Consolidated Statement of Cash Flows7
Notes to the Consolidated Financial Statements8 - 30
Audit Report31 - 33
Company Directory34
1
2 CHEAP CARS GROUP LIMITED
Director's Report
For the year ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
present the consolidated financial statements of the Group
for the year ended ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on this 29th day of May 2025
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2025Date
1
2 CHEAP CARS GROUP LIMITED
Director's Report
For the year ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
present the consolidated financial statements of the Group
for the year ended ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on this 29th day of May 2025
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2025Date
4
Financial Statements For The Year Ended 31 March 2025
1
2 Cheap Cars Group Limited
Consolidated statement of profit or loss and other comprehensive income
For the 12 month period ended 31 March 2025
NoteMAR 2025MAR 2024
$'000$'000
Revenue
Revenue and income480,170 86,783
Sundry income51,795 -
Expenses
Cost of sales(64,174) (66,118)
Administration expenses5(3,155) (2,949)
Advertising expenses(2,339) (1,487)
Depreciation & amortisation expenses(2,650) (2,332)
Employee benefits5(3,390) (3,777)
Finance expenses8(739) (702)
Property expenses(930) (695)
Profit before income tax4,588 8,722
Income tax expense19(1,288) (2,481)
Profit for the period3,300 6,241
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Translation of foreign operations303 (147)
Total other comprehensive income303 (147)
Total comprehensive income for the period3,603 6,095
Earnings per share
Basic earnings per share 100.07 0.14
Diluted earnings per share 100.07 0.14
The accompanying notes form part of these consolidated financial statements
1
2 CHEAP CARS GROUP LIMITED
Director's Report
For the year ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
present the consolidated financial statements of the Group
for the year ended ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on this 29th day of May 2025
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2025Date
5
Financial Statements For The Year Ended 31 March 2025
1
2 Cheap Cars Group Limited
Consolidated statement of financial position
As at 31 March 2025
NoteMAR 2025MAR 2024
Note$'000$'000
Equity
Share capital2239,344 39,344
Amalgamation reserve(35,956) (35,956)
Foreign currency translation reserve148 (155)
Retained earnings17,525 17,141
Total equity21,061 20,373
Current liabilities
Trade and other payables163,214 2,259
Employee benefit liabilities18862 840
Borrowings21114 1,500
Income tax payable459 2,055
Derivative financial liabilities(38) (13)
Related party payable2310 10
Lease liability172,084 1,689
Other current liabilities14 36
Total current liabilities6,719 8,375
Non-current liabilities
Lease liability175,598 5,617
Borrowings21823 -
Total non-current liabilities6,421 5,617
Total equity and liabilities34,201 34,365
Current assets
Cash and cash equivalents125,344 4,673
Trade and other receivables15192 514
Other current assets15882 2,602
Loans receivable14385 990
Inventories1314,932 13,873
Total current assets21,735 22,652
Non-current assets
Other non current assets896 1,843
Plant, property and equipment252,708 1,787
Intangible assets271,589 75
Loans receivable14286 831
Deferred tax asset19133 474
Right-of-use assets176,854 6,702
Total non-current assets12,466 11,713
Total assets 34,201 34,365
Approved on behalf of the Board on 29th May 2025
DirectorDate29-May-25
DirectorDate29-May-25
The accompanying notes form part of these consolidated financial statements
1
2 CHEAP CARS GROUP LIMITED
Director's Report
For the year ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
present the consolidated financial statements of the Group
for the year ended ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on this 29th day of May 2025
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2025Date
6
Financial Statements For The Year Ended 31 March 2025
1
2 Cheap Cars Group Limited
Consolidated statement of changes in equity
For the 12 month period ended 31 March 2025
Share
Capital
Retained
Earnings
Foreign
Currency
Translation
Reserve
Amalgamation
Reserve
Total Equity/
(Accumulated
Losses)
$'000$'000$'000$'000$'000
Balance as at 01 April 202339,344 12,794 (8) (35,956) 16,174
Profit for the period- 6,241 - - 6,241
Translation of foreign operations- - (147) - (147)
Total comprehensive income for the period- 6,241 (147) - 6,095
Dividend paid- (1,895) - - (1,895)
Total transactions with owners of the group- (1,895) - - (1,895)
Balance as at 31 March 202439,344 17,140 (155) (35,956) 20,373
Balance as at 01 April 202439,344 17,140 (155) (35,956) 20,373
Profit for the period- 3,300 - - 3,300
Translation of foreign operations- - 303 - 303
Total comprehensive income for the period- 3,300 303 - 3,603
Dividend paid- (2,915) - - (2,915)
Total transactions with owners of the group- (2,915) - - (2,915)
Balance as at 31 March 202539,344 17,525 148 (35,956) 21,061
The accompanying notes form part of these consolidated financial statements
1
2 Cheap Cars Group Limited
Consolidated Statement of Cash Flows
For the year ended 31 March 2025
MAR 2025MAR 2024
$'000$'000
Cash flows from operating activities
Cash receipts from customers80,464 86,779
Cash paid to suppliers and employees(72,390) (80,947)
Interest received133 3
Interest paid - retail operations(80) (362)
Tax paid / received(2,395) (548)
Net cash inflow from operating activities before Changes in Operating
Assets and Liabilities
5,732 4,926
Proceeds from loan receivables995 1,995
Net cash inflow from operating activities6,727 6,921
Cash flows from investing activities
Proceeds from sale of property, plant and equipment36 7
Purchase of property, plant and equipment(1,312) (812)
Purchase of Intangible Assets(3) -
Decrease / (increase) in lease guarantee deposits947 (1,544)
Net cash outflow from investing activities(332) (2,349)
Cash flows from financing activities
Dividend paid(2,915) (1,896)
Interest paid - finance operations(550) (214)
Net (repayment) /proceeds of borrowings(563) 600
Principal elements of lease payments(1,999) (1,935)
Net cash outflow from financing activities(6,027) (3,445)
Net increase/(decrease) in cash and cash equivalents368 1,126
Cash and cash equivalents at beginning of period4,673 3,767
Effect of exchange rate303 (220)
Cash and cash equivalents at end of period5,344 4,673
The accompanying notes form part of these consolidated financial statements
1
2 CHEAP CARS GROUP LIMITED
Director's Report
For the year ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
present the consolidated financial statements of the Group
for the year ended ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on this 29th day of May 2025
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2025Date
1
2 Cheap Cars Group Limited
Consolidated statement of changes in equity
For the 12 month period ended 31 March 2025
Share
Capital
Retained
Earnings
Foreign
Currency
Translation
Reserve
Amalgamation
Reserve
Total Equity/
(Accumulated
Losses)
$'000$'000$'000$'000$'000
Balance as at 01 April 202339,344 12,794 (8) (35,956) 16,174
Profit for the period- 6,241 - - 6,241
Translation of foreign operations- - (147) - (147)
Total comprehensive income for the period- 6,241 (147) - 6,095
Dividend paid- (1,895) - - (1,895)
Total transactions with owners of the group- (1,895) - - (1,895)
Balance as at 31 March 202439,344 17,140 (155) (35,956) 20,373
Balance as at 01 April 202439,344 17,140 (155) (35,956) 20,373
Profit for the period- 3,300 - - 3,300
Translation of foreign operations- - 303 - 303
Total comprehensive income for the period- 3,300 303 - 3,603
Dividend paid- (2,915) - - (2,915)
Total transactions with owners of the group- (2,915) - - (2,915)
Balance as at 31 March 202539,344 17,525 148 (35,956) 21,061
The accompanying notes form part of these consolidated financial statements
1
2 Cheap Cars Group Limited
Consolidated statement of changes in equity
For the 12 month period ended 31 March 2025
Share
Capital
Retained
Earnings
Foreign
Currency
Translation
Reserve
Amalgamation
Reserve
Total Equity/
(Accumulated
Losses)
$'000$'000$'000$'000$'000
Balance as at 01 April 202339,344 12,794 (8) (35,956) 16,174
Profit for the period- 6,241 - - 6,241
Translation of foreign operations- - (147) - (147)
Total comprehensive income for the period- 6,241 (147) - 6,095
Dividend paid- (1,895) - - (1,895)
Total transactions with owners of the group- (1,895) - - (1,895)
Balance as at 31 March 202439,344 17,140 (155) (35,956) 20,373
Balance as at 01 April 202439,344 17,140 (155) (35,956) 20,373
Profit for the period- 3,300 - - 3,300
Translation of foreign operations- - 303 - 303
Total comprehensive income for the period- 3,300 303 - 3,603
Dividend paid- (2,915) - - (2,915)
Total transactions with owners of the group- (2,915) - - (2,915)
Balance as at 31 March 202539,344 17,525 148 (35,956) 21,061
The accompanying notes form part of these consolidated financial statements
7
Financial Statements For The Year Ended 31 March 2025
1
2 Cheap Cars Group Limited
Consolidated Statement of Cash Flows
For the year ended 31 March 2025
MAR 2025MAR 2024
$'000$'000
Cash flows from operating activities
Cash receipts from customers80,464 86,779
Cash paid to suppliers and employees(72,390) (80,947)
Interest received133 3
Interest paid - retail operations(80) (362)
Tax paid / received(2,395) (548)
Net cash inflow from operating activities before Changes in Operating
Assets and Liabilities
5,732 4,926
Proceeds from loan receivables995 1,995
Net cash inflow from operating activities6,727 6,921
Cash flows from investing activities
Proceeds from sale of property, plant and equipment36 7
Purchase of property, plant and equipment(1,312) (812)
Purchase of Intangible Assets(3) -
Decrease / (increase) in lease guarantee deposits947 (1,544)
Net cash outflow from investing activities(332) (2,349)
Cash flows from financing activities
Dividend paid(2,915) (1,896)
Interest paid - finance operations(550) (214)
Net (repayment) /proceeds of borrowings(563) 600
Principal elements of lease payments(1,999) (1,935)
Net cash outflow from financing activities(6,027) (3,445)
Net increase/(decrease) in cash and cash equivalents368 1,126
Cash and cash equivalents at beginning of period4,673 3,767
Effect of exchange rate303 (220)
Cash and cash equivalents at end of period5,344 4,673
The accompanying notes form part of these consolidated financial statements
1
2 CHEAP CARS GROUP LIMITED
Director's Report
For the year ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
present the consolidated financial statements of the Group
for the year ended ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on this 29th day of May 2025
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2025Date
1
2 Cheap Cars Group Limited
Consolidated statement of changes in equity
For the 12 month period ended 31 March 2025
Share
Capital
Retained
Earnings
Foreign
Currency
Translation
Reserve
Amalgamation
Reserve
Total Equity/
(Accumulated
Losses)
$'000$'000$'000$'000$'000
Balance as at 01 April 202339,344 12,794 (8) (35,956) 16,174
Profit for the period- 6,241 - - 6,241
Translation of foreign operations- - (147) - (147)
Total comprehensive income for the period- 6,241 (147) - 6,095
Dividend paid- (1,895) - - (1,895)
Total transactions with owners of the group- (1,895) - - (1,895)
Balance as at 31 March 202439,344 17,140 (155) (35,956) 20,373
Balance as at 01 April 202439,344 17,140 (155) (35,956) 20,373
Profit for the period- 3,300 - - 3,300
Translation of foreign operations- - 303 - 303
Total comprehensive income for the period- 3,300 303 - 3,603
Dividend paid- (2,915) - - (2,915)
Total transactions with owners of the group- (2,915) - - (2,915)
Balance as at 31 March 202539,344 17,525 148 (35,956) 21,061
The accompanying notes form part of these consolidated financial statements
8
Financial Statements For The Year Ended 31 March 2025
1
Notes to the Financial Statements
1. Reporting entity
2. Basis of preparation
(a) Statement of compliance
(b) Basis of measurement
• Derivative financial instruments (Note 18)
• Loans receivable (Note 14)
(c) Functional and presentation currency
(d) Going Concern
(e) Critical accounting estimates and judgements
(f) Changes in accounting policies
(g) Changes in accounting estimates
These consolidated financial statements for the Group are presented in New Zealand dollars ($), which is the Group's functional and the Group's
presentation currency. All financial information presented has been rounded to the nearest thousand dollars.
The Directors consider that the Group is a going concern and the consolidated financial statements have been prepared on that basis.
During the year management updated its estimates of expected loss provisions, the discount rate applied to loans and amended the estimated value
of carbon credits, refer to Note 14 for further information.
The preparation of the consolidated financial statements, requires management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which
the estimates are revised and in any future periods affected.
During the current reporting period, the Group adopted a new accounting policy for the treatment of carbon credits. Refer to Note (p) for further
details on the recognition, measurement, and disclosure of carbon credits.
These consolidated financial statements comply with the requirements of the Companies Act 1993 and the Financial Markets Conduct Act 2013.
These consolidated financial statements as at 31 March 2025 comprise the Company and its subsidiaries: 2 Cheap Cars Limited, NZ Motor Finance
Limited, 2CC International Limited, 2 Cheap Rental Cars Limited, Car Safety NZ Limited and Car Plus K.K. (collectively, the Group).
These financial statements comply with New Zealand equivalents of International Financial Reporting Standards (NZ IFRS). As such, they also
comply with International Financial Reporting Standards (IFRS).
The consolidated financial statements have been prepared on the historical cost basis except that certain assets and liabilities are measured at fair
value where stated under their specific accounting policies.
2 Cheap Cars Group Ltd (the Company) is a company domiciled in New Zealand.
The Company is incorporated in New Zealand, registered under the Companies Act 1993 and is publicly traded on the New Zealand Stock Exchange.
These consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (GAAP)
and the requirements of the Financial Markets Conduct Act 2013.
9
Financial Statements For The Year Ended 31 March 2025
2
(h) New / amended acct standards
3. Material Accounting Policies
Details of the Group’s material accounting policies are provided below.
a) Basis of consolidation
Subsidiaries
Name
MAR 2025MAR 2024
2 Cheap Cars LimitedNew Zealand
100%100%
NZ Motor Finance LimitedNew Zealand
100%100%
2CC International LimitedNew Zealand
100%100%
2 Cheap Rental Cars LimitedNew Zealand
100%100%
Car Safety NZ LimitedNew Zealand
100%100%
Car Plus K.KJapan100%100%
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control
ceases.
The subsidiaries of 2 Cheap Cars Group Ltd, all of which have been included in these consolidated financial statements, are as follows:
Country of incorporation and principal place
of business
Proportion of ownership
interest
In preparing the consolidated financial statements, all intercompany balances, transactions, unrealised gains and losses resulting from intra-group
transactions and dividends have been eliminated in full.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are
included in the consolidated financial statements from the date that control commences.
The consolidated financial statements present the results of the Company and its subsidiaries (“the Group”) as if they formed a single entity. Intra-
group transactions and balances are therefore eliminated in full.
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the External Reporting Board
('XRB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. New Zealand equivalents to
International Financial Reporting Standards ('NZ IFRS') that have recently been issued or amended but are not yet mandatory, have not been early
adopted by the consolidated entity for the annual reporting period ended 31 Mar 2025. The consolidated entity has not yet assessed the impact of
these new or amended Accounting Standards and Interpretations.
The Group has applied the same accounting policies and methods of computation in these financial statements as its previous annual financial
statements, except for those detailed in note 2(f) and (g) above.
10
Financial Statements For The Year Ended 31 March 2025
3
(b) Foreign currency
(i) Foreign currency transactions
(c) Revenue
(i) Vehicles sold
(ii) Insurance policies
(iii) Sale of scrap parts
(iv) Commissions received (booking fee, sales, finance)
(v) Interest revenue calculated using the effective interest method
Performance obligations and timing of revenue recognition
Revenue is recognised at a point-in-time, with the transfer of control determined as the point that the purchaser takes final physical possession of
the scrap parts.
Revenue is recognised on an agent basis at a point-in-time , with the transfer of control determined as the point the end customer enters into a
signed finance agreement with the finance provider (principal). As the uncertainty associated with any commission clawbacks is resolved, previously
deferred revenue recognised as contract liabilities is released and recognised as revenue.
Interest revenue comprises interest on loans receivable and cash and cash equivalents. Interest revenue is recognised based on the effective
interest method.
Revenue is measured based on the consideration to which the Group expects to be entitled to, excluding amounts collected on behalf of third
parties and net of rebates, discounts and payments to customers that are not in consideration for separate goods or services provided. This
represents the fair value of total consideration payable, including both cash and in the case of vehicles sold, any vehicle trade-ins.
Where the ultimate transaction price receivable is subject to variability (such as in the case of vehicle returns or clawbacks on commissions)
revenue is recognised only to the extent that it is highly probable that the revenue recognised would not be subsequently reversed.
(iii) Foreign currency non-monetary assets and liabilities
Foreign non-monetary assets and liabilities that are measured based on historical costs are translated using the exchange rate at the date of the
transactions. Any foreign currency difference arising due to translating to functional currency are recognised in profit or loss.
The specific revenue recognition policies associated with the Group’s distinct performance obligations (as presented in Note 4) are detailed below:
Revenue is recognised at a point-in-time, with the transfer of control determined as the point purchaser takes final physical possession of the
vehicle.
Commission revenue is recognised on an agent basis at a point-in-time , with the transfer of control determined at the point the end customer enters
into a signed insurance policy with the insurance provider (principal). As the uncertainty associated with any commission clawbacks is resolved,
previously deferred revenue recognised as contract liabilities is released and recognised as revenue.
Transactions in foreign currencies are translated to the functional currency at exchange rates at the dates of the transactions. Foreign currency
differences arising from settlement at a different exchange rate are recognised in profit or loss.
(ii) Foreign currency monetary assets and liabilities
At balance date, foreign monetary assets and liabilities are translated to the functional currency at the closing rate and exchange variations are
recognised in profit or loss.
11
Financial Statements For The Year Ended 31 March 2025
4
(d) Insurance contracts
- Use of interest-bearing borrowings (interest rate risk); and:
- Purchases in foreign currencies (foreign currency risk).
(e) Tax
(i)
(ii) temporary differences arising on the initial recognition of goodwill; and
(iii)
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes. Deferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects
neither accounting nor taxable profit or loss,
temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that the timing of the reversal of
the temporary differences is controlled by the Group and it is probable that they will not reverse in the foreseeable future.
Revenue is recognised on an over-time basis subject to meeting specific criteria, otherwise, revenue is recognised at a point-in-time , being the point
that the customer obtains control of the good or service subject to various indicators.
Payment received from customers before revenue is recognised and presented as a “Contract liability” in the consolidated statement of financial
position.
Receivables resulting from revenue being recognised before the Company is able to contractually invoice for the goods or services provided is
The Group recognises revenue on a net basis as an “Agent” (rather than on a gross basis as “Principal”) when
(i) it is not the party primarily responsible for fulfilling to provide goods or services to the end customer,
(ii) when it does not assume the (inventory) risk of the goods or services, and/or
(iii) it does not have discretion in setting the price payable by the end customer.
NZ IFRS 17 Insurance contracts provides a scope exception for certain contracts that provide waivers (forgiveness) of loan balances upon the
occurrence of specified events. Rather than accounting for these waivers as insurance contracts, the scope exemptions permits the Group to elect
to account for such loans entirely as financial instruments.
The Group has elected to apply this scope exemption. Further details of the accounting policy relating to Loans receivable to which the scope
exemption directly effects can be found in Note 7.
Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss, except to the extent that they relate
to items recognised directly in equity or in other comprehensive income. In such cases, the tax is also recognised directly in equity or in other
comprehensive income, respectively.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted
at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax also includes any tax liability arising from the
declaration of dividends.
Revenue is recognised when the control associated with a good or service (or in aggregate thereof) representing a distinct performance obligation is
transferred from the Group to the customer.
Where a single contract contains two or more distinct performance obligations, the total transaction price of the contract is allocated between the
separate performance obligations based on their stand-alone-sales-prices, and represents the revenue to be recognised with respect to that
separate performance obligation.
12
Financial Statements For The Year Ended 31 March 2025
5
(f) Employee benefits
(i) Short-term employee benefits
(ii) Defined contribution plans (Kiwisaver etc.)
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to
income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities
and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that
future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to
the extent that it is no longer probable that the related tax benefit will be realised.
Liabilities for wages and salaries, including non-monetary benefits and accumulating annual leave that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end
of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
These include salaries and wages accrued up to the reporting date and annual leave earned, but not yet taken at the reporting date. The Group
recognises a liability and an expense for bonuses where they are contractually obliged or where there is a past practice that has created a
constructive obligation.
Contributions to defined contribution plans are recognised in the consolidated statement of profit or loss and other comprehensive income in the year
to which they relate.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or
substantively enacted at the reporting date.
In determining the amount of current and deferred tax the Group takes into account the impact of uncertain tax positions and whether additional
taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment
of many factors, including interpretations of tax law and prior experience.
This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become
available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact
tax expense in the period that such a determination is made.
13
Financial Statements For The Year Ended 31 March 2025
6
(g) Property, plant and equipment
(i) Recognition and measurement
Cost includes expenditure that is directly attributable to the acquisition of the asset.
(ii) Subsequent expenditure
(iii) Depreciation
The useful lives and depreciation method used for significant items of property, plant and equipment are as follows:
Leasehold improvements 6.0% - 30.0% SL
Furniture and fittings 6.0% - 30.0% SL
Motor vehicles 7.0% - 40.0% SL
Computer equipment 7.0% - 67.0% SL
Workshop equipment 7.0% - 67.0% SL
Depreciation methods, useful lives and residual values are reviewed at reporting date and adjusted if appropriate.
(h) Inventories
Vehicles acquired via trade-in from car sales with customers are initially measured at their trade-in date fair value.
Inventories are measured at the lower of cost and net realisable value with due allowance for any damaged and obsolete stock items. The cost of
inventories is based on the first-in first-out principle and includes expenditure incurred in acquiring the inventories and other costs incurred in
bringing them to their existing location and condition.
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of
property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and
the carrying amount of the item) is recognised in profit or loss.
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the
Group. Ongoing repairs and maintenance is expensed as incurred.
For plant and equipment, depreciation is based on the cost of an asset less its residual value. Significant components of individual assets that have
a useful life that is different from the remainder of those assets are depreciated separately.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant
and equipment.
14
Financial Statements For The Year Ended 31 March 2025
7
(i) Financial instruments
The Group recognises financial instruments when it becomes a party to the contractual provisions of the instrument.
(i) Financial assets – classification and subsequent measurement
At Amortised cost
Impairment allowances for Trade receivables
Impairment allowances for Loans receivable
- significant financial difficulty of the borrower;
- a breach of contract, such as a default or being more than 90 days past due;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation.
This includes both qualitative and quantitative information and analysis, based on the Group’s historical experience and informed credit assessment
and includes forward looking information.
The gross carrying amount of Loans receivable is written off when the Group has no reasonable expectation of recovering the balance in its entirety
or a portion thereof.
Are recognised based on a forward-looking expected credit loss (“ECL”) model. The methodology used to determine the amount of the allowance is
based on whether there has been a significant increase in credit risk since initial recognition of the financial asset.
For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses
along with gross interest income are recognised (“Stage 1”).
For those for which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised
(“Stage 2”). The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
For those that are determined to be credit impaired (in default), lifetime expected credit losses along with interest income on a net basis are
recognised (“Stage 3”). The Group considers a financial asset to be in default when the financial asset is more than 90 days past due, as well as
observable evidence with respect to:
- granting to the borrower a concession for economic or contractual reasons relating to the borrower’s financial difficulty; that the Group would not
consider otherwise; or
When determining whether there has been a significant increase in credit risk since initial recognition of the financial asset, and when estimating
ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort.
Financial instruments are initially measured at fair value. For those financial instruments that are classified as amortised cost this includes directly
attributable transaction costs. For those financial instruments classified as at fair value through profit or loss, any directly attributable transaction
costs are expensed in profit or loss as incurred. Financial liabilities are measured net of transaction costs.
Financial assets are classified based on whether their repayments represent solely payments of principal and interest (SPPI), and whether the
instrument is held to collect those repayments, and/ or to be sold.
These financial assets represent those held to collect SPPI, and include: Trade and other receivables; Loans receivable (those that do not include
waiver clauses); Cash and cash equivalents (including cash in hand, deposits held at call with banks).
These financial assets are subsequently measured at amortised cost using the effective interest rate method, less impairment.
Are recognised based on the simplified approach within NZ IFRS 9 using a provision matrix in the determination of the lifetime expected credit
losses. On confirmation that the trade receivable will not be collectible, the gross carrying value of the asset is written off against the associated
impairment allowance.
15
Financial Statements For The Year Ended 31 March 2025
8
At Fair value through profit or loss (non-derivatives)
Accordingly, these balances are classified and measured subsequently as at fair value through profit or loss.
At Fair value through profit or loss (derivatives)
(ii) Financial liabilities - classification and subsequent measurement
At Amortised cost
Includes; Trade and other payables; Borrowings; Lease liabilities.
These financial liabilities are subsequently measured at amortised cost using the effective interest rate method.
At Fair value through profit or loss (derivatives)
(iii) Derecognition of financial assets and financial liabilities
Financial assets
Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
(iv) Impairment of non-financial assets
Derivatives financial liabilities represent “out of the money” derivative contracts that are classified and measured subsequently as At Fair value
through profit or loss, with fair value gains or losses at each reporting date recognised in profit or loss.
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to
receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are
transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of
the financial asset.
The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in
which case a new financial liability based on the modified terms is recognised at fair value.
The carrying amounts of the Group’s non-financial assets, other than deferred tax assets and inventories, are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses directly reduce the
carrying amount of assets and are recognised in profit or loss.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash
assets transferred or liabilities assumed) is recognised in profit or loss.
These financial assets represent Loans receivable (that include waiver clauses). In applying the scope exemption in NZ IFRS 17 Insurance
Contracts to these contracts, such that they are accounted for as financial assets in their entirety, the presence of the waiver clauses results in
repayments not representing SPPI. Loans receivable includes loans on which customers voluntarily elect to opt for additional Asset Waiver and/or
Income Waiver products which are offered by the Group.
Repayments of these loans are recognised as reductions in the carrying amount, with fair value gains or losses at each reporting date recognised in
profit or loss.
Derivatives financial assets represent “in the money” derivative contracts that are classified and measured subsequently as at fair value through
profit or loss, with fair value gains or losses at each reporting date recognised in profit or loss.
Financial liabilities are classified as at fair value through profit or loss if it is held-for-trading, it is a derivative or it is designated as such on initial
recognition, otherwise the it is classified as At Amortised cost.
16
Financial Statements For The Year Ended 31 March 2025
9
(j) Share capital
Ordinary shares
(k) Goods and services tax
With the exception of trade payables and receivables, all items are stated exclusive of Goods and Services Tax.
(l) Reserves
Amalgamation reserve
(m) Leases
• Leases of low value assets; and
• Leases with a duration of 12 months or less.
(i) Initial measurement
Other variable lease payments are expensed in the period to which they relate.
On initial recognition, the carrying value of the Lease liability also includes:
• amounts expected to be payable under any residual value guarantee;
Payments associated with all leases of low-value assets and short-term leases of equipment and vehicles are recognised on a straight-line basis as
an expense in profit or loss.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate
determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Group’s
incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease
liability if they depend on an index or rate, however in such cases the initial present value determination assumes that the variable element will
remain unchanged throughout the lease term
• the exercise price of any purchase option granted in favour of the Group if it is reasonable certain to assess that option;
• any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised.
Right-of-use assets are initially measured at the amount of the Lease liability, reduced for any lease incentives received, and increased for:
The estimated recoverable amount of non-financial assets is the greater of their fair value less costs to sell and value in use. Value in use is
determined by estimating future cash flows from the use and ultimate disposal of the asset and discounting these to their present value using a pre-
tax discount rate that reflects current market rates and the risks specific to the asset. For an asset that does not generate largely independent
cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
A cash-generating unit is the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash
inflows of the other assets or groups of assets.
Impairment losses are reversed when there is a change in the estimate used to determine the recoverable amount and there is an indication that the
impairment loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not
exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. All
impairment losses are reversed through profit or loss.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from
equity, net of any tax effects.
The amalgamation reserve represents the difference between the fair value of consideration paid and the carrying amount of net assets in a
business combination where the acquirer and acquiree are controlled by the same (ultimate) party (business combination under common control).
All leases in which the Group is a lessee are accounted for by recognising a Right-of-use asset and a Lease liability except for:
10
• Lease payments made at or before commencement of the lease;
• Initial direct costs incurred; and
(ii) Subsequent measurement
(iii) Remeasurement
(iv) Modifications to lease agreements
Increases in scope:
Decreases in scope:
The right-of-use asset is adjusted by the same amount.
When the Group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification:
• If the renegotiation results in one or more additional assets being leased for an amount commensurate with the stand-alone price (i.e. market rate)
for the additional rights-of-use obtained, the modification is accounted for as a separate lease in accordance with the above policy.
• In all other cases (whether that is an extension to the lease term, or one or more additional assets being leased), the lease liability is remeasured
using the revised discount rate applicable on the modification date, with the right-of-use asset being adjusted by the same amount.
• Both the carrying amount of the lease liability and right-of-use asset are reduced by the same proportion to reflect the partial of full termination of
the lease with any difference recognised in profit or loss.
The lease liability is then further adjusted to ensure its carrying amount reflects the amount of the renegotiated payments over the renegotiated
term, with the modified lease payments discounted at the rate applicable on the modification date.
Subsequent to initial measurement Lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are
reduced for lease payments made.
Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if,
rarely, this is judged to be shorter than the lease term. Right-of-use assets are also subject to impairment assessment at reporting date.
When the Group revises its determination of the use (or non-use) of renewal and/or termination options, the carrying amount of the lease liability is
adjusted to reflect the payments to make over the revised term, which are discounted at the revised discount rate.
The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent on a rate or index is revised,
however this is discounted at the original discount rate.
In both cases an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised
over the remaining (revised) lease term.
• The amount of any provision recognised where the Group is contractually required to dismantle, remove or restore the leased asset (typically make-
good provisions on buildings).
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate
determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Group’s
incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease
liability if they depend on an index or rate, however in such cases the initial present value determination assumes that the variable element will
remain unchanged throughout the lease term.
9
(j) Share capital
Ordinary shares
(k) Goods and services tax
With the exception of trade payables and receivables, all items are stated exclusive of Goods and Services Tax.
(l) Reserves
Amalgamation reserve
(m) Leases
• Leases of low value assets; and
• Leases with a duration of 12 months or less.
(i) Initial measurement
Other variable lease payments are expensed in the period to which they relate.
On initial recognition, the carrying value of the Lease liability also includes:
• amounts expected to be payable under any residual value guarantee;
Payments associated with all leases of low-value assets and short-term leases of equipment and vehicles are recognised on a straight-line basis as
an expense in profit or loss.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate
determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Group’s
incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease
liability if they depend on an index or rate, however in such cases the initial present value determination assumes that the variable element will
remain unchanged throughout the lease term
• the exercise price of any purchase option granted in favour of the Group if it is reasonable certain to assess that option;
• any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised.
Right-of-use assets are initially measured at the amount of the Lease liability, reduced for any lease incentives received, and increased for:
The estimated recoverable amount of non-financial assets is the greater of their fair value less costs to sell and value in use. Value in use is
determined by estimating future cash flows from the use and ultimate disposal of the asset and discounting these to their present value using a pre-
tax discount rate that reflects current market rates and the risks specific to the asset. For an asset that does not generate largely independent
cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
A cash-generating unit is the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash
inflows of the other assets or groups of assets.
Impairment losses are reversed when there is a change in the estimate used to determine the recoverable amount and there is an indication that the
impairment loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not
exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. All
impairment losses are reversed through profit or loss.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from
equity, net of any tax effects.
The amalgamation reserve represents the difference between the fair value of consideration paid and the carrying amount of net assets in a
business combination where the acquirer and acquiree are controlled by the same (ultimate) party (business combination under common control).
All leases in which the Group is a lessee are accounted for by recognising a Right-of-use asset and a Lease liability except for:
17
Financial Statements For The Year Ended 31 March 2025
10
• Lease payments made at or before commencement of the lease;
• Initial direct costs incurred; and
(ii) Subsequent measurement
(iii) Remeasurement
(iv) Modifications to lease agreements
Increases in scope:
Decreases in scope:
The right-of-use asset is adjusted by the same amount.
When the Group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification:
• If the renegotiation results in one or more additional assets being leased for an amount commensurate with the stand-alone price (i.e. market rate)
for the additional rights-of-use obtained, the modification is accounted for as a separate lease in accordance with the above policy.
• In all other cases (whether that is an extension to the lease term, or one or more additional assets being leased), the lease liability is remeasured
using the revised discount rate applicable on the modification date, with the right-of-use asset being adjusted by the same amount.
• Both the carrying amount of the lease liability and right-of-use asset are reduced by the same proportion to reflect the partial of full termination of
the lease with any difference recognised in profit or loss.
The lease liability is then further adjusted to ensure its carrying amount reflects the amount of the renegotiated payments over the renegotiated
term, with the modified lease payments discounted at the rate applicable on the modification date.
Subsequent to initial measurement Lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are
reduced for lease payments made.
Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if,
rarely, this is judged to be shorter than the lease term. Right-of-use assets are also subject to impairment assessment at reporting date.
When the Group revises its determination of the use (or non-use) of renewal and/or termination options, the carrying amount of the lease liability is
adjusted to reflect the payments to make over the revised term, which are discounted at the revised discount rate.
The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent on a rate or index is revised,
however this is discounted at the original discount rate.
In both cases an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised
over the remaining (revised) lease term.
• The amount of any provision recognised where the Group is contractually required to dismantle, remove or restore the leased asset (typically make-
good provisions on buildings).
18
Financial Statements For The Year Ended 31 March 2025
11
(n) Government grants
(o) Finance income and finance expenses
Interest income is recognised as it accrues in profit or loss, using the effective interest method.
Finance expenses comprise interest expense on borrowings.
(p) Intangible assets
The estimated useful lives for the current and comparative periods are as follows:
- Trademarks 10 years
- Software 5 years
Amortisation methods and useful lives are reviewed at each reporting date and adjusted if appropriate.
(q) Cash and cash equivalents
Grants that compensate the Group for expenses incurred are recognised as income in profit or loss on a systematic basis in the periods in which
the associated expenses are recognised.
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss
using the effective interest method.
Finite Intangible assets are amortised on a straight-line basis in profit or loss over their estimated useful lives, from the date that they are available
for use.
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the consolidated statement of financial position.
- Carbon credits have been recognised at cost, which represents the value attributed to the credits at the time they were earned or incurred. At the
time the credits were originally earned, the business was participating in the Fleet Average Scheme. Under this scheme, credits were generated
based on fleet-wide emissions performance relative to regulatory thresholds. These credits are not revalued subsequently and are carried at cost
unless impaired.
19
Financial Statements For The Year Ended 31 March 2025
1
Notes to and Forming part of the Consolidated the Financial StatementsMar 25Mar 24
4. Revenue from Contracts with CustomersMAR 2025MAR 2024
$'000$'000
Sale of cars73,065 78,764
Fair value gain/(loss) on revaluation(105)(86)
Interest on bank accounts, short term deposits and investments202 85
Loan fees and interest273 503
Agent commissions received
- Interest agent commissions4,379 4,899
- Insurance agent commissions2,356 2,619
Total revenue from contracts with customers80,170 86,783
Timing of transfer of goods and services
Point of sale income79,735 86,068
Over time income435 715
Total Revenue80,170 86,783
5. Sundry Income
MAR 2025MAR 2024
$'000$'000
Carbon Credit Income
1
1,713 -
Other82 -
Total sundry income1,795 -
6. Segment reporting
Description of segments
Reportable segments have been identified as follows:
Operating Segments
AutomotiveOther
As at 31 March 2025retailFinanceentitiesTotal
$'000$'000$'000$'000$'000
Revenue including interest79,928 170 10,897 (10,825) 80,170
Sundry Income1,795 - 30 (30) 1,795
Cost of sale(66,801) - (8,243) 10,870 (64,174)
Interest expense - finance- - - - -
Operating expense(9,437) (141) (2,886) - (12,464)
Operating profit5,485 29 (202) 15 5,327
Dividend received- - 4,792 (4,792) -
Interest expense - trading(623) (135) (6) 25 (739)
Net profit before tax4,862 (106) 4,584 (4,752) 4,588
AutomotiveOther
As at 31 March 2024retailFinanceentitiesTotal
$'000$'000$'000$'000$'000
Revenue including interest86,306 423 11,005 (10,950) 86,784
Sundry Income(5) - 25 (20) -
Cost of sale(68,773) 1 (8,296) 10,950 (66,118)
Interest expense - finance- - - - -
Operating expense(7,621) (203) (3,418) - (11,242)
Operating profit9,907 222 (685) (20) 9,424
Inter-entity
transactions
Inter-entity
transactions
1
During the financial year, the Group recognised a gain relating to carbon credits generated and retained in prior reporting periods but not previously
recognised as assets due to uncertainty regarding the measurement of their future economic benefits at the time.
In the 2024 calendar year, the Group became a net purchaser of carbon credits. This change has provided sufficient certainty that the retained credits from
prior years will be utilised to offset future fixed price obligations, thereby meeting the recognition and measurement criteria under NZ IAS 38 Intangible Assets.
Consequently, an intangible asset has now been recognised in respect of these credits.
The carbon credits were initially measured at their redemption value, being the fixed charge avoided for used vehicles under the Fleet Average scheme (NZ
ETS), reflecting the value attributable to the economic benefits expected to flow to the Group.
Management has determined the operating segments based on the components of the Group that engage in business activities, which have discrete financial
information available and whose operating results are regularly reviewed by the Group's chief operating decision maker. The chief operating decision maker
has been identified as the Board of Directors. The Board of Directors makes decisions about how resources are allocated to the segments and assesses
their performance. Geographically the Group's business activities are located in New Zealand.
2
Dividend received- - - - -
Interest expense - trading(570) (169) (6) 43 (702)
Net profit before tax9,337 53 (691) 23 8,722
20
Financial Statements For The Year Ended 31 March 2025
3
7. Determination of fair values
8. Finance Expenses
NoteMAR 2025MAR 2024
$'000$'000
Interest expense on financial liabilities measured at amortised cost(79)(214)
Interest expense on lease liabilities17(550)(362)
Other(110)(126)
Finance Expenses(739) (702)
9. Key operating expenses
Key operating expenses includes the followingNoteMAR 2025MAR 2024
$'000$'000
Audit fees(139)(103)
Amortisation(14) -
Depreciation - property, plant and equipment25(356)(261)
Depreciation - right-of-use assets17(2,280)(2,065)
Wages and salaries(3,092)(3,497)
Kiwisaver contributions(158)(172)
10. Earnings Per Share
MAR 2025MAR 2024
$'000$'000
Numerator
Profit for the period3,300 6,241
Denominator
Weighted average number of shares45,554,500 45,554,500
EPS basic0.070.14
EPS Diluted0.070.14
11. Dividends
MAR 2025MAR 2024
$'000$'000
Final Dividend1,907 -
Interim Dividend1,008 1,895
Total2,915 1,895
12. Cash and Cash Equivalents
Held withCredit RatingInterestInterestMAR 2025MAR 2024
Credit Rating31 March 202531 March 2024$'000$'000
31 March 2025
Cash at BankANZ BankAA-1.75% - 4,123 120
ASB BankAA-3.61%5.36%67 3,422
Mizuho BankA0.02%0.02%1,116 871
Xe - - 38 260
13. Inventories
MAR 2025MAR 2024
$'000$'000
As cash and cash balances are held with counterparties with “investment grade” credit ratings, there is not deemed to be a significant increase in credit risk
associated with the Group’s Cash and cash equivalents balance. Credit rating is as per Standard & Poor.
Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition and are repayable with 24 hours’
notice with no loss of interest. See note 3(q) for the group’s other accounting policies on cash and cash equivalents.
Diluted earnings per share assumes conversion of all dilutive potential ordinary shares in determining the denominator.
Cash and cash equivalents in the Consolidated Statement of Financial Position comprise cash at bank and short term deposits with an original maturity of
three months or less which are subject to an insignificant risk of changes in value.
The carrying amount of financial assets and liabilities has been determined to be a reasonable approximation of their fair value.
Refer to Note 14 for fair value measurement information regarding Loans receivable.
Basic earnings per share (EPS) is calculated by dividing the profit attributable to shareholders of the Group by the weighted average number of ordinary
shares on issue during the year, excluding shares held as treasury stock.
4
Gross stock on hand15,138 14,094
Inventory provision(206)(221)
Total inventories14,932 13,873
The cost of inventory recognised in the period 31 March 2025 is $58,241,068.
The carrying value of inventory pledged as security as the groups borrowings as at 31 March 2025 is $12,911,444.
21
Financial Statements For The Year Ended 31 March 2025
5
14. Loans Receivable
Determination of fair values
Loans and receivables – At amortised cost book valueBook value
Loans and receivables – At fair value through profit and lossDiscounted cash flow
Fair value through
Amortised costprofit and loss Total
Opening balance (1 April 2023)
Gross carrying value2,241 1,769 4,010
Less: Impairment allowance (101) - (101)
Total Loans receivable2,140 1,769 3,909
Movements during the period
Advances of loans to customers (1,585) (864) (2,448)
Repayments of loans by customers442 - 442
Movement in accrued interest15 - 15
Movement in Impairment Allowance(7) - (7)
Fair value gain/(loss) on revaluation- (89) (89)
Total Movements(1,135) (953) (2,088)
Gross carrying value1,113 816 1,930
Less: Impairment allowance (109) - (109)
Total Loans receivable1,005 816 1,821
Closing balance (31 March 2024)
Current portion603 496 1,099
Non-current portion510 321 831
Less: Impairment allowance (109) - (109)
Total Loans receivable1,005 816 1,821
Fair value through
Amortised Costprofit and loss Total
Opening balance (1 April 2024)
Gross carrying value1,113 816 1,930
Less: Impairment allowance (109) - (109)
Total loans receivable1,005 816 1,821
Movements during the period
Advances of loans to customers - - -
Repayments of loans by customers(728) (550) (1,278)
Movement in accrued interest119 113 232
Other accrued repayments22 29 51
Movement in Impairment Allowance(50) - (50)
Fair value gain/(loss) on revaluation- (104) (104)
Total movements(637) (512) (1,150)
Gross carrying value526 304 830
Less: Impairment allowance (159) - (159)
Total loans receivable367 304 671
Closing balance (31 March 2025)
Current portion305 239 544
Non-current portion221 65 286
Less: Impairment allowance (159) - (159)
Total loans receivable367 304 671
The effective interest rate on Loans receivable at Amortised cost are 9.95% - 17.95%
22
Financial Statements For The Year Ended 31 March 2025
6
Collective
ExpectedGross financeimpairmentNet finance
loss ratereceivableprovisionreceivables
$'000$'000$'000
31 March 2025
Current2%258 (5) 253
Past due up to 30 days7%46 (3) 43
Past due 30 - 60 days17%18 (3) 15
Past due 60 - 90 days27%34 (9) 25
91 days and over81%171 (139) 32
527 (159) 368
31 Mar 2024
Current2%746 (15) 731
Past due up to 30 days7%169 (12) 157
Past due 30 - 60 days17%56 (10) 46
Past due 60 - 90 days27%12 (3) 9
91 days and over53%131 (69) 61
9.8%1,113 (109)1,005
MAR 2025MAR 2024
$'000$'000
Movement in the impairment provisions:
Specific impairment provision
Opening balance(109) (102)
Impairment Movement through profit or loss(50) (26)
Amounts written off19
(159) (109)
Loansreceivablemeasuredat fair value (financialinstrumentsthat includewaiverbasedclauses)are modelledat fair value and includean effectivedefault
risk impairment rate of 32.5% which is factored into the valuation inputs.
The Company ceased additional lending in July 2022 with the remaining loan book now being wound down.
Loansreceivablemeasuredatamortisedcost(financialassetswhichrepresentsolelypaymentsofprincipalandinterest)havebeenimpairedat30.2%,using
the expected credit loss model.
The following table details the risk profile of the Group’s provision matrix for loan receivables collectively assessed for impairment. The provision disclosed
relates to loans assured at amortised cost only. Provision on loans valued at fair value are included in the fair value gain or loss.
23
Financial Statements For The Year Ended 31 March 2025
7
15. Trade and other Receivables
MAR 2025MAR 2024
$'000$'000
Trade receivables350 601
Less: Impairment allowance(158) (87)
Net trade receivables192 514
Trade receivables generally have terms of 30 days and are interest free. Trade receivables of a short-term duration are not discounted.
These financial assets are subsequently measured at amortised cost using the effective interest rate method, less impairment.
Prepayments678 2,184
Other current assets204 418
Other receivables882 2,602
16. Trade and other payables
MAR 2025MAR 2024
$'000$'000
Trade payables2,686 1,621
Financial liabilities At Amortised cost2,686 1,621
Contract liabilities175 185
Other payables353 453
Total trade and other payables3,214 2,259
Trade payables generally have terms of 30 days and are interest free. Trade payable of a short-term duration are not discounted.
24
Financial Statements For The Year Ended 31 March 2025
8
17. Leases
(i) Right of use AssetsMAR 2025MAR 2024
$'000$'000
Opening Balance6,702 7,461
Additions and modifications3,244 1,331
Less:
Depreciation(2,280) (2,065)
Terminations(812) (25)
Closing Balance6,854 6,702
(ii) Lease Liabilities
Opening Balance7,306 7,935
Additions and modifications3,244 1,352
Interest550 362
Gain on changes to leases(14)
Less:
Terminations(867) (28)
Repayments(2,549) (2,297)
Effects of movements in exchange rates(2) (5)
Closing Balance7,682 7,306
Current portion2,084 1,689
Non-current portion5,598 5,617
Total lease liabilities7,682 7,306
(iii) Balance sheet and cash flow statementMAR 2025MAR 2024
$'000$'000
Carrying amount of RoU asset (by asset class)
• Premises6,854 6,702
• Equipment-
Total cash outflow related to leases (principal repayments)(1,999) (1,935)
Total cash outflow related to leases (interest)(550) (362)
18. Employee benefit liabilities
MAR 2025MAR 2024
$'000$'000
Liability for annual leave661 631
Wages payables201 209
Total862 840
19. Income tax
(a) Income tax recognised in profit or loss and other comprehensive incomeMAR 2025MAR 2024
$'000$'000
Income tax recognised in profit or loss
Current tax947 2,510
Deferred tax341 (29)
Total income tax expense1,288 2,481
(b) Reconciliation of income tax expense
MAR 2025MAR 2024
Income tax recognised in profit or loss$'000$'000
Profit before income tax expense4,588 8,722
Tax expense at the domestic tax rate (28%)1,285 2,442
Permanent differences(1) 10
Effects of tax rate in foreign jurisdictions4 29
Income tax expense1,288 2,481
(i) Lease term – use of renewal and termination options
The Group’s property leases typically include renewal and termination options. The Group must assess whether it reasonably expects (or not) to exercise
these when determining the lease term.
(ii) Short term leases
As at 31 March 2025 Short-term lease expense (excluding leases of 1 month or less) being $154,496
These are all leases that exclude 1 month or less in duration, which management have assessed do not qualify as a lease under NZ IFRS16 leases and have
not been capitalised as a result.
Variable lease payments incurred for FY25 is $9,859.
The Group leases a number of properties and equipment in the jurisdiction from which it operates.
25
Financial Statements For The Year Ended 31 March 2025
9
(c) Deferred tax
MAR 2025MAR 2024
Income tax recognised in profit or loss$'000$'000
Balance at the beginning of the period474 445
Current period movement(341) 29
Deferred tax asset133 474
Made Up Of:
Deferred tax asset2,645 2,440
Deferred tax liability(2,512) (1,966)
Net balance as per above133 474
Deferred tax assets are attributable to the following:
Inventory provision58 62
Employee benefits168 155
Doubtful debt44 24
Others25 24
Contract liabilities34 41
Carbon credits(427) -
Lease liabilities2,146 2,044
Right-of-use asset(1,914) (1,875)
Total133 474
20. Imputation Credits
MAR 2025MAR 2024
$'000$'000
Imputation credits at 1 April(3,341) (3,625)
Prior period adjustments(22)
New Zealand Tax payments, net of refunds(2,252) (452)
RWT attached to interest received(48)
Imputation credits attached to dividends received- (1)
Imputation credits attached to dividends paid1,109 737
(4,553) (3,341)
21. Borrowings
MAR 2025MAR 2024
$'000$'000
Current
Retail Trade Finance Facility
1
- 1,500
Mizuho bank
2
114 -
114 1,500
Non- current
Term loan - Mizuho bank823
823 -
1
During the year the company secured competitively priced working capital finance with ANZ Bank, including a new NZD$5.0 million trade finance loan and a
NZD$1.0 million commercial flexi facility. At balance date this facility had not yet been utilised. ANZ holds General Security Agreements (GSAs) over all of the
Group’s NZ subsidiaries, securing all present and after-acquired property.
2
During the year, the Company secured a JPY 80 million term loan from its Japanese banking partner. The loan is structured as a principal and interest facility,
repayable over 7 years, with an initial annual interest rate of 2.375%. Proceeds were used to support general working capital requirements.
The loan is guaranteed by the Osaka Credit Guarantee Corporation, a public institution that facilitates SME lending in Japan.
The Group has not pledged any direct assets as security to Mizuho Bank.
To enable the guarantee arrangement, David Sena, a director of the Company, has provided a personal guarantee to the Osaka Credit Guarantee
Corporation, supported by a charge over residential property owned in his personal capacity.
26
Financial Statements For The Year Ended 31 March 2025
10
22. Share capital
MAR 2025MAR 2024
Number of Ordinary Shares
Opening balance45,554,500 45,554,500
Total issued and authorised capital45,554,500 45,554,500
Dollar value of Ordinary SharesMAR 2025MAR 2024
$'000$'000
Opening balance39,344 39,344
Total issued and authorised capital39,344 39,344
23. Related parties
Identity of related parties
Key management personnel
MAR 2025MAR 2024
$'000$'000
Short-term employee benefits
827 1,301
Director fees
324 290
Defined contribution plans
23 38
Termination benefits
109 51
Total key management personnel remuneration1,282 1,680
Balance outstanding at balance
Transactions with related parties
Transactions for the perioddate
MAR 2025MAR 2024MAR 2025MAR 2024
$'000$'000$'000$'000
Yusuke Sena
10 10
- - 10 10
Indemnities
All issued shares are fully paid and have no par value. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are
entitled to one vote per share at meetings of the Group and rank equally with regard to the Group’s residual assets.
The group has a related party relationship with its key management personnel being the Directors and Executive Officers.
Key management personnel represent the Board of Directors, and the Senior Leadership team including the Managing Directors, Chief Executive Officer and
Chief Financial Officer.
During the year, the Company entered into a Deed of Indemnity with Mr. Yusuke Sena, a related party, in respect of a personal guarantee he provided to
Mizuho Bank for a JPY 80 million loan facility extended to Car Plus KK, a subsidiary of the Group. Under the deed, the Company has agreed to indemnify Mr.
Sena for any liabilities incurred under the guarantee, up to the full facility amount plus associated penalties, costs, and interest. The company considers the
fair value of the guarantee to be immaterial and it has not been recognised in the financial statements.
27
Financial Statements For The Year Ended 31 March 2025
11
24. Financial instruments - risk management
Through its operations, the Group is exposed to the following financial risks:
(a) Credit risk
(b) Market risk
(c) Liquidity risk
(d) Currency risk
(a) Credit risk
Cash and cash equivalents held with financial institutions are presented in the table below:
31 March 2025Credit rating*Cash and cash
Total
equivalents
$'000$'000
ANZ BankAA- 4,123 4,123
ASB BankAA- 67 67
Mizuho BankA 1,116 1,116
Xe 38 38
5,344 5,344
31 March 2024
Credit ratingCash and cash
Total
equivalents
$'000$'000
ASB BankAA-
3,422 3,422
ANZ BankAA-
120 120
Mizuho BankA-
871 871
Xe
260 260
4,673 4,673
* Standard & Poor’s
Interest rates on interest bearing cash and cash equivalents and investments range between 0.02% - 4.15% (2024: 0.02% - 5.36%).
As cash and cash balances are held with counterparties with “investment grade” credit ratings, there is not deemed to be a significant increase in credit risk
associated with the Group’s Cash and cash equivalents balance. Credit rating is as per Standard & Poor.
The Group has an Audit & Risk Committee that monitors credit risk as part of its wider duties.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Groups competitiveness and
flexibility. Further details regarding these policies as they relate to the specific financial risks that the Group is exposed to are set out below.
Credit risk is the risk of financial loss to the Group if a counterparty to a financial asset fails to meet their contractual obligations.
The Group’s exposure to credit risk is represented by the carrying amount of cash and cash equivalents, investments and fx contracts.
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst retaining ultimate responsibility
for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the
Group’s finance function. The Board receives monthly reports from the Chief Financial Officer through which it reviews the effectiveness of the processes put
in place and the appropriateness of the objectives and policies it sets. The Group’s internal finance team also review the risk management policies and
processes and report their findings to the Audit Committee.
28
Financial Statements For The Year Ended 31 March 2025
12
(b) Market risk
Market risk arises from the Group’s:
- Use of interest-bearing borrowings (interest rate risk); and
- Purchases in foreign currencies (foreign currency exchange risk).
i. Interest rate risk
ii. Foreign currency exchange risk
(c) Liquidity risk
Up toBetween 3 & 12Between 1 & 2Between 2 & 5Over 5Total
As at 31 March 20253 monthsmonthsyearsyearsyears
$'000$'000$'000$'000$'000$'000
Trade and other payables
3,106 19 23 66 3,214
Borrowings
28 86 236 375 213 937
Lease liabilities
158 1,925 1,442 4,156 -
7,682
Total3,293 2,030 1,701 4,597 213 11,833
Up toBetween 3 & 12Between 1 & 2Between 2 & 5
Over 5Total
As at 31 March 20243 monthsmonthsyearsyearsyears
$'000$'000$'000$'000$'000$'000
Trade and other payables
1,541 651 21 46 - 2,259
Borrowings
1,500 - - - - 1,500
Lease liabilities
559 1,470 1,861 3,553 743 8,186
Total3,600 2,121 1,882 3,599 743 11,945
The Board receives monthly financial statements which include statements of financial position, performance and cash flows, as well as budget/forecast
variance reports, to ensure it holds or will hold cash equivalents to meet its obligations.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this the Group
maintains a monthly forecast on its future cash position to ensure it can meet financial obligations when they fall due.
Interest rate risk is the risk that the fair value or future cash flows of a financial instruments will fluctuate because of changes in market interest rates.
The Group is exposed to interest rate risk from its variable rate borrowing and lease liabilities, with rates between 11.3% - 2.4% (2024: 9.3% - 3.3%).
The Group currently does not have any sales transactions denominated in foreign currencies, however, the Group has purchases transactions denominated
in foreign currencies.
During the current reporting period, the Group has purchased used cars with purchase prices denominated in foreign currencies (YEN).
The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities:
To mitigate foreign exchange risk on significant purchases, the Group enters into forward exchange contracts to match the timing and amount of payments
due. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value
at the end of each reporting period.
The Group does not apply hedge accounting to these transactions, and they are classified as held for trading for accounting purposes and are accounted for
at fair value through profit or loss. They are presented as current assets or liabilities to the extent they are expected to be settled within 12 months after the
end of the reporting period. They are considered level 2 fair value measurements being based on the present value of future cash flows based on the forward
exchange rates at the reporting date.
There are open forward exchange contracts of $2.3m at the end of the reporting period (2024: $4.0m).
The net foreign exchange loss recognised for the year was $0.44m (2024: $0.79m loss).
Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as
they fall due.
29
Financial Statements For The Year Ended 31 March 2025
13
25. Property, plant and equipment
LeaseholdMotorFurniture &ComputerWorkshopTotal
improvementsvehiclesfittingsequipmentequipment
Cost$'000$'000$'000$'000$'000$'000
Balance at 1 April 2024 889 857 737 649 203
3,335
Additions 1,122 156 27 22 12
1,339
Disposals
(119) (1) - (120)
Effect of exchange rate
(4) (4)
Balance at 31 March 20252,011 890 763 671 215 4,550
Accumulated depreciation
Balance at 1 April 2024(213) (345) (382) (551) (57)
(1,548)
Depreciation(95) (127) (50) (59) (25)
(356)
Disposals 65
65
Effect of exchange rate(3)
(3)
Balance at 31 March 2025(308) (410) (432) (610) (82) (1,842)
Net Book Value
As at 31 March 20251,703 480 331 61 133 2,708
LeaseholdMotorFurniture &ComputerWorkshopTotal
improvementsvehiclesfittingsequipmentequipment
Cost$'000$'000$'000$'000$'000$'000
Balance at 1 April 2023636 525 718 610 117 2,606
Additions254 357 19 40 112 782
Disposals(1)(25) - (1)(26)(53)
Balance at 31 March 2024889 857 737 649 203 3,335
Accumulated depreciation
Balance at 1 April 2023(158)(266)(337)(487)(38)(1,286)
Depreciation(55)(78)(45)(64)(19)(261)
Disposals - 3 - - - 3
Effect of exchange rate - (4) - - - (4)
Balance at 31 March 2024(213)(345)(382)(551)(57)(1,548)
Net Book Value
As at 31 March 2024676 512 355 98 146 1,787
Depreciation Methodology
The group recognises depreciation on a Straight line basis.
The Group has reviewed each items of property, plant and equipment and no impairment charge was recognised for the year ended 31 March 2025 (March
2024: Nil).
30
Financial Statements For The Year Ended 31 March 2025
14
26. Notes supporting statement of cash flows
Reconciliation of Profit after tax with Net Cash Flow from Operating Activities
MAR 2025MAR 2024
$'000$'000
Net Profit for the year
3,300 6,241
Non-cash tems:
Depreciation of property, plant and equipment
2,650 2,332
Carbon credits
(1,526) -
Provisions and fair value gains
(24) (43)
Loss/(gain) on sale of property, plant and equipment
(56) -
Finance expense
550 214
1,594 2,503
Movements in working capital:
(Increase)/decrease in trade and other receivables
1,472 1,954
(Increase)/decrease in other current assets
1,720 269
Increase/(decrease) in trade and other payables
955 (485)
(Increase)/decrease in Inventory
(1,059) (5,496)
Increase/(decrease) in deferred tax
341 (29)
3,429 (3,787)
Cash generated from operations
8,323 4,957
Movement in income tax payable (1,596)
1,964
Net cash flows from operating activities6,727 6,921
27. Intangible assets
Other
Carbon
Total
IntangiblesCredits
1
Cost$'000$'000$'000
Balance at 1 April 2024 76 -
76
Additions 3 1,713
1,716
Balance at 31 March 202579 1,713 1,792
Accumulated amortisation
Balance at 1 April 2024
(1) -
(1)
Amortisation(15) -
(15)
Transfers to inventory - (187)
(187)
Balance at 31 March 2025(15) (187) (203)
Net Book Value
As at 31 March 202564 1,526 1,589
28. Contingent liabilities
ANZ Bank Limited has given a guarantee to the landlord on behalf of the Group to secure premises.
The maximum guarantee is for $1,576,196 (March 2024: $2,368,014).
29. Subsequent events
The Group recognised carbon credits as intangible assets during the financial year, in line with NZ IAS 38. These credits were generated in prior periods and
are expected to be utilised to meet future emissions obligations. Carbon credits expire 3 years after they are granted.
The Group's credits have expiry dates ranging from 31 December 2026 to 31 December 2028. However, based on the Group’s current vehicle import
volumes and emissions profile, the entire balance is expected to be utilised within 18 months.
The Group carries carbon credit assets at cost less accumulated impairment losses.
The carbon credits are not amortised, as they are consumed in the ordinary course of business and effectively form part of inventory when applied to offset
charges on imported vehicles. At the point of utilisation, their cost will be reclassified through cost of goods sold.
No significant events have occurred subsequent to the balance date.
31
Financial Statements For The Year Ended 31 March 2025
Independent Auditor’s Report
Opinion
I have audited the consolidated financial statements of 2 Cheap Cars Group Limited (“the Company”) and its
subsidiaries (“the Group”), which comprise:
• the consolidated statement of financial position as at 31 March 2025;
• the consolidated statement of profit or loss and other comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then ended;
and
• the notes to the consolidated financial statements, including a summary of material accounting
policies.
I am a partner with UHY Haines Norton Chartered Accountants Sydney (the Firm) and I have used the staff
and resources of the Firm to perform the audit of the Group.
In my opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at 31 March 2025, and its consolidated financial performance
and its consolidated cash flows for the year then ended in accordance with New Zealand Equivalents to
International Financial Reporting Standards (“NZ IFRS”) issued by the New Zealand Accounting Standards
Board and IFRS Accounting Standards (“IFRS”) issued by the International Accounting Standards Board.
Basis for Opinion
I conducted my audit in accordance with International Standards on Auditing (New Zealand) (“ISAs (NZ)”)
issued by the New Zealand Auditing and Assurance Standards Board. My responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of my report.
I am independent of the Group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by
the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (IESBA Code), and I have fulfilled my other ethical responsibilities in accordance with these
requirements and the IESBA Code.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other than in my capacity as auditor, neither myself, the firm or the firm’s staff have no relationship with, or
interests in, the Group.
Independent Auditor’s Report
Opinion
I have audited the consolidated financial statements of 2 Cheap Cars Group Limited (“the Company”) and its
subsidiaries (“the Group”), which comprise:
• the consolidated statement of financial position as at 31 March 2025;
• the consolidated statement of profit or loss and other comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then ended;
and
• the notes to the consolidated financial statements, including a summary of material accounting
policies.
I am a partner with UHY Haines Norton Chartered Accountants Sydney (the Firm) and I have used the staff
and resources of the Firm to perform the audit of the Group.
In my opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at 31 March 2025, and its consolidated financial performance
and its consolidated cash flows for the year then ended in accordance with New Zealand Equivalents to
International Financial Reporting Standards (“NZ IFRS”) issued by the New Zealand Accounting Standards
Board and IFRS Accounting Standards (“IFRS”) issued by the International Accounting Standards Board.
Basis for Opinion
I conducted my audit in accordance with International Standards on Auditing (New Zealand) (“ISAs (NZ)”)
issued by the New Zealand Auditing and Assurance Standards Board. My responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of my report.
I am independent of the Group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by
the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (IESBA Code), and I have fulfilled my other ethical responsibilities in accordance with these
requirements and the IESBA Code.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other than in my capacity as auditor, neither myself, the firm or the firm’s staff have no relationship with, or
interests in, the Group.
32
Financial Statements For The Year Ended 31 March 2025
Key Audit Matters
Key audit matters are those matters that, in my professional judgement, were of most significance in my audit
of the consolidated financial statements of the current year. These matters were addressed in the context of
my audit of the consolidated financial statements as a whole, and in forming my opinion thereon, and I do
not provide a separate opinion on these matters.
Why the audit matter is significant How my audit addressed the key audit matter
Revenue recognition
The Group has recognised revenue of
$80.2 m (FY 2024: $86.8m) (Note 4). 2CC
Group’s net sales comprises revenue
from the sale of cars, insurance agent
commissions and finance agent
commissions.
Revenue is recognised when the control
associated with a good or service (or in
aggregate thereof) representing a
distinct performance obligation is
transferred from the Group to the
customer.
There are a number of factors that could
affect this reported amount, including
the risk for revenue recognition policies
being incorrectly applied or recognised
in an incorrect period. This presents a
key audit matter due to the financial
significance and nature of net sales in
the financial statements.
To address the risk associated with revenue
recognition, the following audit procedures were
carried out:
• Evaluated the design of management's internal
controls related to revenue recognition.
• Reviewed revenue recognition policies for
appropriateness and compliance with relevant
accounting standards.
• Selected a sample of transactions and
inspected supporting sales documentation,
cash received and assessed whether all criteria
related to revenue recognition has been met
before being recognised as revenue.
• Reviewed credit notes posted after year end to
ascertain revenue recognition during the year.
• Performed revenue cut off procedures by
selecting revenue samples before and after
year end and testing that revenue is recorded
in the correct period.
• Reviewed manual revenue journals as part of
the journal entry testing process.
• Assessed the reasonability and completeness
of the revenue related disclosures to test
compliance with the requirements of the
accounting standards.
Information Other than the Consolidated Financial Statements and Auditor’s Report thereon
The Directors are responsible for the other information. The other information comprises the annual report
but does not include the consolidated financial statements and my auditor’s report thereon. The annual
report is expected to be made available to me after the date of this auditor’s report.
My opinion on the consolidated financial statements does not cover the other information and I do not and
will not express any form of audit opinion or assurance conclusion thereon.
In connection with my audit of the consolidated financial statements, my responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other
information is materially inconsistent with the consolidated financial statements or my knowledge obtained
in the audit, or otherwise appears to be materially misstated.
33
Financial Statements For The Year Ended 31 March 2025
When I read the annual report, if I conclude that there is a material misstatement therein, I am required to
report that fact.
Directors’ Responsibilities for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the
consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the
Directors determine is necessary to enable the preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the Group for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to liquidate the
Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
My objective is to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the consolidated financial statements is
located on the External Reporting Board’s website at: https://www.xrb.govt.nz/standards/assurance-
standards/auditors-responsibilities/audit-report-1/.
This description forms part of my auditor’s report.
Restriction on use of my report
This report is made solely to the Group’s shareholders, as a body. My audit work has been undertaken so that
I might state to the Group’s shareholders, as a body those matters which I am required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume
responsibility to anyone other than the Group and the Group’s shareholders, as a body, for my audit work,
for this report or for the opinion I have formed.
Vikas Gupta
Audit Partner - UHY Haines Norton Chartered Accountants Sydney
Signed at Sydney, Australia on 29 May 2025
34
Financial Statements For The Year Ended 31 March 2025
1
2 CHEAP CARS GROUP LIMITED
Company Directory
Nature of Business
Used automotive vehicle retailer and motor vehicle finance provider
Registered Office
102 Mays Road
Onehunga
Auckland 1061
Head Office
102 Mays Road
Onehunga
Auckland 1061
Directors
Michael Stiassny
Gordon Shaw
Yusuke Sena
Bankers
ANZ Bank
Solicitors
MinterEllisonRuddWatts
Independent Auditors
UHY Haines Norton Sydney
Share Register
Computershare
1
2 CHEAP CARS GROUP LIMITED
Director's Report
For the year ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
present the consolidated financial statements of the Group
for the year ended ended 31 March 2025
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on this 29th day of May 2025
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2025Date
---
Results announcement
Results for announcement to the market
Name of issuer 2 Cheap Cars Group Limited
Reporting Period 12 months to 31 March 2025
Previous Reporting Period 12 months to 31 March 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$81,965 -6%
Total Revenue $81,965 -6%
Net profit/(loss) from
continuing operations
$3,300 -47%
Total net profit/(loss) $3,603 -41%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.02140000
Imputed amount per Quoted
Equity Security
$ 0.00832222
Record Date 06/05/2025
Dividend Payment Date 20/06/2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.43 $0.44
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to accompanying Results Announcement
Authority for this announcement
Name of person
authorised
to make this announcement
David Sena, CEO
Contact person for this
announcement
Angus Guerin, CFO
Contact phone number 021 998 708
Contact email address angus.guerin@2ccgroup.co.nz
Date of release through MAP
30/05/2025
Audited financial statements accompany this announcement.
---
Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)
Please do not amend or delete individual rows. As this template relates to prescribed content, changes to content
should only be made where it is clearly indicated that this is permitted, otherwise, if an Issuer considers a particular
element does not apply, mark the row as N/A, Any other changes to this prescribed form must first be approved by
NZX as required under NZX Listing Rule 3.26.1.
Section 1: Issuer information
Name of issuer 2 Cheap Cars Group Limited
Financial product name/description Ordinary Shares
NZX ticker code 2CC
ISIN (If unknown, check on NZX
website)
NZNZAE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 06/06/2025
Ex-Date (one business day before the
Record Date)
05/06/2025
Payment date (and allotment date for
DRP)
20/06/2025
Total monies associated with the
distribution
1
$ 974,866.30
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution
2
$ 0.02972222
Gross taxable amount
3
$ 0.02972222
Total cash distribution
4
$ 0.02140000
Excluded amount (applicable to listed
PIEs)
$ N/A
Supplementary distribution amount $ 0.00377647
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed
Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
6
28%
Imputation tax credits per financial
product
$ 0.00832222
Resident Withholding Tax per
financial product
$ 0.00148611
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
David Sena, CEO
Contact person for this
announcement
Angus Guerin, CFO
Contact phone number 021998708
Contact email address Angus.guerin@2ccgroup.co.nz
Date of release through MAP
30/05/2025
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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