Second-half momentum drives FY26 profitability

29 May 2026

Market announcement
NZX:2CC

FY26 results
Second-half momentum drives FY26 profitability

2 Cheap Cars Group Limited (NZX:2CC) today reported net profit after tax (NPAT) of $3.2 million for
the full year to 31 March 2026 (FY26), demonstrating the resilience of the Group’s vertically integrated
operating model despite challenging market conditions and increased Clean Car Standard costs.

The result was underpinned by a significant improvement in trading momentum during the second
half, with stronger vehicle margins, improved procurement conditions and record finance and
insurance (F&I) penetration rates contributing to improved profitability through the final quarter.

The FY26 result is in line with guidance provided in January 2026, when the Company advised that
full-year NPAT was expected to exceed $3.0 million.

Summary of key results
(Figures quoted are in NZ dollars. Comparisons are made against FY25.)

 Revenue and income: $81.7m, down 0.3%
 Gross margin: $17.4m, down 2%
 Vehicle sales: 7,239, compared with 7,675 units in FY25
 EBITDA including finance income: $8.1m, up 1%
 Net profit after tax (NPAT): $3.2m, compared with $3.3m in FY25
 Underlying earnings per share (EPS): 7 cents per share (cps), unchanged from FY25
 Final gross dividend: 3.99 cps
 Total FY26 gross dividend: 6.14 cps vs 6.03 cps

Performance overview

The FY26 result reflects solid performance amid a challenging operating environment for the used
vehicle sector where elevated regulatory costs, subdued consumer confidence and soft economic
conditions impacted demand throughout much of the financial year.

FY26 profitability was materially impacted by increased carbon credit costs under the Clean Car
Standard which adversely affected year-on-year NPAT by approximately $1.7 million relative to FY25.

Despite these hurdles, trading materially improved during the second half. The Group benefited from
improved procurement conditions and achieved stronger vehicle margins and robust finance and
insurance penetration rates.

Revenue and income for FY26 were $81.7m, broadly in line with FY25 despite softer overall vehicle
volumes and continued pricing pressure across the industry.

Gross margin declined 2% to $17.4m, reflecting ongoing margin compression – primarily as a result of
carbon credit costs – through the first half of FY26. This was partially offset by improved second-half
trading performance and operational efficiencies.

The Group maintained strong finance and insurance penetration rates (insurance penetration rates hit
a record 44%, up from 36% the year prior) during the second half, supported by disciplined sales
execution, improving procurement conditions and a more stable consumer financing environment.

Changes to carbon credit settings under the Clean Car Standard also contributed positively during the
last quarter of FY26, with reduced carbon credit costs supporting profitability on vehicles imported and
sold under the revised settings.

The Company’s direct sourcing model (via subsidiary Car Plus K.K. in Japan), continued to support

superior inventory quality, procurement flexibility and margin optimisation.

Operating expenses remained tightly controlled throughout the year despite ongoing inflationary
pressures across rent, employment, compliance and utilities costs.

The Group also continued to refine its operating model during FY26, including the adoption of a hybrid
compliance strategy combining internal capability with selected outsourced providers to improve
flexibility and efficiency.

Net operating cash inflow was $4.2m for FY26, compared with $6.7m in FY25. Inventory increased to
$18m as at 31 March 2026, reflecting continued investment in superior direct purchasing opportunities
through the company’s Japanese subsidiary.

As at 31 March 2026, 2 Cheap Cars remained compliant with all banking covenants and held cash
balances of $3.8m and total equity of $22.2m.

Strategic update

The Group is continuing to invest in initiatives designed to strengthen long-term capability and improve
customer acquisition efficiency.

During the year, these initiatives included increased investment into direct-to-consumer marketing
channels, strengthening brand capability, and enhancing digital customer engagement initiatives
aimed at reducing reliance on third-party listing platforms over time.

2 Cheap Cars Chief Executive, David Sena, said the improved second-half performance demonstrated
the resilience of the business and the benefits of the operational initiatives implemented throughout
the financial year.

“While the market environment remained difficult for much of the year, we saw positive momentum
through the final quarter driven by improved margins, robust F&I penetration and better procurement
conditions.

“Our vertically integrated sourcing model and disciplined operational focus continue to position the
business well, despite the ongoing volatility across the automotive sector,” he said.

Dividend

The Board has declared a final gross dividend of 3.99 cents per share (cps), bringing total FY26 gross
dividends to 6.14 cps.

This final dividend represents approximately 60% of second-half net profit after tax (NPAT), in line with
the company’s stated dividend policy.

Based on a share price of $0.62 as at the announcement date, the total FY26 gross dividend
represents a yield of approximately 9.9%.

The record date is 5 June 2026, and payment will be made on 19 June 2026.

Outlook for FY27

Early FY27 performance is encouraging and reinforces confidence in the Group’s trajectory and
resilient market positioning. While consumer demand will likely continue to be shaped by geopolitical
events and domestic inflation, the Group remains prudently optimistic.

2 Cheap Cars’ strong brand position – which is well suited to a recessionary market – will enable it to
navigate external factors likely to continue influencing trading conditions through FY27, including
interest rates, fuel and shipping costs, and ongoing regulatory settings under the Clean Car Standard.

Chairman Michael Stiassny said the Group remained well positioned to continue to navigate market

volatility due to its disciplined inventory management, flexible sourcing strategies, and focus on
operational efficiencies, cash flow management and balance sheet strength.

“We are running a tight ship, and while broader market conditions remain impossible to predict, the
improved trading momentum coming into the new financial year is encouraging,” 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 10 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
DRIVING

BETTER

DEALS


EVERY DAY
2026

2 CHEAP CARS GROUP LIMITED
Table of Contents
SectionPage(s)
Director's Report1
Consolidated Statement of Profit or Loss and Other Comprehensive Income2
Consolidated Statement of Financial Position3
Consolidated Statement of Changes in Equity4
Consolidated Statement of Cash Flows5
Notes to the Consolidated Financial Statements6 - 24
Audit Report25 - 27
Company Directory28
2 CHEAP CARS GROUP LIMITED 
Financial Statements For The Year Ended 31 March 2026

1
Financial Statements For The Year Ended 31 March 2026
2 CHEAP CARS GROUP LIMITED
Directors' Report
For the year ended 31 March 2026
The Board of Directors of 2 Cheap Cars Group Ltd.
present the consolidated financial statements of the Group
for the year ended 31 March 2026
The Board of Directors of 2 Cheap Cars Group Ltd
authorised the issue of these consolidated financial statements
on 28 May 2026
Approved for and on behalf of the Board of Directors
Director
Director
28-May-26Date
1
2 CHEAP CARS GROUP LIMITED 

2
Financial Statements For The Year Ended 31 March 2026
2 Cheap Cars Group Limited
Consolidated statement of profit or loss and other comprehensive income
For the 12 month period ended 31 March 2026
NoteMAR 2026MAR 2025
$'000$'000
Revenue
Revenue and income481,644 80,170
Sundry income570 1,795
Expenses
Cost of sales(64,272) (64,174)
Administration expenses5(2,699) (3,155)
Advertising expenses(2,552) (2,339)
Depreciation & amortisation expenses(2,907) (2,650)
Employee benefits5(3,202) (3,390)
Finance expenses8(754) (739)
Property expenses(899) (930)
Profit before income tax4,429 4,588
Income tax expense18(1,241) (1,288)
Profit for the period3,188 3,300
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Translation of foreign operations(409) 303
Total other comprehensive income(409) 303
Total comprehensive income for the period2,779 3,603
Earnings per share
Basic earnings per share 100.07 0.07
Diluted earnings per share 100.07 0.07
The accompanying notes form part of these consolidated financial statements
2
2 CHEAP CARS GROUP LIMITED 

3
Financial Statements For The Year Ended 31 March 2026
2 Cheap Cars Group Limited
Consolidated statement of financial position
As at 31 March 2026
NoteMAR 2026MAR 2025
Note$'000$'000
Equity
Share capital2139,344 39,344
Amalgamation reserve(35,956) (35,956)
Foreign currency translation reserve(260) 148
Retained earnings19,024 17,525
Total equity22,152 21,061
Current liabilities
Trade and other payables152,880 3,214
Employee benefit liabilities17909 862
Borrowings20126 114
Income tax payable671 459
Related party payable22- 10
Lease liability162,288 2,084
Other current liabilities5 14
Total current liabilities6,879 6,757
Non-current liabilities
Lease liability166,689 5,598
Borrowings20625 823
Total non-current liabilities7,314 6,421
Total equity and liabilities36,345 34,239
Current assets
Cash and cash equivalents123,838 5,344
Derivative financial assets7 38
Trade and other receivables14289 192
Other current assets141,762 882
Loans receivable106 385
Inventories1318,041 14,932
Total current assets24,043 21,773
Non-current assets
Other non current assets947 896
Plant, property and equipment242,573 2,708
Intangible assets26141 1,589
Loans receivable50 286
Deferred tax asset18633 133
Right-of-use assets167,958 6,854
Total non-current assets12,302 12,466
Total assets 36,345 34,239
Approved on behalf of the Board on 28 May 2026
DirectorDate28-May-26
DirectorDate28-May-26
The accompanying notes form part of these consolidated financial statements
3
2 CHEAP CARS GROUP LIMITED 

4
Financial Statements For The Year Ended 31 March 2026
2 Cheap Cars Group Limited
Consolidated statement of changes in equity
For the 12 month period ended 31 March 2026
Share
Capital
Retained
Earnings
Foreign
Currency
Translation
Reserve
Amalgamation
Reserve
Total Equity/
(Accumulated
Losses)
$'000$'000$'000$'000$'000
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
Balance as at 01 April 202539,344 17,525 148 (35,956) 21,061
Profit for the period- 3,188 - - 3,188
Translation of foreign operations- - (409) - (409)
Total comprehensive income for the period- 3,188 (409) - 2,779
Dividend paid- (1,689) - - (1,689)
Total transactions with owners of the group- (1,689) - - (1,689)
Balance as at 31 March 202639,344 19,024 (260) (35,956) 22,152
The accompanying notes form part of these consolidated financial statements
4
2 CHEAP CARS GROUP LIMITED 

5
Financial Statements For The Year Ended 31 March 2026
2 Cheap Cars Group Limited
Consolidated Statement of Cash Flows
For the year ended 31 March 2026
MAR 2026MAR 2025
$'000$'000
Cash flows from operating activities
Cash receipts from customers
81,070 80,464
Cash paid to suppliers and employees
(75,282) (72,390)
Interest received
120 133
Interest paid - retail operations
(38) (80)
Tax paid / received
(2,428) (2,395)
Net cash inflow from operating activities before Changes in Operating Assets and
Liabilities
3,442 5,732
Proceeds from loan receivables
732 995
Net cash inflow from operating activities4,174 6,727
Cash flows from investing activities
Proceeds from property, plant and equipment
- 36
Purchase of property, plant and equipment
(320) (1,312)
Purchase of Intangible Assets
(120) (3)
Decrease / (increase) in lease guarantee deposits
(50) 947
Net cash outflow from investing activities(490) (332)
Cash flows from financing activities
Dividend paid
(1,689) (2,915)
Interest paid - finance operations
(685) (550)
Net (repayment) /proceeds of borrowings
(186) (563)
Principal elements of lease payments
(2,221) (1,999)
Net cash outflow from financing activities(4,781) (6,027)
Net increase/(decrease) in cash and cash equivalents
(1,097) 368
Cash and cash equivalents at beginning of period
5,344 4,673
Effect of exchange rate
(409) 303
Cash and cash equivalents at end of period3,838 5,344
The accompanying notes form part of these consolidated financial statements
5
2 CHEAP CARS GROUP LIMITED 

6
Financial Statements For The Year Ended 31 March 2026
Notes to the Financial Statements
1. Reporting entity
2. Basis of preparation
(a) Statement of compliance
(b) Basis of measurement
(c) Functional and presentation currency
(d) Going Concern
(e) Critical accounting estimates and judgements
(f) Changes in accounting policies
(g) Changes in accounting estimates
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.
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 2026 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).
• Derivative financial instruments (Note 23)
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 ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimates are revised and in any future periods affected.
No changes in accounting policies were made this financial year.
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 and the discount rate applied to loans.
6

7
Financial Statements For The Year Ended 31 March 2026
(h) New / amended acct standards
3. Material Accounting Policies
a) Basis of consolidation
Subsidiaries
Name
MAR 2026MAR 2025
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%
(b) Foreign currency
(i) Foreign currency transactions
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 2026. The consolidated entity has not yet
assessed the impact of these new or amended Accounting Standards and Interpretations.
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 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.
Details of the Group’s material accounting policies are provided below.
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.
(iii) Foreign currency non-monetary assets and liabilities
Country of incorporation and principal
place of business
Proportion of ownership
interest
(ii) Foreign currency monetary assets and liabilities
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:
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.
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.
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.
7

8
Financial Statements For The Year Ended 31 March 2026
(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 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.
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.
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.
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 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.
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
recognised and presented as a “Other current asset” in the consolidated statement of financial position.
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.
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 providing 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.
8

9
Financial Statements For The Year Ended 31 March 2026
(d) Insurance contracts
(e) Tax
(i)
(ii)
temporary differences arising on the initial recognition of goodwill; and
(iii)
(f) Employee benefits
(i) Short-term employee benefits
(ii) Defined contribution plans (KiwiSaver etc.)
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.
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.
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.
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.
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.
ε

10
Financial Statements For The Year Ended 31 March 2026
(g) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
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.
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.
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.
10

11
Financial Statements For The Year Ended 31 March 2026
(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.
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 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.
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.
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).
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.
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.
11

12
Financial Statements For The Year Ended 31 March 2026
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
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.
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.
Derivative 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 it is classified as At Amortised cost.
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.
Derivative 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.
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.
12

13
Financial Statements For The Year Ended 31 March 2026
(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
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:
• 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;
• 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
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).
• the exercise price of any purchase option granted in favour of the Group if it is reasonably certain to exercise that option;
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.
• 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 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).
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.
When the Group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification:
1ϯ

14
Financial Statements For The Year Ended 31 March 2026
Increases in scope:
Decreases in scope:
The right-of-use asset is adjusted by the same amount.
(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
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.
The credits were originally generated while the Group participated in the Fleet Average Scheme, under which credits were earned based on fleet-
wide emissions performance relative to regulatory thresholds.
During the current financial year, all remaining carbon credits were utilised to offset the cost of import credits required under the scheme. As a
result, no carbon credit intangible asset remains recognised at balance date.
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.
- Carbon credits were initially recognised at cost, representing the value attributed to the credits at the time they were earned or incurred.
• 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 or 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.
14

15
Financial Statements For The Year Ended 31 March 2026
Notes to and Forming part of the Consolidated the Financial Statements
4. Revenue from Contracts with CustomersMAR 2026MAR 2025
$'000$'000
Sale of cars73,386 73,065
Fair value gain/(loss) on revaluation125 (105)
Interest on bank accounts, short term deposits and investments120 202
Loan fees and interest139 273
Agent commissions received - -
- Interest agent commissions5,179 4,379
- Insurance agent commissions2,695 2,356
Total revenue from contracts with customers81,644 80,170
Timing of transfer of goods and services
Point of sale income81,372 79,735
Over time income272 435
Total Revenue81,644 80,170
5. Sundry Income
MAR 2026MAR 2025
$'000$'000
Carbon Credit Income
1
- 1,713
Rental Income28 -
Other42 82
Total sundry income70 1,795
6. Segment reporting
Description of segments
Reportable segments have been identified as follows:
Operating Segments
AutomotiveAutomotiveOther
As at 31 March 2026retailsupply chainentitiesTotal
$'000$'000$'000$'000$'000
Revenue including interest81,185 31,670 1,576 (32,787) 81,644
Sundry Income51 19 - - 70
Cost of sale(66,213) (30,036) (810) 32,787 (64,272)
Operating expense(9,217) (1,327) (1,715) - (12,259)
Operating profit5,806 326 (949) - 5,183
Dividend received- - 1,689 (1,689) -
Interest expense - trading(700) (22) (44) 12 (754)
Net profit before tax5,106 304 696 (1,677) 4,429
Inter-entity
transactions
1
During the prior 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 was 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 and Japan.
15

16
Financial Statements For The Year Ended 31 March 2026
AutomotiveAutomotiveOther
As at 31 March 2025retailsupply chainentitiesTotal
$'000$'000$'000$'000$'000
Revenue including interest79,928 8,727 2,340 (10,825) 80,170
Sundry Income1,795 30 - (30) 1,795
Cost of sale(66,801) (7,164) (1,079) 10,870 (64,174)
Operating expense(9,437) (1,210) (1,817) - (12,464)
Operating profit5,485 383 (556) 15 5,327
Dividend received- - 4,792 (4,792) -
Interest expense - trading(623) (6) (135) 25 (739)
Net profit before tax4,862 377 4,101 (4,752) 4,588
7. Determination of fair values
8. Finance Expenses
NoteMAR 2026MAR 2025
$'000$'000
Interest expense on financial liabilities measured at amortised cost(39)(79)
Interest expense on lease liabilities16(685)(550)
Other(30)(110)
Finance Expenses(754) (739)
9. Key operating expenses
Key operating expenses includes the followingNoteMAR 2026MAR 2025
$'000$'000
Audit fees(145)(139)
Amortisation(42)(14)
Depreciation - property, plant and equipment24(451)(356)
Depreciation - right-of-use assets16(2,412)(2,280)
Wages and salaries(2,848)(3,092)
Kiwisaver contributions(98)(158)
10. Earnings Per Share
MAR 2026MAR 2025
$'000$'000
Numerator
Profit for the period3,188 3,300
Denominator
Weighted average number of shares45,554,500 45,554,500
EPS basic0.070.07
EPS Diluted0.070.07
Inter-entity
transactions
Diluted earnings per share assumes conversion of all dilutive potential ordinary shares in determining the denominator.
The carrying amount of financial assets and liabilities has been determined to be a reasonable approximation of their fair value.
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.
16

17
Financial Statements For The Year Ended 31 March 2026
11. Dividends
MAR 2026MAR 2025
$'000$'000
Final Dividend981 1,907
Interim Dividend708 1,008
Total1,689 2,915
12. Cash and Cash Equivalents
Held withCredit RatingInterestInterestMAR 2026MAR 2025
Credit Rating31 March 202631 March 2025$'000$'000
31 March 2026
Cash at BankANZ BankAA-1.95%1.75%3,132 4,123
ASB BankAA-2.11%3.61%26 67
Mizuho BankA0.02%0.02%679 1,116
Xe - - 1 38
13. Inventories
MAR 2026MAR 2025
$'000$'000
Gross stock on hand18,182 15,138
Inventory provision(141)(206)
Total inventories18,041 14,932
14. Trade and other Receivables
MAR 2026MAR 2025
$'000$'000
Trade receivables450 350
Less: Impairment allowance(161) (158)
Net trade receivables289 192
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.
Prepayments700 678
Car credits receivable357 -
Other current assets705 204
Other receivables1,762 882
15. Trade and other payables
MAR 2026MAR 2025
$'000$'000
Trade payables1,931 2,686
Financial liabilities At Amortised cost1,931 2,686
Contract liabilities152 175
Other payables797 353
Total trade and other payables2,880 3,214
Trade payables generally have terms of 30 days and are interest free. Trade payables of a short-term duration are not discounted.
The cost of inventory recognised in the period 31 March 2026 is $55,108,735.
The carrying value of inventory pledged as security as the groups borrowings as at 31 March 2026 is $16,156,425.
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.
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.
17

18
Financial Statements For The Year Ended 31 March 2026
16. Leases
(i) Right of use AssetsMAR 2026MAR 2025
$'000$'000
Opening Balance6,854 6,702
Additions and modifications3,516 3,244
Less:
Depreciation(2,412) (2,280)
Terminations- (812)
Closing Balance7,958 6,854
(ii) Lease Liabilities
Opening Balance7,682 7,306
Additions and modifications3,517 3,244
Interest685 550
Less:
Terminations- (867)
Repayments(2,906) (2,549)
Effects of movements in exchange rates(1) (2)
Closing Balance8,977 7,682
Current portion2,288 2,084
Non-current portion6,689 5,598
Total lease liabilities8,977 7,682
(iii) Balance sheet and cash flow statementMAR 2026MAR 2025
$'000$'000
Carrying amount of RoU asset (by asset class)
• Premises7,958 6,854
• Equipment
Total cash outflow related to leases (principal repayments)(2,221) (1,999)
Total cash outflow related to leases (interest)(685) (550)
(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 2026 Short-term lease expense (excluding leases of 1 month or less) being $101,577 (2025: 154,496).
These are all leases that exclude 1 month or less in duration, which management has assessed do not qualify as a lease under NZ IFRS16 leases
and have not been capitalised as a result.
The Group leases a number of properties and equipment in the jurisdiction from which it operates.
18

19
Financial Statements For The Year Ended 31 March 2026
17. Employee benefit liabilities
MAR 2026MAR 2025
$'000$'000
Liability for annual leave792 661
Wages payables117 201
Total909 862
18. Income tax
(a) Income tax recognised in profit or loss and other comprehensive incomeMAR 2026MAR 2025
$'000$'000
Income tax recognised in profit or loss
Current tax1,741 947
Deferred tax(500) 341
Total income tax expense1,241 1,288
(b) Reconciliation of income tax expense
MAR 2026MAR 2025
Income tax recognised in profit or loss$'000$'000
Profit before income tax expense4,429 4,588
Tax expense at the domestic tax rate (28%)1,240 1,285
Permanent differences10 (1)
Prior year adjustment(9) -
Effects of tax rate in foreign jurisdictions- 4
Income tax expense1,241 1,288
(c) Deferred tax
MAR 2026MAR 2025
Income tax recognised in profit or loss$'000$'000
Balance at the beginning of the period133 474
Current period movement500 (341)
Deferred tax asset633 133
Made Up Of:
Deferred tax asset3,499 2,645
Deferred tax liability(2,866) (2,512)
Net balance as per above633 133
Deferred tax assets are attributable to the following:
Inventory provision40 58
Employee benefits233 168
Doubtful debt45 44
Others3 25
Contract liabilities27 34
Carbon credits- (427)
Lease liabilities2,512 2,146
Right-of-use asset(2,227) (1,914)
Total633 133
19. Imputation Credits
MAR 2026MAR 2025
$'000$'000
Imputation credits at 1 April(873) 340
Prior period adjustments- (22)
New Zealand Tax payments, net of refunds(1,442) (2,252)
RWT attached to interest received(24) (48)
Imputation credits attached to dividends paid646 1,109
(1,693) (873)
During FY26, the Company identified that shareholder continuity requirements for imputation purposes were inadvertently breached in October 2023,
resulting in the forfeiture of imputation credits accumulated prior to 30 May 2023. Accordingly, the comparative FY25 Imputation Credit Account
opening balance has been adjusted to remove approximately $3.7 million of imputation credits. The adjustment is non-cash in nature and does not
impact reported profit, net assets, cash flows, or the validity of imputation credits attached to dividends already paid.
19

20
Financial Statements For The Year Ended 31 March 2026
20. Borrowings
MAR 2026MAR 2025
$'000$'000
Opening balance937 -
Proceeds from borrowings- 1,406
Repayments of borrowings(125) (469)
Effects of fx(61) -
Closing balance751 937
Current
Mizuho bank
1
126 114
126 114
Non- current
Mizuho bank
1
625 823
625 823
21. Share capital
MAR 2026MAR 2025
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 2026MAR 2025
$'000$'000
Opening balance39,344 39,344
Total issued and authorised capital39,344 39,344
22. Related parties
Identity of related parties
Key management personnel
MAR 2026MAR 2025
$'000$'000
Short-term employee benefits727 827
Director fees324 324
Defined contribution plans21 23
Termination benefits- 109
Total key management personnel remuneration1,072 1,282
Balance outstanding at balance
Transactions with related parties
Transactions for the perioddate
MAR 2026MAR 2025MAR 2026MAR 2025
$'000$'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 FY25, 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.
1
During FY25, 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.
20

21
Financial Statements For The Year Ended 31 March 2026
23. 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 2026
Credit rating*Cash and cash
Total
equivalents
$'000$'000
ANZ Bank
AA- 3,132
3,132
ASB Bank
AA- 26
26
Mizuho Bank
A 679
679
Xe
1
1
3,838 3,838
31 March 2025
Credit ratingCash and cash
Total
equivalents
$'000$'000
ANZ Bank
AA-
4,123
4,123
ASB Bank
AA-
67
67
Mizuho Bank
A-
1,116
1,116
Xe38
38
5,344 5,344
* Standard & Poor’s
Interest rates on interest bearing cash and cash equivalents and investments range between 0.02% - 2.11% (2025: 0.02% - 3.61%).
The Group has an Audit & Risk Committee that monitors credit risk as part of its wider duties.
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 overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group's 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
reviews the risk management policies and processes and report their findings to the Audit Committee.
21

22
Financial Statements For The Year Ended 31 March 2026
(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 & 5
Over 5Total
As at 31 March 2026
3
months
monthsyearsyearsyears
$'000$'000$'000$'000$'000$'000
Trade and other payables2,555 2 16 90 - 2,663
Borrowings32 94 250 375 - 751
Lease liabilities565 1,723 3,662 2,901 126
8,977
Total3,152 1,819 3,928 3,366 126 12,391
Up toBetween 3 & 12Between 1 & 2Between 2 & 5
Over 5Total
As at 31 March 2025
3
months
monthsyearsyearsyears
$'000$'000$'000$'000$'000$'000
Trade and other payables3,106 19 23 66 3,214
Borrowings28 86 236 375 213 937
Lease liabilities158 1,925 1,442 4,156 - 7,682
Total3,293 2,030 1,701 4,597 213 11,833
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 $0.9m at the end of the reporting period (2025: $2.3m).
The net foreign exchange loss recognised for the year was $0.50m (2025: $0.44m 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.
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 instrument 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 1.65% - 11.30% (2025: 2.40% -
11.30%).
The Group currently does not have any sales transactions denominated in foreign currencies, however, the Group has purchase 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 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.
22

23
Financial Statements For The Year Ended 31 March 2026
24. Property, plant and equipment
Leasehold
MotorFurniture &ComputerWorkshopTotal
improvements
vehiclesfittingsequipmentequipment
Cost
$'000$'000$'000$'000$'000$'000
Balance at 1 April 20252,011 890 763 671 215 4,550
Additions
165 80 17 3 45 310
Disposals
(29)(29)
Effect of exchange rate
(5)(5)
Balance at 31 March 20262,176 936 780 674 260 4,826
Accumulated depreciation
Balance at 1 April 2025
(308)(410)(432)(610)(82)(1,842)
Depreciation
(212)(122)(48)(43)(26)(451)
Disposals
36 36
Effect of exchange rate
4 4
Balance at 31 March 2026(520) (492)(480)(653)(108)(2,253)
Net Book Value
As at 31 March 20261,656 444 300 21 152 2,573
Leasehold
MotorFurniture &ComputerWorkshopTotal
improvements
vehiclesfittingsequipmentequipment
Cost
$'000$'000$'000$'000$'000$'000
Balance at 1 April 2024889 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
Depreciation Methodology
The Group recognises depreciation on a Straight line basis.
The Group has reviewed each item of property, plant and equipment and no impairment charge was recognised for the year ended 31 March 2026
(March 2025: Nil).
23

24
Financial Statements For The Year Ended 31 March 2026
25. Notes supporting statement of cash flows
Reconciliation of Profit after tax with Net Cash Flow from Operating Activities
MAR 2026MAR 2025
$'000$'000
Net Profit for the year3,188 3,300
Non-cash items:
Depreciation & amortisation expenses2,907 2,650
Carbon credits1,526 (1,526)
Provisions and fair value gains31 (24)
Loss/(gain) on sale of property, plant and equipment- (56)
Finance expense685 550
5,149 1,594
Movements in working capital:
(Increase)/decrease in trade and other receivables418 1,472
(Increase)/decrease in other current assets (880) 1,720
Increase/(decrease) in trade and other payables(304) 955
(Increase)/decrease in Inventory(3,109) (1,059)
Increase/(decrease) in deferred tax (500) 341
(4,375) 3,429
Cash generated from operations
3,962 8,323
Movement in income tax payable
212
(1,596)
Net cash flows from operating activities4,174 6,727
26. Intangible assets
Other
Carbon
Total
IntangiblesCredits
1
Cost
$'000$'000$'000
Balance at 1 April 2025
79 1,526
1,605
Additions
128 169
297
Transfer to inventory
(1,695)
(1,695)
Disposals
(5)
(5)
Effect of exchange rate
(5)
(5)
Balance at 31 March 2026197 - 197
Accumulated amortisation
Balance at 1 April 2025
(15)
(15)
Amortisation
(43)
(43)
Effect of exchange rate
2
2
Balance at 31 March 2026(56) - (56)
Net Book Value
As at 31 March 2026141 - 141
27. 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 $1,876,700 (March 2025: $1,576,196).
28. Subsequent events
No significant events have occurred subsequent to the balance date.
1
The Group previously recognised carbon credits as intangible assets in accordance with NZ IAS 38. These credits were generated under the Fleet
Average Scheme based on the Group’s fleet-wide emissions performance relative to regulatory thresholds.
Carbon credits were initially recognised at cost, representing the value attributed to the credits at the time they were earned. The credits were carried
at cost less any accumulated impairment losses.
During the current financial year, the Group fully utilised the remaining carbon credit balance to offset charges incurred on imported vehicles under the
Clean Car Standard Scheme. Upon utilisation, the carrying value of the credits was recognised through cost of goods sold.
Accordingly, no carbon credit intangible asset remains recognised at balance date.
The carbon credits were 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.
Ϯκ

25
Financial Statements For The Year Ended 31 March 2026







Independent Auditor’s Report
To the Shareholders of 2 Cheap Cars Group Limited

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 2026;
• 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 2026, 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.

26
Financial Statements For The Year Ended 31 March 2026

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
$81.6m (FY 2025: $80.2m) (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.

27
Financial Statements For The Year Ended 31 March 2026

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-1-1/

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 28 May 2026

28
Financial Statements For The Year Ended 31 March 2026
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
28
2 CHEAP CARS GROUP LIMITED

---

Results announcement



Results for announcement to the market
Name of issuer 2 Cheap Cars Group Limited
Reporting Period 12 months to 31 March 2026
Previous Reporting Period 12 months to 31 March 2025
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$81,714 -0.3%
Total Revenue $81,714 -0.3%
Net profit/(loss) from
continuing operations
$3,188 -3.4%
Total net profit/(loss) $3,188 -3.4%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.02870000
Imputed amount per Quoted
Equity Security
$ 0.01116111
Record Date 05/06/2026
Dividend Payment Date 19/06/2026
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.47 $0.43
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

29/05/2026

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 05/06/2026
Ex-Date (one business day before the
Record Date)
04/06/2026
Payment date (and allotment date for
DRP)
19/06/2026
Total monies associated with the
distribution
1

$ 1,307,414.15
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution
2
$ 0.03986111
Gross taxable amount
3
$ 0.03986111
Total cash distribution
4
$ 0.02870000
Excluded amount (applicable to listed
PIEs)
$ N/A
Supplementary distribution amount $ 0.00506471


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
$ 0.01116111
Resident Withholding Tax per
financial product
$ 0.00199306


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

29/05/2026






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.